In recent years, with the vigorous development of China's economy and the continuous advancement of urbanization, China's automobile industry has made considerable progress. According to data from the Ministry of Public Security, as of 2019, China's car ownership reached 260 million, an increase of 8.83% compared to 2018. Urbanization has stimulated the demand for automobile consumption in small and medium-sized cities and towns. The construction of regional urban life circles has also increased the mileage of automobiles. At present, the average annual mileage of passenger cars has reached 20,000 to 30,000 kilometers, and the average vehicle age has grown rapidly. The automotive aftermarket represented by maintenance is developing rapidly.
The continuous improvement of domestic related industrial policies has released the growth potential of the automotive after-sales service market, and in particular has brought unprecedented opportunities for the development of specialized and cost-effective chain auto repair stores. And presents the following characteristics:
(1) The overall quality of the market is not high
In China, the lack of uniform standards in the car maintenance industry, different car maintenance procedures, and the inability to evaluate the quality of car washes have become open secrets.
(2) More and more investment
Due to the broad development prospects of the automotive maintenance market, traditional aftermarket companies, PE, etc. have joined the team to get together in the aftermarket after investment.
(3) The market concentration is not high
The monopoly granted by the previous system to automakers is the main reason why domestic auto repair and maintenance services are dominated by 4S shops. The automobile anti-monopoly that began in 2014 will break this pattern. With a vast area and a system that is similar to that of the United States, the prevailing independent maintenance-oriented system in the United States will also be the future of the domestic automobile maintenance market. This means that in the future, the share of the increment and stock of the auto maintenance market will be obtained by more companies outside of the automaker's dominant system, thus giving companies engaged in China's auto maintenance more room for development.
For more automotive industry trends, welcome to the Auto Maintenance and Repair Expo (AMR), which will be held at the National Convention and Exhibition Center (Tianjin) from 23-26 March 2023 to serve the booming automobile industry The industry brings a professional display and communication platform. This exhibition is expected to have an exhibition area of 100,000 square meters, which will attract more than a thousand overseas exhibitors to showcase the cutting-edge technology and products of the automotive service industry to audiences from all over the country and overseas. We look for