Rental cars gain popularity amid vehicle restrictions   

(ECNS) -- China's car rental service has been gaining popularity, thanks to the wide gap between the ever-increasing number of driver license holders in the country and the number of private automobiles restricted by the government.

China's car rental market has seen a boom in recent years. A saleswoman surnamed Chen of eHi Auto Services, a Shanghai-based leading car rental company, said their business in Beijing has experienced dramatic increases after the city introduced restrictions on new car plates.

The frequency of trading in old cars for new ones has also increased since 2010, a salesman surnamed Zhao said.

Many Beijingers who want to buy a car but have little hope of winning the license plate lottery are resorting to renting, Zhao added.

And the strict control on government vehicles last year also boosted long-term rentals, Chen said.

Meanwhile, the short-term rental service, mostly for individual customers, is believed to be the main reason for the strong growth in the market, as more people rent cars for vacations, insiders said.

During the past May Day holiday, a report said 80 percent of vehicles at eHi and Shenzhou car services were booked in advance and 70 percent of clients were people going on trips.

Statistics from the Ministry of Public Security showed that by 2013, there were 275 million driver license holders in China, but big cities such as Beijing and Shanghai are introducing tough policies such as limiting purchases of new cars through a sales quota system and car registration plate auctions.

Tesla electric cars up for rent in Shanghai

Just two weeks after making its debut in China, the new Tesla Model S electric car is available to rent in Shanghai. Two top-end models, which have a local sale price of more than 1 million yuan (US$160,500), can be hired at eHi Auto Services Co, which opened the country's first electric car rental outlet in the city last year.