Renting cars for holiday travel becomes a trend in China

It's estimated that the demand for carrentals will increase by 40 percent this year, according to China Auto Rental,one of the biggest car renting companies in China. This is despite what couldbe a fourfold price rise during this hectic period.

Last year, nearly 70 percent of all thosewho rented cars headed to their hometowns.

Dafang24.com, a car rental platform, saidthat over 60 percent of its users booked cars at least 10 days in advance ofthe Chinese New Year, while about 30 percent did so one month ahead.

China, the world's largest auto market

China surpassed the United States to becomethe world's largest auto market in 2009, with a record of 13.9 million carssold in the country, while 10.43 million cars and light trucks were traded inthe U.S., according to the China Association of Automobile Manufacturers(CAAM).

In the meantime, the Chinese government hasvowed to have five million battery-electric and plug-in hybrid electric cars onthe roads by 2020.

Research in 2019 conducted by the ShanghaiInstitute of Finance and Law (SIFL) – a non-profit research organization –indicates that Chinese people's consumption structure is transforming fromsubsistence to quality-oriented consumption, while renting, one that is focusedon the right of use rather than ownership, has moved on a fast lane ofdevelopment.

“With the improvement in the consumption ability of Chinese people,their demand for higher quality products is growing," Fu Weigang,executive president of the SIFL, told People's Daily.

China's vast highway network – about130,000 kilometers in length – saw an estimated 235 million cars in 2018, over180 million of which are privately owned.

There are over 400 million driversregistered nationwide – more than the entire U.S. population. About one-thirddo not own a car, hence the big car rental market.

CGTN By Li Jianhua | 2019-01-30