Embracing transformation: seizing the opportunities of change in the Chinese collision repair market
Seismic and unprecedented changes are afoot in the Chinese automotive sector:
- New vehicle sales last year fell for the first time in 20 years. The decline was sharp – down 3.2% year-on-year to 28 million units.
- Strict quotas limiting the number of new car registrations are in force in major cities as a means of limiting pollution and reducing traffic.
- The sale of used vehicles has gone up 18% since 2010 according to the China Automobile Dealers Association.
- China’s second-hand car market is just starting to mature. At present 59% of vehicles sold in China are second-hand compared to 150% in the US.
So, what do we deduce from all these changes? Does the fact the Chinese are buying fewer new vehicles in favour of used models mean the country’s economy is on a downward trajectory?
Well no it doesn’t. It’s rather a sign that the car industry is undergoing a significant and wide-reaching transformation.
What is more, the Chinese automotive aftermarket is also affected. eCommerce platforms (especially in online-to-offline parts retail and repair and maintenance services) are likely to revolutionise the way things are done. Indeed, eCommerce penetration is likely to increase from 12.7% in 2017 to 40% in 2025.
Let’s continue the debate at IBIS China on 4 December and make sure you seize the opportunities for your business. Click here to book.