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Car rental car rental market are popular way is appropriate?

Car rental is a large investment and high risk sectors, compete against large companies small companies, spelling but, it can only spell services.
The end of August, Shanghai EHI awarded investors $ 70 million in equity financing, led by Goldman Sachs. More than 10 days, Legend Holdings 1.2 billion bet on China auto rental. In the short space of a month, two huge funds into, making has always been somewhat quiet car rental industry has become the focus of media attention.
"A direct sales network covering over 100 cities and the capital market in the near future", this is the ambition of EHI; "by 2015, the company the size of 100,000 vehicles, 20% market share", which is the aspiration of China auto rental. Two giants is wind, but in this there is no "absolute leader" of industry, belongs to the majority of small and medium car rental companies, now how's life? And how to deal with this by the giant wave of consolidation?
Car rental is popular
Such a large fund inflows, EHI founder Zhang Ruiping believes that it is no coincidence that, China's booming car rental industry will usher in the next round. Jia xinguang, a senior automotive commentator bluntly said, "in the country, hasn't completely private rental habit. Now is not a good chance. "So, how do consumers get even? Journalists investigating some people in car consumption.
As early as at the beginning of September, Wei students begin planning holiday travel plans, travel in the past different, and this time he decided to try car rental self drive tours. "We have a total of 8 students, 4 have a driver's license, ready to book two cars, from Beijing to Taiyuan, Shanxi, to travel freely. "Wei student accounts: car rental plus gas, tolls, parking fees, and so on, no more than 450 Yuan per car per day on average to more than more than 100 Yuan to each student. "Rent a car is not only convenient and affordable, should be able to take the train to and from, then take a taxi transfer sites spend less. "
"The national day, I agreed with his girlfriend, going to rent a car and go back to her home, meet his future mother-in-law. "Saying this, the narrative reveals on his face a little embarrassed," primarily to drive a better car and please mother-in-law, give yourself some brownie points. "
Zhang Yan, a business manager of the company, "car rental very convenient, I often go to business trip, was done in half an hour to airport car hire, faster than the queue for a taxi. "
Car rental, a car which is more affordable, Zhang helped the reporter makes a Bill. If you are living a regular car, if buying a around 150,000 yuan car, opened a three-year depreciation rate is 40%, as used cars to buy 90,000; oil, insurance and other miscellaneous expenses add up to 20,000 yuan a year, 60,000 yuan for three years, meaning that fees for three years a total of 120,000. If you rent a car around 150,000 yuan car, monthly rent is about 6500 Yuan, one year of 78,000, three years more than 200,000, compared to buying a car than car rental deal. But if it is only week 6th trip, occasionally by car and 120,000 yuan to rent a car for 400 days, which is available in more than 130 days a year, car rental deal. "Can also be based on a number of occasions, choose a different car. "
"Look at day at the DMV for my driving test how many people knew how big the market is. Have a driver's license does not necessarily have a car, occasionally rent a car has become a trend, a fad. "Working for a car rental company near the East Gate of Tsinghua University Zhang told reporters," our company cars were all booked half a month before the Festival, temporary rent a car nearly impossible. "
This food is not easy to eat
A yard with dozens of vehicles, even more than 10, you can sign up for a car rental company, and business is so hot, so well made the money do?
In fact, in-depth understanding, reporters found that the industry is not as easy as people think. As the Associate investment Director Liu erhai said, "hundreds of millions of people having a driver's license, GPS navigation universality, identification, credit cards developed and a drop in vehicle prices" and other factors, for the car rental industry's rapid development has provided a solid foundation, but would like to mix anything to eat is not easy in this industry, especially smaller companies are less likely to.
In fact, the car rental industry is a high-risk industry involving multiple links – vehicle depreciation, the violation is not real time, regulatory problems such as difficult will risk was imminent. Weak point anywhere, links are likely to be pulled back.
Car rental is a large investment, high consumption industry, to make a medium size, the company has more than 50 vehicles at least at least invested more than 5 million.
Apart from a few large or formed by the car manufacturer, car rental companies, most companies on the market of vehicles is a 3-5 year old used car, as rental cars and wear quickly, so each 4-5 will need to be replaced a number of vehicles. This mode of operation allows the company gains from mainly two parts, and used car sale or rental income. But because of the acceleration of the automotive industry development, leasing vehicle wear and the used-car market in China is still not perfect, difficult to make high profit margins from sales of used cars, so the car rental company's profit increased reliance on rental income.
Has the insiders worked, assuming that 4-5 to an investment cycle, car rental companies wish to move within 3 years back, left some profitability to the company, the enterprise's break-even point is about average daily occupancy rate of about 70%.
But the reality is that car rental is a short season volumes vary greatly, "a car is hard to find" only by accident. Large scale, run the company well may day rental rates remained at seven or eight levels, small companies and even less than 50%. It's also welcome small-car rental cars "guakao" important reasons.
What is the way out?
Domestic enterprises engaged in car rental services about 5000~10000, with more than 300 rental vehicle companies only have 20 or so, only about 40,000 vehicles rental vehicles, and industry concentration is very low, even in China, Hi industry giants such as market share is only 2%~3%. So people love using "no boss Lake" to describe the development present situation of the industry as a whole.
But now, China, Hey Giants not only thanks to the huge amounts of money supporting lead in the Sprint to the industry leader, also started the price war, driving the industry's consolidation.
What will happen to the future of this market? Many experts maintain that small companies may be "half dead."
Faced with the upcoming wave of industry consolidation, a senior practitioner reminder that rental is an area of concern. "I think some special rental conditions the company may consider this. Mainly because, on the one hand, in addition to the economic cycle caused by the movement of the General market contraction, this season the differences are not particularly part of the business, private car hire, business car rental is generally long term lease, the business is more stable. The other hand, the professional management is also to a certain extent, cost-saving, easy to improve competitiveness. "
According to reporter to investigate, as the economy recovers, business car rental market continues to mature, more and more enterprises tend to use outsourcing, this market not only has great potential, has also been a main car rental business.
In addition, small car rental company at a cost disadvantage, except "waiting to die" and "takeover", trying to survive a profit, can do is to try to seize the market. It is understood that some smaller rental car companies have not followed the two giants cut prices, but chose to use a more intimate and convenient services to enhance their competitiveness, for example, in subway stations, train stations and other places to set up outlets; launched packages specifically for University student groups, and so on.
Perhaps, for the time will soon come, as expected by the EHI car rental industry has become a typical oligopolistic industries, but to identify opportunities, smaller companies want to crack the survival is not a difficult thing.

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