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The current situation and future development of shared cars in China
Date: 2018-09-03Read: 0

With the development of the social economy, the consumption mindset of the Chinese people is also undergoing changes, and currently more and more people are buying cars. But with the rise in car sales and the continuous increase in car ownership in our country, especially in first tier cities, the cost of using cars is becoming higher and higher. In addition, problems such as parking difficulties, government restrictions, and traffic congestion are causing more and more people to give up buying cars and choose shared cars. The so-called shared car refers to the distribution of cars around residential communities, commercial office areas, university towns, etc. Users only have the right to use them, which is a new type of transportation used to meet people's demand for car use. Usage: Download relevant apps on your phone, place orders online, find reserved vehicles offline, enjoy green travel, and be low-carbon and environmentally friendly.
The current development status of shared cars in China
Shared cars started relatively late in China, but they are currently developing rapidly and have been registered in multiple first tier cities. Founded in Hangzhou in 2011, "Chefengxiang" car rental service is available; In 2013, Geely Automobile Holding Group and Kangdi Electric Vehicle Group jointly launched the electric vehicle sharing "micro bus" in Hangzhou; In 2013, a diversified company called "Yicha Car Rental" was founded in Beijing to promote and develop the time-sharing rental business of pure electric vehicles. The pure electric vehicle rental EVcard is a convenient project of the Shanghai Municipal Government; Aotu Car Rental was established in Shanghai, bringing the concept of "car sharing" into China; Car2go has logged in in Chongqing and has over 120000 registered members. Shouqi's time-sharing rental GoFun has also reserved thousands of shared cars in Beijing; Tiggo has also entered Beijing with 100000 users. In China, shared cars are developing from first tier cities to second - and third tier cities, with users mainly concentrated among young people, middle - and low-income families, and users who need to use cars temporarily. According to a survey, China currently has over 26000 shared cars, and it is expected that by 2025, China's shared cars will grow at a rate of 45%.
2 Difficulties Faced by Shared Cars
2.1 High investment cost and slow recovery
The manufacturing cost of automobiles is high, with an investment of around 1 billion yuan for 10000 vehicles. However, the number of vehicles deployed is too small to achieve economies of scale, resulting in longer waiting times for customers to find and use cars, inconvenience in use, and a small number of users, which cannot achieve the goal of sharing. The payback period is long, with an hourly rental rate of 60% to 70% for a car, and it takes three to five years to recoup the cost.
2.2 Management difficulties
Once shared cars are put on the market, they will face issues such as penalty points for violations, range charging, and disputes over scratches. According to the Traffic Law of our country, penalty points and fines for violations are imposed by following the vehicle, and if the violation reaches a certain level, the vehicle will be forcibly suspended. Shared cars are available for immediate use, and it is difficult to determine who is responsible for any scratches or violations during the rental process; In addition, the need for timely charging and range of shared cars is also a problem. Currently, all shared bicycles on the market, except for car2go, are charged. For electric cars, slow charging takes 6-7 hours, and even fast charging takes 2-3 hours. During the charging period, the car is idle and the usage rate is low, which is also a major challenge faced by shared cars.
2.3 Supporting Facilities Issues
There are two aspects to the supporting facilities of shared cars: one is the parking problem. Rental points for shared bicycles must have sufficient parking spaces, and currently, major cities in China have the problem of difficult parking; Secondly, shared cars also require sufficient charging stations. Insufficient or uneven distribution of parking spaces and charging stations can affect the use of shared cars and reduce their utilization rate.
3 Future Developments
3.1 Select the appropriate application mode of shared cars based on the actual situation of major cities in China
The application area of shared cars in foreign countries is generally selected in the city center. Based on the characteristics of large cities in China, such as difficulties in parking in the city center and the installation of charging piles, the demand and potential for shared cars in the outskirts and suburbs of the city center are considered.
3.2 Continuously improving the level of supporting facilities
Improve supporting facilities, expand operating areas, provide sufficient parking spaces, and offer parking discounts or free parking fees to shared car users to attract more people to use shared cars and achieve true car sharing.