Car rental companies scrambling to list car leases have become "gold mines"

On October 9th, Shenzhou Auto, which had just been listed and financed successfully in Hong Kong, resorted to a trick to reduce the price of “killer” and launched a massive 59-dollar price-cutting promotion campaign across the country, attracting multiple car rental companies to follow up and triggering a price war. Very concerned about the market.

Behind the rich and powerful, is the car rental market is favored by the capital market, with the rise of the online car rental business, Bao Jia car rental, P2P car rental project financing is successful, hot money continues to flow, the car rental market is never warm The fire slammed into "wind and water."

Market: Hot money pouring into the foreground

After experiencing the tepid staking events in July and August, the car rental industry has ushered in a wave of ups and downs in the capital market. On September 19th, Shenzhou Car was successfully listed on the Hong Kong Stock Exchange. On the first day of the issuance, Shenzhou Car Rental obtained HK$3.45 billion in financing, the market value was around HK$27.4 billion, and it was over 200 times oversubscribed in the pre-IPO public offering phase. This result means that the car rental industry is being favored by the capital market. One-time car rental also plans to raise 200 million U.S. dollars on the New York Stock Exchange.

In addition to the above-mentioned traditional car rental companies, the car leasing industry has been accompanied by a wave of mobile Internet, which has caused a wave of online car rentals and attracted the attention of many investors. The reporter also noticed that since the beginning of this year, P2P car rental companies such as Baojia Car Rental, PP Car Rental, and Youyou Car Rental have also received financing in succession.

On September 24th, Youyou Car Rental Co., one of the four major companies in the P2P car rental industry, received a $10 million round A round of financing led by Anshun Anshun. In fact, in addition to the Friends of the Friends, P2P Car Rental has won the US$10 million Series A round of financing led by Sequoia Capital in June, and has secured an angel investment of US$5 million within a week of launching the car. According to reports from bumpy car rental insiders, Bump Funding is already in the making and news will soon be released.

"Car leasing is a heavy asset industry, and money can't be played at all." For example, the China Car Rental Corporation has also been developed under a round of financing. It is reported that at the end of 2009, Shenzhou Car had less than 700 vehicles, and after Lenovo Holdings achieved a huge injection of RMB 1.2 billion in 2010, the team was expanded to more than 10,000 vehicles. In 2012, the world's largest private equity group, Warburg Pincus, rented Cargo to China. Invest 200 million U.S. dollars. In 2013, the global car rental giant Hertz invested $1 trillion in Car Rental in China. Many times before and after the injection of funds, so that the rapid expansion of China's car rental. The data shows that at present, the total vehicle scale of Shenzhou Car Rental is about 53,000, and the fleet consists of 29 brands and 122 vehicles. The net book value is about RMB 4 billion.

“The car rental industry is a heavy asset industry. Only by purchasing as many cars as possible and deploying as many networks as possible can we maximize the convenience for consumers. Only when the car rental companies are expected to reduce procurement costs and allocate management costs, can they improve their products. Price advantage.” Hui Yumei, director of consulting of Xinhuaxin Automotive Industry, told reporters. Industry analysts believe that the car rental market is concerned by the capital market and will undoubtedly benefit the development of the entire industry.

Industry: Happy Valley Price War

The riches and riches, the car rental market has become increasingly fierce. The Shenzhou, which had just received a blood transfusion of nearly 4 billion Hong Kong dollars from the Hong Kong Stock Exchange, began to burn money. On October 9th, the China National Car Rental Co., Ltd. carried out “prices” for dozens of economic vehicles including Buick Excelle, Kia K2, and Shanghai Volkswagen New Santana. The average rental price of less than 60 yuan per day fell by about 50%.

In the face of the price war of China Car Rental, a rental car that is planning to be listed will quickly follow up. On October 10th, it will launch a new round of “Grateful Feedback” price reduction promotion program and launch a low-price car with a minimum price of 55 yuan. activity. The traditional car rental industry has fallen into a price war. What is more noteworthy is that the online car rental platform has also responded positively. Friends of the Friends Car Rental will start a promotion with a price of 39 yuan starting from October 12. This is undoubtedly the largest price reduction in the history of the car rental industry.

Car rental companies in China believe that the price reduction is also an act of exploring the market. “Let more consumers who originally stopped at the car rental door because of price, join in and cultivate their consumption habits of car rental. Tap for more opportunities."

However, sources have revealed that the price reduction promotion of China Shenzhou Car Co. is actually aimed at cracking down on a car rental that is actively preparing for listing. However, the competition between the car rental giants and the hot speculation of online car rental platforms will only benefit consumers.

Competition: The Impact of Online Car Rental on Traditional Patterns

In fact, in addition to the dispute between traditional rental car companies, the Internet share platform for car rental has also attracted considerable market attention this year. According to statistics from iResearch, the transaction volume of China's online car rental market in 2013 reached 3.42 billion yuan, a year-on-year increase of 69.5%. It is expected that the growth rate of online revenue will be higher than 20% in the next four years. Mobile terminal rental cars, private car sharing platforms, etc., also quietly rise.

To rent a car, the owner of the national private car was launched as a “car source,” and the private car sharing model was also promoted in first-tier cities across the country. According to the PP car rental information, the number of vehicles registered on the shared car rental platform that only went online in October last year has reached approximately 50,000 vehicles. In order to achieve this volume, Shenzhou Car Rental spent more than several billion yuan in financing for nearly seven years.

Bao Dian car rental CEO Li Rubin revealed that the current domestic P2P car rental company's profit model is also similar, in the transaction amount of each transaction to extract 10% to 30% of the commission as income, in the promotion period also returned 20% of the subsidized car owners. Li Rubin calculated the account for the reporter. Taking a 200,000 yuan private car as an example, the cost of one-year maintenance plus insurance is about 7,000 yuan. If you rent it on the platform of the prosperous driving platform, take 280 yuan/day as an example. If you rent it for 25 days a year, you can flatten the fee.

“Traditional chain companies have the advantage of being able to return vehicles elsewhere, and are more suitable for long-distance business trips and travel between cities. P2P rental vehicles are more suitable for local travel because of their procedures for handling, the convenience of self-service vehicles and the economics of car rental prices. Or take a short-distance use of driving around the city." Li Rubin believes that there is a market segment between P2P car rental and traditional car rental.

According to analysts from Sinopharm China, P2P car rental is impacting the traditional pattern, and the car rental industry will gradually move toward online booking. Industry competition will also take place both online and offline.

Industry: It takes time to cultivate the market

“The holiday back home, very willing to rent a car, but the price of a car rental company, too expensive, or give up.” National Day back to the hometown of Hubei Xiaoning told reporters. “During the National Day, China’s car rented a regular car at RMB 123. However, I still prefer chained car rental companies.” Miss Sun, who works in the development zone, spent five days in China’s car rental during “11”. Long-term rental orders.

With the increase of restrictions on licenses, restrictions on access, and the improvement of living standards of the residents, the market space for the domestic car rental industry is extremely large. However, the actual situation is that due to factors such as price, consumer attitudes, and immature policy environment, consumers are not very “buying” about car rentals.

According to 2013 statistics of consultancy Frost & Sullivan, the penetration rate of China's auto leasing and service market in 2013 was 0.4%, which was far below the 1.7% in the United States, 2.6% in Japan, and 2.5% in South Korea. The leasing market is mainly concentrated in four first-tier cities in Beijing, Shanghai, Guangzhou, and Shenzhen. The combined market size of these four cities accounts for 59% of the national market.

“At present, the development of the domestic car rental industry is still in its infancy. It may take a certain period of time to enter the fast-developing stage of the car rental industry,” said Luo Lei, deputy secretary-general of the China Automobile Dealers Association.

The domestic bus reform has also brought significant benefits to the car rental industry. Luo Lei said: "In the past, government departments were buying cars on their own and maintaining their own cars to maintain the use of buses. The possibility of using the lease method will be even greater."