2022
0
China Car Aftermarket Market Report 2022
2023-02-11T03:02:45+00:00
OX1100617
3695
160487
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“The steady expansion of China’s car aftermarket has been driven by the growth in car ownership and the increased cost per repair and maintenance of high-priced cars. In comparison to…

China Car Aftermarket Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“The steady expansion of China’s car aftermarket has been driven by the growth in car ownership and the increased cost per repair and maintenance of high-priced cars. In comparison to the past, efficiency and flexibility of service are now becoming the new focus in aftersales service. Given the opaque prices and non-standardised operations in the traditional car aftermarket, car owners are increasingly inclined to find out about the reputation of auto shops through friends and online reviews for double assurance. Furthermore, the younger generation of car owners are showing an interest in car care apps as well as DIY maintenance and modifications. It is foreseeable that in the coming years, the integration of online and offline services as well as the data interconnection between the consumer side and auto shops will become a major trend in the car aftermarket and bring about more competition and revolution.”
– Austin Yuan, Research analyst

Key issues covered in this Report

  • Aftermarket channel choice.
  • Spend on car repair or maintenance.
  • Interested products on car care apps.
  • Problems encountered in aftersales service.
  • Car care habits.
  • Expectations of future aftersales service.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Report scope
        • Executive Summary

            • The Market
              • China’s car aftermarket continues to grow with increasing car parc
                • Figure 1: Market value of car aftermarket in China, 2016-22 (fore)
              • Market size may approach RMB2.574 trillion in the next five years
                • Figure 2: Car aftermarket size and forecast, China, 2017-27
              • Private car parc in China reaches 233 million units and is set to grow steadily
                • Figure 3: Passenger car parc, China, 2016-21
              • Gradual standardisation of NEVs’ aftermarket
                • Internet giants accelerate the digitisation of the car aftermarket platforms
                  • Tuhu and Tmall accelerate franchising development in the car aftermarket
                    • Domestic auto brands make significant improvements in customer service satisfaction, with the gap between mass-market and luxury car brands continuing to narrow
                      • Creative ‘music marketing’ to capture the minds of younger users
                        • The ‘auto metaverse’ adds fun to aftersales service
                          • Convey core advantages through campaign of Aftersales Service Experience Day
                            • Paid membership boosts user stickiness
                              • Rapid development of professional aftersales service for NEVs
                                • The Consumer
                                  • The share of franchise and independent auto shops is largely impacted by the outbreak and internet platforms
                                    • Figure 4: Aftermarket channel choice, 2021 and 2022
                                  • An increase in the proportion of high-priced models spending more than RMB7,000 on maintenance, driving up overall repair and maintenance costs
                                    • Figure 5: Spending on maintenance, by car purchase price, 2020-22
                                  • Car peripherals add more fun to car care apps
                                    • Figure 6: Interested products on car care app, 2022
                                  • Higher-than-expected prices and labour costs are still the main grievances for 4S stores
                                    • Figure 7: Problems encountered in aftersales service, 2022
                                  • Seek the help of acquaintances and compare online for a double assurance
                                    • Figure 8: Car care habits, 2022
                                  • Battling for end-customers and efficiency will be the focus of future aftersales service
                                    • Figure 9: Expectations of future aftersales service, 2022
                                  • What we think
                                  • Issues and Insights

                                    • Intelligent emergency support is a battlefield for the car aftermarket in the digital age
                                      • The facts
                                        • The implications
                                          • Figure 10: 24-hour roadside rescue service by JD Auto, 2022
                                        • Targeting car owners seeking personalisation to enrich peripheral and modification products and services
                                          • The facts
                                            • The implications
                                              • Figure 11: Tmall Autocare modification centre, 2022
                                            • Leveraging local lifestyle platforms to enhance the word-of-mouth effect
                                              • The facts
                                                • The implications
                                                  • Figure 12: W24 Car Wash Studio, 2022
                                              • Market Size and Forecast

                                                • China’s car aftermarket continues to grow with increasing car parc
                                                  • Figure 13: Market value of car aftermarket in China, 2016-22 (fore)
                                                • Market size may approach RMB2.574 trillion in the next five years
                                                  • Figure 14: Car aftermarket size and forecast, China, 2017-27
                                              • Market factors

                                                • Private car parc in China reaches 233 million units and is set to grow steadily
                                                  • Figure 15: Passenger car parc, China, 2016-21
                                                • Gradual standardisation of NEVs’ aftermarket
                                                  • Internet giants accelerate the digitisation of the car aftermarket platforms
                                                  • Market Dynamics

                                                    • Tuhu and Tmall accelerate franchising development in the car aftermarket
                                                      • Figure 16: China’s top 100 franchise chains in car aftermarket, 2021
                                                    • Domestic auto brands make significant improvements in customer service satisfaction, with the gap between mass-market and luxury car brands continuing to narrow
                                                      • Figure 17: Ranking of satisfaction towards aftermarket services – mass-market brands – brands above average, 2022
                                                  • Marketing activities

                                                    • Creative ‘music marketing’ to capture the minds of younger users
                                                      • Figure 18: Shell and Tuhu jointly created ‘Happy on the way to extraordinary performance’, the first single for the car aftermarket, 2022
                                                    • The ‘auto metaverse’ adds fun to aftersales service
                                                      • Figure 19: Tuhu’s metaverse virtual livestreaming and digital collectibles, 2022
                                                    • Convey core advantages through campaign of Aftersales Service Experience Day
                                                      • Figure 20: BMW Aftersales Service Experience Day, 2021
                                                  • Product Innovations

                                                    • Paid membership boosts user stickiness
                                                      • Figure 21: Tmall Autocare membership
                                                    • Rapid development of professional aftersales service for NEVs
                                                      • Figure 22: Tuhu factory store
                                                  • Aftermarket Channel Choice

                                                    • The share of franchise and independent auto shops is largely impacted by the outbreak and internet platforms
                                                      • Figure 23: Aftermarket channel choice, 2021 and 2022
                                                    • NEV owners increasingly value the professionalism of 4S store repair service
                                                      • Figure 24: Aftermarket channel choice, by energy type, 2021 and 2022
                                                  • Spending on Maintenance

                                                    • An increase in the proportion of high-priced models spending more than RMB7,000 on maintenance, driving up overall repair and maintenance costs
                                                      • Figure 25: Spending on maintenance, by car purchase price, 2020-22
                                                    • PHEV repair and maintenance expenditure benefits from increased production
                                                      • Figure 26: Spending on maintenance, by car energy type, 2020-22
                                                    • High-end NEVs boast significant advantages in terms of repair and maintenance costs
                                                      • Figure 27: Spending on maintenance – owners of vehicles purchased within 3 years, by energy type and car purchase price, 2022
                                                  • Interested Products on Car Care Apps

                                                    • Car peripherals add more fun to car care apps
                                                      • Figure 28: Interested products on car care apps, 2022
                                                    • Younger car owners show greater interest in in-car appliances and modifications
                                                      • Figure 29: Interested products on car care apps, by age, 2022
                                                    • Car owners who bought their cars within 3 years are more likely to pay for services or products on apps
                                                      • Figure 30: Interested products on car care apps, by car ownership time, 2022
                                                  • Problems Encountered in Aftersales Service

                                                    • Higher-than-expected prices and labour costs are still the main grievances for 4S stores
                                                      • Figure 31: Problems encountered in aftersales service, 2022
                                                    • Car owners who had their vehicles quick fixed at franchise auto shops and online platforms experienced the most problems of vehicles not being delivered on time
                                                      • Figure 32: Problems encountered in aftersales service – aftersales problems encountered by the car owners who took the specialised repair service from certain channels, by maintenance and repair channels, 2022
                                                  • Car Care Habits

                                                    • Seek the help of acquaintances and compare online for a double assurance
                                                      • Figure 33: Car care habits, 2022
                                                    • Younger car owners prefer to do simple maintenance themselves
                                                      • Figure 34: Car care habits, by age, 2022
                                                    • Personalised modification is more attractive to those who bought their cars within three years
                                                      • Figure 35: Car care habits, by car ownership time, 2022
                                                  • Expectations of Future Aftersales Service

                                                    • Battling for end-customers and efficiency will be the focus of future aftersales service
                                                      • Figure 36: Expectations of future aftersales service, 2022
                                                    • Those who bought their cars within 4-6 years expect more open and transparent fee schedule
                                                      • Figure 37: Expectations of future aftersales service – top 5 items, by car ownership time, 2022
                                                    • High-priced car owners are most looking forward to system optimisation updates
                                                      • Figure 38: Expectations of future aftersales service – top 5 items, by car purchase price, 2022
                                                  • Appendix – Market Size and Forecast

                                                      • Figure 39: Market value of car aftermarket in China, 2017-27
                                                    • Methodology
                                                      • Abbreviations

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