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Beijing's car rental market boom

0 CommentsPrint E-mail CNTV, January 11, 2011
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Beijing's new policies to curb traffic has cooled the auto market and restricted car purchases, but residents are still looking for means to get around. But, one's loss is another's gain and business seems to have shifted from the sales lots to the rental lots.

With Beijing's recent restrictive policies on purchases and plate issuance, buying a car is becoming increasingly difficult for local residents. But this has led to a boom in car rentals, which is gaining traction in the capital.

As the lunar new year approaches, demand for cars has risen. Some rental companies have even lent out more than 90 percent of their inventory of vehicles.

One Beijing resident said "Renting a car is more convenient."

With ever-increasing demand, businesses are restricting rentals outside Beijing, in order to cater to local needs.

Meanwhile, others are seeking to expand their business.

Manager of a Car Rental Company, Beijing said "We are a newcomer with more than 50 cars for rent. We have bought another 50, and we plan to open several more locations."

But with market prosperity, comes more competition. Some companies are offering large discounts of up to 50 percent, to attract customers, in the increasingly lucrative market.

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