After the car market is ushering in a huge market space

With the rapid development of China's automobile industry, the number of car ownership has risen rapidly in recent years, with more than 100 million vehicles. At the same time, auto aftermarket services, insurance, beauty, used car transactions and leasing, automotive culture, scrapped recycling, and remanufacturing are also increasing. At the meeting of the China Automobile Industry Association's Aftermarket Committee held recently, experts from China Automobile Association predicted that China's auto aftermarket industry is enjoying rapid growth and will reach 700 billion yuan in output value in 2015.

For the establishment of the aftermarket committee, Dong Yang, executive vice president and secretary-general of the China Automobile Association, said that the aftermarket committee is a professional committee directly under the China Association of Automobile Manufacturers. The Automotive Aftermarket Committee will cooperate with the government in formulating related policies for the automobile It plays an important role in the management standards of post-market related industries, fully reflecting the demands of post-market related companies, safeguarding corporate rights, and conducting industry self-regulation.

From 2009 to 2013, China's auto production and sales volume remained the first in the world for five consecutive years. According to the data, the number of civilian vehicles reached 127 million in 2013 and is expected to reach 200 million by 2020. Behind the car ownership of billions of dollars is the auto aftermarket industry of the 100 billion level. According to the data, every RMB 1 spent on car purchase will drive the automobile after-sales service of RMB 0.65. Automobile aftermarket services, such as vehicle maintenance, spare parts replacement, refurbishing beauty, used car trading, scrap car dismantling, etc., will usher in a huge market space.

The factors driving the growth of the market are high profits. In mature markets abroad, the sales profit of the entire vehicle accounts for about 20% of the profits of the entire automotive industry, and the profit of spare parts supply accounts for 20%, while the profit of 50% to 60% is generated in the service sector. At present, among domestic automobile sales, vehicle manufacturers account for about 43% and accessories account for 37%. The proportion of services is too small, dealers account for 8% of retail sales, and services only account for 12%. It can be seen that there is a huge room for growth in the automotive service market.

According to Jian Jianhua, deputy secretary-general of the China Association of Automobile Manufacturers, although the production and sales volume of China's autos still maintains a growth trend, after years of price war, manpower and land-rent costs have risen year after year, and car companies have earned a high profit era. Gradually in the past, car manufacturing and sales profits have entered a downward path. Under this background, the auto market maintains a high growth rate of 25% to 30% annually, which has become a dazzling profit growth point for the automotive industry, thereby attracting attention from companies and capital markets. In the mature automobile market in Europe and the United States, aftermarket profits account for 60% of the entire industry value chain, compared with the profitability of China's auto aftermarket there is still much room for improvement.

Take the example of second-hand car transactions. In 2013, China's used-car trade volume was 5.2 million vehicles, which accounted for only 4% of the total inventory. The transaction volume of mature used cars in Europe and the United States accounted for about 20% of car ownership; in the area of ​​car rental, leases were The proportion of cars sold in the total sales volume is only 10%, and in the United States this figure is 35%. The German car sold by leasing accounts for 50% of its local sales volume; the car modification market that is highly concerned by individual consumers, China The rate of car modification is less than 10%, Japan is 80%, and the United States is also 70%. The growth potential is huge.

It is understood that some foreign-funded companies have eyeed this market, Bosch has established more than 500 auto repair shops in China, and Japan’s largest auto parts dealer “Yellow Hat” plans to have a number of Chinese direct-operated stores and franchise stores by 2015. Increased to 500, the maintenance chain company AC Deco, a subsidiary of the US General Motors Group, has now been deployed in major domestic cities. According to incomplete statistics, at least 30 foreign well-known automobile service companies have plans to enter the Chinese market. Faced with the landing of many foreign-funded enterprises, private domestic enterprises have also begun to set foot in the automotive aftermarket. Beijing Chinap, Zhengda Fortis, CRRC Auto Repair, Che Jue Shi and other chain companies have risen one after another.

However, there is still no national chain brand that has a large market advantage and consumer awareness in the automotive aftermarket. Corporate development faces many difficulties such as credit crisis, lack of industry standards, and lack of talent. This may be one of the reasons why the China Automotive Industry Association's Aftermarket Committee was established.

After the establishment of the Aftermarket Committee, it was determined that the China Automobile Association Post-market Committee will supply automotive parts, after-sales maintenance services, automotive after-installation, auto finance, used cars and leasing, automobile culture, scrap recycling and remanufacturing, and professional markets. And other nine major categories to work. The meeting also negotiated the future work directions, working mechanism, core business, and specific plans for the recent work in various areas of the automotive aftermarket. In particular, it discussed the development of industry standards and norms for the promotion of professionalism, the establishment of industry integrity system, and development of enterprises. Evaluation activities, training and establishment of industry leaders, standardize the development of the industry and other aspects of the work. Through these efforts to promote the specificization of the business in various professional areas, the actual role of the industry to play a coordinating role in promoting the industry's overall level of development.

In addition, in order to further promote the transformation and upgrading of China's auto parts companies, speed up the transformation of business development methods, and strive to become bigger and stronger, to enhance the overall scale and efficiency of China's auto parts industry, the meeting also for 2013 outstanding auto parts export enterprises Commendation. Sixteen enterprises such as CITIC Dicastal, Ningbo Tuopu, Weichai Power, Guangxi Yuchai, and Guangdong Falada Xiamen Yongyu won the award for outstanding parts and components export enterprises.

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