China’s car rental market to hit $23.5 billion by 2025: report
A parking lot of car rental company CAR Inc., Shanghai, China, December 7, 2021. /CFP
A parking lot of car rental company CAR Inc., Shanghai, China, December 7, 2021. /CFP
China’s car rental market is poised to enter a rapid expansion phase, with a market scale estimated at 150 billion yuan (about $23.5 billion) by 2025, according to a report released on Tuesday.
The car rental market will see rapid development amid China’s COVID-19 containment works, according to the report jointly released by Boston Consulting Group and research institute eHi Car Services.
The industry has achieved 30 times growth over the past two decades, the report said, noting that its market size had reached nearly 90 billion yuan in China by 2020.
Upgrading of consumption, penetration of new energy vehicles (NEV) and technological evolution of autonomous vehicles are the three trends affecting the car rental industry, according to the report.
Shifts in attitude – from owning a car to sharing a car – coupled with stimulus measures have strongly boosted the car rental market, while the pandemic has also made consumers more likely to choose rental services.
In the NEV value chain, rental companies play a role in promoting technology upgrades, as electrification and smart grid connection are important trends in the automotive industry.
(Contributed by Xinhua)
