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VCs competing car rental, rental car companies to seize the high ground

Car rental market development opportunities
In August, the legend in the form of equity and debt capital into China auto rental, in September, Goldman Sachs venture completed the second injection into a Hey, in November, Japan Mitsubishi heavily to Zhejiang car fans. Constantly being hit behind the car rental market, China is facing great development opportunities.
From a macro perspective, the 2007 National car rental business deregulation, no longer needed special approval identification systems and the gradual improvement of the credit system, reduces the risk the vehicle; the rapid development of credit cards and billing system to improve the pay of reliability and convenience; the auto industry restructuring and revitalization plan proposes to strengthen the market regulation to protect market stability, the sales tax rate is expected to decline ; Leasing business from the used-car market used cars trading costs fall and market stability will raise leasing companies the market profits; the development of GPS navigation technology greatly drive the rental market development spurt.
From the micro-level, foreign car rental and State-owned enterprises start adopt ways of optimizing financial structure, reducing the investment in fixed assets. Reform of the Chinese Government's official car, 90% official cars will be taken within the next 5 years lease. Currently China has a driver's license number reached 120 million, of which more than 2/3 this man without a car for the car rental industry to create a huge potential customer base. With the increase in disposable income, improved people's ability to pay, the rapid development of aviation tourism, short-term car rental for leisure purposes in the world market is growing rapidly.
From United States famous analysis of the consulting firm Roland Berger Strategy consultants, said car rental demand increasing services is the primary driver of future development in entertainment and commercial leasing. Passenger car leasing market by 2014, China will reach about 38 billion yuan, fleet is expected to hit 410,000 units, average annual compound growth rates of 24% 2009-2014.
Capital power, Victor is King
Domestic car rental market is strictly speaking a market without a boss, but this does not impede the flow of car rental companies boss's ambitions. It is understood that the car rental firms obtain financing without exception, wanted to be the boss. Long term car rental, is a typical oligopolistic industries, the industry is very large with funding, it is difficult to achieve economies of scale.
Compared to United States markets, domestic car rental volume is the significantly lower proportion of ownership. Domestic car rental vehicles less than 20 units of 80% enterprises, small outlets, business resources, competition is not sufficient. United States Hertz, AVIS, the company has leased vehicles in more than 1 million vehicles. In terms of industry concentration, 70% five thousand or six thousand car rental companies, China enterprises with less than 5 full-time employees, lower than 3 of 85% enterprise network. United States divided between seven major car rental brands before the 80% of the market.
Although domestic car rental market and abroad compared to the early days of the initial stage of development, but at the moment, the entire car rental industry ushered in a time of rapid development. In order to be able to seize this opportunity, expanding the fleet size and city coverage, improve the customer experience, increasing value-added services is a priority, access license is invisible. 3,000 vehicles is the bottom line, if I cannot make it impossible to profit.
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