Automotive leasing industry frequently VC says profits are just a matter of time

The end of 2009, Wang Zhijian from China auto rental, from a real estate agent there to raise billions in capital, on their own, established the world friend car rental.
Almost at the same time, Cao Hui also engaged in real estate before entering the car rental industry, set up a courier.
There is more capital to take up the profession.
In August this year, EHI formally signed an agreement with Goldman Sachs-led investors, completed a total of $ 70 million in third round financing.
In September, Lenovo Holdings announced that the value of 1.2 billion yuan, with "equity plus debt" into China auto rental, which is China's second financing.
In November, the car rental cars get Mitsubishi $ 20 million capital injection, it is said that the second round investment of tens of millions of dollars "had signed on."
In 2010, how frequently the car rental industry money?
Is it, as one industry source says, "the car rental industry is very hot now"?
Car rental industry is a positive trend, gave Wang Zhijian confidence to some extent.
As early as 2009 in the Government work report, Premier Wen Jiabao explicitly mentioned, to speed up the development of the used-car market and car rental market.
"This reflects the Government's focus on the industry", Wang Zhijian believes that corporate reforms also bring opportunities to car rentals.
Difficult start in 16 years, corporate reform has now been included in the Commission work plan of the State Council this year.
Enterprise customers are changing. "Now customers, models, prices are very clear, before their car rental concept is still relatively vague" Wang Zhijian believes that these changes reflect, slowly expanding market.
AVIS international car rental (China) Vice President Peng Shibang told reporters that AVIS has been cultivated in China for 8 years, to the present, long-stay business enterprises still account for its share of the 70%-80%.
Now AVIS international car rental services with Fortune 500 ideas and standards for service to rental customers.
Wang Zhijian for individual rental market remains optimistic, he believes, with rental prices continue to drop, will make the car population base expanding.
As to why there is a lot of money into the car rental industry, Tong Shihao Qiming Venture partners that "still is bullish on China market."
Roland Berger report said over the next 5 years, China's car rental market growth will remain about $ 25% a year. The data, according to the China Association of automobile manufacturers, in 2009, China's auto sales to 13.6448 million vehicles, an increase of 46.15%. China has surpassed the United States as the world's first new-car market.
Peng Shibang believes that such growth is enough to make investors in China's automobile market in the world covets.
But as of now, profitable companies in the industry, "not much."
Hi founder Zhang had said hi is one of the industry's few "profitable" company according to people close to the divine, in 2009, China was also "profit".
Wang Zhijian believes that at present some companies actually have to do "book profit", but also continued to expand, new investment cycle led "no profit", but at least it has stated that their model is feasible.
"This is one reason why investors continue to put money," one foreign VC think, profit is only a matter of time, because the car rental industry is characterized by the "bad assets, return on investment, long cycle".
However, after the flood of money into, let Tong Shihao worry is, if all prices to be competitive, the market might have become China's household electrical appliance industry.
"This industry is a bit like a budget hotel when I first started, the market was going through a process of education", said Tong Shihao, how long is the education process will be, remains to be seen. BACK PAGE