Automotive after-service industry is moving into the era of subdivision

Ten departments including the Ministry of Transport and the National Development and Reform Commission jointly issued the "Guidance Opinions on Promoting the Transformation and Upgrading of the Automobile Maintenance Industry and Improving the Service Quality". A series of measures indicated that the 4S shop and other industries monopolised ills, while "encouraging chain operations", etc. The new formulation allows Chinese and foreign investors to see the potential business opportunities in the post-automobile service market in China.

Feng Guohua, vice president of IBM Greater China, said that China’s huge blue ocean market after the auto service industry, how to better serve about 200 million car owners, how to manage the blue sea market with trillions of yuan, with the industry entering the sub-division era, There is huge room for future growth in one area.

Statistics show that as of the end of 2013, the number of passenger cars in China was 137 million. The industry estimates that in 2013 China's automobile after-sales service market will exceed 450 billion yuan. According to the current domestic sales growth, it is expected that the entire automobile after-sales service market will exceed 760 billion yuan in 2015.

For domestic auto consumers, 4S stores are expensive and opaque, dirty and dirty roadside repair shops, and uneven levels of the domestic auto repair industry, all bring opportunities for the subdivision of the auto aftermarket.

Liang Ziqiang, chairman of the Beijing-based Rotary Automobile Service Chain, explained that from the perspective of overseas development experience, the automobile after-sales service market usually experiences the development stages of small shops, integrated large stores, and subdivided services. Compared to the United States currently holding approximately 250 million passenger cars, the rapid growth in China’s automobile sales has allowed Wheelock to see a broader market for domestic tire services.

“The mature automotive service market in developed countries in Europe and the United States has mainly extended tire rim replacement services and tire retail chain stores to car maintenance and repair services, while China’s domestic market has been focusing on simple car maintenance rapid repair and beauty. The mature model, and through innovation it is rooted in the country, making it grow and grow." Liang Ziqiang said.

Rotary was established in 2008 and its parent company, the Koang Group, is a large-scale private tire export company in Qingdao, Shandong Province. At the time when the international financial crisis was raging in 2010, Chairman Liang Ziqiang of the Group began to cast his sights on the "golden market" of domestic tires that the automobile has entered on a large scale into the birth of Chinese families.

However, as nearly 90% of domestic automotive tire market services are occupied by foreign brands, the strategy of developing wheel service chains in China in the past few years has not been smooth.

The announcement of the ten departmental comments made Liang Ziqiang see hope for future development. The opinions clearly stated that it is necessary to make full use of the Internet of Things technology to establish a retrospective system for auto repair parts, ensure that the parts supply channels are open and transparent, realize the traceability and traceability of auto repair parts, and recover and track down the legitimate rights and interests of consumers; Encourage the development of third-party auto repair parts certification agencies, strengthen the quality of parts and guarantee credit; encourage chain operations and promote market structure optimization.

“The direction indicated by the ten sectoral opinions will be reflected in our future development strategy.” Liang Ziqiang told reporters that the Internet era has forced companies to change their thinking. This year the two sides will integrate their respective advantageous resources. With regard to online development, through the combing of domestic auto after-service industries, the domestic auto after-market service segment was opened.