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Morale of the domestic car rental

China's car rental industry has been developing for 20 years, and the ratio of rental car market in the world, was not enough to contend, because the vast majority of the domestic leasing companies are small, lack of market power and lack of management mechanism, challenges are many.

dilemma: small size

domestic car rental companies don't have competitive advantages of scale. Although the large number of car rental companies, but most of the company's small scale, weak, vulnerable to market risk and competition. Among them, have  80% Enterprise operational vehicles less than 50 cars, 70% fewer than 5 employees of the enterprise, 85% Enterprise car rental station points lower than the 2. Even a preliminary scale management of medium and large car rental companies can be achieved only in local or regional car rental service, did not result in rental service network all over the country, making it difficult to compete with their international counterparts.

dilemma II: lack of regulation

car rental regulations and supporting policies are pathetic. Although national gradually issued has some on car rental of regulations, as car rental industry management provisional provides, and commercial franchise management approach (pilot), and car rental pilot work provisional management approach,, but car rental industry as a emerging industry, in its development process in the inevitable will occurred new situation, and new problem, and some problem according to original regulations and policy to solution.

plight of three: credit low

credit system is not really established. Unknown user credit leasing companies in the leasing business increased uncertainty, car rental companies to assess customer credit, rental car theft, and fraud, are often pawn so as to require the lessee to provide security, pay a huge deposit, have to go through the cumbersome procedures, seriously affected the development of the car rental industry. Like Beijing, at the beginning of the car rental industry, and the various car rental companies rent rate was as high as 10%.

dilemma Thursday: taxes

vehicles leasing enterprise's tax burden. For the car rental company, is a heavy burden of taxes and fees. Mainly by the acquisition of domestic car taxes and fees link, with links and use link consists of taxes. Purchase link, in addition to the price 17% VAT and 3% to 8% of the consumption tax, the purchase of should take, licence fees and other costs. Have a link, an enterprise has to pay maintenance fees, insurance premiums, motor vehicle fees. Using links, annual inspection, business administration and other costs. These high taxes caused current car rentals are expensive.

difficulties five: support for less

lack of coordination of social protection and related industries. Domestic car manufacturers not involved in car rental industry, resulting in a car rental company initial investment is too large, the heavy burden of scale from a low level, the general lack of vehicle replacement. In addition, Enterprise car rental, financial and insurance institutions to credit, insurance mechanism is not perfect, the car rental industry to introduce financial and insurance support.

car rental in China and Europe and developed countries are still in the "early", both in terms of scale, brands and in the management of technology and service level there is a large gap, it is difficult to compete with international businesses. But with the development of China's economy and the improvement of people's living standards, residents ' growing on automobile consumption desire and favorable external environment for development of the car rental industry, rental car market in China has great potential for development.

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