World-renowned business consulting firm Platinum Arrow latest research report released - "2011 China's auto industry outlook," the prospects of China's automobile industry optimistic expectations, and optimistic about the auto parts and aftermarket.

    In 2009 and 2010, respectively 50% and more than 32% of high growth after the first quarter of 2011, China's light vehicle sales growth dropped sharply to 9%, while April's growth rate to 3%. The introduction of government stimulus, and the purchase of new cars in major cities policy implementation, making China's auto market growth is weak.

    The study predicted that vehicle operators and the local community compared to modest growth, the Chinese auto parts suppliers will be strong growth in the coming years, including after-sales market is the main opportunities for development. According to statistics, China's auto parts sales grew 44% last year, higher than the growth rate of 37% of vehicle sales to reach 1.6 million yuan. The significant increase in aftermarket demand for auto parts makers will undoubtedly further benefit. Reported data show that in 2010, aftermarket service and parts of China sales revenue reached 224 billion yuan, is expected by 2014 that figure will be significantly increased to 652 billion yuan.

    Compared with the vehicle sales, auto parts sales and service margins higher. Since 2009, Chinese auto parts suppliers has been dominated by the world's most profitable location, 10% profit margin last year, higher than the commercial vehicle operating margin of 7.6%. Arrow Platinum analysis to group vehicle sales rise, for example, in 2010 gross profit of the Group's total new vehicle sales accounts for only 5.8% of gross margin, service gross profit slumped to 48.9%.

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