Market Research Reports - Ken Research Car rental Industry China | Page 3

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