China's Shenyang Motor Group and BAIC Motor announced a new car sharing partnership this week as they look to take on the rapidly expanding Chinese market for car-sharing services.
BAIC Motor has agreed to provide customised vehicles based on its D50 model line to Shenyang Motor which will operate the car sharing service.
Shenyang Motor's chairman Lyu Jinxiang believes demand for car sharing services in China is set to rise substantially in the coming years and represents a significant growth opportunity for his company.
"Car sharing offers a solution to many problems, including helping to reduce traffic jams and air pollution by helping to make more efficient use of passenger vehicles."
The partnership will also make use of Chinese car retail platform HCBH to provide sales and rental services.
Clients will be able to pay for customised D50 cars by installment and can ask the platform to rent out their cars when not needed.
Shenyang aims is to sell up to 20,000 cars to clients in 2019.
A separate report suggested the Chinese car sharing market could be worth over US$560bn annually by 2030 with companies such as FAW and Tencent currently evaluating various business models for this market.