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Car Hire - China - July 2019

Covered in this report

Mintel defines car rental companies and time-sharing companies by company brands which have the relevant service lines.

Car hire in this report is defined as an activity where individuals rent passenger cars, including but not limited to basic passenger cars, SUVs and MPVs, from companies or individual car owners for non-commercial purposes.

Market size and market share are calculated based on the rental car fleet size and average daily net revenue per available car.

Included

Car rental and time-sharing brands include Car Inc., eHi Car Services Limited, Shouqi Car Rental, Reocar, Start, Zhizun Car Rental, Avis, Aotu Car Rental, EvCard, GoFun, Pandauto, E+, Yidu and car2go.

“The growth of the car rental market remains steady at a low speed, whilst consumers’ acceptance of car rental grows with usage expanding to various occasions. The majority (60%) of car rental users are car owners, who choose to hire cars on different occasions, and there is a rising trend in which non-car owners, especially in tier one cities, show a more positive attitude to using car rental to replace their purchasing needs. Car rental purposes and preferences differ across city tiers, and among different age and gender groups – non-car owners in tier three cities are more likely to rent cars for domestic trips; young car rental users prefer to try different car models, while older car rental users are renting for luxury experiences and to impress others; and agent platforms like Ctrip are more favoured by non-car owners and women because of their unfamiliarity with the car rental process.”
– Terence Zhou, Research Analyst

This report looks at the following areas:

  • “Why buy” attitude grows as new car subscription services emerge as a new substitute for traditional purchase
  • Greater choice of rental car models attract users thirsting for new experiences in their routine lives
  • Rise of challenging and extreme driving

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Included
          • Excluded
          • Executive Summary

              • The market
                • The growth of car rental market slows, reaches RMB80 billion revenue in 2018
                  • 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
                        • 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
                          • 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
                          • Figure 6: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income and city tier, April 2019
                          • Figure 7: Attitudes towards car rental – selected item, by car rental type, April 2019
                        • Car rental usage expanding to various occasions
                          • Figure 8: Car rental occasions, 2019 vs 2018
                        • Non-car owners in different city tiers show different renting habits
                          • Figure 9: Car rental occasions, by car ownership and city tier, April 2019
                        • Car type preferences differ by city tier
                          • 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
                          • 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
                          • 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
                          • Figure 14: Premium renting experience, April 2019
                        • Specific functional and personalised demands are higher among young car rental users
                          • Figure 15: Premium renting experience, by age, April 2019
                        • Significant increase in both B2C and agent platforms
                          • Figure 16: Usage rate of car rental platforms, April 2019
                        • Agent platforms tend to be favoured by non-car owners, skewing female
                          • 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

                          • “Why buy” attitude grows as new car subscription services emerge as a new substitute for traditional purchase
                            • The facts
                              • The implications
                                • Figure 19: New car subscription service by Carpe
                                • Figure 20: Lo Tote
                              • Greater choice of rental car models attract users thirsting for new experiences in their routine lives
                                • The facts
                                  • The implications
                                    • Figure 21: Car subscription service from Mercedes in China and Toyota in Japan
                                  • Rise of challenging and extreme driving
                                    • The facts
                                      • The implications
                                        • Figure 22: Off-road self-driving tips
                                        • Figure 23: Hulunbeier customised trip
                                    • The Market – What You Need to Know

                                      • 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

                                            • Reaching RMB80 billion revenue in 2018
                                              • 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
                                              • Figure 25: Best- and worst-case forecast of the market value of car rental and time sharing, China, 2014-24
                                          • Market Drivers

                                            • 40% of registered drivers don’t own cars of their own in China
                                              • Figure 26: Car parc and number of registered drivers in China, 2014-18
                                            • Fast growth of domestic travel market thanks to growing highway infrastructure
                                              • 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

                                              • 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

                                                    • Car Inc. still leads and Shouqi rises to second place
                                                      • Figure 28: Market share of car rental companies, by value, 2016-18
                                                      • Figure 29: Promotion of Car Inc.
                                                    • Shouqi dominates the time-sharing market
                                                      • Figure 30: Market share of time sharing companies, by value, 2017-18
                                                  • Competitive Strategies

                                                    • Free rental deposit cooperating with Alibaba’s Zhima Credit
                                                      • Figure 31: Double free deposit from Aotu
                                                    • One-stop service from delivery to other support
                                                      • Convenience of off-site returns
                                                        • Figure 32: Number of covered cities of car rental companies
                                                    • Who’s Innovating?

                                                      • Provide better rental service through the infotainment system
                                                        • Figure 33: MassThinker and Geely
                                                      • Blurring the line between short-term and time-sharing rental through connectivity technology
                                                        • Figure 34: Turo car rental
                                                      • Wireless battery boost
                                                        • Figure 35: Electricity 5G
                                                    • The Consumer – What You Need to Know

                                                      • 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

                                                            • Regardless of tiers and income level, 60% of car rental users are car owners and 40% are non-car owners
                                                              • 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
                                                              • Figure 37: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income and city tiers, April 2019
                                                              • 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
                                                              • 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

                                                            • Car rental usage expanding to various occasions
                                                              • 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
                                                              • Figure 42: Car rental occasion, by car ownership, April 2019
                                                              • 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
                                                              • 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
                                                              • Figure 46: Car rental occasion – business trips, by selected demographics, April 2019
                                                          • Rented Car Types

                                                            • Car type preferences differ by city tier
                                                              • Figure 47: Rented car type, by city tier, April 2019
                                                            • Young car rental users are more likely to rent different cars types
                                                              • 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
                                                              • Figure 50: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
                                                              • Figure 51: Attitudes towards car rental – selected item, claim rate on “Agree”, by age, April 2019
                                                          • Premium Renting Experience

                                                            • Convenience is the major feature that car rental users are willing to pay more for
                                                              • Figure 52: Premium renting experience, April 2019
                                                            • Specific functional and personalised demands are higher among young car rental users
                                                              • Figure 53: Premium renting experience, by age, April 2019
                                                            • Different premium demands in different renting occasions to improve the trip experience
                                                              • Figure 54: Car rental occasion, by premium renting experience, April 2019
                                                          • Car Hire Platforms

                                                            • Significant increase in both B2C and agent platforms
                                                              • 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
                                                              • Figure 56: Usage rate of car rental platforms – selected items, by gender, April 2019
                                                            • Agent platforms tend to be favoured by non-car owners
                                                              • Figure 57: Usage rate of car rental platforms, by car ownership, April 2019
                                                              • 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
                                                              • Figure 59: Attitudes towards car rental – selected item, claim rate on “Agree”, by monthly household income, April 2019
                                                          • Meet the Mintropolitans

                                                            • MinTs are more likely to use time sharing than non-MinTs
                                                              • Figure 60: Type of car hire, by consumer classification, April 2019
                                                            • MinTs show more favour for SUVs, off-road vehicles and roadsters
                                                              • 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
                                                              • Figure 62: Premium renting experience, by consumer classification, April 2019
                                                          • Appendix – Market Size and Forecast

                                                              • Figure 63: Total market value of car hire, 2014-24
                                                          • Appendix – Methodology and Abbreviations

                                                            • Methodology
                                                              • Fan chart forecast
                                                                • Abbreviations

                                                                Car Hire - China - July 2019

                                                                £3,486.28 (Excl.Tax)