RALEIGH, N.C. and SHANGHAI, China – Parts and service in China’s light passenger vehicle market reached an estimated $55 billion in 2010, driven by strong expansion and continued aging of the vehicle parc, according to new research conducted by Technomic Asia, an international market consultancy specializing in China strategies for western companies. Technomic Asia is a division of Tompkins International.
The report, titled “A Strategic Assessment of China’s Light Passenger Vehicle Aftermarket, Sixth Edition,” stems from Technomic Asia’s ongoing primary research into the Chinese auto marketplace and its key players. Other major findings indicate that the light passenger vehicle car parc has expanded to more than 62 million units, with middle-aged vehicles (4-9 years old) reaching a 50 percent share.
“The aging and expanding parc, coupled with private ownership of vehicles at more than 70 percent today, supports strong growth in the parts and service market,” said Steve Ganster, managing director of Technomic Asia and primary author of the report.
“The market is fragmenting as more vehicles from recent market entrants, notably the Japanese, hit the road,” Ganster said. “Both local and international parts and service companies, as well as retailers and other service organizations, are aggressively developing their infrastructures to penetrate this dynamic market. Though many challenges exist, the outlook for growth remains robust, with the market expected to expand at 21 percent per year through 2015.”
“The market’s greatest opportunity, and also its most significant challenge, is in solving the complex and multi-layered distribution structure,” said Ganster. “For companies that can bring scale, expertise and sound strategy to solve distribution challenges, the prize will be great.”
Technomic Asia’s China auto report offers statistics, insights and analyses to assist management to successfully address this important market. For more information on the report, or to purchase a copy, visit www.technomicasia.com/auto or call +1-919-855-5437 (U.S.) or +86-21-6473-2588 (China).
