China Moves into Aftermarket Era


Reading time ( words)

Sales of parts and service in China’s light passenger vehicle aftermarket reached an estimated US$109 billion (RMB 676 billion) in 2014, driven by strong expansion and continued aging of the vehicle population, according to the latest research conducted by Technomic Asia and IHS Automotive. The report, titled “A Strategic Assessment of China’s Light Passenger Vehicle Aftermarket” is now in its ninth edition.

Technomic Asia has been actively researching the Chinese auto market since the early 2000s as it has grown from less than a million light passenger vehicle sales to over 18 million in 2014.  Over this period, according to IHS Automotive, the light vehicle parc has grown and matured to over 121 million units on the road.  Middle-aged vehicles (4-9 years old) have reached a 50 percent share of the parc and are now driving sales for repairs and replacement of a broad spectrum of parts.  

Technomic Asia has aligned with market leader IHS Automotive to glean new and expanded insights on the automotive aftermarket in China, including robust detail on China’s automotive parc in terms of size, vehicle composition, age, vehicle maker share and future growth.  IHS Automotive is a global provider of critical information and insight to the automotive industry and part of IHS Inc. (NYSE: IHS).  

“Technomic Asia’s China aftermarket expertise and unparalleled datasets from IHS Automotive have been combined to create a report that’s exceptional in the depth and breadth of insight into the next big growth area in the China automotive industry,” said James Chao, managing director of IHS Automotive in Asia Pacific.

“Though many challenges exist, the outlook for growth remains robust, with the market for parts and service expected to expand at 16 percent per year through 2019,” said Steve Ganster, managing director of Technomic Asia and the report’s primary author.  “All major international vehicle makers as well as a number of local Chinese producers have and continue to invest aggressively in the market. Both local and international parts and service companies, as well as retailers and other service organizations, are aggressively developing their infrastructures to penetrate this dynamic market.

 

“The market’s greatest opportunity, and also its most significant challenge, is in solving the complex and multi-layered distribution structure,” Ganster continued. “For companies who can bring scale, expertise and sound strategy to solve distribution challenges, the prize will be great.”

The auto report from IHS and Technomic Asia offers valuable statistics, insights and analyses to assist OEMs and aftermarket companies, including suppliers, wholesalers, retailers and distributors to successfully address this important market, including:

Detailed assessment of China’s automotive parc

Summary of the automotive aftermarket in terms of parts and service, covering size, segmentation, parts types, key players and trends

Detailed descriptions of key repair segments, covering maintenance and light repair, collision and general repairs with insights on market size, segmentation, services provided, pricing, etc., and current and forecasted 2019 value by vehicle and service type

A detailed evaluation of the parts supply chain, with descriptions of structure, key players, pricing characteristics and future dynamics

Perspective on key opportunities and challenges facing players in China’s automotive aftermarket

For more information on the report, or to purchase a copy, please visit IHS SupplierBusiness or

About IHS Automotive

IHS Automotive, part of IHS Inc. (NYSE: IHS), offers clients the most comprehensive content and deepest expertise and insight on the automotive industry available anywhere in the world today. With the 2013 addition of Polk, IHS Automotive now provides expertise and predictive insight across the entire automotive value chain from product inception—across design and production—to the sales and marketing efforts used to maximize potential in the marketplace. No other source provides a more complete picture of the global automotive industry. IHS is the leading source of information, insight and analytics in critical areas that shape today’s business landscape.  IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

About Technomic Asia

Technomic Asia is a business strategy and M&A advisory firm with more than 30 years of experience helping clients plan and execute Asian growth and operational strategies. Technomic Asia assists companies in entering the Asian market or in expanding their businesses by providing critical market insight, an understanding of business potential and assistance in designing the optimum strategy for success. Technomic Asia’s Steven Ganster is author of “The China Ready Company,” a book that details the process to develop a successful China strategy.

Share

Print


Suggested Items

Worldwide Semiconductor Equipment Billings at $13.3 Billion in 2Q19; Down 20%

09/12/2019 | SEMI
Worldwide semiconductor manufacturing equipment billings reached $13.3 billion in the second quarter of 2019, down 20% from the same quarter of 2018 and 3% from than the previous quarter.

Uncertainties in the Market Rise while a Bounce in NAND Flash Prices Remains Unlikely in 3Q

06/20/2019 | TrendForce
According to the latest investigations by DRAMeXchange, a division of TrendForce, demand for smartphones and servers go below expected levels in 2019 as the US-China trade dispute heats up.

Telecom (Compute and Storage) Infrastructure Market to Reach $16.35B in 2022

09/03/2018 | IDC
A new forecast from IDC sizes the market for compute and storage infrastructure for Telecoms at nearly $10.81 billion in 2017. However, as Telecoms aggressively build out their infrastructure, IDC projects this market to see a healthy five-year compound annual growth rate (CAGR) of 6.2% with purchases totaling $16.35 billion in 2022.



Copyright © 2020 I-Connect007. All rights reserved.