Car market scales close to 500 billion

The growth rate of the Chinese auto market has gradually slowed down, but the substantial increase in the amount of auto aftermarket has brought about huge business opportunities for the auto aftermarket.

"In 2011, China's auto sales reached 18.5 million, an increase of only 2.45% year-on-year. As of August 2011, China's auto ownership has exceeded 100 million, and the rapid increase in car ownership will trigger new business opportunities. Related information shows that after sales The service profit is three times that of the vehicle sales.In 2005, the turnover of China’s auto aftermarket was 88 billion yuan, which was increased to 240 billion yuan in 2009 and is expected to increase to about 490 billion yuan in 2012, a compound annual growth rate. It is 26.9%.” Yu Yuanjun, vice president of the China Automobile Dealership Association, said at the launch ceremony of “Authentic Brand Certification Platform for China’s Automotive Aftermarket” recently.

It is precisely because of the huge profit potential of the auto market, that multinational auto parts vehicles have shifted to the auto aftermarket. At the end of 2011, Bosch's aftermarket business unit, which has been deployed in the automotive aftermarket, has acquired Yanghong Group, which has a production plant in Taiwan and the mainland. In addition, multinational component companies such as Federal-Mogul and Delphi have also deployed in the automotive aftermarket.

However, the phenomenon of "bad money driving good money" in the domestic automotive aftermarket may be a paradox that multinational component companies have to face. “The more high-end, good-quality products, the more they can't sell to the end market. And the demand in the end market is met by many companies that produce counterfeit original parts. According to Frost & Sullivan Consulting Company, counterfeit auto parts are global Sales are estimated to reach 45 billion U.S. dollars (307 billion yuan), which is several times more than the 82 billion yuan in 2008. According to the Japan Automobile Parts Association, 83% of the global counterfeit products are located in China, said Chen Wenkai, president of Gasgoo.com.cn.

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