Table of Contents
Executive Summary
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- The market
- Size to double in the next five years with a slower growth rate
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- Figure 1: Chinese car aftermarket, by value, 2015 -19 est
- Figure 2: Best- and worst-case forecast of auto aftermarket value, China, 2014-24
- Companies and brands
- 4S stores still dominate but market share fragmented between different car dealers
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- Figure 3: Top 10 players in automobile aftermarket, by sales value and market share, 2017 vs 2018
- Franchise brands are boosting their advantages through standardisation as new forces join the market
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- Figure 4: Franchise brands and their parent companies
- Figure 5: Franchise brands by car manufacturers
- The consumer
- Average RMB4,749 spent a year on maintenance for cars under 3 years old
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- Figure 6: Spending on repair and maintenance, July 2019
- Greater repair and maintenance bill for NEVs due to high out-of-warranty repair costs
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- Figure 7: Spending on repair and maintenance, by car energy type, July 2019
- Most car owners use 4S stores but only one third stick to 4S stores only
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- Figure 8: Usage of repair and maintenance shops, July 2019
- Online channels, especially portal websites win the highest attention
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- Figure 9: Information channel, July 2019
- Demand for diverse information channels is stronger outside of tier one cities
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- Figure 10: Information channel, by city tier, July 2019
- 4S store enjoys high satisfaction levels for maintenance skills, parts quality and standardised process
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- Figure 11: Satisfaction level of repair and maintenance shops, July 2019
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- Figure 12: Satisfaction level of repair and maintenance shops – 4S stores, by spending on repair and maintenance, July 2019
- Small difference in satisfaction with repair skills of franchise shops and 4S stores among NEV owners
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- Figure 13: Satisfaction level of repair and maintenance shops – selected item, by car energy type, July 2019
- Online platforms are meeting consumers’ call for transparency in the aftermarket
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- Figure 14: Tuhu online booking process
- Only half of car owners still choose 4S stores for deep maintenance and specialised repair after the warranty period
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- Figure 15: Choice of car maintenance after the warranty period, July 2019
- BEV owners tend to try diverse options for specialised repair after the warranty period
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- Figure 16: Choice of car maintenance after the warranty period, by car energy type, July 2019
- Strong maintenance awareness among surveyed car owners, especially experienced car owners
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- Figure 17: Attitudes towards repair and maintenance – selected item, by car purchase price, July 2019
- Only 3% do DIY maintenance, but more than 20% claim willingness, offering synergy for online platforms
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- Figure 18: Attitudes towards repair and maintenance – selected item, by selected demographics, July 2019
- What we think
Issues and Insights
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- Premium service opportunities, especially for high-end 4S stores users
- The facts
- The implications
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- Figure 19: BMW’s aftermarket service
- NEV repair and maintenance market: franchise auto stores and 4S stores battle it out
- The facts
- The implications
- Importance of online information channels and transparency
- The facts
- The implications
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- Figure 20: Franchise brands’ mini programs
- Figure 21: BMW maintenance calculator
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- Figure 22: Official website of TyrePlus
- Figure 23: Tuhu online booking process
The Market – What You Need to Know
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- Car aftermarket reaches the highest growth rate in the past five years
- Double the size in the next five years with a slower growth rate
- Fairer competitive environment and rising consumer demand
Market Size and Forecast
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- Chinese automotive aftermarket reached RMB1,252 billion in 2018
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- Figure 24: Chinese car aftermarket, by value, 2015 -19 est
- Market size to double in the next five years to 2024
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- Figure 25: Best- and worst-case forecast of auto aftermarket value, China, 2014-24
Market Factors
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- Policy to make aftermarket more transparent and fairer for all channels
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- Figure 26: Provisions on the Administration of Motor Vehicle Maintenance
- Rising car parc builds increased demand for car aftermarket
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- Figure 27: Private car parc in China, 2014-18
- Second-hand car market is a potential growth impetus for car aftermarket
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- Figure 28: The sales unit and growth rate of second-hand cars, 2014-18
- Higher maintenance costs due to out-of-warranty issues for new energy cars
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- Figure 29: Complaints about new energy car quality issues
Key Players – What You Need to Know
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- 4S stores still dominate the market but car dealers’ market share highly fragmented
- Franchise brands bolstering their advantage through standardisation as new forces join the market
- Innovation leads to better resource allocation and more advanced parts technology
Market Share
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- Car dealers’ 4S stores account for 70% of market share
- Pang Da Automobile dropped to 9th from 5th last year, while the rest of the top ten kept growing
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- Figure 30: Top 10 players in automobile aftermarket, by sales value and market share, 2017 vs 2018
Competitive Strategies
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- Franchise brands are establishing their brand image through standardization
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- Figure 31: Franchise brands and their parent companies
- Car manufacturers are starting their own aftermarket brands
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- Figure 32: Franchise brands by car manufacturers
- Internet giants are stepping into the aftermarket
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- Figure 33: Tmall Station
Who’s Innovating?
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- Resource-allocation: luxury-focused online platform, integrating resources of 4S stores
- Innovation in parts: advanced technology applied in auto parts, such as airless tire
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- Figure 34: Airless tire from Michelin
- Figure 35: REE
The Consumer – What You Need to Know
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- Choice of maintenance and repair shops is becoming more diverse
- Demand for diverse information channels in tier two or lower tier cities
- 4S stores face challenge of losing customers after warranty
Spending on Repair and Maintenance
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- Average maintenance cost on cars within 3 years is RMB4,749
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- Figure 36: Spending on repair and maintenance, July 2019
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- Figure 37: Spending on repair and maintenance, by car purchase price, July 2019
- Figure 38: Spending on repair and maintenance, by annual driving mileage, July 2019
- Car owners in tier one and two cities spend more on maintenance
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- Figure 39: Spending on repair and maintenance, by city tiers, July 2019
- Huge gap in maintenance costs for different car price tiers
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- Figure 40: Spending on repair and maintenance, by car purchase price, July 2019
- Figure 41: Spending on repair and maintenance, by car purchase price, July 2019
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- Figure 42: Spending on repair and maintenance, by car purchase price, July 2019
- Higher repair and maintenance cost for NEVs the result of high cost of non-warranty repairs
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- Figure 43: Spending on repair and maintenance, by car energy type, July 2019
Usage of Maintenance & Repair Shops
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- Most car owners use 4S stores but only one third stick to just 4S stores
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- Figure 44: Usage of repair and maintenance shops, July 2019
- 4S stores share similar usage across different city tiers
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- Figure 45: Usage of repair and maintenance shops, by city tiers, July 2019
- Franchise shops and online platforms have higher usage rate among female car owners
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- Figure 46: Usage of repair and maintenance shops, by car energy type, July 2019
- Independent auto shop see higher usage rate among owners of lower price cars while franchise stores are more popular among high-end car owners
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- Figure 47: Usage of repair and maintenance shops, by car purchase price, July 2019
Information Channels
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- Online channels, especially portal websites win the highest attention
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- Figure 48: Information channel, July 2019
- Dealers come close second as important source of information, especially for car owners who only use 4S stores
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- Figure 49: Information channel, by usage of repair and maintenance shops, July 2019
- Demand for diverse information channels is stronger outside tier one cities
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- Figure 50: Information channel, by city tier, July 2019
- Mass media channels are more favoured by high-end car owners
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- Figure 51: Information channel, by gender, July 2019
- Official information is more favoured by female car owners
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- Figure 52: Information channel, by gender, July 2019
Satisfaction Level of Maintenance & Repair Shops
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- 4S stores enjoy high satisfaction levels for maintenance skills, parts quality and standardised process
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- Figure 53: Satisfaction level of repair and maintenance shops, July 2019
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- Figure 54: Satisfaction level of repair and maintenance shops – 4S stores, by spending on repair and maintenance, July 2019
- Small difference in satisfaction with repair skills of franchise shops and 4S stores seen among NEV owners
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- Figure 55: Satisfaction level of repair and maintenance shops – selected item, by car energy type, July 2019
- Independent auto shops enjoy higher satisfaction for cost, location and especially service attitude in lower tier cities
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- Figure 56: Satisfaction level – independent auto shop, by city tiers, July 2019
- Online platforms are meeting consumers’ call for transparency in the aftermarket
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- Figure 57: Tuhu online booking process
Choice of Car Maintenance after the Warranty Period
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- Only half of car owners still choose 4S stores for deep maintenance and specialised repair after the warranty period
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- Figure 58: Choice of car maintenance after the warranty period, July 2019
- Franchise auto shops more attractive to young female car owners for deep maintenance than other demographics
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- Figure 59: Choice of car maintenance after the warranty period, by gender and age, July 2019
- Independent auto shops tend to appeal to car owners in lower tier cities for quick repairs after the warranty period
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- Figure 60: Choice of car maintenance after the warranty period, by selected demographics, July 2019
- BEV owners tend to try diverse options for specialised repair after the warranty period
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- Figure 61: Choice of car maintenance after the warranty period, by car energy type, July 2019
Attitudes towards Maintenance & Repair
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- Strong maintenance awareness among surveyed car owners, especially experienced car owners
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- Figure 62: Attitudes towards repair and maintenance – selected item, by car purchase price, July 2019
- The majority of the market are willing to pay more for better experience, not just high-end car owners
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- Figure 63: Attitudes towards repair and maintenance – selected item, by car purchase price, July 2019
- Car owners in tier one cities favour online booking systems more
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- Figure 64: Attitudes towards repair and maintenance – selected item, by city tiers, July 2019
- New energy car owners favour longer period of free maintenance and repair with car purchase
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- Figure 65: Attitudes towards repair and maintenance – selected item, by car energy type, July 2019
- Only 3% do DIY maintenance, but more than 20% claim willingness, offering synergy for online platforms
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- Figure 66: Attitudes towards repair and maintenance – selected item, by selected demographics, July 2019
Meet the Mintropolitans
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- MinTs are more explorative towards maintenance shops than non-MinTS
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- Figure 67: Usage of repair and maintenance shops, by consumer classification, July 2019
- Although MinTs shows higher maintenance intention than non-MinTs, MinTs prefer to pay for service than DIY
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- Figure 68: Attitudes towards repair and maintenance – selected items, by consumer classification, July 2019
Appendix – Market Size and Forecast
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- Figure 69: Total market value of auto aftermarket, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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