New Business Models Will Steer Revenues in Chinese Automotive Aftermarket, Finds Frost & Sullivan
- China will have the world's largest number of vehicles by 2021, spurring high aftermarket growth in the short, medium and long terms
SHANGHAI, March 10, 2015 /PRNewswire/ -- The total number of passenger, light and mini commercial vehicles in China is likely to reach 282 million by 2021, opening up opportunities for the automotive aftermarket in the country. To tap into this potential, however, aftermarket participants must address the challenges stemming from fragmented distribution networks, regulatory uncertainty, and the presence of counterfeit parts.
New analysis from Frost & Sullivan, Strategic Analysis of the Chinese Automotive Aftermarket (https://www.frost.com/ne8e), finds that the growing number of vehicles in operation and as well as the rising number of aging vehicles will triple manufacturer-level replacement parts revenue to $82.04 billion between 2013 and 2021.
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/CHN_PR_JZheng_NE8E-18_06Mar15.
"The increasing demand of end users and the enforcement of anti-monopoly policies are expected to strengthen the independent aftermarket channel in China," said Frost & Sullivan Automotive and Transportation Research Analyst Will Wong. "Automakers are opening authorized workshops and fast-fit chains in order to compete with lower-priced independent workshops."
Increasing competition and changing consumer behavior will steadily boost the sale volumes of vehicle parts and services. Intense competition will also create a wider range of product and service options for end users to choose from, requiring participants to deliver more than just basic services to consumers and installers.
While vehicle owners demand high-quality products and services, their limited product knowledge and low brand awareness inhibits market growth. In order to sustain profits, service providers and parts suppliers must train end users on the identification of counterfeit parts.
"Further, deploying business models such as 'bricks and clicks' will be vital to market success," concluded Wong. "Foreign suppliers should also consider partnering with eCommerce channels such as Alibaba to develop brand loyalty with consumers in the Chinese market."
Strategic Analysis of the Chinese Automotive Aftermarket is a Strategic Insight that is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. This study delves into key industry trends and identifies the major market participants in the Chinese aftermarket. In addition, the study provides manufacturer-level revenue forecasts and analyses of wholesale parts and service channels. Consumer trends and key conclusions are also presented.
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Strategic Analysis of the Chinese Automotive Aftermarket
NE8E-18
Contact:
Julie Zheng
Corporate Communication –China & Hong Kong
P: +852.2191.5788.
E: julie.zheng@frost.com
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