The Chinese market will exceed 100 billion yuan next year

The concept of car rental travel is deeply rooted in people's hearts, and the industry market size will exceed 100 billion

Due to multiple factors such as policy encouragement, consumption upgrading, and technology driving, the car rental market has ushered in multiple favorable developments. Especially in the post-epidemic era, people are more concerned about safe and private travel methods, and the concept of car rental has been deeply rooted in people's hearts.

From the perspective of user demand, in 2020, the number of car drivers in the country will reach 418 million, while the number of private cars will only be 244 million. The rapid increase in the number of people without cars, which will rise to 174 million by 2020, and the continued growth in the size of drivers, provide a user base for the rental car market.

From the perspective of vehicle supply, domestic car sales began to grow negatively in 2018. Affected by the deterioration of the market economic environment, the weakening of the awareness of vehicle privatization and the restriction of driving and licensing policies, car sales continue to decline, which brings opportunities for the growth of the rental car market. At the same time, it is worth noting that with the acceleration of vaccination across the country, China's tourism market has further recovered, and car rental self-driving Tours are also expected to further expand the scale of demand.

How big is the car rental market in China? Analysys data shows that China's car rental market has experienced an exploration period and a market start-up period, and is now entering a period of rapid development. In fact, in 2019, the size of China's car rental market has exceeded 90 billion yuan, but in 2020, due to the impact of the epidemic, the size of China's car rental market dropped to 65.327 billion yuan, down 29.3% year-on-year.

However, with the further control of the epidemic, the overall Chinese car rental market is ushering in a recovery. Analysys expects that in 2021, China's car rental market will reach 84.924 billion yuan, an increase of 32.8%. In 2022, the total size of China's car rental market will exceed 100 billion yuan, reaching 106.156 billion yuan, an increase of 25% year-on-year.

Individual users become an important engine for the recovery of the car rental market, and corporate users bring an important supplement to income

From the user level analysis, car rental users are divided into enterprise users and individual users. Among them, corporate users are the most traditional customer group in the car rental market, and individual users are the fastest growing customer group among car rental users, and they are also an important engine for the rapid recovery of the car rental market in the post-epidemic era.

Analysys data show that from 2020 to 2012, the number of active users in China's car rental market is about 10 million, although the growth rate has slowed down in the first half of the epidemic, but the free private advantage of car rental under the epidemic has led to the rapid recovery of car rental demand, and the first half of 2021 maintained double-digit year-on-year growth.

Individual users show three characteristics, first, users from the first-tier market to the second - and third-tier cities more extensive population expansion. In 2021, the number of users in second-tier and lower-tier cities in the car rental market increased by 24.6% compared to 2019. Taking the linkage cloud as an example, the proportion of users in low-line cities is the highest, reaching 51%. This year, Linkage Cloud has also opened business in Anshun, Guizhou, Beihai, Guangxi, Weiwu, Gansu, Wuhai, Inner Mongolia, Tengchong, Yunnan and other tourist cities, and deeply cultivated the sinking market.

Second, the trend of car rental users is younger, after 80, 90 become the main market. The proportion of post-90s users under the age of 30 of linkage cloud reached 66%, and the proportion of post-90s users of Ehi car rental also exceeded 50%. Third, for individual users, leisure travel and commuting are the most important service scenarios.

In terms of enterprise users, the expansion of car rental companies for enterprise business will help the landing of diversified scenarios. It is worth noting that the B-side market is an important supplement for shared travel enterprises to achieve revenue growth, and the overall trend is more extensive coverage of partners, more diversified cooperation scenarios, and higher service standards. Partners have also developed from early government vehicles, enterprise vehicles, and conference vehicles to industrial institutional collaboration and OTA collaboration. At the same time, the division of demand matching dimensions is more detailed and supporting operation and maintenance is more specialized.

The first echelon company three pillars, linkage cloud into a rising star

In the 100 billion level of China's car rental market, the three first echelon companies, China Car Rental, Ehi car rental and linkage cloud car rental, form a three-legged structure. Two or three echelon companies in the market also include Ctrip car rental, EVCARD, Gofun travel, Wukong car rental and so on.