Auto rentals revving up
- Source: Global Times
- [08:36 January 28 2011]
- Comments
By Zhao Qian
Customers come and go in a continuous stream at China Auto Rental Ltd's Sihui branch beside Forth Ring Road in east Beijing, driving away in cars of various brands and types.
After filling in a form at a table, Wang Tao, a 34-year-old salesman who works for a foreign medical care company, picked up a Citroën Elysée with a 1.6 liter engine at the agency. "I rent the car for my family during the Spring Festival," he said.
Wang used to own a car but sold it last year because he was always on business trips for more than 15 days per month and " it was a waste of money to leave the car unused while still paying auto insurances and parking fees," said Wang.
"Our business recently is running quite well with rental demands nearly exceeding our supplies and the average rents increasing by 50 percent as the Lunar New Year holiday nears," said Qian Zhiya, vice president with China Auto Rental, one of the country's biggest car rental agencies.
Legend Holdings, parent company of the PC maker Lenovo Group, announced in September that it would invest 1.2 billion yuan ($178.57 million) in China Auto Rental, making itself the agency's major-ity shareholder.
"We bought 2,000 new autos this month to ensure supplies during the coming holiday," Qian said. The company owns 13,000 autos in 43 cities.
The country sees the world's largest mass movement of travelers for the period around the Spring Festival in early February, when it creates a national rush for train and air tickets. Renting becomes an option for the travelers who don't own cars.
Owner status changing
The car rental business is promising in China as traffic jams are serious, especial-ly in major cities like Beijing, Shanghai and Guangzhou.
"Taking public transportation during work days while renting autos on holidays has become popular among young people aged between 28 and 33 years old, whose traditional mentality about car ownership is gradually changing," Qian said.
Customers such as Wang Tao are setting an example that some Chinese people are abandoning the notion that social status is tied to car ownership.
"I sold my car last year and I will not buy a new one, since I can rent various types of cars for different uses," said Wang, "I bet few people around me judge my social status depending on whether or not I own a car."
Li Tianli, a 47-year-old retired IT employee renting at the China Auto Rental Sihui branch store, said he drove rentals several days a month during the past year.
"I have enough money to buy a car, but I won't, partly because Beijing has limited car ownership to ease road congestion," said Li. "And the Beijing traffic jams are too much serious now."
