China Car Rental Market Outlook to 2022: Ken Research
by Ashish Kumar Market ResearcherThe 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” provides a comprehensive analysis
of the car rental market in China. The report covers various aspects such as
overall market size of China car rental, cab aggregator, self driven car and
car sharing in terms of transaction value, segmentation on the basis of 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. The
report also covers trends and developments, issues and challenges, regulatory
scenario and SWOT analysis of China car rental market. The report covers
snapshot and business models of cab aggregator market, self driven car, car
sharing, car pooling/ride sharing and bike aggregator market in China. The
report also covers the competitive landscape of the industry and comprehensive
profile of leading players (CAR Inc, EHi Car Services Ltd, Beijing Shouqi Group
Corp, Avis Budget Group Inc, Shenzhen TopOne Car Rental Co Ltd, Shanghai Bashi
Industrial (Group) Co Ltd, Yongda Group, Shanghai Jinjiang Holdings Co Ltd)
operating in the market.
The report concludes with future outlook and
projections of China car rental market, major macroeconomic indicators and
upcoming trends affecting the market have also been highlighted in the report.
The report also serves competitive scenario for each market which exists in car
rental industry to get an in-depth understanding of car rental sector in China.
China Car Rental Market
The Chinese car rental market emerged in 1990
when the Asian Games was held in Beijing. At present, the major markets of
focus include Beijing, Shanghai, Guangzhou and Shenzhen. The traditional car
rental industry has involved with considerable assets and low profits as the
car rental companies are focusing on enhancing their competitiveness by
improving their services, expanding fleet size and operational efficiency. The
emerging platform-based internet car rental models have been gaining prominence
in the market, affecting the traditional business models. Short-term car rental
market is still in an early stage of development as of 2017 and the category
was fragmented with the presence of various players. The top 10 players within
car rental accounted for a combined value share of only ~% in 2017. During the
period 2012-2017, China car rental market grew at a CAGR of ~% in terms of
transaction value and ~% in terms of fleet size. The major growth drivers of
car rental market in China include favorable government policies, growth of
domestic tourism and growing mergers and acquisitions in the industry. The car
rental market augmented from USD ~ million during 2012 to USD ~ million during
2017 at a CAGR of ~% during 2012-2017. Car sharing has been increasingly
gaining prominence in the market owing to huge demand from the millennials,
driving the market growth. Additionally, China has witnessed double digit
growth of online car rental market which has further aided the overall market
growth during 2012-2017.
China Car Rental Market Segmentation
By Market Structure: In terms of revenues,
China car rental market is dominated by organized players which accounted for a
share of ~% (USD ~ million) during 2017. The organized players in the China car
rental market dominated in terms of fleet size and transaction value with the
presence of large players in the industry focusing on online bookings and
enhancing their fleet size. Major organized players in the car rental industry
in China include CAR Inc, EHi Car Services Ltd, Beijing Shouqi Group Corp, Avis
Budget Group Inc, and others. The unorganized market accounted for a share of
~% (USD ~ million) during 2017. The car rental market of China is highly
fragmented with availability of many small scale players in the unorganized
segment facing intense competition from app-based business models.
By Trips: In terms of transaction value,
business clients dominated the China car rental market during 2017 which
accounted for ~% (USD ~ million) of the transaction value during 2017. The
increasing number of business travelers of corporate clients and China’s huge
economy has boosted the demand for car rental services from business segment
during 2012-2017. Car rental companies have been tying up with companies to
attract more corporate clients and earn higher revenues. Car rental for leisure
purpose accounted for almost same market share as business segment, ~% (USD ~
million) during 2017. The demand of rental cars for leisure purpose is majorly
driven by tourists’ arrivals from both domestic and foreign countries.
By Mode of Booking: Online as a mode of booking
dominated the car rental segment in China which accounted for a share of ~%
(USD ~ million) during 2017. Online as a mode of booking car has been increasingly
gaining prominence in China, majorly since past two years. The organized
players in the market have shifted from traditional models of business to
online platforms to beat the market competition and provide better customer
services. Offline segment as mode of booking accounted for a share of ~% during
2017. Offline booking includes booking through phone calls, SMS and by directly
approaching a car rental company (face to face). Online car booking accounted
for a share of ~% (USD ~ million) during 2017.
By Car Type: Hatchbacks have dominated the car
rental market with a share of ~% (USD ~ million) in terms of transaction value
during 2017 due to economic price and likability of travelers. Sedan and SUV
accounted for a share of ~% (USD ~ million) and ~% (USD ~ million)
respectively, during 2017. The customers for the SUV segments represent big
corporate, luxury hotels and the high income tourists.
China Cab Aggregator Market
China has witnessed increasing demand from
working age population which has resulted in increasing prominence of the cab
aggregator or the taxi services in the country. The entry of cab aggregators in
the market has augmented the competition among the taxi services especially in
terms of price. China has witnessed increasing number of inbound tourists and
domestic travel which has resulted in increasing prominence of the cab
aggregator or the taxi services in the country. The cab aggregator market in
China has augmented from USD ~ million during 2012 to USD ~ million during 2017
at a CAGR of ~% during the period. The cab aggregator market in the country has
been growing on the back of growing internet & Smartphone penetration,
increasing convenience by booking from app-based platforms and increasing
demand from working age population. Leading players in the cab aggregator
market in China include Didi Kuaidi, MyTaxiChina and others.
China Car Sharing Market
Car-sharing, one of the fastest growing urban
mobility innovations worldwide, did not exist in China in 2009, but is quickly
becoming more prominent in Chinese cities. China’s car-sharing network has
grown to a total of ~ vehicles with five active markets including Beijing,
Wuhan, Hangzhou, Changsha, and Shenzhen. The composition of cab sharing
operators (CSOs) in China has evolved from domestic start-ups that operate
independently from government or established rental car companies to a mix of
municipal governments and foreign and domestic vehicle manufactures. Recently,
China has witnessed increasing demand for peer-to-peer car sharing where
companies provide a platform for members to rent vehicles owned by other
members in the network. Moreover, rising demand for cost-efficient and
convenient inner-city transport has driven industry revenue growth of car
sharing market over the years. The car sharing market in China has augmented
from USD ~ million during 2012 to USD ~ million during 2017 at a CAGR of ~%
during 2012-2017.
Future Outlook of China Car Rental Market
Increasing demand from working age population
and increasing expansion of tourism & travel industry will further account
for the growth of China car rental market in upcoming years. Owing to fast
development of the internet and innovations, more opportunities have appeared
for new category entrants. P2P car rental, clean-tech car rental and
time-sharing car rental all have made the car rental market more appealing and
new small and medium scale players are seeking to enter the industry. It is
expected that the increase in the travel expenditure on account of improvement
in the economic conditions, increase in the frequency of air travel and rising
number of foreign visitors in China will account for growth of China car rental
market in forecasted period. It is anticipated that online as a mode of booking
will continue to dominate the car rental market accounting for a share of ~%
during 2022. The share of offline booking will decline and online bookings will
capture huge chunk of the overall market. The overall car rental market will
grow from USD ~ million during 2018 to USD ~ million during 2022 at a CAGR of
~% during the forecasted period. Increasing demand from corporates, increasing
domestic and international tourism and growing demand for car sharing will
account for the growth of China car rental market in upcoming years.
Key Topics Covered in the Report
Avis Budget Group Inc Competitors
Car rental Industry China
Car Rentals Market Share
China Bike Rental Industry Growth
Car Rental Companies in China
eHi Car Services Ltd Inc Fleet Size
For more information on the research report,
refer to below link:
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