BEIJING – China has launched new guidelines to support the country’s booming car sharing industry and standardize its development.
The Guidelines to Boost Healthy Development of Vehicle Rental and Leasing was jointly released by the Ministry of Transport (MOT) and the Ministry of Housing and Urban-Rural Development (MHURD) on August 8.
Car sharing services take advantage of new technologies such as global positioning and mobile internet and therefore improve user experience and offer an alternative for urban commuting, thereby easing growing demand for private cars and parking spaces, according to the Guidelines.
Safety conditions of the cars must be ensured and private information and user deposits must be protected. Companies are encouraged to use a credit-based model to evaluate the reliability of users instead of requiring them to pay guarantee deposits.
Public parking lots in shopping centers and large residential areas are encouraged to offer space for shared cars, while incentives will also be given to such cars for on-street parking.
Car sharing platforms are encouraged to use new energy vehicles (NEVs) as shared cars, with support given for charging facilities.
The Guidelines follow the release of similar rules on bike sharing services the previous week.
China’s sharing economy has been rising rapidly recently, with bike sharing companies such as ofo and Mobike attracting overseas investments. The country’s sharing economy witnessed a total transaction volume of ¥3.45 trillion last year, more than doubling that of 2015, according to a report released by the State Information Center in March.
According to consultancy firm Roland Berger, several dozens of car sharing platforms operated more than 26,000 vehicles in China last year, which is expected to increase to 600,000 by 2025.