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Finding New Growth Point of Profits for Automotive Businesses

April 10, 2023
In the future, consumers can not only buy cars but also rent cars in 4S shops. Recently, when the reporter visited the auto market, it was discovered that some auto manufacturers and car dealers were exploring cross-border auto leasing business “invariably” in order to find new profit growth points and expand sales channels. A number of auto makers could not help themselves with excitement. They have joined the car rental service industry and hope to eat this attractive cake in the future.

For car manufacturers, car rental business is changing lanes to seek business growth. Among this sudden rise, forward-looking car manufacturers such as Dongfeng Nissan, Shanghai GM, Guangzhou Automobile Toyota are at the forefront. This means that The battle without gun smoke has started.

Although the car rental market has a promising future, the industry's prosperous culture is mixed. On the eve of the Spring Festival, the major car rental companies are all in turmoil. In addition, the impact of the purchase restriction policy of Guiyang City last year has caused many consumers to temporarily abandon the car purchase plan and transfer to car rental. Ranks. Many car rental companies in Guiyang City have reached saturation on the eve of the Spring Festival. In the face of consumers who come to rent a car, many workers can only helplessly say: "There is no car."

According to the data released by China Taxi and Car Rental Association, China’s car rental industry is growing at an average annual rate of 20%-30%. It is estimated that by 2015, the demand for leased vehicles in China will reach 300,000-400,000 units, operating income. It will reach 18 billion yuan.

This hot scene in the car rental market shows that the future of this market is definitely a hotly contested place for the military. To see who will not die in the battlefield, we can see who can do more standardization and improvement and who will be able to compete in the market. Based on survival.

It is understood that currently there are dozens of car rental companies in Guiyang City, which are concentrated in Beijing Road and Ruijin North Road. Domestic famous “Car Rentals in China”, “Leasing Car Rentals” and other large chain car rental companies also have branches in Guiyang. Lianzhong car rental staff said: "At present, car hire business car and holiday travel car accounted for most of the proportion."

Dozens of large and small car rental companies have made Guiyang's car rental industry fiercely competitive, and in order to attract customers, unfair competition means are nothing new. At present, most complaints from consumers are still concentrated on issues such as the inconsistency of the vehicle condition, the unclear insurance liability, and the non-standard car rental contract. Insiders pointed out that the current state-owned car rental companies in the market are well-funded and have stable channels. However, business management concepts are lacking in innovation and services are lagging. Fast chain companies have fast growth and high market share, but services, processes and Talent is relatively lacking. The current rental market does not have an industry standard, and each one wins with the price so that the current rental market is confusing. The mixed market conditions make consumers call for car rental services that are at ease and enjoyable.

4S Car Rental Advantages Many Consumers Say Freshness and Willingness to Try Recently, Dongfeng Nissan’s high-profile launch of the “Easy Car Rental” leasing brand is a positive signal for car manufacturers to scale into the leasing industry. “Easy Car Rental” is a car rental brand service supported by Dongfeng Nissan’s franchise service network and service capabilities. Through a full service platform such as car rental network, telephone booking center, and dedicated website, Nissan's new models and vehicles are used to provide Nissan customers with a comprehensive and diversified total vehicle solution.

Guiyang Manager, Manager of “Easy Car Rental” in Guiyang Dongfeng South Suixing Store, told reporters: “Compared with general car rental companies, “Easy Car Rental” provides new car experience, maintenance, business trips, official reception, and tourism vacations. Within the diversified service categories, consumers in the Dongfeng Nissan franchise car rental not only have excellent original professional maintenance quality assurance, but also during the rental car can enjoy 360° insurance steward, 24-hour road rescue and other full services, allowing customers to rent more In addition, Dongfeng Nissan Ease Car Rental members will enjoy discounted services such as car rental discounts, priority booking, points redemption, etc. In addition, there is a new service called “rent-to-sell”, which is aimed at customers who need new and long-term car purchases. By paying the rent and paying the remaining amount of the vehicle after the lease expires, you can easily obtain the property rights of the vehicle, or you can choose to rent a new model and vehicle separately. In any case, you can do whatever you like, very flexible and convenient." These safeguards make it very attractive for consumers to go to 4S car rental. This is also a unique advantage of 4S car rental compared to the traditional car rental industry.

According to Xiao Chen, an employee of Dongfeng South’s “Easy Car Hire”, “The cars currently used for renting are all new cars and the car sources are adequate. Especially for SUVs such as Qashqai, the SUVs are very popular. Self-driving tour enthusiasts are very fond of this. Car.” During the Chinese New Year, Guiyang’s citizens Ms. Zhang rented a car in Dongfeng South Zhaoxing Store, and the family drove to Chongqing for a few days. Ms. Zhang said: “When we went to rent a car, the bigger models we wanted were rented out. At the end, we rented only one Ma Chi. Although the family sat in four seats, the price of 198/day was more cost-effective. The condition of the car along the way also made the whole family very satisfied. The overall feeling of this car rental trip is still very good, and the 4S shop service is also very safe."

4S shop involvement in the car rental industry brings more than just the industry reshuffle. In the context of the traditional car rental industry, the 4S shop car rental business is not only to find new profit points, but also to provide consumers with a new car. Consumption patterns. It can be foreseen that with the advent of auto 4S shops in the car rental industry, the pattern of the car rental market in Guiyang will change. It is worth noting that, unlike ordinary and traditional rental car services, car rental brands that are driven by manufacturers have entered the market. Some of them are not based on direct profit as the ultimate goal, but appear as a value-added service for car brands.

For 4S stores, car rental business is not just to provide value-added extension services for consumers, but also to seek new profit points. The development of car rental business will also change consumers' consumption concepts and lifestyles. A car brand dealer told reporters: “4S shop car rental business is actually a brand promotion for 4S stores, it can be said that it is a deep type of experiential marketing, consumers can open ten days and a half can be more The understanding of this car in terms of the car also has a certain perception of the brand's quality and performance, thus affecting the choice of follow-up car."

Insiders pointed out that 4S shop involvement in the field of car rental is not only an expansion of its own marketing and sales methods, but also will have a long-term and profound impact on the entire car rental market. Because the car rental market still has non-standard areas, if a professional auto 4S shop is involved in the car rental market, injecting a relatively complete management and service operation system will inevitably lead to a more standardized leasing industry. At the same time, the competitive landscape of the car rental market will also change, and the 4S shop may become a “new force” in the car rental market. Judging from the rapid development of the current car rental industry, car leasing may also bring the new “breakout” opportunity and profit growth point of the auto 4S shop as the used car business.

The traditional car rental market suffers from a bottleneck crisis and exerts their respective strengths to be the foothold. Auto manufacturers have abundant capital and perfect sinking channels, and competing for the leasing market in a large-scale manner is bound to cause certain small-scale leasing companies to create certain The impact will certainly occur when the shuffling process takes place, which is also the only way for the industry. At the same time, it also proves that more and more companies are discovering the prospects of China's car rental market.

Will the 4S shop add a car rental business to a devastating blow to the traditional car rental industry? The person in charge of a car rental company has different opinions. He is optimistic about the traditional car rental market. He said: "The mature automotive consumer market is a mixture of various needs and can not be replaced by each other. 4S stores and traditional car rental companies have their own fixed consumer groups. Moreover, 4S shop car rental business has just started, and the traditional car rental market For a long time, with its own set of business models, at least in the short term, auto 4S stores would like to surpass the traditional market in this respect, and it is still difficult to take the initiative, and our vast number of car rental companies must also improve their profitability and level. Together to promote the development of the car rental industry."
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Author:

Mr. Liu Keda

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syzdhx@163.com

Phone/WhatsApp:

+8613904003748

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