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Did you Know?

Auto aftermarket stores in China are regenerate themselves in a 40% speed every year.

Only if they Know you...

understand China market

It goes without saying, every market is unique, has its own trends to reveal its overall course. AT CIAACE, we not just offer a trade platform, we will also offer full year service on knowledge, tools, connections & resources. 

Let us heard your thoughts~

CIAACE Organizer 

Car Automobile Aftermarket

Auto aftermarket has sustainable high growth and high potential.

At present, the average age of vehicles in China is about 4.9 years and the average age of vehicles entering the stock market continues to grow. Compared with the experience of the international market, the peak of the maintenance period will be ushered in after more than five years. At the same time, as China's automobile manufacturing industry gradually matures, the durability and the improvement of automobile quality have also extended the average life cycle of vehicles. The "car age + possession" double-effect driving automobile has developed rapidly and become a new growth point of the automobile industry. .

China automobile service market size

The car ownership is expected to surpass the US in 2020 and become the world's largest market.

China's auto industry started to develop late, but China's auto sales have surpassed the US since 2009. In the past year, the world's automobile production and sales ranked first. In recent years, the annual sales of new vehicles exceeding 20 million vehicles have also kept China's automobile ownership growing at an average annual rate of more than 10%. By the end of 2018, the national automobile ownership reached 240 million vehicles. The volume is expected to surpass the United States in 2020 to become the world's largest market.

Auto aftermarket service types

Basic knowledge - Services

China has a very unique market, Car detailing, auto care, car accessories is always been a key fact for aftermarket shops. detailing in China is called "Car beauty". Almost every car owner in china knows that, "car wash, beauty, care" is how you should take good care of your car. Just like taken care of your pet. Car beauty include accessories, film, wax, interior upgrade, more focus on the look of the car. Auto care on the other hand, include deep cleaning and performance enhance by chemicals & additive agent. with the economic growth also younger generation has more disposable income, auto beauty & care is having a more and more important role on aftermarket service.

Auto Service shop types & features

Basic knowledge - service shops

Auto 4S shop: 4S special repair shop of various brands, they are supported by the strong technology and accessories of auto manufacturers, providing preferential policies for sales and maintenance bundles, providing “one-stop service for door-to-door service” for all kinds of "high-end" cars. Excellent technology and excellent service, the advantages are obvious, the pursuit of high service quality, professional maintenance standards, personnel management norms, but the higher maintenance price is also the weakness of the car 4S shop, maintenance time and original parts are charged according to standards, the price is often It is too high, sometimes even several times higher compare to other repair shop.

Large auto repair factory: The large auto repair factory just made up for the shortcomings of the maintenance of the 4S shop. The prosperity of China's auto parts industry has enabled the monopoly of the auto parts market to be broken. This will undoubtedly give ordinary repair shops a “leeway” and make up for their “short legs”. In addition, large repair shops are well funded and are gradually improving their service quality to provide customers with personalized and refined services.

Quick repair chain stores: Mainly focus on small, convenient, fast, affordable, community-based services, its external aspects are mainly reflected in the uniformity of all chain stores, unified interior and exterior decoration. Store interior decoration is usually very simple, space is small, small number of stuff, supplies & skills can be unified supplied and trained by the headquarters, expensive inspection and diagnosis equipment can be shared; each chain store operates independently under the unified management of the headquarters, technical personnel and maintenance materials are guaranteed, and the source of accessories  & parts is relatively stable. 

Small auto repair shop: It is an auto repair shop in a form of store have a door close to the street. There is not much investment, a lifting machine, and some special tools. They usually are less investment, thin profit, but quick result, no debts, turnover is also fast. Usually focus on wearing parts, vehicle glass installation, tire-changing. The main difference between them is in terms of the size of the enterprise, the strength of the technical strength, and the equipment and facilities.

Auto repair & maintenance service channels 

Basic knowledge -  channels

The market share of China's independent aftermarket channels has grown from less than 10% in the 1990s to the current 35%. It has achieved good results. However, many customers will still prefer 4S stores, mainly due to consumers' distrust to independent aftermarket channels. This mistrust caused by the mistrust of third-party service providers is reflected in four aspects: uneven quality of accessories, opaque price information, low level of store service technology and imperfect after-sales support system. However, with the advent of the digital age, technologies such as big data analysis, artificial intelligence, and SaaS systems are more widely used in the automotive aftermarket. The offline chain stores are gradually expanding in size, brand strength is becoming stronger, and services tend to standardize and process. It will promote more transparent market information and more efficient services. It is expected that after 5 to 10 years of independence, the market will develop rapidly and the maturity will increase. The market share of 4S stores will be compressed, the share of independent market is expected to exceed 4S stores.