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On November 3, Dong Wenchun, chairman of the North Ping An Auto Rental Car Co., Ltd., looked radiant, because on this day, 150 new Passats and Santana 3000s from Shanghai Volkswagen will be delivered to the leasing company.
“Commercial vehicles account for a large proportion in the car rental market. For car manufacturers, this is a big cake.†said Yang Jingsheng, economist at the Beijing Taxi and Car Rental Association.
Commercial vehicle rental market has broad prospects
For a long time, the sales targets of auto makers have been focused on government agencies, enterprises, and household consumers. Even when the taxi market has sharpened their heads, they have ignored the special market of car leasing.
With the change of people's consumption concept, the car rental business has boomed in recent years, and a large number of car rental companies have emerged. Yang Jingsheng told reporters that China’s first car rental company was established during the Asian Games in 1989. After a period of time, the development was slow. There were few rental cars and not too high grades. The most prominent features were used cars, such as crowns, Red flags, etc., were once very sought-after models. In recent years, car rental is just in the ascendant. It is understood that there are currently more than 1,000 car rental companies in the country and the number of leased cars has exceeded 50,000. This number has also increased over time. Moreover, the speed of the leased models is very fast. In three years or so, three years later, the cost of repairs will increase, and it will be time to replace old cars with new ones. This kind of update is happening at any time. These are opportunities for automakers to increase their sales channels and increase sales.
The development of car leasing in China is mainly concentrated in large and medium-sized cities such as Beijing and Shanghai. The business structure is mainly based on the leasing of small passenger cars (including cars and minivans), which accounts for about 95% of the total number of leased vehicles, and less than 5% for the leasing of trucks and buses. . The types of business are long-term leases and short-term leases, and the percentage of long-term leases is about 80%. Taking Beijing as an example, there are more than 70 qualified rental companies (having more than 100 cars that can be leased), and there are more than 20,000 rental cars, of which about 60% are commercial vehicles. Judging from the structure of the models, most of the prices are concentrated in the range of 100,000 to 200,000 yuan, and the Passat, Accord, Buick and Audi A6 are the most common ones. According to the statistics of the leasing companies, the objects of consumption of these vehicles are enterprises and institutions, especially foreign companies. Therefore, for a vehicle that is located in a commercial vehicle, the rental market is an area that must not be forgotten, regardless of the number or potential consumer groups.
Public companies infiltrate the car rental market
"Shanghai Volkswagen's vehicle market share in the leasing market is about 30%," said Zhou Hong, deputy general manager of Shanghai Volkswagen North China Sales and Service Center. Despite this, Zhou Hong saw this large single business as an "unexpected income." "This project is a three-way cooperation between Shanghai Volkswagen Beijing Shenbao 4S dealers, Northern Ping An Leasing and insurance companies. They are on par with each other, so we integrate local resources through local dealers."
According to reports, group users such as car rental companies can account for 1/10 of Shanghai Volkswagen’s product sales.
However, Shanghai Volkswagen is not the only automaker that is aware of the importance of the car rental market. Some media reported that early this year, FAW Toyota's sales company quietly signed an agreement with Shouqi Co., Ltd., and SAIC Motor Group purchased more than 50 crown sedans that have not been formally listed yet. As Shouqi was the designated car company of the two National Associations, it was held later. During the two sessions of the National People's Congress, more than 50 crowns appeared in the two teams. In the original booking list of FAW Toyota's sales company, in addition to Shougang shares, it also included 550 domestic crowns booked by Shanghai Yongda Leasing Group.
Such a matter of the best of both worlds may be about to be realized for the northern Ping An Leasing Company, as Volkswagen is the Beijing 2008 Olympics automobile partner, and Ping An Leasing North purchased 150 Shanghai Volkswagens to see the business space for the next three years. “After Beijing's successful bid for the Olympics, more and more meetings are being held in Beijing. More and more tourists are entering China and coming to Beijing. These guests with car consumption needs are the core resources that we must strive to maintain and increase our efforts to develop. ."
Coincidentally, in June of this year, BMW Brilliance signed an agreement with Shanghai's largest state-owned leasing company. The leasing company purchased 50 domestic BMWs to carry out leasing business. After that, leasing companies all over the country expressed their intention to purchase BMW as a rental car. Fang Zhiyong, senior vice president of marketing for BMW Brilliance BMW, said that this sales model not only created a new BMW sales channel, but also provided a very convenient business and commercial vehicle solution for powerful corporate customers.
Can you become the fifth sales model?
In an interview with reporters, Dong Wenchun threw out a very advanced point of view: There are five ways to sell cars: The first is to sell cars, which is the mode of the planned economy; the second is to sell cars; The third is to go out and sell cars. At this time, the relationship between supply and demand on the market has changed; the fourth is individualized car sales; the fifth is car rental. This is the path taken by foreign car sales. North Ping Leasing and Shanghai Volkswagen's cooperation is the fifth model.
The deputy general manager of the leasing company revealed that the leasing company is still in discussions with Shanghai GM and FAW-Volkswagen. Shanghai Volkswagen is not the only partner. This statement not only shows the positive attitude of auto manufacturers in the car rental market, but also shows that the “fifth sales model†promoted by the leasing market is affecting auto manufacturers subtly.
Xu Yahua, deputy director of the Department of Highways of the Ministry of Communications, said at a recent China Automotive Leasing Development Forum that car leasing, as an advanced and practical financing service form, is an important marketing channel for automobile manufacturers. In the United States, more than 30 cars are sold to the market by leasing, while in Germany it is up to 70%-80%. Therefore, car leasing in China will also become an important strategy for car manufacturers to expand their market share.
With the increasingly fierce competition in the car rental market, leasing companies are also considering the pursuit of car manufacturers as partners in order to reduce the cost of car purchase and use, and reduce risks. For example, at the end of last year, AVIS, a European car rental giant with more than 5,000 sales outlets in 174 countries and regions in the world, and a car rental company jointly invested by Shanghai Automotive Sales Company, a subsidiary of SAIC Motor, which was established with a total investment of US$66 million, were formally put into operation in Beijing. . Industry analysis, compared with other car rental industry, Anji Leasing can not ignore the joint efforts of Shanghai Automotive makes them have unparalleled cost advantages of the same industry, such as when they buy vehicles, can be from the Shanghai Automotive Group, Shanghai Volkswagen Group, Shanghai GM and other automobile manufacturers have received lower prices than their counterparts in the industry.
The question is also here. When asked about the retail prices of the 150 Passats and Santana 3000s, both parties expressed their reluctance to disclose. So, can auto companies only take profits to seize new land in the car rental market?