The automotive market by year's national policy adjustments, the domestic auto market appears first 5 months of slowdown. Especially in limiting the procurement policies of the Beijing market, many dealers even in the face of survival. In the eyes of dealers and car companies, after-sales market has become to ensure that the key to profits and market share, and consulting firm Platinum Arrow A report appeared to confirm this.

    Opportunity: aftermarket growth potential

    Recently, according to consulting firm Arrow platinum of about 40 senior Chinese automotive industry executives come to the conclusion after research showed that the Chinese auto market trend the next few years, executives apparently expected to be more optimistic. They expect China's auto industry, sales of the next 5 years will remain at 12% to 15% growth rate.

    However, the report also points out that auto parts suppliers prospects better than vehicle manufacturers, the aftermarket has become a key growth point.

    It is understood that China's auto parts suppliers is the world's most profitable last year, China's auto parts sales 1.644 trillion yuan, thanks to demand for parts and components exports in 2010, the recovery of the growth in sales of auto parts faster than the vehicle industry, vehicle sales higher than about 7%.

    Among them, the Chinese-made parts in the United States, Japan, South Korea and Germany and other countries, rapid growth of market share, more than a few major destinations in the export growth rate are in between 36-54%. Last year, the domestic market demand for aftermarket parts and components accounted for all domestic sales of 14% of vehicle age and ownership as the growth of after-market demand will become the main engine of growth. 2015, car ownership in China from the current 60 million increase over 145 million, which will drive sales of aftermarket parts and service industries grew more than 30%.

    Platinum Shanghai Office of the Director of Arrow Wu Jinghui said: "The growth of aftermarket auto parts manufacturers and car dealers to provide a unique opportunity, our research and data analysis showed that after-market profits is very high, while automobile dealers words, nearly half of its gross profits from the aftermarket. "

    Challenges: the core technology or restrict the development of parts industry

    In fact, according to the current point of view typical of the Beijing market, where in the market to maintain a good level of profitability of the dealers, are basically achieved by the sale to profit growth.

    According to data provided by Arrow shows platinum, from which l group (domestic auto dealer group) view last annual report, its new car sales gross profit margin of 5.8% of the total, while services gross profit margin of 48.9% of the total.

    Although the parts industry more profitable, but some experts also pointed out that the domestic parts industry in key technology and independent innovation capacity is not strong, and many of the key components are foreign owned, such as public DSG gearbox factory in China, This local parts enterprises in China is very negative development.

    To this end, the first two years in the financial crisis hit auto industry, many international auto parts enterprises in crisis, which gave the Chinese parts enterprises to chance. For example, last November, Pacific Century Motors Limited for the acquisition of GM's global steering and drive business NEXTEER.

    Recently, news that Bosch will sell its foundation brake Asian business operations. But according to those who say that this message, because the business is not high tech, so its larger rivals is not interested. On the contrary, including Korea, China and other parts business is the sale of the target audience.

    Wu Jinghui said: "Technology has become a supplier to enhance the important issues, 85% of providers plan for internal development, 59% of the next 3 years limited acquisitions."

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