Chinese Automotive Aftermarket
2018-11-28 14:26 Wednesday
Due to rapid development in recent years, China has become the largest auto market in the world. By the end of 2017, the number of private cars in China had reached 310 million, placing China second behind the United States. In the wake of these developments, the automotive aftermarket has been one of the most promising industries in China, with consistent annual revenue growth of 25%.
The layout of the automotive aftermarket has changed dramatically to account for the recent growth. The emergence of online automotive service platforms has led to restructuring within the industry, alongside new legislation and government regulations which have added more uncertainty to the market.
Internet-driven models pose a huge threat to the traditional automotive industry, but have also helped to spur much-needed change. China's automotive aftermarket is in a transitional period, characterized by experimentation and restructuring.
Due to the extending automotive market, operators have to focus on specific business rather than the whole industry to reinforce their competitiveness, which accelerates market division.
The integration of the Internet with automotive technologies has led to increasingly sophisticated automotive devices and accessories. Technological breakthroughs have also made remote equipment failure checks possible, maximizing efficiency and minimizing costs.
In order to capture greater market share and retain customers, online automotive service platforms have made every effort to improve customer service, the area in which they lag behind traditional competitors.
To improve their market position, online auto platforms should draw from past successes and failures by reforming management and service offerings, upgrading technologies and prioritizing customer retention.