Car Rentals in China: Tourism, Traffic Congestion, and Higher Incomes Drive Growth

Share Article

Steady growth in the Car Rentals industry in China has been driven by increased traffic congestion in China’s cities, rising disposable incomes, and the diversification of services provided by car rental firms. In 2012, the industry is expected to generate $4.0 billion, according to IBISWorld.

IBISWorld Market Research

IBISWorld Market Research

The widening gap between the numbers of car owners and licensed drivers in China’s urban areas will stimulate future demand for car rentals.

The Car Rental industry in China has developed rapidly in the five years through 2012, with total revenue growing at an annualized rate of 25.4%, according to IBISWorld. Steady growth has been driven by increased traffic congestion in China’s cities, rising disposable incomes, and the diversification of services provided by car rental firms. In 2012, the industry is estimated to generate $4.0 billion. The Olympic Games in Beijing and the Shanghai Expo boosted the development of the industry with rising demand for car rentals from visitors. Additionally, a large amount of capital was invested into this industry in 2010.

Compared with developed car rental markets, the industry in China is competitive and highly fragmented. A large portion of firms are small or medium scale and concentrate on local markets. Major enterprises in the industry, like China Auto Rental Holdings, EHI Auto Services, and Anji Care Rental & Leasing, have much larger car fleets and broader ranges of business, which contribute to their competitive strength. The consolidation of the industry is expected to intensify in the next five years, as competition intensifies.

To alleviate traffic congestion in Beijing, a regulation on car license plates was implemented, limiting car ownership. IBISWorld anticipates that the widening gap between the numbers of car owners and licensed drivers in China’s urban areas will stimulate future demand for the Car Rentals industry. Furthermore, with stable growth in disposable incomes, car rentals are expected to be more affordable to customers.

For more information, visit IBISWorld’s Car Rentals in China industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Car Rental industry in China provides short-term (30 days or fewer) and long-term (more than 30 days) rentals of automobiles, such as passenger vehicles and recreation vehicles. The service of renting cars with drivers is excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website