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NPC Deputy Calls for Developing Car Rental Business
The general manager of a leading Chinese car manufacturer Thursday submitted a proposal to the on-going National People's Congress (NPC) session, urging the development of car rental business in China.
Zhang Shirui, general manager of the Dongfeng-Citroen Automobile Co., Ltd. and a deputy to the NPC, said car rental business has spread to China where renting a car for personal use is expected to become a new focus of consumption given the current purchasing power of the Chinese people.
In 2000 alone, some 240,000 Chinese purchased their private cars, but to most Chinese, having a private car is still a dream though more than 26 million of them hold a driver's license.
"The family car market is unlikely to grow on a large scale in China in the coming one or two years due to a range of restrictions that dampen private car purchases," he said. "In addition, ordinary Chinese still cannot afford a family car."
Under such circumstances, car rental can help car lovers to enjoy driving, according to the car company executive, who said he feels excited at learning about the policy to encourage the development of family cars in the draft 10th Five-Year Plan now being deliberated at the current NPC session.
The car rental market remains sluggish in China despite the entry of well-known car rental companies from Europe and America. There are more than 200 car rental companies in Beijing, but only 80 of them are struggling to maintain business operations. In Shanghai, a dozen car rental companies together can provide a mere 2,000 cars while their counterparts in Guangzhou have only 40 percent of their cars rented.
Zhang suggested car rental companies form a nationwide network to do more business from chain operation.
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