China Watches 190 Million Automobile Aftermarket Smoke Appears


According to a special report of Nikkei BP, it is predicted that by 2010 China's automobile aftermarket market will reach 190 billion yuan, ranking second in Japan after Japan. In this regard, the Secretary-General of Shanghai Auto Parts and Circulation Industry Association, Shui Congfang, told reporters: The gap between China and foreign auto sales aftermarket is not large. In the two years, Chinese-funded enterprises and foreign capital in the auto aftermarket have had a fight. Ma Yong, deputy dean of the School of Automotive Marketing at Tongji University, told reporters that the key is that those car giants did not wake up. They indulged in the sales of vehicles and did not pay enough attention to the auto aftermarket.

The market is hugely profitable

Shui Youfang told reporters that 20% of profits abroad come from vehicles, 20% from auto parts, and 60% from auto service.

She said that the Chinese automotive aftermarket is roughly divided into the repair, replacement parts market and automotive supplies market. In 2001, the total number of cars in China was approximately 18 million. Since then, the growth rate of more than one million vehicles has been maintained. The scale of the automobile aftermarket will also be further expanded. On the other hand, passenger vehicles in China travel about 20,000 to 30,000 kilometers per year on average. In Japan about 10,000 kilometers, even in the United States of the automobile kingdom is only about 19,000 kilometers, so China's car usage rate is quite high, and the maximum service life of Chinese cars has been extended to 15 years, which can also expand the automotive aftermarket scale.

Ma Yu said that China's car market is in short supply and there is a huge potential in the automotive aftermarket. Now, the "sell fortune" aftermarket is relatively easy to make.

China Watches Foreign Investment

Chinese companies are ignorant and foreign capital is in action. The famous American fast repair brand AC Deco has expressed to the outside world that it wants to develop more than 200 car fast repair chain stores in East China and become the leader of Huadong Automobile Quick Repair. Bosch executives announced the following day: Bosch will form an initial maintenance network in China this year. Based on the original 200 companies, it will again “put in? 300 maintenance organizations. By 2010, Bosch will have 1,000 maintenance points. The largest automobile in Japan. The service supply chain Aode Bacchus and Shanghai Pai Group formed a joint venture company—Auster-Deutsche Bach Pai An.A person in the industry told reporters that basically all the famous foreign-owned automobile after-sales giants are on the Chinese automobile aftermarket idea".

Foreign investors are eyeing the Chinese auto aftermarket. The data shows that there are nearly 5,500 auto repair companies in Beijing, of which only 300 have a type of qualification. Water from the Fang told reporters: Shanghai has more than 1,538 Class II auto repair companies, there are more than 5,000 of the three categories, this does not include those roadside shops, more and chaos, not a few decent.

The reporter observed in the Shanghai market that many auto repair companies have a small business scope, basically staying at sunrise, working in a small workshop like a sunset, a larger maintenance center, and their management level, personnel quality, and market. Most of the awareness does not meet the needs of market competition, and it is far from the advanced user-friendly and all-dimensional service requirements. The usual tricks of shoddying, fussing, and aftershocks in these garages are still prevalent in current fast-repair shops.

Obvious disadvantages remain

Ma Yun said that "small workshops" will certainly be eliminated in the future. Foreign giants entering China may be dissatisfied. Chinese domestic auto service companies have inherent advantages: foreign systems may not always be able to enter the Chinese market, many low-cost services are only available to the Chinese, and many high-end foreign auto parts products are not necessarily The key point for adapting to China is the cultural difference. No one can understand the consumption habits of the Chinese people better than the Chinese. Shui Congfang said that China's auto service companies have a great advantage that is the network channel, we can also grab an opportunity to fully spread their service network before 2007. Ma Yong said: Funds are not actually a problem. The key is that China's auto aftermarket has not received enough attention. The biggest flaw in Chinese auto service companies compared with foreign countries is their philosophy and experience, but this gap can be remedied as soon as possible.

Ma Yong also stressed that many companies know that after-sale auto market profits are considerable, but there is no overall understanding of the auto market, many people do not know how to do after-sales car market, to find out what channels to maximize profits, in fact, this is a Industrial chain: auto accessories, parts and components, service marketing, maintenance, to the last used car rental can do, there are many ways to make money, investment is not great.

To this end, Ma Yong worried about: 190 billion in the big cake, but don't allow others to hold it.