Car Retailing - China - March 2013
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"The automotive industry is one of the pillar industries of the national economy, and plays a pivotal role in China's economic development. However, with the withdrawal of an auto consumption stimulus plan and slow growth in total car sales for two consecutive years, is the automobile market’s golden age of growth over?”
– Can Huang, Senior Research Analyst
Some questions answered in this report include:
Mintel predicts that car sales in China will maintain stable growth over the next five years. The annual growth rates of 20-30% of the previous few years will likely not be seen again.
The authorised brand dealership model forms the core framework of car retailing in China, which has enabled manufacturers to dominate and further strengthened the control and dominance of foreign capital in the automotive industry and retail market. The emergence of powerful car dealer groups will challenge the dominance of the manufacturers in the automotive retail market and will in the long term change the structure of the automotive retail industry.
The automotive retail industry will develop from the single 4S dealership model to a more diverse range of models. Reform of the 4S dealership model is imperative, and after-sales services still have much room for improvement. New models of dealers will offer not only traditional repair and maintenance, but also modern, higher value-added services such as auto finance and car tuning.”
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