Foreign capital grabs $200 billion in car after market cake

With China surpassing the United States as the world’s largest automobile production and marketing country, when it comes to the aftermarket, when it exceeds the United States has become a topic of concern.

“From the perspective of the capacity of the post-market, I think that in 2012, the vehicle market will remain at the same level as the United States. By 2015, the size of China’s auto aftermarket will be the same as that of the United States.” Jiazhidao Automotive Consulting (Shanghai) Co., Ltd. (Literature "Jia Zhidao"), a partner in the interview, said in an interview with reporters that sales of the auto aftermarket in China and the US will exceed 200 billion U.S. dollars.

According to statistics, the current vehicle ownership in the United States is 210 million vehicles, and in 2010, China’s vehicle ownership has just exceeded 70 million vehicles. How to achieve quadruples in two years, Li Bin said that due to the statistical caliber, China has a large number of agricultural machinery not under the "car" this category of centralized management.

The biggest difference between these extra-vehicle and ordinary motor vehicles is that they do not need to apply for cards, and the amount of this one is very large. Therefore, Li Bin said that if this piece of “non-staff” is counted, then domestic car ownership will no longer be 200 million in 2020, but will reach this size in 2012, ie 8 years in advance.

However, although the amount of car ownership is equal to that of the United States, it will take time before the market size exceeds that of the United States. The "front and rear" points of the automobile market are determined according to the order of vehicle sales. Currently, the post-market segment includes auto insurance, finance, IT services, maintenance, accessories, used cars, and leasing.

According to statistics, in 2005, sales in China's auto aftermarket reached 88 billion yuan, which rose to 240 billion yuan in 2009 and is expected to increase to 490 billion yuan in 2012, with a compound annual growth rate of 26.9%. Li Bin believes that in 2015, the size of the domestic automobile aftermarket will exceed that of the United States and become the world’s largest automobile aftermarket sale. At present, the US post- market size is 186 billion U.S. dollars, but its annual growth rate is much lower than China's, only about 2% per year.

In 2010, China’s auto sales are expected to exceed 17 million vehicles and become the world's largest automotive country. However, in recent years, with the continuous expansion of manufacturers' production capacity, the number of 4S stores has continued to grow, and the profits of new car sales have become increasingly thin. The entire automobile dealership industry is in fact facing a test of survival.

According to data provided by the China Automobile Dealers Association, only one-third of the country’s 30,000 car dealers can maintain profitability, with one-third maintaining capital and one-third losing business. At the same time, in the profit structure of automobile dealers, the proportion of foreign companies that account for 60% of the profits of dealers in the post-market segment accounts for less than 30% of the domestic market, and the development of the automotive aftermarket has become a priority.

In this regard, the first layout is obviously a multinational component supplier. Bosch has announced that it will establish 1,000 auto repair shops in China before 2010; Yellow Hat, the largest auto parts dealer in Japan, plans to increase the number of Chinese direct sales stores and franchise stores by 2015. 500; 3M in China will be its 8000 kinds of automotive aftermarket products to 700 special beauty shop, 6000 car repair shop and 4S sales center......

"The ratio we currently provide to 4S channels and retail chains is 1:4. In the future we will certainly continue to serve the leading 4S channels of OEMs, but what is more important is the various diversified after-sales systems." Delphi Trading (Shanghai) ) Limited Market and Engineering Director Chen Lixun told reporters.

In the face of the rush to enter the international predators, the integration of the domestic aftermarket is still dominated by car dealers. In recent years, car dealers, including Guanghui Automotive, have been studying how to make large after-sales cakes, but their scale Compared with the hundreds of foreign investment, the number of foreign stores is still small.

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