The summer of 2026 has proven to be a rather intriguing season for the car rental industry.

In the popular loop routes of Xinjiang and Qinghai, renting a Toyota Prado used to be a costly affair, with prices starting at a minimum of 1,000 yuan per day in previous years, necessitating early bookings.

This year, however, the scenario has changed dramatically. Prices have plummeted by half, and numerous vehicles are now languishing in parking lots, gathering dust.

The Prado is not alone in this price slump; hardcore models such as the Tank 300 and Jeep Wrangler, along with other popular choices on these routes, have also witnessed significant price reductions compared to previous years.

Yet, the price trends vary significantly when you shift locations.

In July, rental prices for transportation in Sichuan Province saw a 7.3% month-on-month increase. In certain areas, popular models experience price surges during peak demand periods, with increases reaching up to 30%, and they still remain in high demand.

Even within the same city, different rental platforms can present vastly different pricing landscapes.

Some netizens conducted a comparison in early August, examining the prices for a 3-day, one-way rental from Guiyang to Anshun Huangguoshu Airport on two platforms.

On HiCar, prices for 38 models rose across the board, averaging a 75% increase. Conversely, on CAR Inc., the average increase for 23 comparable models was a mere 0.6%.

Different regions, vehicle models, and platforms are all experiencing distinct summer trends.

Outside of standard passenger vehicles, the average rental price for conventional RVs nationwide has dropped by 20% to 30% compared to the previous year.

Whether browsing online or requesting offline quotes, the initial reaction is often, "Renting a car seems cheaper this year."

Price reductions are the most tangible perception for consumers.

However, despite the price drops, rental orders have not decreased.

Since the onset of summer, platform rental orders have surged by over 30% year-on-year, and the number of rental users has also climbed by nearly 30%, with daily average orders surpassing those of the same period in 2024 and 2025. Users are renting cars for longer durations, traveling greater distances, and switching vehicles across cities more frequently.

On one hand, the car rental market remains vibrant; on the other, prices in some regions have been halved. The summer of 2026 in the car rental industry is indeed lively and genuinely affordable.

The anomalies in the car rental market stem from multiple influencing factors.

The tourism market has been on a recovery trajectory in recent years, with an increasing number of people traveling. Optimism about the car rental business has led to substantial investments.

Data from Tianyancha reveals that 53,300 car rental-related companies have been registered nationwide over the past three years.

In Xinjiang alone, approximately 1,800 were registered during the same period.

In just the first seven months of the previous year, the inventory of rental vehicles in Xinjiang increased by 40% year-on-year.

Major players have also been active. CAR Inc. acquired nearly 100,000 new vehicles in 2025, with new energy models accounting for nearly half.

More competitors have entered the market, and major players continue to invest, but consumer demand has quietly shifted.

Last year, there were 6.522 billion domestic trips, with self-drive tours accounting for over 70%.

The growing popularity of new energy vehicles has further fueled enthusiasm for self-drive tours.

Electric vehicles offer a comfortable driving and riding experience, but more people are now calculating costs differently—focusing on savings.

The electricity cost for new energy vehicles is less than 10 yuan per 100 kilometers. For a lengthy trip around Xinjiang, covering 3,000 kilometers, the total electricity cost would be around 300 yuan. In contrast, flying to the destination and renting a Prado for the same journey would incur fuel costs exceeding 3,000 yuan.

The energy cost disparity between the two travel methods is now tenfold.

Nowadays, 98% of highway service areas offer charging facilities, and in some cases, you can fast-charge to 80% in just fifteen minutes.

Driving your own electric vehicle on long trips has transitioned from a novelty to the norm.

This shift has directly impacted the western car rental market, taking away a slice of its business.

It's not just rental companies competing against each other; the very mode of transportation has evolved, and some travelers no longer need to rent a car upon arrival.

When it comes to spending, people are also becoming more frugal. With per capita consumption declining, few are willing to pay premium prices during peak seasons.

RVs have also lured away some family users from the standard car rental market.

By bundling transportation, accommodation, and dining, families can better manage their expenses, appealing to those seeking to spend less and enjoy more.

Platforms have also played a pivotal role in this round of price adjustments.

The two major car rental companies now collectively hold 40% to 50% of the market share.

CAR Inc. boasts nearly 200,000 vehicles and over 6,500 direct-operated outlets spanning more than 360 cities. HiCar covers more than 500 cities with over 10,000 outlets.

Users can now access real-time quotes from numerous stores with a few taps on their phones. Previously, local car rental companies relied on information asymmetry to maintain high prices, but now pricing power has shifted from merchants to the market. Any overpriced offering will instantly lose customers.

These three forces—increased supply, shifting demand, and platform competition—have conspired to gradually drive down car rental prices.

After examining the causes, let's delve into the three types of price reductions, which are fundamentally distinct.

Price cuts for western off-road vehicles are compelled by market conditions.

With an oversupply and demand being siphoned off by new energy vehicles, rental companies have no choice but to sell at a loss.

This isn't a proactive discount; it's a desperate measure to stay afloat.

The low prices of economical electric vehicles stem from the rapid expansion of new energy vehicle rentals.

By 2025, the number of new energy vehicles in the rental industry had reached 582,000, and the proportion of new energy vehicles in rental fleets continues to rise. With more vehicles available, the price threshold naturally decreases.

Additionally, new energy vehicles have lower operating costs, providing platforms with more leeway to reduce prices compared to fuel-powered vehicles, making them the preferred choice for attracting customers.

However, ultra-low prices often come with restrictions on insurance and mileage, so they aren't purely market-driven pricing.

The entry of new energy vehicles has indeed exerted downward pressure on car rental prices.

Price reductions for RVs tell a different story.

Procurement costs have dropped; a self-contained RV used to cost 300,000 to 400,000 yuan, but now entry-level models are available for around 200,000 yuan.

At the same time, demand is growing, and orders haven't decreased after price reductions; instead, they've increased.

This indicates that companies aren't selling at a loss but are covering a larger market with lower prices.

With both costs and demand supporting them, the price reductions are a proactive choice, not a passive compromise.

Three types of price reductions, three different rationales. Forced survival, strategic attraction, and proactive discounting—they're not the same at all.

In the summer of 2026, nationwide car rental orders increased by nearly 60% year-on-year. The market isn't shrinking; it's expanding. But prices haven't risen accordingly.

This suggests that the traditional approach of maximizing profits during peak seasons is becoming less effective.

The industry is searching for new growth paths. Both policies and major companies are moving in the same direction.

This June, ten departments including the Ministry of Transport issued the "Three-Year Action Plan for Promoting High-Quality Development of Small and Micro Passenger Vehicle Rentals (2026–2028)," explicitly proposing to promote model contracts, crack down on "exorbitant damage claims," and popularize credit-based deposit-free and self-service pick-up and drop-off services.

The signal is clear: by the end of 2028, free one-way rentals will be available in key tourist areas, city clusters such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Chengdu-Chongqing economic circle.

Some companies are already leading the charge.

HiCar has enabled one-way rentals in over 500 cities, and CAR Inc. has introduced free one-way rental services in regions like the Yangtze River Delta.

CAR Inc. also launched a smart driving zone this summer, covering over 40 mainstream new energy brands and connecting to more than 170,000 charging stations.

Behind these initiatives lies the same logic: the car rental industry is transitioning from "one-time deals" to "long-term business." Outdated practices like profiting from information asymmetry, temporary peak-season price hikes, and hidden fees are being gradually phased out.

This summer, the car rental market has indeed been lively, with rising orders, increasing users, and growing popularity of self-drive travel.

But while demand is sizzling, prices are cooling. Price reductions aren't just promotions by individual companies; they're the result of the combined forces of supply, demand, platforms, and policies.

The era of speculating by hoarding vehicles and waiting for price hikes is over. Only meticulous operation can ensure survival. This judgment applies to everyone still in the industry.

Image sourced from Shetuwang.