February 2014
Featured in this insight: Automotive, Financial services, International
Survey predicts boom in Chinese car rental sector: Zero Power Intelligence, a Chinese consulting firm, predicted that market demand for rental cars in China would rise exponentially over the next five years, spurred by stricter rules on official car use and the growing popularity of driving licences.
The Beijing-based China Economic Weekly, quoted Xiao Jian, a researcher with the consulting company, as saying that demand for leased cars last year totalled 250,000 individual rentals and the market size reached 22 billion Yuan (US$3.6 billion) – a tenfold increase from 2006.
According to the survey, the sector’s growth can mainly be attributed to China’s urbanisation, which has led to the construction of the necessary infrastructure and surging car ownership levels nurturing a large base of prospective customers. The survey showed that the metropolises of Beijing, Shanghai, Guangzhou and Shenzhen still appear to be the major car rental markets, taking three fifths (59%) of the national market.
Xiao forecast the sector to project an annual growth rate of 20%-25% and the market size to hit 50 billion Yuan (US$8.2 billion) by the end of 2018.
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