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Understand China Auto Aftermarket---The Seemingly Bleak Southwest China Auto Care Market

In 2018, China's average vehicle age is about 5.1 years, while the average vehicle age of developed countries like the United States and Japan is about 8 years. Comparing the development rules of the automobile aftermarket in various countries, the maintenance cost of the vehicle will increase significantly after the vehicle age is more than 3 years. If the vehicle age is more than 6 years, it will enter the peak period of car maintenance cost. As mentioned above, both South China and North China are relatively developed regions. The quantity and age of vehicles are relatively high, and the peak period of maintenance will be ushered in. The development of the southwest is mainly centered on Sichuan and Chongqing, while other areas are relatively slow. Southwestern region has relatively more demand for auto care.

Auto care is in high demand now in the Southwestern Area, Customized recommendation is in need:

The year 2019 is the 41st year of reform and opening up. The eastern coastal region is the first beneficiary of reform and opening up, with rapid and developed economic development, while the central and western regions developed relatively slowly in the early years. However, in recent years, the southwest region is centered on Sichuan and Chongqing, and with a series of policy support, the economy of the southwest region has also developed rapidly. By 2017, the number of cars in southwest China reached 21.01 million.

Note: the car PARC in this paper refers to the passenger car PARC. Southwest provinces and cities are divided into different administrative regions according to the characteristics of post-market, including Chongqing, Sichuan, Guizhou, Yunnan and Xizang.

China's auto care & maintenance rose in the early 1990s. With the increase of car ownership, especially private cars, auto care & maintenance is gradually became more popular. With the development of economy and the increase of per capita disposable income, the concept of "care instead of maintenance" began to be accepted. With the change of concept with "raise to replace repair", the Southwest area begins the golden stage of auto care.

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