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On December 4th, PonyCar, a car-sharing platform, secured 250 million yuan in C-round funding. Last month, two major players also entered the market—BMW and a U.S.-based car-sharing project launched operations in Chengdu. In March and October of this year, two well-known time-sharing companies, Friends of Friends Car and EZZY, shut down, which dampened the enthusiasm for car-sharing in the market.
With the release of carbon emission guidelines in 2018, demand for capacity building in the main engine industry is expected to rise. This will lead to a boom in China’s shared automotive sector, with more companies entering the space. However, unlike the bike-sharing model, which saw fierce competition between Mobike and Ofo, car-sharing will likely face even more intense rivalry in the short term, according to Yang Yang, CEO of Yi Weixing, who spoke to a reporter from 21st Century Business Herald on December 3rd.
Data shows that the Chinese time-sharing leasing market is largely dominated by local operators, holding over 90% of the market share. The open nature of the market and user base continues to attract a wide range of companies from different industries and regions.
More players are expected to enter the market. On August 8, 2017, the Ministry of Transport and the Ministry of Housing and Urban-Rural Development issued "Guiding Opinions on Promoting the Healthy Development of Small and Medium-sized Passenger Car Leases," encouraging the growth of the car-sharing market.
According to a report by Rolanberg Consulting titled “How Time-Sharing Leasing Succeeds in China,†the number of vehicles leased through time-sharing in China is expected to grow at a compound annual rate of 45% over the next decade, reaching up to 600,000 vehicles by 2025.
Currently, there are four main types of time-sharing companies: 1) Automotive enterprises, such as Daimler’s Car2go and SAIC Motor’s EVCARD; 2) Cross-border players like HNA Group’s Second Car Rental and US-based companies; 3) Traditional car rental companies expanding into time-sharing, such as TOGO and Treasure Drive Travel; and 4) Third-party tech companies like Once Used Car and EZZY.
Although these companies each have their own strengths, they also face unique challenges. For instance, automotive firms benefit from OEM support in terms of vehicle supply, technology, and infrastructure. Meanwhile, multinational companies like BMW’s ReachNow and Audi’s AudiOnDemand have already established themselves in Europe and the U.S. before entering China.
However, these foreign players often struggle to adapt to China’s diverse regulatory environment and local market needs. As one industry insider noted, “Multinationals excel in traditional Western models, but car-sharing has proven difficult to replicate in China due to varying city policies and local characteristics.â€
Cross-border players, on the other hand, bring strong user bases and integrated services, offering greater commercial value when entering the market. Financial backing is another advantage, as many time-sharing companies suffer from cash flow issues, which could lead to closures in the coming years.
Yang Yang predicts that 2024 will see increased capital inflows and consolidation in the time-sharing industry. The top 30 markets will expand, while some smaller companies may be eliminated. Others, however, will maintain niche positions in specific cities.
In terms of city selection, time-sharing companies often target second- or third-tier cities where licensing is easier, costs are lower, and public acceptance of new business models is higher. Chengdu, for example, has become a hub for car-sharing due to supportive policies, including plans to establish 2,500 service points and 10,000 charging stations by 2018, and 5,000 service points and 20,000 charging stations by 2020.
Other cities like Shanghai, Chongqing, and Guangzhou have also introduced favorable regulations. While government support is crucial, experts warn against excessive subsidies. Instead, policy assistance in areas like parking and credit systems can help foster sustainable growth.
Ultimately, Yang Yang believes that car-sharing will not follow a fast-growing oligopoly model. Instead, it will rely heavily on local resources such as licenses and parking spaces, leading to localized monopolies. Companies that secure key resources early, like EVCARD in Shanghai or Panda in Chongqing, are likely to dominate their respective markets.
Despite these challenges, the future of car-sharing in China remains promising, with continued innovation and expansion expected in the coming years.
August 24, 2025