China's car rental business is expected to boom following the nation's accession to the World Trade Organization (WTO), industry experts said.
As increasingly more foreign companies flock to China, attracted by the world's most promising economy, the demand of rental cars is bound to soar radically, said Wang Xianping, vice-chairman of Beijing Tonglida Vehicle Rental Co Ltd, one of China's largest car rental companies.
"Foreign companies are willing to rent cars rather than buy cars because it is much easier to manage the cost, and there is less hassle for those that are unfamiliar with China's local laws and regulations," he said.
"We have seen our business grow much faster than ever in the past few months. We think China's WTO accession and its successful bid for the Olympic Games are two major incentives for the increase," he said.
The company now has more than 400 cars and is China's only car rental company that has obtained the ISO9002 qualification certificate, an international standard in the business.
Now the company's major customers include Microsoft, IBM, Coca Cola and BP.
Official statistics from the Beijing municipal government indicate that there are about 240 State-owned or private car rental companies that own more than 20,000 rental cars in the city. In 2008, the government plans to increase the number to 80,000 to meet the surging demand, and especially for booming tourism.
Customers now can choose cars ranging from Mercedes-Benz, BMW, Lexus and Audi to Mazda, Buick and Honda with full plates and licences and in good working condition from Tonglida, said Wang.
The company also provides car maintenance, repairs and solutions, Wang said.
"We have to rely on quality service to attract customers since the competition in the business is growing," he said.
Some of the world's largest car rental companies, such as Hertz and Avis, have already prepared to operate in China, he said.
"Compared with foreign car rental companies, China's rental car conditions are usually inferior, and the convenience offered by services has yet to be improved," he added.
Differing from the world's leading car rental companies that have worldwide operations, China is still behind, which could deter the development of the business, he said.
"We hope to create nationwide car-rental operations," he added.
(China Daily December 24, 2001)
