China's automotive aftermarket market is surprisingly ranked second in Asia


In general, the automotive after-sales service market is the most stable source of profits in the automotive industry chain, which can account for about 60%-70% of total profits. At present, compared with the shrinking profits of vehicle sales, the profit rate of China's auto after-sales service market is as high as 40%, and the entire market is still in its infancy and its development potential is staggering. It is predicted that the Chinese automobile aftermarket will reach a huge scale of 190 billion yuan by 2010, and it will rank second in Asia after the automobile industry giant Japan.

As one of the most developed countries in the automotive industry in the world, the automobile service industry in the United States has been hailed as the “golden industry”. In Europe, the automotive after-sales service industry is also a major source of profit for the automotive industry. At present, the 4S store model and the chain operation model occupy the mainstream position in the international automobile after-sales service market.

Looking at China today, the development trend of the automobile after-sales service market has obviously lagged behind the growth of the automobile manufacturing industry. A large number of small auto repair shop operations occupy more than half of the country, and its main business is confined to car maintenance and repair, sheet metal painting, decorative beauty and other services. It is reported that there are nearly 5,500 auto repair companies in Beijing, of which only about 300 have a type of qualification; Shanghai has more than 1,538 auto repair companies of Type II qualifications, and about 5,000 of the three categories. At the same time, some accessories stores and shops that sell parts or accessories are also available. In addition, authoritative data show that according to international standards, the scale of the Chinese auto industry should correspond to more than 20 million passengers in the automotive service industry. In fact, the current number of employees is only about 2 million.

Although the after-sales service market in China has begun to improve, the entire market is mixed, lacking a sound network of channels, and lack of professionals, and has not yet formed a comprehensive three-dimensional service system.

There is no businessman who does not love wealth. The huge temptation from China's after-sales service market has almost made all the famous foreign auto giants eager to try. American famous fast repair brand AC Deco stated that it plans to develop more than 200 car repair chain stores in East China; Bosch Trading (Shanghai) Co., Ltd., the world’s second largest parts supplier, announced that it plans to expand the maintenance organization to this year. 300 companies will form 1,000 maintenance networks five years later; Yellow Hat, Japan’s largest auto parts dealer, plans to open stores in China this fall; Japan’s largest auto service supply chain, Australia’s de Bax and Shanghai The Anglo Group has established a joint venture in China to establish the Australia-based Bacchus Pai An. The Anji-Jeffi Car Quick Repair Chain Store jointly launched by SAIC and Shell Overseas Holdings Co., Ltd. and Shell (China) Co., Ltd. will be launched in Shanghai recently.

Faced with the pursuit of China's after-sales service market by foreign giants, professionals suggest that domestic businesses need to take action and seize opportunities.

In fact, some domestic businesses have realized the amazing profits of the automotive aftermarket, but lack the grasp of ideas. According to expert analysis, China's domestic automotive service companies have inherent advantages in establishing online channels, understanding consumption habits, and promoting service culture. Foreign-funded international standardization service systems entering China will most likely require a process that adapts to local soil and water. Correspondingly, our disadvantage lies in the lack of ideas and experience in the formulation and implementation of long-term strategies, as well as technical barriers.

With the vehicle sales entering the profit period, and after-sales services are increasingly showing dew, it is obviously a better choice to develop the automotive aftermarket. Perhaps a new round of gold rush will be launched in China's after-sales service market.

According to the definition of the American Automotive Aftermarket Association, the so-called "automotive aftermarket" refers to the spare parts and services used in the repair and maintenance of automobiles after they are sold. Generally speaking, companies involved include manufacturers and sellers of automobile parts and accessories. Repair service providers these three categories of enterprises.



Welding Wire

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