News observation: Multinational companies are optimistic about China's auto market
“In other parts of the world, it is difficult to see such rapid growth as the Chinese automobile market. At the same time, due to the large amount of car ownership, the business prospects of the automotive aftermarket are also very optimistic.†The world-renowned car beauty care brand, the United States New Dream Co. President William Gora said at the 18th China International Auto Accessories Exhibition held recently.
It is reported that during the exhibition, more than 20,000 kinds of automotive decoration, maintenance, and refitting products from around the world were exhibited, including the first exhibition of the 100-year-old New Membrance Company in the United States, showing that China’s auto market is affected by the global automotive industry. s concern.
The automotive aftermarket refers to the various service markets in the use of automobiles after the sale of automobiles. Related research shows that in a fully mature international automotive market, the sales profit of automobiles accounts for about 20% of the profits of the entire automotive industry, and parts supply profits account for about 20%. The other 60% of profits are generated in the service sector. “The 4S shop in the US automotive market has shrunk by 20% in the past 5 years. For 4S shops, profits have been shifted from new car profits to after-sales profits, and new car profits have become less and less,†said Gora.
In fact, judging from the development trend, with the gradual maturation of the automobile industry, the profits from the sale of domestic vehicles have gradually declined, and the huge business opportunities in the automotive aftermarket are beginning to appear. This may be to attract multinational companies like New America’s Dream Company. Speed ​​up the layout of China's auto aftermarket. Prospective network analysts believe that in 2005 China's auto aftermarket turnover of 88 billion yuan in 2012 to 490 billion yuan, the compound annual growth rate of 26.9%. It is expected that the scale of China’s auto market will still maintain a growth rate of around 20% in the next few years, and by 2015, the domestic auto market will exceed RMB800 billion.
“A car in the United States can be open for 15 to 20 years. Maintenance is a long time. It may be a small profit at the beginning, but it will become a big profit in such a mature market in the United States as the time span increases. Sources, as well as in China, said Gora.
The analysis of Forwardnet believes that the two major factors affecting the demand of the automotive aftermarket are the amount of car ownership and the profit structure of the automobile industry chain. In terms of car ownership, China’s vehicle production will reach or exceed 200 million vehicles by 2020. In the automobile industry chain of mature countries, the automotive aftermarket accounts for 50%-60%, while China currently accounts for only about 10%, there is still much room for improvement.
According to information, the current US post-market presents a monopoly pattern, which is mainly monopolized by auto parts chains. However, in the Chinese market, a similar pattern has not yet been formed and the market as a whole faces a lack of branding and concentration, which also provides opportunities for related companies to develop in this market.
"The new Mengqi company has a history of 102 years, and the world's first car wax was born in this company. It also witnessed the development of the US automotive industry, to understand the experience and lessons of its development process. We hope that in the Chinese market In addition to gaining share, China can also bring its own experience and the formed automobile culture to China and jointly promote the development of the auto market," said Gora.
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