Future Prospects for China's Automotive Aftermarket
2018-12-04 14:31 Tuesday
Revenue from the global automotive aftermarket in developed markets accounts for 50%-60% of total auto industry; in China that figure is only 10%. Global and domestic enterprises have taken notice of this chasm, and spurred a massive wave of investment in the Chinese automotive aftermarket, which began in 2015 and continues through the present.
Recent data indicates that Internet penetration rates in China's automotive aftermarket now exceed 16%, signaling that an increasing number of consumers are opting to purchase services online.
The Online Auto Service Consumers Behavior Report in 2018 highlights the following trends:
New Leading Roles: Brand Owners and Supply Chain
Due to increasing brand loyalty from consumers, well-established aftermarket brands are in position to reap the benefits. Supply chains are a decisive factor in the success of brands in today's market.
Growth Sectors: Tire and Engine Oil
Tires and engine oil are the primary growth sectors in the Chinese auto maintenance market. Furthermore, tires priced below 500 RMB have been well-received by consumers, indicating an obvious connection between prices and tire sales.
Top-selling Auto Accessories
According to the 2017-2018 Online Consumer Purchasing Report, the top six auto accessories by sales are tire pressure monitoring devices, automotive electrical appliances, windshield washing fluid, storage containers, chassis vehicle frames, and foot mats. Aftermarket brands should keep a close eye on consumption trends and pursue suitable marketing strategies to increase their market share.