According to the US "Wall Street Journal" reported on November 3, some cities in China introduced policies to limit the purchase of private cars and "licenses" for license plates. Due to these policies and various factors, car rentals have become a common trend in China. The car rental market is on the rise, and the car rental company is developing very well.
According to data from the Chinese Ministry of Public Security, as of the end of 2013, there were 217 million car license holders in China, and the total number of cars was only 85 million. The former was three times the number of the latter, coupled with the lack of parking spaces and government traffic. Car blockage has become more common with congestion control. For example, in Beijing, in order to reduce pollution and traffic congestion, the government has begun to reduce the supply of new car license plates since 2011. It also restricts the supply of license plates to Beijing residents and prohibits the use of urban roads by non-Beijing-licensed vehicles. Similar restrictions have also appeared in big cities like Shanghai and Guangzhou. These have undoubtedly promoted the popularity of car rental and the development of the market.
China's car rental market is only a quarter of the size of the United States. However, according to consulting firm analysis, from 2008 to 13 years, the total revenue of Chinese car rental companies increased rapidly from RMB 9 billion to RMB 34 billion, and is expected to reach RMB 65 billion by 2018.
Recently, some Chinese car rental companies funded by Hertz car rental companies and Enterprise Rent-A-Car are raising funds and increasing spending to cater to the Chinese car rental fever predicted by analysts.
China's largest car rental company, CAR Car Rental Company (the US Hertz Company and Huaping Investment Group holds a 35% stake), said it will be in the IPO of HK$468 million (approximately RMB 2.862 billion) listed on the Hong Kong Stock Exchange in September. In the next two years, it plans to purchase 59,000 new cars.
According to the filings of the New York Stock Exchange, China’s second-largest car rental company, the car rental plan, raised 100 million U.S. dollars (about 612 million yuan) of IPO-funded company fleet when it went public in the US. The company currently has 15,000. a car.
Some car manufacturing companies have also joined this "car rental hot". Volkswagen New Power Investment Co., Ltd. (a subsidiary of Volkswagen) acquired a Chinese car rental company last year to develop its car rental market in China. The company said it plans to expand its business to more than 30 cities by 2015. The company's media spokesperson said, "We believe that the car rental market will grow rapidly in today's license plate restrictions and government-specific car reductions."
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