Market Size of China Vehicle Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.14 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Vehicle Rental Market Analysis
China vehicle rental market is expected to register a CAGR of 5.14%, during the forecast period, 2020-2025.
- The Car rental Market in China is majorly driven by factors such as investments from foreign car rental firms, entering strategic partnerships or joint ventures with domestic players and dealers, fleet capacity expansion of domestic players, etc. Currently, the industry is experiencing a penetration rate of around 4.1%.
- In December 2018, Europcar Mobility Group has extendedits partnership with Shouqi, a leading car rental company in China, subsidiary of the Beijing Tourism Group. Shouqi Car Rental customers will be able to access Europcar's car rental services directly from Shouqi's website and are able to purchase all-inclusive packages. The agenda of the partnership is to aim a yearly increase in bookings of Europcar by 25-30%.
- Also, the Chinese government’s initiatives aimed at limiting the number of vehicles has greatly increased the demand for tourist vehicle rentals in the country. The restriction on license plates is making the newer rental companies wait for registrations, putting a curb on the ability to increase their fleet rapidly. Still, the market is fragmented in the country, with the presence of a large number of small-scale players in the industry.
- 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.
- Avis Budget Group, Inc., eHi Car Service (Enterprise Holdings), The Hertz Corporation, Beijing China Auto Rental Co., Ltd. are some of the major rental companies in the country.
