The aftermarket is usually the source for automotive components like curt hitches, batteries, automotive filters, engine components, ignition system components and many more. Nowadays, there is little doubt that China is the largest aftermarket in the world. China’s market offers both opportunities and threats that impact on customers and the competitive landscape which is very important to understand.
The world is now witnessing a very turbulent market environment that has negatively affected China’s new car sales. Current trade tensions have impacted the market and there is no clear end in sight. Any short-term setbacks can have a diluted effect on the service and repair market. However, an underlying assumption is the market will eventually get back on track and China’s aftermarket will continue to evolve.
China’s light vehicle parc (LVP) is expected to surpass that of the United States by the mid-2020’s to become the world’s largest. This is an inevitable conclusion because China’s new vehicle sales have overtaken the United States almost a decade ago. Virtually every global vehicles maker is active in China today.
With current vehicle age at 5 years, the aftermarket in China remains to be light maintenance and repair-oriented. As the average vehicle age increases, the need for technical parts and repairs will increase.
The light vehicle repair market is predicted to reach $200 billion by 2023 with an average 9% to 10% growth rate that is 4 times that of the market growth level of the US. It is also estimated that China will overtake the US by 2030 in terms of overall aftermarket demand.
While single repair shops dominate the service shop mix, chain concept is steadily growing at more than 20% per year. International companies have initially introduced the chain concept to China but with very few successes. Ecommerce platforms are investing heavily into the service business so that they can offer more integrated solutions.
By having a trailer hitch, a vehicle will have towing capacity to handle extra weight. If the vehicle does not have a factory-installed hitch, your best option is curt hitches that are designed to be compatible to different vehicle makes and models.