Profit Decrease in Auto Market, Another Opportunity in China Auto Aftermarket

 Posted on2017/2/12 Sourcewww.

Currently, there is an intensifying competition in auto market, the profit declined greatly. Consequently, Car sales grow slowly due to the pressure in China’s stop buy policy this year. According to the latest data, the revenue of the first 6 months of 2017 in auto market comes 942.4 billion, an increasing of 13.67% compared to that of last year, while it is 300.296 billion in the third quarter year with an increase of 9.78%

Meanwhile, there is a negative growth in car profit. Statistics showed that the gross profit in the third quarter year is 15.6%, much less than the 17.63% of last year, and it is 17.27% on passenger car, 17.58% in auto parts industry. The gross profit of every ordinary shareholder is 40 billion, a decrease of 3.04%, and it is 11.332 billion in the third quarter year, a decrease of 13.85%

According to the above statistics, we can see that the auto selling market is tend to be saturated, while the auto after market is another way around, there is large space to develop.

With the popular of auto market, 4S stores exist in almost every city. Consequently, side effects also came into being, since 2017, China’s auto aftermarket developed in a fast speed; as a result, there is a large pressure on labor, venue, techniques and among others in service market. Many car owners revealed that due to the inadequate parts supply, they have no choice but to wait for a long time in repairing, and dealers also concerned for the delays of auto parts supply. In this circumstance, 4S store can not satisfy the customers’ need. Many less well-known 4S shops are in danger. So many customers and service suppliers are eager for new services.

In this situation, many careers on auto aftermarket like car care and maintenance companies come out, and after years development, these companies are tend to be mature, and have formed some famous brands, thus, the auto aftermarket is very promising.