In the mature automobile market, the profit ratio of the aftermarket to the former market is about 6:4, while in my country it is about 3:7. According to the "Medium and Long-term Development Plan for the Automobile Industry", by 2025, the value chain of my country's automobile aftermarket service industry will account for more than 55% of the entire industrial chain. In the future, the profit point of China's automobile industry will be tilted from the front-end vehicle manufacturing and sales links to the after-market maintenance and services. This is a general trend. Changes in the automotive industry will also bring many new development possibilities and opportunities to the automotive aftermarket.
However, despite the promising market prospects, my country's car ownership has maintained a growth rate of more than 8% in recent years, and the age of cars is also increasing, but it is not easy for companies to get a share of the aftermarket. The automotive aftermarket is full of opportunities and pitfalls. In the end, which fields have opportunities and which fields have pitfalls, are worthy of the industry's deep thinking.
Through the observation of the auto aftermarket, auto finance and auto parts supply chain (including repair and integration) are the main tracks of the auto aftermarket. In the future, auto finance will be a track close to 5 trillion yuan, with participants mainly including auto finance companies, commercial banks and auto finance leasing companies. At present, there are 17 auto finance companies under the OEM system in my country, and some of the earlier OEM auto finance companies have annual profits of more than 1 billion yuan. Auto finance leasing companies have lowered the threshold for buying cars, catered to the travel needs of young consumer groups, and their proportion in auto finance has increased year by year.
my country's auto parts ratio is high. For parts and components companies, the profits of supporting OEMs are not as high as the profits of entering the aftermarket. In fact, from the perspective of profitability, the auto repair and maintenance chain itself does not have very high investment value, and the greater value is the spare parts supply chain business in the back. In the field of parts supply chain, domestic companies such as Tuhu, Three Heads and Six Arms have shown a good momentum of development. Compared with the US market, my country is expected to have listed companies with a market value of 200 billion yuan in this field in the future.
Regarding e-commerce, whether it is a new car retail or a new retail of used cars, it will become more and more difficult to go if you only rely on information gaps to make a difference. The real focus behind new car and second-hand car e-commerce is its auto finance business. Therefore, judging from the market in recent years, take the second-hand car transaction as an example. Although on the one hand, the transaction volume has maintained rapid growth every year, on the other hand, news of the bankruptcy of second-hand car start-ups has been continuously exposed. The reason is that the real The profit point of the company has to rely on financial leasing, and these closed second-hand car trading companies do not have such capital strength. In this field, it is expected that in the future, companies such as Lotto and Souche are expected to break through because their capital chain has already formed a cycle.
In addition, there are some emerging areas in the automotive aftermarket, such as car remanufacturing and car modification. As the country allows the remanufacturing and utilization of the five major assemblies, and the proposal of the "dual carbon" target, it will have a huge boost to the automotive remanufacturing market. At the same time, judging from the automotive maintenance market in Europe, the United States, and Japan, remanufactured parts account for a large market share, and many OEMs also have their own automotive remanufacturing businesses. At the same time, power battery recycling, as an emerging field, will form a very large market. The large-scale decommissioning of lithium batteries and the gap in upstream mineral resources will trigger a huge wave of recycling. Although the field of car modification is still in its immature stage, the management system, standards and regulations are not yet complete, but as the "post-90s" become the main force in car purchase and related policies and regulations are gradually liberalized, the market space will also be very huge.
On 23-36 March 2023，The Auto Maintenance and Repair Expo (AMR) will be held at the National Convention and Exhibition Center (Tianjin), bringing a professional exhibition and communication platform to the booming automobile service industry. 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 forward to your arrival.