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A parking lot of the car rental company CAR Inc., Shanghai, China, December 7, 2021. / CFP
A parking lot of the car rental company CAR Inc., Shanghai, China, December 7, 2021. / CFP
The Chinese car rental market is about to enter a phase of rapid expansion, with a market scale estimated at 150 billion yuan (about $ 23.5 billion) by 2025, according to a report released Tuesday.
The car rental market will see rapid development as part of the COVID-19 containment work in China, according to the report jointly released by the Boston Consulting Group and the research institute eHi Car Services.
The industry has grown 30-fold over the past two decades, the report said, noting that its market size had reached nearly 90 billion yuan in China by 2020.
Improving consumption, penetration of new energy vehicles (NEV) and technological change in autonomous vehicles are the three trends affecting the car rental industry, according to the report.
Shifts in attitudes – from car ownership to car sharing – coupled with policy stimulus have provided a big boost to the car rental market, while the pandemic has also made consumers more likely to choose rental services.
In the NEV value chain, rental companies play a role in promoting technology upgrades, as electrification and smart grid connection are important trends in the automotive industry.
(With contribution from Xinhua)
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