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Luxury car manufacturers remain optimistic over rental market

Source: | Date: Nov. 30

  • "Now, rental business takes up a small share of the whole Chinese auto market, but has very huge potential," Michael-Julius Renz, President of the FAW-Volkswagen Audi Sales Division, said in a recent interview at Auto Guangzhou 2015, adding that the car rental market will move into a sweet spot in the future.

  • "In developed auto markets, the rental segment is also very developed. This trend has been demonstrated in the Chinese market. As the auto financial service sector runs very well, the car rental market will heat up," Renz said.

  • In the face of meager profit earned from new vehicles, automakers especially luxury car manufacturers are exploring the car rental segment to seek a new profit-making point.

  • Prior to the auto show in Guangzhou, BMW AG announced its acquisition of Herald International Financial Leasing Co., Ltd., which paved the way for BMW's rental business development in the future.

  • "We are very confident in the long-term development of the Chinese auto market, so we are making preparations for the next-phase development," said Erich Ebner von Eschenbach, Head of Financial Services Division at BMW Group. "New auto service businesses, such as car leasing and vehicle fleet management, will play an increasingly important role in the whole auto market."