Chinese Automotive Aftermarket, Forecast to 2025
Chinese automotive aftermarket revenue* (including automotive parts, insurance, used cars, automotive beauty and accessories, and miscellaneous services) is expected to record a Compound Annual Growth Rate (CAGR) of 7.7%, increasing from $290.44 billion in 2017 to $523.80 billion in 2025. During this period, the vehicles in operation (VIO) for Chinese passenger vehicles is expected to grow from 185 million units to 401.7 million units. Meanwhile, however, new and used car sales in China are likely to experience slower growth, recording a CAGR of 2.3% and 7.5% respectively.
Continuous growth of new and used car sales is the key factor driving VIO growth in China during the long term. The two-child policy, rising disposable income, competitive retail sales, electric vehicle penetration, and emission standard upgrade are the main drivers boosting vehicle sales growth in China.
The Chinese automotive aftermarket is likely to be diversified by eCommerce platforms, especially in online-to-offline parts retail and repair and maintenance services. Alibaba and Tuhu are the key eCommerce platforms leading the Chinese online automotive aftermarket. eCommerce penetration is likely to increase from 12.7% in 2017 to 40% in 2025.
Currently, the Chinese automotive parts aftermarket is well-developed, with foreign, domestic, and joint venture brands. Foreign and joint venture companies manufacturing automotive parts are dominating the market, with a 70% revenue share as of 2017. However, the revenue share of domestic automotive parts brands is on the rise.
The aim of this study is to provide a strategic insight into the Chinese automotive aftermarket development. It presents the current scenario in the Chinese automotive aftermarket, including the automotive parts, online repair and maintenance, and used car segments, by providing an overview of the factors that influence and impact its growth.
The research discusses automotive aftermarket regulation, market drivers and restraints, and the top automotive aftermarket trends. It also presents a VIO analysis, automotive parts market analysis, used car market analysis, and automotive eCommerce market analysis and sheds light on the growth opportunities. The study closes with conclusions and the future outlook.
To provide an overview of the automotive parts and online repair and maintenance markets
To analyze the impact of VIO on the growth of the aftermarket
To furnish the market size and forecasts for automotive aftermarket from 2018 to 2025
To analyze the impact of policies and regulations on the development of the aftermarket
To identify the competitiveness of automotive eCommerce platforms in the online repair and maintenance and parts markets
Key Issues Addressed
How does VIO impact the development of the automotive aftermarket?
What are the key factors driving the competitiveness of automotive eCommerce platforms? How does the platform influence the parts and repair and maintenance markets?
How does the revenue of automotive aftermarket change during 2010–2025? What are the growth forecasts for automotive aftermarket revenue?
How do regulatory changes impact the automotive aftermarket?
What are the drivers and restraints influencing the development of the automotive aftermarket?
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