With some rates as low as 49 yuan (or $7.70) per day the auto rental industry is targeting Chinese residents and urging them to rent a car, according to China Daily. One advertisement reads, “Drive home instead of being packed in a train.”
Transit and business analysts of China say that this year car rental will become a new method of transportation, which is currently dominated by domestic air and rail travel. According to the China Taxicab and Livery Association, the auto rental industry — which had its start in China in the 90s — has grown annually by almost 20% over the last three years.
Investors have been flooding the industry with new ventures, including from Goldman Sachs and Mitsubishi Corp. The market share held by the top companies in China stands in stark contrast to the U.S.: The top companies in China hold about 11% of the car rental industry’s market share, which is the complete opposite in the U.S. (Click here for our 2011 U.S. car rental market statistics.)
For the full article from China Daily, click on the URL: http://www.chinadaily.com.cn/usa/weekly/2011-12/30/content_14354285.htm