Table of Contents
Executive Summary
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- The market
- The growth of car rental market slows, reaches RMB80 billion revenue in 2018
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- Figure 1: Market value of car rental and time sharing in China, 2014-19 (Est)
- Figure 2: Best- and worst-case forecast of the market value of car rental and time sharing, China, 2014-24
- Compete by providing more convenience rather than on the car itself
- Technology is empowering car rental to give consumers better renting experience
- Companies and brands
- Huge shift at the top of the market
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- Figure 3: Market share of car rental companies, by value, 2016-18
- Figure 4: Market share of time sharing companies, by value, 2017-18
- The consumer
- Regardless of tiers and income level, 60% of car rental users are car owners and 40% are non-car owners
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- Figure 5: Car rental user profile, April 2019
- Non-car owners in tier one cities show high preference for using car rental instead of purchasing
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- Figure 6: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income and city tier, April 2019
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- Figure 7: Attitudes towards car rental – selected item, by car rental type, April 2019
- Car rental usage expanding to various occasions
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- Figure 8: Car rental occasions, 2019 vs 2018
- Non-car owners in different city tiers show different renting habits
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- Figure 9: Car rental occasions, by car ownership and city tier, April 2019
- Car type preferences differ by city tier
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- Figure 10: Rented car type, by city tier, April 2019
- Young car rental users are renting for novel experiences while older car rental users are renting for luxury experiences
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- Figure 11: Rented car type – Repertoire, by age, April 2019
- Figure 12: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
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- Figure 13: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
- Convenience is the major feature that car rental users are willing to pay more for
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- Figure 14: Premium renting experience, April 2019
- Specific functional and personalised demands are higher among young car rental users
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- Figure 15: Premium renting experience, by age, April 2019
- Significant increase in both B2C and agent platforms
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- Figure 16: Usage rate of car rental platforms, April 2019
- Agent platforms tend to be favoured by non-car owners, skewing female
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- Figure 17: Usage rate of car rental platforms, by car ownership, April 2019
- Figure 18: Attitudes towards car rental – selected item, claim rate on “Agree”, by Car ownership and gender, April 2019
- What we think
Issues and Insights
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- “Why buy” attitude grows as new car subscription services emerge as a new substitute for traditional purchase
- The facts
- The implications
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- Figure 19: New car subscription service by Carpe
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- Figure 20: Lo Tote
- Greater choice of rental car models attract users thirsting for new experiences in their routine lives
- The facts
- The implications
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- Figure 21: Car subscription service from Mercedes in China and Toyota in Japan
- Rise of challenging and extreme driving
- The facts
- The implications
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- Figure 22: Off-road self-driving tips
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- Figure 23: Hulunbeier customised trip
The Market – What You Need to Know
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- The growth of car rental market slows, reaches RMB80 billion revenue in 2018
- Two out of five registered drivers don’t own cars in China, but the demand for using cars is still strong
- E-commerce technology is helping car rental become easier
Market Size and Forecast
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- Reaching RMB80 billion revenue in 2018
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- Figure 24: Market value of car rental and time sharing in China, 2014-19 (Est)
- Reaching RMB113 billion with a CAGR of 5.1% in five years
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- Figure 25: Best- and worst-case forecast of the market value of car rental and time sharing, China, 2014-24
Market Drivers
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- 40% of registered drivers don’t own cars of their own in China
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- Figure 26: Car parc and number of registered drivers in China, 2014-18
- Fast growth of domestic travel market thanks to growing highway infrastructure
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- Figure 27: Total highway mileage and highway density, 2014-18
- Car rental process becomes easier with the development of e-commerce technology
Key Players – What You Need to Know
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- Huge shift at the top of the market
- Compete by providing more convenience rather than on the car itself
- Technology is empowering car rental to give consumers better renting experience
Market Share
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- Car Inc. still leads and Shouqi rises to second place
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- Figure 28: Market share of car rental companies, by value, 2016-18
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- Figure 29: Promotion of Car Inc.
- Shouqi dominates the time-sharing market
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- Figure 30: Market share of time sharing companies, by value, 2017-18
Competitive Strategies
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- Free rental deposit cooperating with Alibaba’s Zhima Credit
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- Figure 31: Double free deposit from Aotu
- One-stop service from delivery to other support
- Convenience of off-site returns
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- Figure 32: Number of covered cities of car rental companies
Who’s Innovating?
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- Provide better rental service through the infotainment system
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- Figure 33: MassThinker and Geely
- Blurring the line between short-term and time-sharing rental through connectivity technology
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- Figure 34: Turo car rental
- Wireless battery boost
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- Figure 35: Electricity 5G
The Consumer – What You Need to Know
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- Car rental users’ rental preference varies by car ownership and other demographics
- Car rental users are using car rental for more occasions, compared with last year
- Young car rental users are renting for novel experiences while older car rental users are renting for luxury experiences
Car Rental User Profile
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- Regardless of tiers and income level, 60% of car rental users are car owners and 40% are non-car owners
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- Figure 36: Car rental user profile, April 2019
- Non-car owners in tier one cities show high preference for using car rental instead of purchasing
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- Figure 37: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income and city tiers, April 2019
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- Figure 38: Attitudes towards car rental – selected item, by car rental type, April 2019
- High acceptance of new energy car hire, especially among women and high household income group
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- Figure 39: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income and gender, April 2019
- Figure 40: Types of car rental – time sharing, by selected demographic, April 2019
Car Rental Occasions
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- Car rental usage expanding to various occasions
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- Figure 41: Car rental occasion, 2019 vs 2018
- Trips out of the city is the top car hire occasion for both car owners and non-car owners
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- Figure 42: Car rental occasion, by car ownership, April 2019
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- Figure 43: Car rental occasion, by car ownership and city tier, April 2019
- Visiting family/friends in other cities by rental car is more common among women, and especially female non-car owners
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- Figure 44: Car rental occasion – visiting family/friends in other cities, by car ownership and gender, April 2019
- Figure 45: Attitudes towards car rental – selected item, claim rate on “Agree”, by selected demographics, April 2019
- Usage for business trips is much higher in tier one cities
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- Figure 46: Car rental occasion – business trips, by selected demographics, April 2019
Rented Car Types
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- Car type preferences differ by city tier
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- Figure 47: Rented car type, by city tier, April 2019
- Young car rental users are more likely to rent different cars types
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- Figure 48: Rented car type, by age, April 2019
- Figure 49: Rented car type – Repertoire, by age, April 2019
- Older car rental users rent for great experience while young car rental users rent for new experiences
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- Figure 50: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
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- Figure 51: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
Premium Renting Experience
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- Convenience is the major feature that car rental users are willing to pay more for
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- Figure 52: Premium renting experience, April 2019
- Specific functional and personalised demands are higher among young car rental users
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- Figure 53: Premium renting experience, by age, April 2019
- Different premium demands in different renting occasions to improve the trip experience
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- Figure 54: Car rental occasion, by premium renting experience, April 2019
Car Hire Platforms
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- Significant increase in both B2C and agent platforms
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- Figure 55: Usage rate of car rental platforms, April 2019
- B2C platform more popular among male car rental users, while agent platforms are more appealing to female car rental users
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- Figure 56: Usage rate of car rental platforms – selected items, by gender, April 2019
- Agent platforms tend to be favoured by non-car owners
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- Figure 57: Usage rate of car rental platforms, by car ownership, April 2019
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- Figure 58: Attitudes towards car rental – selected item, claim rate on “Agree”, by car ownership and gender, April 2019
- C2C platforms have more potential in attracting middle household income car rental users
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- Figure 59: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income, April 2019
Meet the Mintropolitans
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- MinTs are more likely to use time sharing than non-MinTs
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- Figure 60: Type of car hire, by consumer classification, April 2019
- MinTs show more favour for SUVs, off-road vehicles and roadsters
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- Figure 61: Rented car model, by city tiers, by consumer classification, April 2019
- MinTs are more willing to pay more for better functions and personalisation
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- Figure 62: Premium renting experience, by consumer classification, April 2019
Appendix – Market Size and Forecast
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- Figure 63: Total market value of car hire, 2014-24
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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