By CGTN's Zhao Lingfeng
Car-sharing schemes in China are booming. The number of shared cars is projected to quadruple in three years from a current fleet of 26,000, according a recent study.
For the 22-year-old Gao Baojun, having a vehicle to use is more important than owning one. He signed up for a car-sharing scheme immediately after graduating from university a year ago. Now he’s a regular. He said he uses shared cars at least three or four times a week.
Users can locate the nearest available shared car on smartphone app. /CGTN Photo
Young drivers in their 20s or early 30s like Gao are a key market that car sharing companies are trying to win. These young people prefer to pay to use a car over having to buy one, according to Can Jong, Vice President of Togo, a car sharing provider now operating in China’s biggest four cities, namely, Beijing, Shanghai, Shenzhen, and Guangzhou.
Car2share, a car share scheme under the global auto giant Daimler. /CGTN Photo
And this idea is fueling a booming market with local and foreign players quickly joining the camp.
EVCARD is the largest car share scheme in Shanghai. The company’s general manager, Car Guangyu, said the company vehicles are used 20,000 times a day. On weekends, the number can be over 26,000.
EVCARD, the biggest car sharing scheme in Shanghai, provides 20,000 rides every day with a fleet of 5,500 shared EVs. /CGTN Photo
Ron Zheng of Roland Berger, a consultancy, said car sharing may lead to lower car sales. But relying on car-sharing services will not provide the flexibility that car ownership provides.
Bill Peng, a partner at PwC China, said based on their research, each shared car in a fully developed market can lead to five customers deciding not to buy their own vehicles. And by 2025, car sharing schemes will lead to a reduction in car sales by 10 to 15 percent.
Gao agrees. He said because car sharing satisfies his needs, he will have enough money to spend on other parts of his life.
