Generation Z, which refers to people born in the mid-1990s and the early 2010s, has become a fast-growing consuming power of China's car rental market. The rising young generation prefers leasing a car rather than buying as an ideal way of transportation, according to Wukong Car Rental.

According to the company, more than 51 percent of its car rental users are from people born after 1995. Generation Z has also become the industry's fastest-growing consumer group.

"The future travel scenarios will not change much but travelling demand will be upgraded from possessing a car to using a car," said Hu Xianhe, founder and CEO of Wukong Car Rental. "With the development of technology, the CaaS, or car as a service, business model will replace most of the existing travel models to realize real shared transportation,".

Hu made his remarks during a press interview after the company announced cooperation with Sunac Culture and vehicle brand Haval to create various self-driving travel routes and related offline activities. The company also unveiled its brand-new application and mini program.

With the rise of Gen Z, the consumer group of driving tends to be younger and more personalized. They also tend to drive to spots that are more niche and less-travelled. Renting a car to travel has also become a popular trend, the company added.