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Analysis of China's Automotive Market Development in Recent Years

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  • Release Time: 2019-11-08
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The "2015-2020 China Automotive Aftermarket Investigation and Evaluation Report and Development Trend Report" released by Industry Information Network shows that in the current China, the automotive aftermarket mainly has the following five channels: one is the automobile 4S station developed in recent years; the other is traditional Large and medium-sized repair shops; the third is car repair roadside shops; the fourth is auto special service shops; the fifth is brand fast repair beauty decoration chain stores. These five channels have their own advantages in terms of area, equipment investment, personnel quality, location convenience, service quality, service time, and charging standards. They can coexist in the short term, but with the development of the market, the 4S station and international Well-known brand quick repair and maintenance beauty chain stores are the two main channels.

      Judging from the current situation, China's automotive market has unlimited potential. Although domestic auto aftermarket service companies have the * advantage in quantity, for a long time, the focus of the Chinese auto market has been on vehicle sales, and insufficient attention and investment in the auto aftermarket have caused the development of the Chinese auto aftermarket to lag significantly behind. Automotive Manufacturing. Informal automobile service companies are mixed with each other, which seriously disrupts the market order, and the automobile aftermarket has formed a "scattered, chaotic, and poor" situation. Moreover, most small companies in the market are fighting alone, and it is difficult to gain user trust. This has contributed to the flourishing situation of 4S shops today.

       In recent years, with the prosperity of the Chinese automobile market, the scale of the Chinese automotive aftermarket has also been expanding. China's auto aftermarket sales have increased from 88 billion yuan in 2005 to 700 billion yuan in 2014. Due to the growth of car ownership and the aging of the car ownership structure, there are huge investment opportunities in market segments such as car maintenance, leasing, and auto finance. It is expected that the market growth rate of China's auto market will continue to grow steadily in the next few years.

      Compared with the mature foreign car market profit model, the current proportion of each part of the domestic auto market sales seems unreasonable. In the foreign auto market sales, accessories accounted for 39%, manufacturers accounted for 21%, retail sales accounted for 7%, and services accounted for 33%; in the domestic automotive market sales, accessories accounted for 37%, manufacturers accounted for 43%, and retail sales accounted for 8%, and services account for 12%. At present, the proportion of manufacturers in domestic automobile sales is still too large, while the proportion of services is too small. In addition to the need to strengthen financial services such as finance and leasing, automobile after-sales services still have at least 10% of room for growth.

      Facing such a market opportunity, how to seize the opportunity has been placed in front of every auto industry. To sum up, the auto industry has two paths to choose from: one is to develop its own brand and become stronger and bigger. The second is to join hands with well-known international auto service brands and work together for common development.

      There are two main business models of foreign auto after-sales service: the "Four in One" model, which is currently popular in China, and the "chain operation" model. The former is mainly popular in Europe, and the latter is relatively developed in the United States.
      The "Four in One" approach includes vehicle sales, after-sales service, parts supply, and information feedback. The characteristics of the vehicle ownership structure are the concentration of vehicle models, and each model has a large number of vehicles. This type of car service originates in Europe. Most brands are concentrated in European-produced Volkswagen, Mercedes-Benz, BMW and other automobile groups. "The business model survives and develops well. It is also very adaptable to China in the past few years, because a few brands occupied the control position at that time, but in the current Chinese auto market where new cars are emerging, this approach has gradually revealed its disadvantages, and coupled with the actual implementation of With many irregular practices, the living space of the "Four in One" is constantly shrinking. For example, domestic consumers have more problems with automotive after-sales services: poor maintenance technology, low quality of service personnel, poor management, counterfeit and inferior parts, chaotic charging, etc .; some 4S stores are “* decoration, third-rate Service, "the level of service and maintenance technology is not true. According to another survey: Nearly half of domestic consumers think that the current after-sales service of auto companies is average; 25.8% of consumers think that maintenance costs are higher 14.43% of consumers think that "service charges are unreasonable"; 14.3% of consumers think that cars The price of spare parts is unreasonable; 9.77% of consumers believe that “it is not timely to troubleshoot”, and the after-sales service of Chinese cars is obvious.

      The other method is a chain business model represented by the United States; this service method has not risen in the United States for a long time, but has developed rapidly in the past 20 years. And it is moving rapidly towards the trend of branded operation, the concept shifts from repair to maintenance, and the continuous penetration of high technology. The initiator of the chain is not the OEM, but rather the auto parts supply, auto repair, Quick maintenance as a comprehensive service provider. This model integrates the resources of auto parts of various brands, breaks the vertical monopoly, and provides car maintenance, repair, quick repair, beauty and auto repair on the basis of transparent price services. One-stop service for accessories supply, car owners can solve the problem in one stop. In contrast, China is still on the old road of "regular inspection"-"free maintenance"-"technical upgrade", and it has been developing slowly; China's current fast-repairing beauty shops are also constantly growing, but The beauty is more virtual than real, and consumers cannot actually feel the service. Based on the current situation of China's auto market, we should vigorously develop "chain operations" and promote them as a necessary and useful supplement to the 4S method. It should be directed to a large number, wide distribution, good maintenance quality, high efficiency, diverse forms, and Selective direction.


Zhejiang Zhenting Machinery Co., Ltd.

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E-mail: wangxiangyu@nb-zkjx.com
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