Market Research Reports - Ken Research China Cab Sharing Market Outlook

China Car Rental Market was led by Boom in Domestic Tourism and Increasing Popularity of
Self-Drive Trips: Ken Research
Rising levels of household disposable income in China, expanding customer group for car rental
services and the diversification of services provided by car rental firms have been major growth
drivers of China car rental market during the review period.
The 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” by Ken Research suggested that growing demand for cab sharing, short term
car rental and bike rental services will majorly account for the overall revenue growth of China
car rental market in next 5 years till 2022.
Car rental industry in China was emerged during 1990 when the Asian Games was held in
Beijing and since then the industry has revolutionized with time. During the review period, it
was witnessed that car rental market in China is majorly dominated by organized players, with
top seven companies in the market accounting for 83% of the overall market share during 2017.
The overall car rental market is fragmented with the presence of large number of small scale
players in the industry. The short-term car rental market is still in an early stage of development
as of 2017 and the category is fragmented with the presence of various small, medium and
large players. The Chinese government’s regulation on limiting the number of vehicles has
greatly increased demand for car rentals in the country. For top-tier cities, local governments
have issued various policies to restrict the increase in the number of vehicles by limiting the
issuing of new vehicle plates, and also by restricting non-local vehicle plates to limited entry
areas and time periods.
The car rental market in China witnessed major mergers and acquisitions in the industry which
has further aided to its growth. For instance, Beijing Shouqi Car Rental Service formed a
strategic partnership with Reocar Holding Limited by purchasing 40% of its shares in early 2016;
in August 2016, Uber China merged with Didi Chuxing. Leading car rental players have
developed their own mobile apps and websites which resulted in market shift from traditional
& offline mode of bookings to online car booking in the country. Online bookings recorded
robust growth towards the end of the review period (2016-2017) due to convenience and
timesaving for the customers. The demand for car rental in China is further boosted from
corporate and individual customers in China. Insurance companies and automobile dealers also
have a growing demand for car rentals as replacements for customers when cars are under
repair. Increasing penetration of Smartphone, growing demand for car sharing and car pooling
will majorly drive the car rental market China in upcoming years.