In recent years, China’s automobile ownership has grown rapidly. As an important part of the automotive aftermarket, the following section will analyze the status quo of the development of the automobile maintenance industry.
I. The number of automobile ownership in China has increased year by year
According to the statistics released by the Chinese Ministry of Public Security on January 15, China’s motor vehicle ownership amounted to 310 million units by the end of 2017, of which 217 million were vehicle ownership. Currently, there are 49 cities in China. Car ownership is maintained at more than 1 million, 19 cities have more than 2 million car ownership, 6 cities have more than 3 million car ownership, and this data is still increasing. From these increasing numbers As can be seen in the data, there is ample room for development in the car care market.
Chart 1: China's auto ownership and its year-on-year growth from 2012 to 2017 (Unit: 100 million, %)
Source: Forward-looking Industry Research Institute
Second, the size of the automotive maintenance market has grown year by year
With the continuous escalation of car consumption, consumers’ understanding of the car conservation knowledge has also undergone tremendous changes. The concept of “relying on three points and seven points on the basis of support” has gradually become popular among people, and has brought car care manufacturers to the masses. A huge business opportunity has come.
Looking ahead to the report of the “Analysis Report on China's Automotive Maintenance Industry Market Forecast and Investment Strategic Plan for 2018-2023,” the Industry Research Institute of Qianshang indicated that at present, there are more than 300,000 domestic and second-tier companies in the automotive maintenance industry, employing nearly 3 million people, and The growth rate of % has increased. In 2017, the market scale of China's automobile maintenance industry reached 898.4 billion yuan, a year-on-year increase of 27.46%.
Exhibit 2: Trends of the Domestic Automobile Maintenance Market in 2012-2017 (Unit: Billion, %)
Source: Forward-looking Industry Research Institute
Third, the market concentration of the automotive maintenance industry is low, mainly in offline channels.
There are three major categories of companies in the automotive maintenance industry in China: First, in the early stages of the growth of the automotive maintenance industry, foreign companies that have entered the Chinese market to seize high-end market share (such as the US JB, 3M, and Weilishi); Second, large companies Established automobile maintenance companies (such as CNPC Kunlun Lubricating Oil Company and Sinopec Great Wall Lubricating Oil Company) also have a certain position in the market competition; Third, small-scale private enterprises (participants include 4S shops, comprehensive repair factories, fast Repair chain stores and a large number of roadside shops. In the early stage of the development of China's automobile maintenance industry, the industry's entry barriers were low, technical requirements were low, and profit margins were high. As a result, many small private enterprises flooded in. With the intensification of market competition, the market order After further improvement, many private enterprises were subsequently closed down or merged into large companies. However, the overall competitive landscape of the automobile maintenance industry remained unchanged. There are more than 400,000 registered maintenance companies in China, including 370,000 non-4S stores. Extremely low concentration.
Exhibit 3: Analysis of Competition in China's Automobile Maintenance Market
Source: Forward-looking Industry Research Institute
In addition, it is worth noting that China’s current automotive maintenance and repair market is dominated by offline channels, with a low proportion of Internet channels, and nearly 70% of the market share is still occupied by the 4S store system. However, with the rapid development of the post-Internet conservation industry, The rich knowledge of users' automobiles and changes in consumption habits have gradually expanded the penetration rate of Internet maintenance channels in the automotive aftermarket.
Exhibit 4: Analysis of Competition in China's Automotive Maintenance Market
Source: Forward-looking Industry Research Institute
IV. There are many problems in the automotive maintenance industry. The turning point of change is coming.
In recent years, along with the aging of automobile ownership structure, increase in car ownership and consumption upgrade, the automotive maintenance market ushered in a golden age. However, there are many problems in the industry's traditional competitive landscape, which restricts the further development of the conservation market.
Exhibit 5: Analysis of Existing Problems in China's Automobile Maintenance Market
Source: Forward-looking Industry Research Institute
Traditional market participants, including 4S shops, roadside shops, etc., have been unable to meet the needs of consumers upgrading, consumers have not been better choices; the efficiency of the entire conservation market is imperative, and there are a lot of improvements Space. There is an urgent need for a network of maintenance chain stores that can provide convenient, stable, and branded products to meet the needs of consumers. Looking forward, the immature and decentralized conservation market will gradually converge and the turning point of integration and change will come. .
