"Daily Economic News (blog, Weibo)" reporter learned that the domestic leading P2P car rental platform PP car rental recently announced that it has received B round of financing, the amount of 60 million US dollars. The Internet rental company for private cars has just completed a $10 million Series A round of financing in early June. Subsequently, the business quickly expanded from Beijing to first- and second-tier cities. According to Zhang Bingjun, CEO of PP car rental, the business of PP car rental has already covered 12 domestic cities. It is planned to overtake the car rental company in China at the end of this year.

In the fast-growing car rental market, in addition to a car rental company such as car rental and car rental in China, some car manufacturers have entered the field. In 2009, Dongfeng Nissan launched a car rental service brand easy to rent a car. Subsequently, joint ventures and automakers such as Guangzhou Automobile Group, Great Wall Motor, Brilliance Auto and BMW Brilliance also began to launch leasing business.
The development of the car rental market has also had a certain impact on China's automobile production. According to Chi Yifeng, vice president of the China Automobile Dealers Association, “when the buyer’s market is formed, the development of the leasing business will partly relieve the sales pressure of some auto companies.”
Leasing business is diversified
In fact, China's car rental industry has entered a diversified development stage. The landing of the official car reform policy last year has become an important factor in promoting the development of the car rental market. It is reported that by 2018, the scale of China's car rental market will reach 50 billion yuan.
In recent years, in the field of traditional car rental, leasing companies represented by car rental and car rental in China have continued to expand through capital markets. At the same time, automobile manufacturers are also accelerating their layout. Not only foreign and joint venture brands such as Volkswagen, Mercedes-Benz, BMW Brilliance, Dongfeng Nissan have established joint ventures in China, but their own brands have also begun to explore this market.
At the end of October this year, Great Wall Motor announced that the “Haver Automobile Leasing Company”, which was built with a capital of 100 million yuan, was formally established. The leasing company is a wholly-owned subsidiary of Great Wall Motor. The models are mainly Haval SUVs, supplemented by Great Wall cars, MPVs and pickups. At the same time, other brand models can be provided according to different needs of customers.
Prior to this, GAC Group also announced that Guangzhou Automobile Trading Co., Ltd. officially changed its name to Guangzhou Automobile Leasing Co., Ltd., and launched its car leasing business, mainly providing consumers with brands of the group, such as GAC Chuanqi, Guangqi Honda, GAC Toyota, GAC Mitsubishi, Guangzhou Automobile. Rental services for some models such as Fiat. In addition, Buick, Audi, Jinbei and other brands are also within the scope of their leasing business.
As auto companies accelerate into the car rental market, Internet companies are also beginning to explore this area. PP car rental is the company that has risen rapidly in this mode. In addition, Internet companies such as Baidu, Ali, and Tencent have also pioneered the P2P car rental model through the O2O model. For example, Baidu launched the “Baidu Special Car” through the easy-to-use car, and Ali launched the “No. 1 Special Car” through a fast taxi. Tencent launched the “U-Yi Taxi” through the beating car.
From the name of the above P2P rental service, it is not difficult to see that the service targets of such services are mainly high-end consumer groups. Both Baidu and Ali hope to occupy the commanding heights of the car rental market.
At present, in China's car rental field, the operating model is increasingly diversified. According to the analysis, no matter which mode, the mobile Internet will become an indispensable platform for the future car rental business. The depth and breadth of the use of this medium by the leasing companies will determine the development prospects of the leasing business to a certain extent.
Policy promotes the development of the rental market
At present, China's car rental market has changed the previous situation of leasing companies, and many formats have become the characteristics of the industry. The great attraction of the Chinese car rental market is an important factor in the formation of this feature.
According to data released by Roland Berger, US car rental revenue in 2013 was $24 billion; as of the end of 2013, China’s car rental industry was only 369,000, accounting for 0.4% of China’s passenger car ownership, while Japan and the United States They were 2.5% and 1.6% respectively. It can be seen that the prospect of China's car rental market is huge.
As China's environmental protection and traffic pressures continue to increase, Beijing, Shanghai, Guangzhou, Tianjin, Hangzhou, Guiyang and other cities have implemented car purchase restrictions.
“Shenzhen, Wuhan, Qingdao, Shijiazhuang, Chongqing and other cities have also experienced rumors of purchase restrictions, and may not rule out the possibility of implementing a purchase restriction policy in the future,” said Xu Changming, director of the Information Resource Development Department of the National Information Center.
With the increase in the number of cities that are restricted, the size of the car rental market will undoubtedly increase. Some analysts believe that in the next few years, China's car rental industry will continue to maintain rapid growth, with an annual growth rate of 20% to 25%. By 2018, China's car rental market will reach 50 billion yuan.
Not only that, in July this year, China officially canceled the use of vehicles by leading cadres at the sub-ministerial level, canceled the general official vehicles, and socialized ordinary official travel, and appropriately distributed official transportation subsidies. This is good news for the car rental market, especially the rental market for restricted cities.
After this policy was issued, SAIC passenger cars, GAC Chuanqi, Shanghai GM, etc. are all accelerating into the leasing market, tailoring leasing programs for official vehicles, which will further promote the heating of China's car rental market.
The in-depth development of car rental will also have an impact on the automotive industry. The person in charge of Dongfeng Nissan said, "The car rental business can close the relationship between the quality inspection of new and used cars, and strengthen the cooperation between automobile manufacturers and financial insurance institutions, which is conducive to a virtuous cycle of the automotive market."
Chi Yifeng believes that China's buyer market is currently forming, car rental business can digest the excess capacity of some enterprises, while the leasing business also has a propaganda role, which will promote the sales of new cars to a certain extent, to achieve a balance between supply and demand in the automotive market.

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