The paper “ Car Rental Industry in China” is a forceful variant of the report on marketing. Even though the global economy experienced a slowdown and recession in recent years, the car rental industry has been growing worldwide. The growth is expected to continue especially in developing economies such as China and India in addition to Australia and the Middle East (Tse, 2010). The industry is more organized in the US, Europe, and Asia Pacific countries as opposed to emerging economies (Tan, 2011). Car rental companies have in the recent past been exploring developing markets such as India, Australia, the Middle East, and China due to the recent economic downturn that has hit many nations in the recent past.
The car rental industry in China dates back to 1990 (Beck, Klobes, and Scherrer, 2005). This was during the Beijing Asian games when the car rental industry was launched to cater to the transportation needs of foreigners. Currently, the Chinese car rental industry is concentrated in Beijing, Guangzhou, Shanghai, and Shenzhen cities. Impact of globalization on the industryGlobalization has seen car rental providers expand their ventures from their country of origin to other countries (Tse, 2010).
This has also stiffened competition within the industry with many players moving to emerge markets such as China (Tan, 2011). As a consequence of globalization, many international car rental firms such as CAGR, Europcar, Hertz, Alama, Budget, and Avis operate in the Chinese car rental market (Beck, Klobes, and Scherrer, 2005). PESTELPESTLE is an abbreviation for Political, Economic, Sociological, Technological, Legal and Environmental factors. PoliticalPolitical factors that can impact business include current and future taxation policies; current and future political support; trade bodies, grants, initiatives and funding; and the effect of worsening relations or wars with certain countries (Tse, 2010).
In China, governmental departments prefer to hire cars rather than buying them for regular use (Lorat, 2009). This implies that the political class in the country supports the use of car rentals.
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