SAIC Car Rental Completes USD 120 Million Series A Financing, Impacting Existing Travel Market Patterns

On September 30, 2015, SAIC Car Rental officially announced the acquisition of Harvest Investment's A-round strategic investment of more than US$120 million. Prior to this, it had acquired a total of US$150 million from the shareholders of the BTG Group and the SAIC Motor Group at the beginning of the year. The PreA round of investment shows that Shouqi Car Rental, as the earliest company engaged in car leasing business, is now officially entering the intense competition for the comprehensive car market. It is reported that this round of financing funds will be mainly used for fleet expansion, technology research and development and talent introduction. The investor Harvest Investment is a primary market investment platform established by Harvest Fund, which was established in 1999. Apart from the investment in capital, Harvest Investment will also provide resource channels to support the integration of internal and external resources and diversified strategic cooperation to promote The rapid expansion and comprehensive development of SIA's car rental business.

SAIC Car Rental was established as early as 1992 and is the first professional and comprehensive car rental service provider in China. After 20 years of continuous development, it has now established more than 150 direct operating outlets nationwide, covering more than 50 cities in China, with a fleet size of more than 15,000 vehicles, and the network and fleet size all occupy the top three in the domestic industry; its business is both Has traditional short-term rental, self-drive, long-term rental, commercial vehicle, bus reform, also covers the Internet model of financial leasing, car rental, new energy, such as time-sharing.

As a pilot company for the reform of the BTG Group's mechanism, SAIC Car has already begun to implement its multi-level and multi-dimensional development plan at the beginning of the year. One is to use offline resources to realize the O2O model while using the Internet and convenient transportation to meet the needs of the community. SAIC Motor has recently been put into trial operation in Beijing. With its operating license and driver compliance advantages, it will continue to increase the fleet size and gradually seize the Beijing car rental market share. It will be promoted and applied in other key cities by the end of the year. The new energy vehicle industry has been actively deployed, and the Car2Share model has been put into operation on a trial basis, and continues to provide mass customers with more comfortable, diverse and convenient service products. The second is to achieve a strong alliance with a group of companies with outstanding brand influence and strength, and to reach strategic cooperation agreements with major brands such as Mercedes-Benz, Shanghai Volkswagen, FAW-Volkswagen, FAW Toyota, and other major brands. Offline resource operating costs. The third is to open up the debt market, and signed a total of 27 billion comprehensive credit agreement with six large banks such as CITIC, China, Transportation, China Merchants, Beijing, and Minsheng, which provided important financial support for the strategic layout and development of SAIC Car Rental. In addition, the completion of the Shouqi Group's complete automotive after-market service industry chain and the BTG Group's nationwide operating network will provide an opportunity for the development of SIA Car Rental.

According to analysis by industry-renowned consulting agencies, although China's car rental market and its derivative and segmented markets are in a period of rapid development, there is still a large gap between their market maturity and saturation and the international market. Development and growth space. SAIC Car Rental will rely on the social influence and social recognition of the “Shouqi” brand, and will strive to create quality service and quality car, diversify and compete on the basis of traditional business, and at the same time, explore and seize the emerging business of the car rental industry. And market segments.

Judging from the market information, a series of recent actions by SIA Car Rental has attracted the attention of many investors, and it is bound to have a greater impact on its next round of capital allocation, and continue to accelerate the scale expansion and strategic implementation. The explosive growth of SAIC Car Rental will undoubtedly create a new round of huge impact on the already fiery travel market.

 

 

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