Opportunities intelligent traffic behind low coverage

As Beijing intersection plate one of the “China International Urban Intelligent Technology and Services Conference” (English name “UrbanTec Asia Conference”, hereinafter referred to as “UTA”) popular concern, intelligent transportation become the core issue of UTA. In fact, China’s car rental classes, taxi Internet, the Internet become a city bus and other key areas of travel wisdom. According to various types of data currently provided by industry, market prospects doubt, competition among enterprises has become more intense. Meanwhile, in the wisdom of travel field, industry segments also gradually showing, rental cars, about cars, car industry, etc. become high-profile business segments.


Car Market

Broad prospects

China National Tourism Administration recently released data show that the sum of ten former Chinese car market coverage the company has not exceeded 13%, while in the US, the top five car rental companies have the market coverage of up to 95%.

In addition, “2015– China’s auto market survey and assess the development trends report 2020” shows that the current rental industry-related companies are mainly concentrated in Beijing, Shanghai, Guangzhou, Shenzhen and four first-tier cities, from the level of development, the four major cities rental vehicle penetration rate of nearly 1.3%, compared to the United States and other developed countries this figure is still a wide gap. However, Roland Berger reported that 2018 Chinese car market is expected to increase to 65 billion yuan, the team will reach 779,000.

From these data it is easy to see, the entire Chinese car rental industry market prospects. Indeed, investors and companies already smell this market, start-up companies emerging, hot money to enter, at the same time, the field of car rental companies and travel further blend.


Corporate profits

Instantly soar

In the field of domestic car rental, a car rental Hi Divine and car rental, car rental and other benefits become a leader. Data released by the National Tourism Administration, China Auto Rental revenue in 2015 was 5.003 billion yuan, a car rental Hi 14.51 billion. In terms of net profit, net profit in 2015 China Auto Rental of 14.01 billion yuan, up 221.33 percent, while net rental of a hi was 6.96 billion yuan, up 847.58 percent growth rate.

In broad industry outlook, higher margin, the car rental industry continues to scale rapidly expanded. According to Roland Berger to join the first steam travel released “2016 China about cars and car rental market analysis report,” 2015 China long lease vehicle fleet of 27 vehicles, short term car ownership was 170,000; the next 20 years long rental vehicle population reached market size of about 420,000, short Term vehicle ownership will reach market size of about 28 million units. At this growth rate, the growth rate of long-term lease of the vehicle is relatively smaller than the growth rate of short rent.


Business segments

Solve pain points

For the better development of the industry and consumers are inseparable, “2016 China about cars and car rental market analysis report” data provided, the Chinese market, car and limousine service about higher demand, overall travel demand in China in 2015 was 28 billion times a day potential market demand for cars and car of which about 0.9 billion times a day. However, the potential travel demand is expected in 2020 about cars and car market of about 110 million times a day, corresponding to the size of the market each year is about 1.1 trillion yuan.

Currently, travel drops, the first steam about cars, Shenzhou car, easy to vehicles, such as within the industry about the main car and limousine service, but each with different strengths to enter the industry. At the same time, a high degree of Internet about cars and car service providers, after entering the market, began to develop catering, tourism and other peripheral businesses. Compared with the car rental business, about cars and car rental service has become the company to improve vehicle utilization, expand their business models in the field. Currently, from the user’s needs, the car industry is not only to promote the wisdom of travel, but also to expand their business different segments to help users solve different travel sore point.