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Car Hire - China - July 2018

OVERVIEW
What you need to know
Covered in this Report
Included
Excluded
EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast of the market value of car rental and time sharing, China, 2013-23
Companies and brands
Figure 2: Market share of car rental companies, by value, 2015-17
Figure 3: Market share of time sharing companies, by value, 2015-17
The consumer
Consumers rent most for domestic self-drive tour and family and friends visit
Figure 4: Car renting purposes, February 2018
Consumers with low income rent more to visit family and friends
Figure 5: Purposes of renting car, by personal monthly income, February 2018
B2C is the most popular platform
Figure 6: Most used car rental platform in the past 12 months, February 2018
Convenience matters most
Figure 7: Important car renting factors – TURF Analysis, February 2018
Premium feeling depends on the renting purposes
Figure 8: Features for premium rental car experience, by renting purposes, February 2018
What we think
ISSUES AND INSIGHTS
Offer a more family-friendly renting solution
The facts
The implications
Figure 9: Colour in a car
How can car renting companies answer consumers’ call for convenience?
The facts
The implications
How to win over car renters in tier one cities?
The facts
The implications
Figure 10: Smart concept on Shanghai CES 2018
THE MARKET – WHAT YOU NEED TO KNOW
Chinese car rental and time sharing market will double in five years’ time
Time sharing market grows much faster than car rental market
Growing tourist market, changing attitudes towards car ownership and government policies contribute to the increase
MARKET SIZE AND FORECAST
Time sharing market is growing much faster than car rental market, but its market value is still insignificant
Figure 11: Car number and growth rate of rental car and sharing car in China, 2012-17
Figure 12: Market value of car rental and time sharing in China, 2012-17
Double the market value in five years’ time
Figure 13: Best- and worst-case forecast of the market value of car rental and time sharing, China, 2013-23
MARKET DRIVERS
Rapid growth of the domestic tour market
Renting cars may have the ability to replace private ownership among the younger generation
Figure 14: Mention rates on selected attitudes towards car ownership, by generation, December 2017
Government restriction on distribution of local plate
KEY PLAYERS – WHAT YOU NEED TO KNOW
Intense competition among first tier companies
Luxury models and free rental deposit as strategies
Improving convenience level is the main innovation trend
MARKET SHARE
Car Inc., eHi and Shouqi account for top three market share of the car rental companies
Figure 15: Market share of car rental companies, by value, 2015-17
EvCard, GoFun and Pandauto account for 70% of time sharing market together
Figure 16: Market share of time sharing companies, by value, 2015-17
COMPETITIVE STRATEGIES
Providing luxury models
Free rental deposit
Cooperation with car manufacturers
WHO’S INNOVATING?
Pick-up and return on customers’ site
Licence translation service
Autonomous driving
Aerial Vehicle
THE CONSUMER – WHAT YOU NEED TO KNOW
Domestic self-drive tour and visiting family or friends are the top two renting purposes
B2C and agent are the most welcomed renting platforms for consumers
Convenience is a key factor for consumers’ satisfaction
Automatic recommendation and on-site pick-up and return are the top two factors to make consumers to feel premium
CAR RENTING PURPOSES
Domestic self-drive tour and visiting family and friends are the most mentioned renting occasions
Figure 17: Car renting purposes, February 2018
Figure 18: Car renting purposes, by marital status, February 2018
Married couples with children rent more than those who live with parents
Figure 19: Renting for domestic self-drive tour, by living situation, February 2018
Consumers with low monthly income tend to rent more to visit family and friends
Figure 20: Purpose of renting car, by monthly personal income, February 2018
Figure 21: Purpose of renting car, by education level, February 2018
Different groups of people rent cars for different purposes
High penetration rate in the tier one cities
Figure 22: Car renting purposes, by city tier, February 2018
Renting for overseas tour is welcomed by consumers with postgraduate or above degree
Figure 23: Renting for overseas self-drive tour, by education, February 2018
PREFERENCE FOR CAR RENTAL PLATFORMS
B2C platform is the most used platform, followed by agent, C2C and time sharing platforms
Figure 24: Most used car rental platform in the past 12 months, February 2018
Older males prefer B2C and younger females like agent platforms
Figure 25: Frequency of using car rental platforms in the past 12 months, by gender and age, February 2018
B2C platforms are more welcomed in tier one cities and agent platforms are more welcomed by tier two and three consumers
Figure 26: Car rental platforms usage frequency, by city tier, February 2018
The higher the education, the more likelihood of using B2C and time sharing platforms
Figure 27: Car rental platforms using frequency, by education, February 2018
IMPORTANT FACTORS IN CHOOSING RENTAL CARS
Divided opinions on choosing rental cars
Figure 28: Important factors in choosing rental cars, February 2018
It is convenience that matters
Figure 29: Important car renting factors – TURF Analysis, February 2018
Tier one cities like new car models and tier two cities like simple renting process and value for money
Figure 30: Important factors in choosing rental cars, by city tier, February 2018
C2C platform users look for one-stop solution, new models and search engines ranking
Figure 31: Important factors on choosing rental car, by rental platforms used, February 2018
IMPORTANCE OF RENTAL CAR FEATURES
Low rental price, sufficient seats and built-in GPS are the top three important features for consumers
Figure 32: Important levels of rental cars’ features, February 2018
Different genders have different preferences
Figure 33: Gap between female and male renters on the preferred car rental features who claim “it is very important”, February 2018
New energy car market is in tier one cities and tier two cities prefer fancy models with low prices
Figure 34: Gap between the claim rates of tier one and tier two city respondents on the preferred car rental features that are ‘very important’, February 2018
Consumers who rent for overseas trip look for advanced cars
Figure 35: Claim rates on selected rental car features that are ‘very important’, by rental purposes, February 2018
FEATURES OF PREMIUM CAR RENTING EXPERIENCE
Divided opinions on premium car renting experience
Figure 36: Features of premium rental car experience, February 2018
Automatic recommendation and on-site services are key to premium car renting experience
Figure 37: Features for premium rental car experience – TURF analysis, February 2018
On-site pick-up and return is important for consumers from big cities to feel premium
Figure 38: On-site pick-up and return services, by city, February 2018
Different renting purpose leads to different perceptions of premium
Figure 39: Features for premium rental car experience, by renting purposes, February 2018
ATTITUDES TOWARDS CAR RENTING
General positive attitudes towards car renting
Figure 40: Attitudes towards car renting, February 2018
Four types of car renters
Figure 41: Attitudes towards car renting, February 2018
Experience seekers
Figure 42: Hard features important when choosing rental cars, by car renter type, February 2018
Figure 43: Soft features important when choosing rental cars, by car renter type, February 2018
Order pursuers
Never-the-pilots
Figure 44: Percentage of four types of consumers on agent platform usage, February 2018
Buddhist-style renters
MEET THE MINTROPOLITANS
Mintropolitans fancy luxury car models with sufficient seats
Figure 45: Car renting purposes, by consumer classification, February 2018
Figure 46: Claim rates on selected rental car features that are ‘very important’, by consumer classification, February 2018
APPENDIX – MARKET SIZE AND FORECAST
Figure 47: Total market value of car hire, 2013-23
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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