Car rental firms to cash in on Olympic vehicle ban

THE cost to rent a car will jump as much as five times during a vehicle ban for the Beijing Olympics, Beijing Times reported yesterday.

Prices to rent a car will at least double current prices as the Chinese capital is expected to enact a ban that will require drivers with even-numbered and odd-numbered license plates to stay off the roads every other day from July 20 to September 20, the report said.

The ban, which excludes taxis, buses and emergency vehicles, was meant to improve Beijing's traffic network and the air quality for the Games in August.

Car rental firms said the price increase was due to stronger market demand and the vehicle ban.

For example, the cost to rent a Buick GL8 is expected to surge to 45,000 yuan (US$6,428) a month from 17,880 yuan, the report added.

But rental firms said prices will drop to normal as soon as the ban expires, the report said.

Controls on vehicles yielded good results during a four-day trial in August, cutting the traffic flow by 30 percent on main roads in Beijing and reducing air pollution 20 to 40 percent, according to previous reports.