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Strategic Analysis of the Chinese Automotive Aftermarket

Strategic Analysis of the Chinese Automotive Aftermarket

Key Findings

China will have the world’s largest number of vehicles in operation (VIO) by 2021, making the automotive aftermarket a high-growth industry over the short, medium, and long terms.

Total Automotive Aftermarket: Key Takeaways, China, 2014

The total light vehicles in operation will grow from 􂀀 million in 2014 to approximately 􂀀 million in 2021, eclipsing the forecasted US VIO of 􂀀 million. Manufacturer-level revenue will grow at a compound annual growth rate (CAGR) of 􂀀% between 2013 and 2021, reaching $􂀀 billion by the end of the forecast period.

The average vehicle age is no more than 􂀀 years, generating high demand for routine maintenance parts such as tires, batteries, and wiper blades, among other products.

Traditional aftermarket distribution channels are not common in China. Most garages source products from so-called “auto parts cities,” which are areas featuring groups of small, specialized distributors clustered together, and may include counterfeit components.

Original equipment suppliers (OES), which include automakers and their dealerships, account for almost 􂀀% of retail service revenue, while independent workshops capture about 􂀀% of the maintenance and repair business. However, recent regulatory actions by the Chinese government will make the industry more competitive in the coming years for independent workshops and parts suppliers.

Volkswagen and Chinese automakers Wuling and Changan are the largest participants, along with Internet giant Alibaba. eCommerce channels such as Alibaba will play an important role for foreign suppliers to develop brand loyalty with Chinese consumers.

About this report

This research service analyzes the automotive aftermarket in China. It includes vehicles in operation analyses, discussions of key industry trends, and identifies major market participants. In addition, it provides manufacturer-level revenue forecasts and analyses of wholesale parts and service channels. Consumer trends and key conclusions are also presented. The base year is 2014, and forecasts are provided from 2015 through 2021. The vehicle scope is passenger cars and light trucks. The objective is to provide strategic insight for decision makers and potential new entrants. High growth in vehicles in operation will create opportunities for companies to sell parts and service.


  • Executive Summary
    • Key Findings
    • Vehicle Sales and VIO by Type
    • Vehicle Age and Vehicle Kilometers Travelled
    • Auto Replacement Parts-Market Snapshot
    • Main Service Channels
    • PESTLE Analysis
    • Key Findings and Future Outlook
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
      • Table Total Automotive Aftermarket: Vehicles in Operation, China, 2011-2021
    • Research Aims and Objectives
    • Key Questions This Study Will Answer
    • Research Background
    • Research Methodology
    • Key OEMs or Auto Parts Manufacturers Compared in this Study
  • Definitions and Segmentation
    • Vehicle Segmentation
    • Vehicle Segmentation Definitions
  • Overview of China
    • China Overview-Nation Highlights
    • Demographic Overview-Population Analysis
    • Economic Overview-Wealth Analysis
    • Transportation Overview-Travel Pattern Analysis
  • Market Overview
    • Total Automotive Aftermarket Revenue at End-User Level
    • Vehicle Sales Analysis and Outlook
    • Used Car Sales Analysis
    • Service Channels
  • Policy and Regulation
    • Key Policies and Regulations
  • Vehicles in Operation Analysis
    • Vehicles in Operation (VIO) by Type
    • Vehicles in Operation (VIO) by Segment
    • Vehicles in Operation (VIO) by Brand
    • Vehicles in Operation (VIO) by Age
    • Vehicle Kilometers Travelled (VKT)
  • Competitive Analysis
    • Auto Parts Manufacturers Competitive Analysis
  • Distribution Channel Analysis
    • Distribution Structure
    • OE Supply Channel-Major Channel
    • OE Supply Channel-Emerging Channel
    • IAM Channel-Major Channel
    • IAM Channel-Emerging Channel
    • IAM Channel Parts Sourcing-Auto Parts Cities
    • IAM Channel-Main Auto Parts Cities
    • IAM Channel-New Sourcing Channel
  • Parts Analysis
    • Parts Types Analysis
    • Manufacturer-level Market Size
      • Table Automotive Aftermarket: Manufacturer-level Replacement Parts Revenue by Category, China, 2013 and 2021
  • Service Channel Analysis
    • Service Channel Overview
    • Main Service Channels
    • OE Service Channel Analysis-Number of Dealerships
    • OE Service Channel Analysis-Dealership Distribution
    • OE Service Channel Analysis-Alternative Service Channels
    • OE Service Channel Analysis-Warranties in the Aftermarket
      • Table Automotive Aftermarket: Warranties of Top Selling Models, China, 2014
  • Technology Trends
    • Growing Internet Usage
    • Increasing eCommerce Activity
    • Online-to-offline (O2O) Parts Distribution Channel
    • Used Car eCommerce
  • Consumer Trends
    • Car Purchasing Trend
    • Maintenance and Repair Services Trend
      • Table Automotive Aftermarket: Maintenance and Repair Services Trend, China, December 2012-March 2013
  • Conclusions and Future Outlook
    • Key Conclusions and Future Outlook
    • The Last Word-3 Big Predictions
  • Appendix
    • Table of Acronyms Used
    • Appendix-Economic Analysis of 35 Main Cities
    • Research in Progress
    • Market Engineering Methodology

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