Table of Contents
Executive Summary
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- The market
- Era of single-digit growth arrives but steady future growth expected
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- Figure 1: Chinese car aftermarket, by value, 2015-2020 (est)
- Figure 2: Market size and forecast of value sales of car aftermarket, China, 2015-25
- Impact of COVID-19 on Car Aftermarket
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- Figure 3: Short, medium and long term impact of COVID-19 on car aftermarket, November 2020
- Companies and brands
- 4S stores still dominate the market but car dealers’ market share highly fragmented
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- Figure 4: Top 10 players in automobile aftermarket, by market share, 2018 vs 2019
- The consumer
- Average repair and maintenance cost is RMB4,115 for cars bought in the last 6 years
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- Figure 5: Spending on repair and maintenance, by age of car, Aug 2020
- Self-motivation for maintenance is above 70%
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- Figure 6: Motivation for repair and maintenance, Aug 2020
- 4S stores increasingly losing advantage in quick repair
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- Figure 7: Car maintenance channel, Aug 2020
- Security and quality still matter the most while consciousness of value for money rises
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- Figure 8: Important factors in maintenance, Aug 2020
- At least half of car owners show interest in a variety of car modifications
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- Figure 9: Car modification interest, Aug 2020
- Quality and communication are top priorities in the aftermarket
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- Figure 10: Attitudes towards repair and maintenance, Aug 2020
- What we think
Issues and Insights
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- Digitalising the repair and maintenance process to meet the demand for mutual communication
- The facts
- The implications
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- Figure 11: BMW CBS system on iDrive
- Give car owners more options by differentiating prices for peak and off-peak times
- The facts
- The implications
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- Figure 12: Lechebang app
- Serve not just cars but also car owners’ lifestyles
- The facts
- The implications
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- Figure 13: MyCadillac app
The Market – What You Need to Know
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- Car aftermarket falls to single-digit growth in 2019
- Maintain stable growth in the next five years
- Solid base for future growth
Market Size and Forecast
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- Chinese car aftermarket enters the era of single-digit growth and reaches RMB1,345 billion
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- Figure 14: Chinese car aftermarket, by value, 2015-2020 (est)
- Steady growth in the next five years
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- Figure 15: Market size and forecast of value sales of car aftermarket, China, 2015-25
Market Factors
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- Huge demand for repair and maintenance due to 35 million newly-bought cars flowing into the market every year
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- Figure 16: Sales volume of new passenger cars and second-hand cars in China, 2015-2019
- Car parc in China reaches 208 million, building demand in the car aftermarket
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- Figure 17: Private car parc in China, 2015-2019
- New energy sales proportion rising, leading to lower spending on maintenance but higher spending on repairs
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- Figure 18: Sales volume of new energy cars, 2015-2019
Key Players – What You Need to Know
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- 4S stores still dominate the market but car dealers’ market share highly fragmented
- Car brands are attracting more consumers by promoting ‘daily life’ services with wider coverage
- Innovation leads to better resource allocation and more advanced parts technology
Market Share
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- Car dealers’ 4S stores account for 60% of market
- Zhongsheng rises to the top while others’ market share shrinks again
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- Figure 19: Top 10 players in automobile aftermarket, by market share, 2018 vs 2019
Competitive Strategies
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- Improve long-term free maintenance services for higher retention rates
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- Figure 20: Six-year free maintenance from China Grand
- Aftermarket players are leveraging TikTok to gain offline traffic and share aftermarket knowledge
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- Figure 21: TikTok accounts of Mercedes and BMW dealers
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- Figure 22: TikTok account of Tuhu
- AutoNavi and Alipay redefine aftermarket by launching mini programs for ‘daily life’ services
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- Figure 23: Alipay and AutoNavi
The Consumer – What You Need to Know
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- Consumers are highly self-motivated in maintenance
- Professionalism and quality are the most important factors
- Consumers’ interest in car modifications is strong but they lack experience
- 4S stores increasingly losing advantage in quick repair but hold the advantage in specialised repair
- Quality and communication are top priorities in the aftermarket
Spending on Repair and Maintenance
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- Average repair and maintenance cost is RMB4,115 for cars bought in the last 6 years
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- Figure 24: Spending on repair and maintenance, by age of car, Aug 2020
- Maintenance cost of premium cars differs greatly from budget cars
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- Figure 25: Spending on repair and maintenance, by car purchase price, Aug 2020
- PHEV has the highest repair and maintenance cost among cars priced RMB100,000-299,999
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- Figure 26: Spending on repair and maintenance, by selected demographics, Aug 2020
Motivation for Repair and Maintenance
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- Self-motivation for maintenance is above 70%
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- Figure 27: Motivation for repair and maintenance, Aug 2020
- New car owners rely more on reminders from 4S stores
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- Figure 28: Motivation for repair and maintenance, by car age, Aug 2020
- Premium car owners are more cautious about their car’s condition
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- Figure 29: Motivation for repair and maintenance, by car purchase price, Aug 2020
- Maintenance habits of new energy car owners are comparatively under-developed
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- Figure 30: Motivation for repair and maintenance, by car energy type, Aug 2020
Car Maintenance Channel
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- 4S stores increasingly losing advantage in quick repair
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- Figure 31: Car maintenance channel, Aug 2020
- Strength of 4S stores stands out in specialised repair
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- Figure 32: Car maintenance channel, by car age, Aug 2020
- Similar usage of 4S store for deep maintenance and specialised repair regardless of car price
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- Figure 33: Car maintenance channel – 4S stores, by car purchase price, Aug 2020
Important Factors in Maintenance
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- Security and quality still matter the most while consciousness of value for money rises
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- Figure 34: Important factors in maintenance, Aug 2020
- Value for money is more important to car owners with older cars
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- Figure 35: Important factors in maintenance, by car age, Aug 2020
- BEV owners consider cost performance and efficiency more
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- Figure 36: Important factors in maintenance, by car energy type, Aug 2020
Car Modification Interest
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- At least half of car owners show interest in a variety of car modifications
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- Figure 37: Car modification interest, Aug 2020
- Trendy young owners modify car lights, wheels and screens
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- Figure 38: Car modification interest – have done it, by age, Aug 2020
- Upgrading electronic units appeals to budget car owners looking to improve driving performance
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- Figure 39: Car modification interest – Never did it, but I'm interested in this, by car purchase price, Aug 2020
Attitudes towards Repair and Maintenance
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- Quality and communication are top priorities in the aftermarket
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- Figure 40: Attitudes towards repair and maintenance, Aug 2020
- Original car parts and big-brand materials are the first choices
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- Figure 41: Attitudes towards repair and maintenance – selected items, by car age, Aug 2020
- Young car owners expect better repair and maintenance experience but find information insufficient
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- Figure 42: Attitudes towards repair and maintenance – selected items, by age, Aug 2020
- Interactive communication during the repair and maintenance process is opportunity for engagement
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- Figure 43: Attitudes towards repair and maintenance – selected items, by car purchase price, Aug 2020
Appendix – Market Size and Forecast
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- Figure 44: Total market value of auto aftermarket, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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