BYD and CAR Inc.: Powering China's Green Mobility Revolution

BYD and CAR Inc. have formalized a strategic partnership aimed at revolutionizing China's car rental landscape with a massive expansion of new energy vehicles (NEVs) for the 2025 summer travel season. The collaboration, which began in April 2025 with the successful deployment of BYD Qin PLUS DM-i and Fangchengbao BAO 8 models, received exceptional consumer feedback during the May Day holiday and now sets the stage for a comprehensive green mobility initiative covering vehicle procurement, marketing, connectivity technology, and service innovation.

Key Takeaways

The partnership signed on May 20, 2025, aims to accelerate green travel adoption in China during peak tourism periods
CAR Inc. has set an ambitious goal to electrify 50% of its fleet of 200,000 vehicles by 2026
The collaboration builds on China's dominant position in global EV markets, which accounted for 62% of production and 59% of sales in 2022
Five key collaboration areas include vehicle procurement, joint marketing, connectivity technology, used car business models, and service innovation
This initiative supports China's dual carbon goals while establishing new sustainability standards for the rental industry

A Groundbreaking Partnership in China's Green Mobility Sector

On May 20, 2025, BYD and CAR Inc. cemented their relationship with a formal signing ceremony at BYD's global headquarters in Shenzhen. This expanded partnership follows a successful pilot program launched in April that introduced BYD's Qin PLUS DM-i and the premium Fangchengbao BAO 8 models to CAR Inc.'s rental fleet.

The initial collaboration tested during the May Day holiday period generated such positive consumer response that both companies decided to significantly expand their partnership ahead of China's busy summer travel season. This strategic alliance focuses on promoting sustainable development across both the green mobility and car rental sectors through five key collaboration areas.

China's Booming NEV Market Creates Perfect Conditions

The partnership capitalizes on China's dominant position in global EV markets. Chinese enterprises produced an impressive 8.91 million NEVs in 2023, representing a 34.2% increase from the previous year, and production is expected to exceed 10 million NEVs in 2024.

China currently accounts for 62% of global EV production and 59% of global EV sales as of 2022. These numbers continue to grow, with NEVs expected to represent 21.8% of all new vehicles sold globally by the end of 2024. Looking further ahead, EVs are projected to account for over 70% of annual vehicle sales in China by 2030.

An aerial view of a large rental car lot featuring rows of various BYD electric vehicle models in CAR Inc.'s distinct branding colors, demonstrating the scale of the fleet expansion for the summer travel season.

This rapid growth has positioned Chinese automakers at the forefront of global automotive production. They currently produce 21% of the world's passenger vehicles, a figure that analysts estimate will reach 33% by 2030.

BYD's Industry Leadership Drives Collaboration

BYD brings significant expertise and credentials to this partnership. Founded in 1995 as a battery manufacturer, the company established its automotive subsidiary in 2003 and has since become a powerhouse in the NEV market. BYD manufactures both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) across multiple brands, including its main BYD line and premium sub-brands Denza, Fangchengbao, and Yangwang.

In a bold strategic move, BYD ceased production of purely internal combustion engine cars in 2022 to focus entirely on NEVs. This commitment has paid off, with the company reaching the milestone of 10,000,000 new energy vehicles produced in November 2024. Their innovation continues with the introduction of Smart Driving Edition versions across 21 models in February 2025.

Recent performance data underscores BYD's market strength. The company registered 67,980 vehicles during May 5-11, 2025—its best sales week of 2025, representing a 15% increase from the previous week. Its premium sub-brands also showed strong growth, with Denza achieving 2,990 registrations (+3.8%) and Fang Cheng Bao reaching 2,660 registrations (+17.7%).

Comprehensive Implementation Strategy for Summer Travel

The expanded partnership between BYD and CAR Inc. features a multi-faceted implementation plan specifically targeting the 2025 summer travel season. The strategy includes expanded procurement of NEVs to create diversified rental offerings that meet the varied travel demands during this peak tourism period.

A close-up shot of a customer receiving keys to a BYD Fangchengbao BAO 8 at a CAR Inc. rental counter, with digital displays showing the vehicle's features and sustainability benefits in the background.

Practical implementation initiatives include:

Deep test drive programs allowing consumers to experience NEVs firsthand
Co-branded marketing campaigns highlighting sustainability benefits
Data integration initiatives to optimize fleet operations
Enhanced aftersales support to ensure smooth customer experiences
Exclusive benefits for employees of both companies
Development of a new "vehicle-operation-service" solution model for the industry
Exploration of innovative residual value management models for sustainable fleet operations

Ambitious Fleet Electrification Goals

At the heart of this partnership is CAR Inc.'s ambitious transformation plan for its rental fleet. The company aims to electrify 50% of its 200,000-vehicle rental network by 2026, a goal that will significantly accelerate the adoption of green travel in China while supporting the country's dual carbon goals.

This fleet transformation will offer travelers more sustainable transportation options during peak tourism periods while providing a wider range of vehicle choices and smarter mobility experiences. The partnership also includes plans for improved supporting services to enhance the overall customer experience.

Long-term Industry Impact and Environmental Benefits

This collaboration represents a pivotal moment for both the NEV and car rental industries in China. Together, BYD and CAR Inc. will explore new development models for NEVs in the car rental sector while supporting China's transition to green transportation.

The partnership aims to establish new standards for sustainability in the car rental industry while aligning with national environmental policies and growing consumer demand for eco-friendly travel options. By combining BYD's technological innovation with CAR Inc.'s extensive rental network, the companies are creating a blueprint for green mobility that could transform China's transportation landscape.

This strategic alliance not only addresses immediate market opportunities but also positions both companies at the forefront of China's ongoing transition to a more sustainable transportation ecosystem, creating long-term value for consumers, businesses, and the environment.