AUTONEWS

Chinese want to use European car rental companies to conquer market

Imports of electric vehicles to Europe are growing, as the environmental agenda adopted by local authorities foresees a very active migration away from internal combustion engines, and the market will not be satisfied by local manufacturers. For Chinese automakers, this is a big chance to shine in Europe and, in the case of electric vehicles, expansion could start with rental companies.

Eurocar, the car rental company, already praises the quality of electric vehicles made in China, according to Reuters. In this business, cost control is important, and electric vehicles are more profitable to operate than cars with internal combustion engines, while Asian-origin cars are often cheaper than Western ones. In the US, for example, one-tenth of all new cars are purchased by car rental companies each year, and for consumers looking to gain experience in operating electric vehicles, renting a similar car can be the first step towards acquiring a similar vehicle. At the same time, this form of knowledge will allow consumers to form an idea about Chinese electric vehicles, if the emphasis is on them.

The pandemic, with its self-isolation requirements, has boosted rental revenue. In the US, the monthly unit revenue of a rental car, for example, increased by a third. At the same time, part of the used cars were sold, and it became difficult to renew the fleet in the face of the shortage of chips and cars. A combination of factors makes rental companies think about increasing the share of electric vehicles in their fleet. Eurocar aims to convert up to 20% of its fleet to electric or hybrid traction by 2024. This means that the company will have to buy up to 70,000 electric or hybrid vehicles in two years.

In this situation, Eurocar is increasingly interested in the Chinese electric vehicles Great Wall, SAIC or the Polestar brand, owned by Geely through Volvo Cars. Among Eurocar's European suppliers are Renault and Stellantis. However, priorities may change as Volkswagen may complete its $3.4 billion deal with Eurocar in the second quarter.

This year, the Chinese company Great Wall Motor will start the official deliveries of the Ora Cat compact electric car to the European market. A car with a power reserve of about 400 km will be offered for 20,000 euros and it will be possible to refill the charge by 80% in 45 minutes. A compact car with retro design is sure to appeal to European car rental customers.

Mundoquatrorodas