Hubei Bus Reform “Commercial Car Rental” into Car Rental Market

In January of next year, Hubei Province will officially launch the reform of official vehicles, and about 50,000 vehicles will be needed by then. At present, a number of car rental companies are already gearing up for the busi- ness rental market.

At the same time, they also look forward to the introduction of regulations and rules related to car leasing, in order to standardize the development of the market, and lay a foundation for beneficial competition.

Several companies compete to enter the "corporate car rental"

Yesterday, Dongfeng Citroen signed a strategic cooperation plan with Hubei Chuntai Passenger Transport Group. Chuntai Group announced that the company’s first batch of 100 “car rental for public service” will be put on the market as soon as next month.

According to the published service methods and quotation, the group will provide car rental services for a few hours to a long time, calculated by year. For example, for the existing C5 models, the daily rental price is 358 yuan per day, from Friday to Sunday. 408 yuan, holiday 468 yuan. The monthly rent is 7200 yuan, and the annual rental price is more than 80,000 yuan. In addition to the number of days, they will also provide the price of a pay-per-view service, which requires that each car not exceed eight hours, and there are restrictions on the number of kilometers traveled. Chun Chen Group Chairman Yang Zhenhua introduced that the 100 vehicles purchased for the Dongfeng Citroen C5 model, the appearance of the atmosphere, comfortable ride. The model will also meet the official vehicle standard with a displacement of 1.8L or less and a vehicle price of 180,000 or less.

It is not only Chuntai that aims at this market. Xu Nan, deputy general manager of Wuhan Park Bo Auto Management Service Co., Ltd., introduced that at present, the company has 150 vehicles in the public car rental market, mainly for telecommunications, mobile, postal and other large enterprises. Next year, this scale will reach 300 units.

Bus Reform Brings 50,000 Vehicles

It has been estimated that there are approximately 70,000 to 80,000 buses in provincial and municipal Party and government agencies, as well as units and participating public companies, of which nearly 90% of official vehicles will be cancelled as required. Chun Chen Group Chairman Yang Zhenhua estimates that this "big cake" means that there are at least 50,000 vehicles needed.

Xu Nan, deputy general manager of Wuhan Park Bo Auto Management Service Co., Ltd., said that car rental companies in the market are currently targeting the “rich mines” to be mined here. “The programs we have prepared are mainly focused on two points. One is to ensure that the displacement is 1.8L. The following is the official standard vehicle reserve with a vehicle price of RMB 180,000 or less; the second is the calculation of available preferential prices.”

Compared with private car rental, the demand for government car rental will be more diversified. “This determines that the car rental company must prepare several vehicles of different configurations and grades to meet the diversified needs of official vehicles at any time for the needs of government officials. The huge cost pressures and the potential business risks it poses require Traditional car rental companies have to balance.” Xu Nan said that in addition to the official car rental, they plan to start a commuter car rental business to solve the problem of commuting to and from work after the bus reform.

Expect to introduce policy specifications

Although the future market cake is tempting, but in order to participate in the car rental market, our province is still facing policy constraints.

Wang Yanghong, director of the Research Office of the Provincial Department of Transportation, introduced that the only modes of operation recognized by the Ministry of Transport in China are only long-distance passenger lines (timing, alignment), tourist coaches (licensing), taxis, and car rental. The first three cannot meet the needs of public rental cars, and car leases have strict restrictions: they can only hire cars and can't provide driver services. “This is to prevent 'lease + driving' from becoming 'black' and disrupting the taxi market. ”

Yang Zhenhua believes that public rental and taxis are "well water is not a river" and focus on different markets. He explained that currently there are tens of thousands of orders on the taxi software in the market that cannot be met every day, but the group still has no intention of entering the taxi market. “On the one hand, there is insufficient vehicle resources, and on the other hand, we have different target groups.”

While looking forward to loosening policies, car rental companies are also unanimously looking forward to the introduction of new policy norms. Xu Nan said that some car rental companies do not have their own vehicles, but resort to affiliation and use low-cost and other vicious competition to disrupt the market. Some of these "low-priced cars" do not have insurance and some do not have qualifications. The safety of passengers cannot be guaranteed.

Xu Youlin, chairman of the Taxi and Car Rental Branch of the China Road Transport Association and president of the Hubei Road Transport Association, introduced that early next year, the Ministry of Communications may issue relevant policies to regulate and promote the development of the car rental market.

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