Manufacturing News

Open road for parts market

Although the annual growth rate of China's automobile market has slowed to about 8 percent from its high speed of previous years, the country's automotive aftermarket is barreling ahead.

Sector to see average growth rate of 30 percent through 2014: Experts

The aftermarket, which involves the production, sale, distribution and installation of vehicle parts and accessories for vehicles that have already been sold, will show an average annual growth rate of about 30 percent in the five years between 2009 and 2014, said the consulting firm AlixPartners LLP.

"The automotive aftermarket growth in China is driven by increasing and aging vehicle population," said Ivo Naumann, managing director of AlixPartners.

Therefore, the "expansion of aftermarket business is one of the top initiatives for further sustainable growth for auto suppliers", Naumann said.

According to AlixPartners' analysis, the revenue collected in China's auto aftermarket will rise from 165 billion yuan ($26.37 billion) in 2009 to 369 billion yuan this year and 617 billion yuan in 2014.

A recent survey conducted by the company also showed that 54.2 percent of corporate participants in the poll believe that one of the chief ways auto suppliers will try to spur their growth in 2012 and 2013 will be through aftermarket sales.

The only likely source of growth to be cited more often was the introduction of new products, which was mentioned by 70.8 percent of the survey participants.

After slowing down quickly for a brief period, the passenger vehicle market in China has been on the road to recovery in recent months.

Even so, analysts say they believe the world's largest automobile market will not return to having its high annual growth rates of 30 percent to 40 percent of 2009 and 2010. But because of the sales boom of those years, a large number of vehicles are on the roads.

"Now, it's time for the aftermarket's boom," said Naumann at the NextGen Auto International Summit China this week.

"And as China's aftermarket evolves dramatically, auto suppliers have to develop new aftermarket business models and strategies."

Held at the same time as the summit was the Automechanika Shanghai, an international exhibition of automotive parts, equipment and services.

This year saw the number of corporate participants in the annual exhibition from abroad increase by 33 percent from last year.

"As well as having our largest-ever turnout of exhibitors, we have attracted more country and regional pavilions than ever before, including a first-time pavilion from the United Kingdom," said Cao Jiansheng, senior general manager of Messe Frankfurt (HK) Ltd.

"The world's automobile industry will be restructured in the coming 10 to 15 years, and attention will move to Asia, especially China. China's stable economic growth, as well as the sound development of its automotive industry, hold out the promise that the industry's aftermarket will have a bright future."

Robert Bosch GmbH, a global supplier of automotive technology, displayed a range of automotive parts and professional diagnostics tools at the Automechanika Shanghai.

"With the recent opening of the first flagship Bosch Car Service workshop in Beijing and the new plant opening of Bosch Automotive Products (Nanjing) next year, Bosch is continuously investing in the Chinese automotive aftermarket to strengthen its competence," said Cheng Daniel-siu-wo, vice-president of Bosch Automotive Aftermarket China.

Most Viewed in 24 Hours


Start a Digital Twin Journey from Engineering Simulation

Accenture releases survey of digital transformation

CIMC Reduces Unplanned Downtime by 30% with Greater Operational Insight from ThingWorx

Ansys Simulation Speeding up Autonomous Vehicles

  • Tel : 0086-27-87592219
  • Email :
  • Add: 3B1 International Business Center, No. 18 Jinronggang Road (No.4), East Lake High-tech Development Zone, Wuhan, Hubei, PRC. 430223
  • ICP Business License: 鄂B2-20030029-9
  • Copyright © e-works All Rights Reserved