The widening gap between the numbers of car owners and licensed drivers in China’s urban areas will stimulate future demand for car rentals.
San Francisco, CA (PRWEB) August 25, 2012
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.
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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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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