Analysis of the market status and development prospects of China's automotive aftermarket industry in 2020, China has a lot of room for development

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Issue Time: May 7,2021

Summary

The current auto aftermarket in China can be roughly divided into auto finance, auto leasing, auto supplies, second-hand cars, auto maintenance and repair, and scrapped cars. In terms of service content, there is an overlap between the auto maintenance industry and the auto maintenance industry, and there is no strict division boundary. At the same time, the business scope of many domestic automobile maintenance and accessory industries also has a trend of expanding to automobile maintenance.

Auto aftermarket expands steadily as car ownership rises

The auto beauty and maintenance industry emerged in China in the 1990s. With the increase in car ownership, especially private car ownership, the car beauty and maintenance industry has begun to be known to car owners. Accepted by the car family. Compared with foreign developed countries, the development of my country's automobile industry is relatively late

On February 28, 2020, the National Bureau of Statistics released the 2019 National Economic and Social Development Statistical Bulletin. The communiqué indicated that the number of civilian vehicles in the country at the end of the year was 261.5 million, an increase of 21.22 million over the end of the previous year. Among them, the number of private cars was 226.35 million, an increase of 19.05 million. According to data from the Ministry of Public Security, as of the third quarter of 2020, the number of motor vehicles nationwide has reached 365 million, of which 275 million are cars.

At present, the sales of China's auto industry have slowed down, and China will become the largest market for stock cars in the future. In the lengthy segmentation of the automotive aftermarket, from a narrow perspective, the maintenance business of the automotive aftermarket is one of the segmented industries with the “most rigid demand” and “relatively high consumption frequency” in the life cycle of consumers’ cars. One. Therefore, the automobile maintenance industry will become a star track in the aftermarket for a long time in the future, continue to attract the attention of the industry and the attention of capital, and has great potential for development.

Fierce competition in China's automotive aftermarket

Too low industry entry barriers have led to the inverted supply and demand status of China's post-market that began to compete fiercely around 2015. From a horizontal perspective, the average level of the number of vehicles served by a single store in my country's maintenance market lags far behind that of the United States. The average customer size of a single store is too low, leading to fierce competition in the industry and difficulty in improving asset efficiency, which determines the overall profit margin of the industry.

Compared with other countries, China’s automotive aftermarket has a larger room for development

From the perspective of the long-term potential of new car demand, there is a certain gap in China’s car ownership per 1,000 people, whether it is compared with mature markets such as Europe, America, Japan and South Korea, or compared with emerging markets such as Malaysia, Russia, Brazil, and other emerging markets that are similar to China’s per capita GDP. This means that China's car ownership still has a lot of room for growth in the medium and long term.