China Vehicle Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The China vehicle rental market is segmented by application type (Leisure/Tourism, Business), by booking type (Online and offline), and by End-User type (Self-Driven and Rental Agencies)

Market Snapshot

market summary
Study Period: 2018 - 2026
Base Year: 2020
CAGR: 0 %

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Market Overview

The china vehicle rental market is anticipated to register a CAGR of about 4.32%, during the forecast period (2019 – 2024). 

  • Over the decades, tourism has been rapidly growing, while experiencing deepening ‎diversification and becoming one of the fastest growing economic sectors in the world. ‎Modern tourism is closely linked to development and encompasses growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-economic progress. As tourism is a huge market, the demand for vehicle rentals is growing around the world.
  • In the year of 2018, China outbound tourist arrivals totaled 149.72 million, placing the country among the top tourist destinations in the world. Shenzhen, Guangzhou, Shanghai, Hangzhou, Beijing, Xiamen, Chongqing, Tianjin, Chengdu, and Wuhan are the biggest tourist destinations in the country in 2018
  • In the Chinese tourism vehicle rental industry, the foreigners trouble surviving the high traffic in many cities in China is making them prefer chauffeur services or employing a driver for the rented cars. Because of Chinese wages, the cost of the drivers is also quite low.

Scope of the Report

The China vehicle rental market is segmented by application type (Leisure/Tourism, Business), by booking type (Online and offline), and by End-User type (Self-Driven and Rental Agencies)

By Application
By Booking
By End-User
Rental Agencies

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Key Market Trends

Growing Tourism in the Country

At present, the business volume of tourism equals or even surpasses that of oil exports, ‎food products, or automobiles. Tourism has become one of the major sectors in ‎international commerce and represents one of the main income ‎sources china. The Chinese tourism industry has transformed into one of the world's most-watched inbound and outbound tourist markets. It was estimated that the number of domestic trips in China would increase to about 2.38 billion trips by 2020, indicating an increase of over 50% compared to the number of trips made within China ten years ago.

Driving for sightseeing, once marginal in the tourism industry, is coming in vogue and stimulating the car rental business in China. Based on the surveys done by the leading online travel service providers, it is found out that more than 40% of airline and train tourists want to rent cars for tours after their arrivals. The growing preference of people to travel by the car and the growing influx of tourism in the country is driving the vehicle rental market.

trend 1

The Demand for Online Booking is Growing Rapidly

Online access is the most common method of booking a rental car, followed by offline access.

  • It includes booking via. internet websites and mobile applications.
  • Among these, booking via. sites is the most common way of booking cars. Online booking allows car booking even from far off places, without the need to be physically present at the location.
  • It helps save time and is very convenient for both the car renter and owner.

Currently, online booking also serves a variety of purposes, such as verification of documents of the renter, information to the renter regarding the car, ability of drop and pickup of the renting car at a certain place, e-signed contracts, and cashless transactions.

  • These have helped car renting companies to gain a competitive edge over their competitors, during the past few years.

The ride-hailing companies are investing in online booking feature. For instance, China’s largest ride-hailing company has pulled in some strategic capital after Booking Holdings invested USD 500 million into its business. 

The growing investment in the online booking and due to the ease in booking of the car, the demand for online booking is likely to grow more over the forecast period.

trend 2

Competitive Landscape

The Chinese car rental market is significantly fragmented, with more than 100 companies having a fleet size of less than 50. The companies try to enjoy a competitive advantage over others by providing a wide range of services. CAR (China Auto Rental Holdings), the biggest player in the China vehicle rental market and holds a significant share in the market. However, there are thousands of other rental companies with an average fleet size of fewer than 50 cars. The need for self-drive trips for leisure and business purposes, compounded with the gap between the number of cars in possession and licensed car drivers, (due to the government’s restrictions on car purchasing in order to control traffic congestion and air pollution) would augment the growth of the market considerably.

Chained operators with nationwide coverage are expected to outperform other regional players considerably due to the variety of fleets they can offer with the convenient services provided by these dominant players. Mergers and acquisitions are expected to be rampant, causing small players to strategically merge or exit the market over the forecast period, with market share concentrated among the leading players only.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Application

      1. 5.1.1 Leisure/Tourism

      2. 5.1.2 Business

    2. 5.2 By Booking

      1. 5.2.1 Online

      2. 5.2.2 Offline

    3. 5.3 By End-User

      1. 5.3.1 Self-Driven

      2. 5.3.2 Rental Agencies


    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles*

      1. 6.2.1 Avis China Car Rental

      2. 6.2.2 Bejing North Star Car Rental Market

      3. 6.2.3 CAR Holdings

      4. 6.2.4 Ehi Car Service

      5. 6.2.5 Guangzhou Car Rentals

      6. 6.2.6 Nanjing Car Service

      7. 6.2.7 Pang-Da Orix

      8. 6.2.8 Shenzen YST Auto Leasing

      9. 6.2.9 U-Lin


**Subject to Availability

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Frequently Asked Questions

The China Vehicle Rental Market 2019 market is studied from 2018 - 2026.

The China Vehicle Rental Market 2019 is growing at a CAGR of 0% over the next 5 years.

CAR Holdings, Ehi Auto Services, Shenzen YST Auto Leasing, Nanjing Car Service, Avis China Car Rental are the major companies operating in China Vehicle Rental Market 2019.

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