2020
0
China Car Aftermarket Market Report 2020
2021-01-07T03:03:55+00:00
OX990502
3695
129441
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“The growth momentum of the car aftermarket remains solid with the number of registered passenger cars predicted to exceed 220 million in 2020. Rising awareness of regular maintenance and interest…

China Car Aftermarket Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the China Car Aftermarket market, including the behaviors, preferences and habits of the consumer.

The Chinese car aftermarket reached RMB1,345 billion in 2019, with a YOY growth of 7.5%, the first time in the past five years it has dropped to single digits. Mintel forecasts that the market will maintain steady growth in the next five years. In this Report, Mintel explores consumers’ usage of different aftermarket shops for maintenance and their motivation to do maintenance. Also, we analyse important factors for all aftermarket channels to satisfy consumers’ needs.

Read on to discover more details or take a look at all of our China Automotive market research.

Covered in this report

Scope of this research: In this Report, this includes car maintenance, repair, car beauty and sales of accessories. “Cars” in this Report are defined as personal cars for private individuals. They are categorized into basic passenger cars (saloon cars), SUVs (sport utility vehicles), MPVs (multipurpose vehicles) and cross-type passenger cars. Basic passenger cars (saloon cars): used for the transportation of people and luggage; the driver is usually the central focus, with an emphasis on driving and riding comfort. Saloon cars generally come in two-box configuration (hatchback) and threebox configuration (sedan).

SUVs: combines the comfort of a saloon car with off-road capability, functional versatility and a two-box configuration (hatchback). MPVs: combines the comfort of the saloon car with the space of a tourer and can be used to transport goods like a van. These vehicles usually come in a two-box configuration.

MPVs are targeted mainly at household users, and the majority are manufactured based on passenger car platforms.

Companies included: Zhongsheng Group Holdings Ltd, China Grand Automotive Service Co., China Yongda Automobiles Services Holdings Ltd., Lei Shing Hong Automobile Ltd., Hengxin Automobile Group Co., Ltd. Shanghai Automotive Industry Sales Co., Ltd. Zhejiang Materials Industry Yuantong Automobile Group Co., Ltd. Dah Chong Hong Holdings Limited and Jiangsu Wanbang.

Expert analysis from a specialist in the field

Written by Terence Zhou, a leading analyst in the Automotive sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The growth momentum of the car aftermarket remains solid with the number of registered passenger cars predicted to exceed 220 million in 2020. Rising awareness of regular maintenance and interest in car modification are creating potential opportunities in the aftermarket as well. 4S stores remain strong in specialised repair, but are increasingly losing advantage in quick repair. Quality guarantees and efforts to help car owners understand more about the services play an important role in winning over aftermarket customers and contribute to brand reputation. Furthermore, the new energy car aftermarket is a highly dynamic sector with a wide range of challenges and opportunities. How to apply in-car information with aftermarket services will likely become a game-changer in the near future for the aftermarket.

Terence Zhou
Senior Automotive Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Covered in this report
    • Definition
    • Excluded
  2. Executive Summary

    • The market
    • Era of single-digit growth arrives but steady future growth expected
      • 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
      • 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
      • 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
      • Figure 5: Spending on repair and maintenance, by age of car, Aug 2020
    • Self-motivation for maintenance is above 70%
      • Figure 6: Motivation for repair and maintenance, Aug 2020
    • 4S stores increasingly losing advantage in quick repair
      • Figure 7: Car maintenance channel, Aug 2020
    • Security and quality still matter the most while consciousness of value for money rises
      • Figure 8: Important factors in maintenance, Aug 2020
    • At least half of car owners show interest in a variety of car modifications
      • Figure 9: Car modification interest, Aug 2020
    • Quality and communication are top priorities in the aftermarket
      • Figure 10: Attitudes towards repair and maintenance, Aug 2020
    • What we think
  3. Issues and Insights

    • Digitalising the repair and maintenance process to meet the demand for mutual communication
    • The facts
    • The implications
      • 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
      • Figure 12: Lechebang app
    • Serve not just cars but also car owners’ lifestyles
    • The facts
    • The implications
      • Figure 13: MyCadillac app
  4. The Market – What You Need to Know

    • Car aftermarket falls to single-digit growth in 2019
    • Maintain stable growth in the next five years
    • Solid base for future growth
  5. Market Size and Forecast

    • Chinese car aftermarket enters the era of single-digit growth and reaches RMB1,345 billion
      • Figure 14: Chinese car aftermarket, by value, 2015-2020 (est)
    • Steady growth in the next five years
      • Figure 15: Market size and forecast of value sales of car aftermarket, China, 2015-25
  6. Market Factors

    • Huge demand for repair and maintenance due to 35 million newly-bought cars flowing into the market every year
      • 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
      • 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
      • Figure 18: Sales volume of new energy cars, 2015-2019
  7. Key Players – What You Need to Know

    • 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
  8. Market Share

    • Car dealers’ 4S stores account for 60% of market
    • Zhongsheng rises to the top while others’ market share shrinks again
      • Figure 19: Top 10 players in automobile aftermarket, by market share, 2018 vs 2019
  9. Competitive Strategies

    • Improve long-term free maintenance services for higher retention rates
      • Figure 20: Six-year free maintenance from China Grand
    • Aftermarket players are leveraging TikTok to gain offline traffic and share aftermarket knowledge
      • Figure 21: TikTok accounts of Mercedes and BMW dealers
      • Figure 22: TikTok account of Tuhu
    • AutoNavi and Alipay redefine aftermarket by launching mini programs for ‘daily life’ services
      • Figure 23: Alipay and AutoNavi
  10. The Consumer – What You Need to Know

    • 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
  11. Spending on Repair and Maintenance

    • Average repair and maintenance cost is RMB4,115 for cars bought in the last 6 years
      • Figure 24: Spending on repair and maintenance, by age of car, Aug 2020
    • Maintenance cost of premium cars differs greatly from budget cars
      • 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
      • Figure 26: Spending on repair and maintenance, by selected demographics, Aug 2020
  12. Motivation for Repair and Maintenance

    • Self-motivation for maintenance is above 70%
      • Figure 27: Motivation for repair and maintenance, Aug 2020
    • New car owners rely more on reminders from 4S stores
      • Figure 28: Motivation for repair and maintenance, by car age, Aug 2020
    • Premium car owners are more cautious about their car’s condition
      • Figure 29: Motivation for repair and maintenance, by car purchase price, Aug 2020
    • Maintenance habits of new energy car owners are comparatively under-developed
      • Figure 30: Motivation for repair and maintenance, by car energy type, Aug 2020
  13. Car Maintenance Channel

    • 4S stores increasingly losing advantage in quick repair
      • Figure 31: Car maintenance channel, Aug 2020
    • Strength of 4S stores stands out in specialised repair
      • 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
      • Figure 33: Car maintenance channel – 4S stores, by car purchase price, Aug 2020
  14. Important Factors in Maintenance

    • Security and quality still matter the most while consciousness of value for money rises
      • Figure 34: Important factors in maintenance, Aug 2020
    • Value for money is more important to car owners with older cars
      • Figure 35: Important factors in maintenance, by car age, Aug 2020
    • BEV owners consider cost performance and efficiency more
      • Figure 36: Important factors in maintenance, by car energy type, Aug 2020
  15. Car Modification Interest

    • At least half of car owners show interest in a variety of car modifications
      • Figure 37: Car modification interest, Aug 2020
    • Trendy young owners modify car lights, wheels and screens
      • 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
      • Figure 39: Car modification interest – Never did it, but I’m interested in this, by car purchase price, Aug 2020
  16. Attitudes towards Repair and Maintenance

    • Quality and communication are top priorities in the aftermarket
      • Figure 40: Attitudes towards repair and maintenance, Aug 2020
    • Original car parts and big-brand materials are the first choices
      • 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
      • 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
      • Figure 43: Attitudes towards repair and maintenance – selected items, by car purchase price, Aug 2020
  17. Appendix – Market Size and Forecast

      • Figure 44: Total market value of auto aftermarket, 2015-25
  18. Appendix – Methodology and Abbreviations

    • Methodology
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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