Speeding up the growth of automotive aftermarket

China Consumer Network statistics show that the average annual growth rate of China's automobile sales reaches 25%. It is precisely with the rapid growth of the automotive industry as a support, the car after the market has become a sitting on the "treasure bowl" of the industry, into the golden age of development.

Another data shows that after the life cycle, the automobile's after-sales use cost is about two or three times the vehicle's price, and the automobile aftermarket is therefore considered to be the most stable profit source in the automobile industry chain, accounting for about the total profit of the automobile industry chain. From 60% to 70%, the automotive aftermarket is also referred to as the "golden industry."

The tempting cakes will attract many “snakes”, ethnic enterprises will rise up, foreign-funded enterprises will continue to enter, and the competition in China’s auto market will become increasingly heated.

Recently, statistics released by China Consumer Network show that in 2012, the turnover of China’s auto aftermarket increased to 490 billion yuan, an annual growth rate of 26.9%, exceeding the average annual growth rate of 25% of China’s auto sales.

Industry insiders predict that in 2015, the output value of China's auto aftermarket will increase to 700 billion yuan. China will surpass the United States and become the world's largest automotive aftermarket.

Lu Zhiguang, executive vice president and secretary-general of the China Automotive Aftermarket Federation, told reporters: “In recent years, the rapid development of the automotive industry, the continuous heating up of the auto consumption market and the increase in private cars have directly stimulated the development of the auto market. The automotive aftermarket is a sunrise industry, or a gold industry, but overall, China's auto aftermarket is significantly behind the development of the vehicle, which not only does not match the rapid growth of the vehicle market, but also restricts China to some extent. The development of the automotive industry has weakened the overall competitiveness of the Chinese automotive industry."

Profit exceeds 40%

Recently, the reporter learned from an interview in Wuhan that, in 2012, the new car sales made a profit or even a loss. The profit mainly came from after-sales service, and the auto aftermarket became an important profit growth point.

As evidenced by the data, the overall industry profit of the automotive aftermarket can reach 40% to 50%, and the profits of individual subdivided industries can even reach 100% to 200%. Although these data may be overestimated, it cannot be denied that the automotive aftermarket has become the most dazzling gold mine in the entire automotive industry chain.

Taking the auto decoration market as an example, the statistics show that the average expenditure of vehicles under 100,000 yuan in China on automobile decoration products is about 4,000 yuan; and vehicles with 100,000 yuan to 300,000 yuan have strong spending power. , can withstand higher prices of automotive supplies. At present, more than 60% of owners of private luxury cars have the habit of external maintenance. More than 30% of private low-end car owners have formed the concept of car maintenance, and more than 30% of public high-end cars will undergo regular external maintenance.

Therefore, people in the industry are summing up the Chinese auto after-sales service market in the next few years with a “market size of 300 billion yuan and a 40% profit margin”.

According to Lu Zhiguang, usually after two or three years of buying a new car, vehicle maintenance will become the main consumer of the vehicle owner. At present, private car owners tend to be younger, and young people have put forward personalized requirements for vehicles, interiors, and materials. This is a huge business opportunity for the development of the car market in the future. In addition, current developments such as car rental, financial leasing, automotive supplies, on-board information, and automobile culture are immature, and there is also great commercial space.

In the developed country market, the sales profit of automobiles accounts for about 20% of the profits of the entire automobile industry, and the profits of spare parts supply account for about 20%. The other 60% of profits are generated in the service sector. That is to say, after-sales service profit is generally Three times the profit of vehicle sales. At present, the proportion of services in the sales of the domestic auto market is relatively small, which also indicates that there is a large room for growth in the auto service market.

The proliferation of fake and shoddy products

The profits of the auto market are generally higher, but the threshold is low. Therefore, there are continuous participants who have achieved “dreams of getting rich”.

Senior industry expert Yang Xiao told the reporter about the history of the development of Beijing's auto aftermarket: After the first embassy district was built in Sanlitun in 1970, a group of “restless” people began to try auto parts operations nearby. It is a lease of houses for neighboring residents. There are neither plans nor management in operation. In the early 1980s, some Xinhua Bookstores and general merchandise stores supporting the community on Sanlitun South Road suffered from sluggish operations, and they leased their houses to others for auto parts. From the late 1980s to 1992, the first batch of auto parts operators in Beijing gradually gathered on Sanlitun South Road from scattered businesses on the street, and there were more than 170 auto parts stores. Business was booming. In 2000, Beijing Sanlitun Auto Parts Development Street became the largest auto parts sales center in North China and Northeast China, but it gradually disappeared due to relocation.

“It can be seen from this that China’s auto market has a low threshold and extensive operations are adopted,” Yang Xiaofang said.

Car market chaos can be seen from the foil market. In general, the first thing a consumer buys a car is to give the car a film, which is the most profitable business in the 4S shop and decorating shop, which has given rise to sales of fake film factories and fake films. Taking a roll of 3M automotive film for 30 meters as an example, the genuine cost is more than 10,000 yuan, and the cost of the fake film is only five or six hundred yuan. If this film can be affixed to 15 vehicles, each car foil sales price of 1200 yuan, then, a roll of false film profits up to 17,500 yuan.

With the rapid growth of the automotive aftermarket, many "black auto repairs" have mushroomed throughout the city's streets. These auto repair “black shops” rarely have business licenses. Due to the low input costs, they are generally one or two people, several rooms, and some simple tools to get on business. Workers know little about the modern maintenance technology and the operation of advanced equipment. They can be ignorant about technical and professional issues. They often fix small problems and make major mistakes. Most of the accessories used are fake products. .

According to an expert who did not wish to be named, “In Shanxi, we went to the following auto parts city inspection work and found that most Auto Parts City heard the 'wind noise' and closed their vacations. This had to make people doubt that Auto Parts City In the sale of fake and shoddy products, they cannot afford to check."

Missing standards

In addition to the proliferation of fake and shoddy products, the lack of standards is another persistent problem in the automotive aftermarket. Looking at the domestic auto aftermarket, regulations and standards for car maintenance are extremely imperfect.

Lu Zhiguang admits that there is indeed a product non-conformity in the auto parts industry, mainly due to lack of standards. The development of China's auto industry was relatively late, and the standard system for various sub-sectors in the parts and components industry was still not perfect. “The threshold of the auto market is relatively low, some are not even restricted by the threshold, and government supervision has failed to keep up. This has caused some small workshop-type companies to get out of it, and fake and shoddy products have been thrown into the market with no scruples. In addition, scattered in the market. In the automotive products market across the country, counterfeit products that appear in the coats of well-known international brands have appeared from time to time.Although this road will eventually become narrower and narrower, many market participants are rushing by the temptation of short-term interests. Consumers lack scientific knowledge and vigilance, but also allow unscrupulous businesses to have a living space. The auto parts industry does not need industry-specific guidelines."

Taking GPS navigation as an example, because of the small space inside the vehicle, if the GPS navigation radiation exceeds the standards, it will have a serious impact on the human body, but companies often have a word for this - because the country has not introduced mandatory standards in this regard, the General Administration of Quality Supervision, Inspection and Quarantine conducted sampling inspections. Is the recommended standard.

Zheng Pingwei, deputy secretary-general of the China Automotive Aftermarket Federation, believes that at present, the automotive aftermarket is still not standardized, and the country has no legislation in this regard and lacks industry standards. For example, the existing automobile repair and beauty care industry does not meet the requirements of the opening conditions stipulated by the Ministry of Communications because no corresponding equipment is configured. In addition, some of the original equipment of some enterprises should be eliminated in time because the technical standards do not meet the requirements.

Lu Zhiguang called for the government to introduce the auto aftermarket policy as soon as possible, including industry access and withdrawal mechanisms. At the same time, it is hoped that the relevant government departments will strengthen the assessment of the industry and formulate star-level assessment standards.