Rising levels of household disposable income in China, expanding customer group for car rental services and the diversification of services provided by car rental firms have been major growth drivers of China car rental market during the review period.
The report titled “China Car Rental Market by Market Structure (Organized and Unorganized Sector), by Mode of Booking (Online and Offline), by Clients (Leisure and Business), by Pick-Ups (Airport and Off-Airport), by Car Type (Hatchback, Sedan and SUV) and by Major Regions - Outlook to 2022” by Ken Research suggested that growing demand for cab sharing, short term car rental and bike rental services will majorly account for the overall revenue growth of China car rental market in next 5 years till 2022.
Car rental industry in China was emerged during 1990 when the Asian Games was held in Beijing and since then the industry has revolutionized with time. During the review period, it was witnessed that car rental market in China is majorly dominated by organized players, with top seven companies in the market accounting for 83% of the overall market share during 2017. The overall car rental market is fragmented with the presence of large number of small scale players in the industry. The short-term car rental market is still in an early stage of development as of 2017 and the category is fragmented with the presence of various small, medium and large players. The Chinese government’s regulation on limiting the number of vehicles has greatly increased demand for car rentals in the country. For top-tier cities, local governments have issued various policies to restrict the increase in the number of vehicles by limiting the issuing of new vehicle plates, and also by restricting non-local vehicle plates to limited entry areas and time periods.
The car rental market in China witnessed major mergers and acquisitions in the industry which has further aided to its growth. For instance, Beijing Shouqi Car Rental Service formed a strategic partnership with Reocar Holding Limited by purchasing 40% of its shares in early 2016; in August 2016, Uber China merged with Didi Chuxing. Leading car rental players have developed their own mobile apps and websites which resulted in market shift from traditional & offline mode of bookings to online car booking in the country. Online bookings recorded robust growth towards the end of the review period (2016-2017) due to convenience and timesaving for the customers. The demand for car rental in China is further boosted from corporate and individual customers in China. Insurance companies and automobile dealers also have a growing demand for car rentals as replacements for customers when cars are under repair. Increasing penetration of Smartphone, growing demand for car sharing and car pooling will majorly drive the car rental market China in upcoming years.
Key Topics Covered in the Report
Car rental Industry China
Value Chain Analysis China Car Rental Market
China Car Rental Market Size
China Cab Aggregators Revenue
Major Players in China Car Rental Market
Car Rental Companies in China
Competition in China Car Rental Market
China Self Driving Car Market Revenue
Non Chauffer Rental Car Market China
China Car Rental Market Future Growth
CAR Inc Car Rentals Market Share
eHi Car Services Ltd Inc Fleet Size
Beijing Shouqi Group Corp Revenue
Avis Budget Group Inc Competitors
Trends in Car Rental Market China
China Cab Aggregators Market Share
China Bike Rental Industry Growth
China Cab Sharing Market Outlook
Ride Sharing Market China Outlook
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Ankur Gupta, Head Marketing & Communications
Ken Research provides bespoke industry intelligence, equity research reports and business consulting services on gamut of sectors across the globe.