New Research Reveals Strong Growth in Chinese Auto Aftermarket Business

Growth in vehicle parc and private ownership lead way for growing aftermarket

SHANGHAI, Sept. 19 -- Parts and service in China's light passenger car market reached an estimated US$18.3 billion in 2005, driven by strong expansion of the vehicle parc, according to new research conducted by Technomic Asia, an international market consultancy specializing in China strategies for U.S. companies.

The report, entitled "A Strategic Assessment of China's Light Passenger Vehicle Aftermarket, Third Edition," stems from Technomic Asia's ongoing primary research into the Chinese auto marketplace and its key players. Other key findings indicate that the light passenger vehicle car parc has expanded to almost 22 million units, with middle-aged vehicles (4-9 years old) reaching close to a 40 percent share.

"The aging and expanding parc, coupled with private ownership of new vehicles at more than 70 percent today, supports strong growth in the parts and service market," said Steve Ganster, managing director of Technomic Asia and author of the report.

"The top 10 auto groups in China have sold more than 10 million units combined through 2005, making up about 70 percent of the light vehicle parc," Ganster said. "But we're seeing some interesting shifts in this area now. For example, the leader, Shanghai VW, is seeing its market share of vehicles on the road decrease rapidly as other leading international players like General Motors, Honda and Hyundai become more established."

This China auto report offers additional statistics, insight and analysis, including:

  - Perspective on China's automotive market, including a long-term growth
    outlook for China's light vehicle market in terms of types of vehicles,
    key OEMs, growth drivers/constraints, etc.

  - Overview of the automotive aftermarket in terms parts and service,
    covering size, segmentation, parts types, key players and trends

  - An assessment of China's automotive parc in terms of size, vehicle
    composition, age, technology base and future growth

  - A description of the maintenance and light repair service market
    covering outlets, services provided, value, etc., and current and
    forecasted 2010 value by vehicle and service type

  - A description of the collision repair market covering the insurance
    market, accidents rates, service providers, service value, etc., as well
    as current and forecasted 2010 value by vehicle type

  - An evaluation of the parts distribution structure, value chain, key
    players, markups and future dynamics

  - Perspective on key opportunities and challenges facing players in
    China's automotive aftermarket

  About Technomic Asia

Technomic Asia is a strategic consultancy with more than 20 years of experience helping clients plan and execute Asian growth strategies. Technomic Asia assists companies in entering the Asian market or in expanding their business by providing critical market insight, an understanding of business potential and assistance in designing the optimum strategy for success. Technomic Asia's Steven Ganster and Kent Kedl are co-authors of "The China Ready Company," a book that details the formation of a successful China strategy. (www.technomicasia.com)