Goldman Sachs and Lenovo boost car rental industry looming duopoly

Comics: Zhang Jianhui Home Appliance Store "US-Soviet hegemony" pattern, is expected to reappear in the car rental market. Not long ago, Lenovo Holdings 1.2 billion yuan acquisition of Shenzhou car rental. While in the car rental industry, Shanghai, a hi-rent car with Goldman Sachs-led investors 70 million dollar equity financing, as well as the domestic banks of the hundreds of millions of yuan credit and bond financing.　　After the capital injection, two companies have launched a rapid expansion plan, Lenovo "car rental" sharply cut car prices.　　Industry expects that by 2011, two companies will be more than 10,000 vehicles, scale advantage, price advantage and brand advantage will be further highlighted, thousands of regional small car rental companies also face collective shuffle, the development of domestic car rental industry will enter a new stage. Car rental market rapid expansion in 2002, the U.S. car rental giant hertz into China, the Chinese car rental market began to start the logo.　　However, as the user is still in the incubation stage, Hertz in China, in a short span of three years, Hertz in Shanghai, four of the five stores closed down, and then had to suspend business in China. Hertz's withdrawal did not stop local car rental companies from killing into the industry.　　Through nearly five years of cultivation, the car rental market into a rapid development period, the number of regional small car rental companies more than 6,000, and the supreme, Shenzhou, a hi-car, such as the service network covering the country's leading enterprises. Roland Berger's report shows that since 2005, China's car rental market has continued to grow at a high rate of 30% per cent.　　By 2014, China's car rental market will reach 400,000 vehicles, annual turnover of 38 billion yuan, the next few years, the growth rate of more than 20%. Premier Wen Jiabao last year made a special effort to develop the car rental industry and promote the rational consumption of automobiles. Zhang said, "with the introduction of relevant policies, China's car rental market will usher in a blowout period." "A car, Lenovo" car "two strong hegemony capital has a very sensitive sense of smell, where there is a chance, capital will pounce on where.　　The car rental market, which is now on the eve of the blowout, has become a new blue sea of capital rushing into. August 26, a car rental officially announced the completion of the third round of financing, the total investment amount of 70 million U.S. dollars. This round of financing by Goldman Sachs, the existing shareholder qiming venture, Ding Hui Venture, ignitioncapital, set rich Asia and Chinese capital are with the investment.　　Founded in 2006, a hi-car rental was previously received in 2007 and 2009, 5 million U.S. dollars, 20 million U.S. dollars in venture capital financing. Half a month later September 15, Lenovo announced that in the form of equity + debt, cash injection of 1 200 million yuan and fully controlled China car rental.　　Lenovo Holding executive vice President Zhu Linan told reporters that entering the car rental market and the acquisition of China is its strategic investment, the future Shenzhou car rental will become its core assets to support its listing performance. "The combination of such a large amount of investment should not be just a coincidence, perhaps a description of the Chinese car rental industry spendingThe earlier stage of development, will be under the impetus of capital, ushered in the next round of booming.　　"A hi-car CEO Zhang told reporters. At present, a hi car fleet of more than 7,000 vehicles, covering more than 100 cities and regions nationwide, the Shenzhou car fleet of nearly 6,000 vehicles, in 41 cities nationwide set up more than 300 car rental outlets. A car rental and the Shenzhou car has become the industry leader. After the infusion of new capital, two companies have shown ambitious expansion plans.　　China car Rental Chairman Lu Zhengyao told reporters that in the next two or three months, Shenzhou's fleet will be expanded to about 10,000 units; Zhang also said that 2011 years a car fleet scale will also reach tens of thousands of stations, covering 100 cities nationwide. "A car rental and the power of the Shenzhou capital, have firmly occupied the first camp." With the advantage of scale, the other competitors will be left behind, small rental companies will further reduce the living space. My idea now is that I want to be bought by one of two companies.　　"The head of a small car rental company in Dongguan said in an interview with reporters in south. The large-scale competition produces the duopoly situation statistic data shows, the domestic currently engages in the automobile leasing service enterprise about 5000-10000, but has more than 300 rental vehicles the enterprise to have only about 20, the leasing vehicle total only has 40,000 vehicles.　　Car rental market industry concentration is very low, and there is a price system confusion, uneven service levels, illegal operation and other irregular phenomena, and become a hindrance to the healthy development of the industry. In Zhang's view, car rental is a typical oligopoly industry. The industry's demand for funds is large, only large scale effect, can promote the upgrade of service level, promote the benign development of the industry. "In the long run, the car rental industry will inevitably be a few companies occupy most of the market share of the pattern, like Gome, Suning." So consumers are also more assured that there is a problem know who to find. We very much welcome Lenovo to join the car rental industry, together to make China's car rental industry more standardized to further promote the industry better development. We also believe that after Lenovo's entry, there will be some improvement in the blind price war, illegal operation and more improper vicious competition of some enterprises in the market. "It is reported that a hi-rent car has a listing plan, will be listed in the next two or three years, and Lenovo Holdings also said that its Shenzhou car rental will be launched within 5-7 years of the listing plan."　　Once listed, the two companies ' position in the industry will be further strengthened. Data according to "2010 China Auto Leasing Industry Outlook analysis and Development Trend Forecast report" The Global car rental market is developing rapidly, with more than 7,000 companies involved in the industry, annual income of hundreds of millions of U.S. dollars.　　and domestic to 2015, rental vehicle demand will reach 300,000 to 400,000 vehicles, operating income will reach 18 billion yuan. At present, despite the rapid development momentum, but the vast majority of enterprises areSmall, lacks the strength which resists the market risk and the market expands, faces many difficulties, has not formed the leasing service network which all over the country. In addition, the relevant regulations and supporting policies of car leasing are not sound enough. The user's credit status is unknown, which seriously affects the development of the car leasing industry. (Gao Lingyun Hao)