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Franchising in the Chinese Automotive Aftermarket, Forecast to 2022

Franchising in the Chinese Automotive Aftermarket, Forecast to 2022

The Chinese automotive aftermarket is likely grow at a strong pace in the next few years from 2017 to 2022. By 2022, it is forecasted that the revenue of the Chinese automotive aftermarket $281.8 billion. Currently, the average age of vehicles exceeds the warranty period (0–3 years). In 2015, the average age of vehicle in operation was 3.3 years. The average lifetime usage period of a vehicle is 8–10 years. A large section of consumers need to go for service and maintenance in the automotive aftermarket. The franchise business model is growing. In the automotive aftermarket, the franchising model is a strategy to integrate the distribution channels. In order to build their reputation, many corporates, through franchising have opened many branches in various locations to provide higher a level of service along with the need to sell vehicle components at lower price.

Research Aim
The aim of this study is to provide a strategic insight into the potential for Franchising in the Chinese automotive aftermarket. The study presents the current scenario in the Chinese automotive aftermarket by providing a high-level overview of the factors that influence and impact its growth.

Research Objectives
• To provide a strategic perspective of franchising in the Chinese automotive aftermarket, including key current situations, challenges, and future
development possibilities
• To estimate the size and sales potential of the Chinese automotive aftermarket in 2022
• To provide a competitive analysis of various automotive aftermarket participants’ activities, market shares, products or services provided, and
planned expansion
• To provide current Chinese consumers’ potential behavior toward vehicle maintenance
• To provide reasons for franchise stakeholder to grow in the Chinese automotive aftermarket

Key Questions This Study Will Answer
• What is the short-to-medium term outlook for Chinese automotive aftermarket development?
• What are the key market trends?
• What are the key advantages and disadvantages of the various models of services in the Chinese automotive aftermarket?
• What is the structure of the current Chinese automotive aftermarket franchise channel? Which are the key industry participants?
• How challenging is the competitive landscape?

The research closes with conclusions and a future outlook. China is currently a highly fragmented market with regional variations and absence if any giant franchising corporates that dominate the entire domestic Chinese automotive aftermarket. The market share of franchised model servicing or maintenance shops is likely to surpass that of 4S shops, which charge a relatively higher servicing fee and maintenance cost. Besides, individual workshops will also shift to the franchise model of operating to become competitive.


  • Executive Summary
    • Executive Summary-Key Findings
    • Executive Summary-Market Engineering Measurements
    • Automotive Aftermarket Development Lifecycle
    • Chinese Automotive Aftermarket-Revenue Forecast
    • Key Automotive Aftermarket Hotspots in China
    • Total Number of Aftermarket Participants
    • Consumer Preferences by City
    • Key Elements Driving Aftermarket Franchise Development
    • Key Factors to Consider While Entering the Chinese Aftermarket
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
      • Table Automotive Aftermarket: Revenue Forecast, China, 2010-2022
    • Research Aims and Objectives
    • Key Questions this Study will Answer
    • Research Background
    • Research Methodology
    • Key Participants Compared in this Study
  • Definitions and Segmentation
    • Chinese Automotive Aftermarket Definition
  • Automotive Aftermarket Overview
    • Country Overview-China
    • New Car Sales by China City Tier
    • Key Influencing Trends
    • Key Influencing Trends of the Chinese Automotive Aftermarket Explained
    • Comparison Between OES Parts and Independent Aftermarket (AM) Parts
    • Timeline of Chinese Automotive Aftermarket Development
    • Automotive Aftermarket Development Lifecycle
  • Vehicle in Operation Analysis
    • China-Vehicle in Operation
    • Chinese Automotive Aftermarket-Revenue Forecast
    • China Vehicle in Operation by Brand
    • China Vehicle in Operation by Age
  • Franchising in the Automotive Aftermarket-Outlook
    • Timeline of Automotive Franchise Aftermarket
    • PEST Analysis of Automotive Aftermarket Franchise Development
    • Total Number of Aftermarket Participants
    • Consumer Spending by Geographical Distribution
  • Consumer Behavior
    • Consumer Preferences by City
    • Preferred Buying Channels for Automotive Aftermarket Products
    • Average Annual Vehicle Maintenance Expenditure
    • Average Vehicle Service Schedule Interval of Chinese Consumers
    • Comparison of Different Channels for Buying Vehicle Spare Parts
  • External Challenges-Drivers and Restraints: Automotive Aftermarket
    • Market Drivers
    • Drivers Explained
    • Market Restraints
    • Restraints Explained
  • Analysis of Franchising in the Automotive Aftermarket
    • Chinese Automotive Aftermarket Distribution Structure Overview
    • Key Elements Driving Aftermarket Franchise Development
    • Barriers to Developing the Aftermarket Franchise Business
  • Comparative Analysis
    • Three Categories of the Automotive Aftermarket
    • Comparison of Different Types of Automotive Aftermarket Businesses
    • Comparison Between OES Parts and Independent Aftermarket (AM) Parts
    • Service Provider Business Operating Costs
  • Distribution Channel Analysis
    • How OEM Distribution Works in China
    • Company Profile-SAIC Group
    • Company Profile-Tyreplus
    • How TyrePlus Distribution Works in China
    • Company Profile-Bosch
    • How Bosch's Distribution Works in China
  • Automotive Aftermarket Franchise Development Strategy Portfolio
    • Company Profile-Harson Service
    • Company Profile-Harmony Group
    • Company Profile-Suremoov Auto Repairing
  • Automotive Aftermarket Regulation
    • Impact of Regulation on Automotive Aftermarket
    • Emission Standards
  • Part Analysis
    • Manufacturer-level Replacement Parts Revenue
      • Table Automotive Aftermarket: Manufacturer-level Replacement Parts Revenue by Category, China, 2016-2022
    • Automotive Aftermarket Top Part Suppliers
      • Table Automotive Aftermarket: Top Aftermarket Suppliers by Product Type, China, 2016
    • Replacement Rate of Frequently Replaced and Safety-related Parts in the Chinese Aftermarket
      • Table Automotive Aftermarket: Replacement Rate of Spare Parts, China, 2016
    • Case Study-Fee of Workmanship Comparison
      • Table Automotive Aftermarket: Fee of Workmanship Comparison, China, 2016
  • Online Platform Strategy
    • Various Types of eCommerce Service Providers
    • Main eCommerce Platform Models
    • Online eCommerce Shopping Platform
    • Online eCommerce Platform-Parts Distribution Structure
    • Online eCommerce Platform-Vehicle Service Distribution Structure
  • Forecasts and Trends-Automotive Aftermarket
    • Market Engineering Measurements
      • Table Automotive Aftermarket: Market Engineering Measurements, China, 2016
    • Chinese Automotive Aftermarket Revenue Scenario Analysis
      • Table Automotive Aftermarket: Revenue Scenario Analysis, China, 2010-2022
    • Forecast Scenario Assumptions to 2022
    • Key Factors to Consider While Entering the Chinese Aftermarket
    • Key Automotive Aftermarket Hotspots in China
    • Success Stories
  • Growth Opportunities and Companies to Action
    • Growth Opportunity 1-Growth in Vehicles in Operation
    • Growth Opportunity 2-Increasing Age of Vehicles in Operation
    • Growth Opportunity 3-Rising Awareness of Importance of Vehicle Maintenance
    • Growth Opportunity 4-Diversity in Aftermarket Products
    • Growth Opportunity 5-Favorable Government Policy
    • Strategic Imperatives for Success and Growth
  • Conclusions and Future Outlook
    • The Last Word-3 Big Predictions
  • Appendix
    • Table of Abbreviations

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