Since the early 1990’s, the emerging trend of short term car sharing and rentals have been on the rise in western countries, this trend continued and by 2010 entered the China market. As of the beginning of 2016, the number of car sharing companies with economics of scale have since reached above 30 and the total fleet in the market amounted to around 30,000. The overall market continues to grow rapidly at a rate of over 50%.
At the time car sharing entered the China market, new energy vehicles also started its initial market development. These vehicles are more cost efficient, particularly in terms of recharge expenses and maintenance, compared to traditional fuel vehicles. In pursuit of fulfilling the mission of selling and promoting new energy vehicles, a number of original equipment manufacturers have begun their presence in the car sharing market.
In this thought leadership article, we introduce the background and trend of the emerging car sharing industry as well as providing our suggestion on how to be a competitive player in this field.