The Chinese car after-sales market, also known as the auto aftermarket or auto aftersales service market, refers to the various services surrounding the use of automobiles after their sale. It encompasses a wide range of services that consumers require after purchasing a car, including maintenance, repairs, parts supply, insurance, leasing, used car transactions, and more.
The China car after-sales market is a dynamic and rapidly evolving sector, driven by factors such as growing car ownership, technological advancements, and policy support. With its diverse range of services and significant growth potential, the market presents both challenges and opportunities for businesses and investors alike.
Market Size and Growth
- Current Market Size: According to recent reports, the Chinese car after-sales market has been growing steadily. For instance, in 2023, the market size reached 5.4 trillion yuan, with a compound annual growth rate (CAGR) of 9.2% from 2019 to 2023. It is projected that the market size will further increase to 6.2 trillion yuan in 2024. ( Source: AskCl)
- Growth Potential: With the continuous increase in car ownership and the aging of the vehicle fleet in China, the demand for after-sales services is expected to surge, providing significant growth opportunities for the market.
Market Structure
- Key Segments: The Chinese car after-sales market is diversified, with major segments including automotive financing and leasing, used car transactions, maintenance and repairs, insurance, and parts sales. Among these, financing and leasing, as well as used car transactions, occupy a significant share of the market.
- Segmental Breakdown: In 2023, automotive financing and leasing accounted for 35.2% of the market, while used car transactions contributed 24.1%. Maintenance and repairs, insurance, and parts sales made up the remaining shares, with respective percentages of 16.7%, 16.7%, and 7.4%. (Source: AskCl)
Market Trends
- Internet Integration: The integration of the internet and technology has significantly impacted the Chinese car after-sales market. Online platforms for booking services, purchasing parts, and accessing automotive knowledge have become increasingly popular, offering convenience and cost savings to consumers.
- Personalization and Customization: Consumers are demanding more personalized and customized services, driving the market towards offering tailored solutions that cater to individual needs.
- New Energy Vehicles (NEVs): The rapid growth of the NEV market is creating new opportunities in the after-sales sector, particularly in areas such as charging infrastructure, battery maintenance, and specialized repairs.
- Policy Support: The Chinese government has been supportive of the development of the car after-sales market, issuing policies and regulations to improve service quality, protect consumer rights, and foster innovation.
Challenges and Opportunities
- Challenges: The market faces challenges such as intense competition, varying service quality, and a complex regulatory environment. Additionally, the rapid technological advancements in the automotive industry pose challenges for service providers to keep up with the latest trends.
- Opportunities: The increasing demand for high-quality services, the growth of the NEV market, and the potential for innovation in digital services provide ample opportunities for growth and development in the Chinese car after-sales market.