China' s automotive industry has exploded in the last five years and is
expected to show sustained double digit growth through the end of the decade.
Historically, the aftermarket has been small, comprised of low end vehicles
and served by a fragmented parts and service structure. This profile is
quickly changing as higher quality cars produced by foreign venture auto
makers begin to take over the main share of the car parc. To support this
growth and shift in vehicle make-up, the aftermarket structure and key players
will also change dramatically. This dynamism could offer attractive
opportunity to foreign companies in the parts and service businesses.
Other dynamics...
Shift to private ownership from company or government...will have
major impact on service requirements and car care.
Significant model proliferation based on new foreign entrants,
upgrades of existing models and local vehicle maker expansion.
Foreign entrants at multiple levels of the supply chain, from vehicle
makers to parts suppliers, service providers and distribution companies.
Evolution of branded / all-makes parts, as an alternative to
genuine, substitution or fake parts.
Trend to localization of parts supply and enhanced price
competition.
Major fight for market share and brand establishment across
the market
