The report titled “Automotive Aftermarket in China”, provides a comprehensive analysis of China’s automotive aftermarket, growth of the sector, major products, leading players new trends and future of China’s automotive aftermarket. China is the emerging and fastest growing countries within the automotive aftermarket industry. The country generates billions of revenue in the automotive aftermarket industry. The growing automobile manufacturing industry has led to the development of the aftermarket industry which also has a strong growth due to the increasing number of automobiles that are in use across China. The use of automobiles in China would continue increasing rapidly in future years. China has encouraging an open and rational market structure that has helped to facilitate the development of the automobile parts and accessories market.
Growth of the Automotive Aftermarket: The automotive aftermarket in China is still at a budding stage and will witness an annualized growth. Technological changes, innovations and new players are relatively frequent in the aftermarket industry. Several foreign manufacturers in the joint ventures introduced advanced technologies and management expertise in the aftermarket industry. The major factors affecting the aftermarket industry are successful industrial relations policy, having an extensive distribution/collection network, and undertaking technical research and development.
China’s Aftermarket Products and Leading Players: The aftermarket industry in China comprises of spare parts, accessories, components for motor vehicles, motor vehicle bodies, and parts for electric motors. The major industry products in China’s aftermarket are mechanical parts and accessories, electric motor parts and accessories, electronic parts and accessories, engine parts and accessories, chassis parts and accessories, automobile body parts and accessories, electric components and parts, other parts and accessories. Majors leading aftermarket dealers in China are PANGDA Automobile Trade Group Co., Ltd., Sinomach Automobile Co., Ltd., Zhongsheng Group Holdings Limited, Dah Chong Hong Holdings Limited, China Grand Automotive Services Co., Ltd., China ZhengTong Auto Services Holdings Limited, China Yongda Automobile Services Holdings Limited, Wuxi Commercial Mansion Grand Orient Co., Ltd., Baoxin Auto Group, Harmony Auto, Yaxia Automobile, Materials Industry Zhongda Group Co., Ltd., Lei Shing Hong, and Hengxin Automotive.
The aftermarket in China also consists of used car sales, automotive finance, car repair, car interiors and automotive insurance markets. There is a demand for used cars in China due to the frequent mergers and acquisitions in car industry and the vast networking of automotive distribution. It was observed that the sale of new and used cars in China has been rising drastically over the recent years. China’s automotive distribution and aftermarket are diversified due to 4S store mode which was replaced by business modes like automobile e-commerce and automobile supermarket.
Future of Automotive Aftermarket in China: Chinese government decisions regarding regulations and incentives also influence the direction and development of aftermarket services. The lifetime of automobiles in China has reach 5 years by the year 2018and the Chinese automotive aftermarket will experience a boom in the next few years. The automotive aftermarket in China will surely generate some opportunities and challenges that automotive companies, auto part makers and aftersales service providers encounter when looking to secure high performance. This boom is meant for a dramatic growth in passenger vehicle sales because of the large population providing vast potential for aftermarket which will continue to increases in the future. Aftermarket growth is connected with the growth in related industries, such as repairs, maintenance, auto finance, car beauty, modification, and second hand sales. Chinese automotive aftermarket is on the verge of massive expansion due to the faster growth rate than the car industry will experience.
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Ankur Gupta, Head Marketing & Communications