China's car rental services see surge in demand over holidays

China's car rental market saw strong growth during the recent eight-day National Day and Mid-Autumn Festival holiday, fueled largely by the rising popularity of self-drive tours.

During this period, the daily average number of car rentals nationwide reached 650,000 vehicles, peaking above 700,000 on the busiest days. Rental volumes rose 18 percent year on year, establishing car rentals as a major travel option for holidaymakers.

A staff member briefs a customer on the features of a rental vehicle. (Photo/Dai Ming)

According to the Ministry of Transport, self-drive trips accounted for roughly 80 percent of the 2.43 billion cross-regional passenger trips made across China during the holiday period.

The holiday saw greater car rental activity than the summer vacation season, with travelers using cars for both long-distance and shorter trips. Multiple data platforms showed longer average rental durations, with multi-day booking growth hitting double digits.

"China's car rental industry is developing rapidly, offering the public more travel choices while serving as an important driver for expanding domestic demand and stimulating consumption in the transport sector," said an official from the Transport Services Department of the Ministry of Transport.

By the end of last year, about 1 million vehicles were available for short-term rental nationwide, according to industry estimates.

Customer demand has become increasingly diverse. In recent years, the main purpose of car rentals has shifted from business to leisure, with tourism-related bookings now accounting for about 55 percent of total orders. People aged 18 to 35 have become the main demographic, making up roughly 60 percent of users.

Lin Jia, vice president of CAR Inc., a major car rental service provider in China, noted that the company's user base grew nearly 20 percent year on year in 2025. While young consumers remain the majority, an increasing number of seniors are also embracing the convenience of car rentals, Lin noted.

As consumers place greater emphasis on service quality, immersive experiences and emotional value, self-drive car rentals are increasingly meeting the demand for immersive travel and have become an important channel for consumption upgrading.

"Travelers today seek experiences that are customized, distinctive and high-quality. Flexible and convenient self-drive car rentals are gaining traction as a new model for integrating transport and tourism," said Liu Xiaotong, deputy director of the Urban Transport and Modern Logistics Research Institute at the Transport Planning and Research Institute under the Ministry of Transport.

In east China's Jiangsu Province, the popular 2025 Jiangsu Football City League has boosted local car rental demand, as fans increasingly combine travel by high-speed train with car rentals to reach games.

Cheng Guo, head of marketing at Hello Car Rental, another Chinese car rental service provider, said cities such as Taizhou, Huai'an, and Wuxi in the province all saw order growth exceeding 70 percent during the summer.

Music festivals, concerts, and other cultural tourism events nationwide have also boosted car rental demand.

An increasingly integrated transport network and upgraded rental services have lowered barriers for users, creating new opportunities for the sector's growth.

"Effective connectivity between urban transport capacity and the comprehensive transport system has facilitated the rapid expansion of a model integrating high-speed trains, airplanes and rental cars," said an executive from the China Taxicab and Livery Association.

Most cities at or above the prefecture level and economically active counties now have car rental outlets, with the vast majority of civil airports and high-speed railway stations offering on-site pickup services.

On Sept. 16, Hello Car Rental launched new outlets simultaneously at Lanzhou Zhongchuan Airport in northwest China's Gansu Province and Nanjing South Railway Station in east China's Jiangsu Province. The company now operates more than 100,000 rental service points, covering over 95 percent of airports and high-speed railway stations nationwide.

Enhanced service capabilities have greatly improved the rental experience. One-click booking functions on mobile apps are replacing cumbersome procedures, while technologies such as VR vehicle viewing, self-service pickup and return, and electronic contracts have enhanced price transparency, efficiency, and user convenience.

In recent years, one-way rental services have expanded significantly, with leading companies now offering nationwide drop-off options.

Driven by the interplay of demand and supply, the car rental industry has evolved from merely providing transport tools to shaping modern lifestyles, injecting new vitality into the deep integration of transport and tourism, Lin said.