As the automotive aftermarket in China enters the next phase in its development, the Automotive Aftermarket Suppliers Association (AASA) is focused on leading a dialogue among its supplier members to prepare and plan ahead for the opportunities in the country.
The explosion of new vehicle sales in China has caused a surge in its vehicle population. Even with the recent softening of the Chinese economy, the long-term growth of its aftermarket is inevitable, according to AASA. The aging of the fleet, the proliferation of makes and models and the development of a used-car market all represent the next wave of opportunity in China for the independent aftermarket, according to the association’s projections.
From AASA’s perspective, the timing is right for the industry to invest in the pillars that are essential for a long-term profitable business model for the independent aftermarket industry in China. “Until now, our members have benefited from opportunistic topline growth as the vehicle fleet grows,” said Jay Burkhart, AASA chief strategy officer. “Now is the time for the industry to leverage the collective global experience of suppliers, and ensure that business processes are enhanced in areas like product management, application data, technician training and supply chain management. AASA can play a role in driving this dialogue.”
AASA has been engaged in the aftermarket in China for more than 10 years, founding the China Aftermarket Forum (CAF) in 2005 as the only council of its kind for local aftermarket executives. “AASA has been active in the China Aftermarket for some time so the CAF provides us a strong platform for taking our engagement with members there to the next level,” commented Bill Long, AASA president and chief operating officer.
Earlier this year, the MEMA China Center, led by Dr. Yilong Chen, was opened in Shanghai to serve all the divisions of the Motor & Equipment Manufacturers Association (MEMA), including AASA, MEMA’s light vehicle aftermarket division.
As part of his current role, Burkhart serves as the global executive director for AASA’s China program and frequently meets with supplier members there. His latest update from China can be viewed here.
