China Vehicle Rental Market Size (2024 - 2029)

The China vehicle rental market is experiencing growth driven by foreign investments, strategic partnerships, and fleet expansion by domestic players. Government initiatives to limit vehicle ownership have increased the demand for rental services, despite regulatory challenges affecting fleet expansion. The market remains fragmented with numerous small-scale companies, and the demand for self-drive rentals for leisure and business purposes continues to rise, contributing to the overall market size.

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Market Size of China Vehicle Rental Industry

China Vehicle Rental Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.14 %
Market Concentration Low

Major Players

China Vehicle Rental Companies

*Disclaimer: Major Players sorted in no particular order

China Vehicle Rental Market Analysis

China vehicle rental market is expected to register a CAGR of 5.14%, during the forecast period, 2020-2025.

  • The Car rental Market in China is majorly driven by factors such as investments from foreign car rental firms, entering strategic partnerships or joint ventures with domestic players and dealers, fleet capacity expansion of domestic players, etc. Currently, the industry is experiencing a penetration rate of around 4.1%.
  • In December 2018, Europcar Mobility Group has extendedits partnership with Shouqi, a leading car rental company in China, subsidiary of the Beijing Tourism Group. Shouqi Car Rental customers will be able to access Europcar's car rental services directly from Shouqi's website and are able to purchase all-inclusive packages. The agenda of the partnership is to aim a yearly increase in bookings of Europcar by 25-30%.
  • Also, the Chinese government’s initiatives aimed at limiting the number of vehicles has greatly increased the demand for tourist vehicle rentals in the country. The restriction on license plates is making the newer rental companies wait for registrations, putting a curb on the ability to increase their fleet rapidly. Still, the market is fragmented in the country, with the presence of a large number of small-scale players in the industry.
  • There are thousands of other rental companies with an average fleet size of fewer than 50 cars. The need for self-drive trips for leisure and business purposes, compounded with the gap between the number of cars in possession and licensed car drivers, (due to the government’s restrictions on car purchasing in order to control traffic congestion and air pollution) would augment the growth of the market considerably.
  • Avis Budget Group, Inc., eHi Car Service (Enterprise Holdings), The Hertz Corporation, Beijing China Auto Rental Co., Ltd. are some of the major rental companies in the country.

China Vehicle Rental Industry Segmentation

Vehicle rental is hiring a vehicle for short periods of time that generally ranges from a few hours to a few weeks. The aforementioned scope has been considered in the market study.

China vehicle rental market has been segmented by application, by booking type and by end-user type.  

Application
Leisure/Tourism
Business
Booking Type
Offline Access
Online Access
End-User Type
Self Driven
Chauffer Driven
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China Vehicle Rental Market Size Summary

The China vehicle rental market is experiencing growth driven by foreign investments, strategic partnerships, and fleet expansion by domestic players. The market is characterized by a fragmented landscape with numerous small-scale companies, each with an average fleet size of fewer than 50 cars. The demand for vehicle rentals is bolstered by government initiatives limiting vehicle ownership to control traffic congestion and air pollution, thereby increasing the need for rental services for both leisure and business purposes. Major players in the market include Avis Budget Group, Inc., eHi Car Service, The Hertz Corporation, and Beijing China Auto Rental Co., Ltd. The rise of online booking platforms has further facilitated market growth, offering customers real-time monitoring and management of rental vehicles, which enhances the overall rental experience.

Despite the challenges posed by the need for a Chinese driving license and high traffic conditions in urban areas, the market for tourist vehicle rentals remains robust, supported by a significant influx of international tourists and a growing domestic tourist base. The preference for online bookings is increasing, particularly among younger users, due to the widespread use of smartphones. The market is expected to see consolidation through mergers and acquisitions, with larger, chained operators likely to dominate due to their extensive fleet offerings and comprehensive services. This trend is anticipated to lead to a concentration of market share among the leading players, as smaller companies either merge or exit the market.

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China Vehicle Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Application

      1. 2.1.1 Leisure/Tourism

      2. 2.1.2 Business

    2. 2.2 Booking Type

      1. 2.2.1 Offline Access

      2. 2.2.2 Online Access

    3. 2.3 End-User Type

      1. 2.3.1 Self Driven

      2. 2.3.2 Chauffer Driven

China Vehicle Rental Market Size FAQs

The China Vehicle Rental Market is projected to register a CAGR of 5.14% during the forecast period (2024-2029)

Avis Budget Group, Inc., The Hertz Corporation, eHi Car Service (Enterprise Holdings) and Shouqi Car rental (Europcar Mobility Group) are the major companies operating in the China Vehicle Rental Market.

China Vehicle Rental Market Report Snapshots

China Vehicle Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)