Franchising in the Chinese Automotive Aftermarket, Forecast to 2022

Automotive Aftermarket Revenue Forecasted to Reach $281.8 Billion by 2022

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The Chinese automotive aftermarket is likely grow at a strong pace in the next few years from 2017 to 2022. By 2022, it is forecasted that the revenue of the Chinese automotive aftermarket $281.8 billion. Currently, the average age of vehicles exceeds the warranty period (0–3 years). In 2015, the average age of vehicle in operation was 3.3 years. The average lifetime usage period of a vehicle is 8–10 years. A large section of consumers need to go for service and maintenance in the automotive aftermarket. The franchise business model is growing. In the automotive aftermarket, the franchising model is a strategy to integrate the distribution channels. In order to build their reputation, many corporates, through franchising have opened many branches in various locations to provide higher a level of service along with the need to sell vehicle components at lower price.

Research Aim
The aim of this study is to provide a strategic insight into the potential for Franchising in the Chinese automotive aftermarket. The study presents the current scenario in the Chinese automotive aftermarket by providing a high-level overview of the factors that influence and impact its growth.

Research Objectives
• To provide a strategic perspective of franchising in the Chinese automotive aftermarket, including key current situations, challenges, and future
development possibilities
• To estimate the size and sales potential of the Chinese automotive aftermarket in 2022
• To provide a competitive analysis of various automotive aftermarket participants’ activities, market shares, products or services provided, and
planned expansion
• To provide current Chinese consumers’ potential behavior toward vehicle maintenance
• To provide reasons for franchise stakeholder to grow in the Chinese automotive aftermarket

Key Questions This Study Will Answer
• What is the short-to-medium term outlook for Chinese automotive aftermarket development?
• What are the key market trends?
• What are the key advantages and disadvantages of the various models of services in the Chinese automotive aftermarket?
• What is the structure of the current Chinese automotive aftermarket franchise channel? Which are the key industry participants?
• How challenging is the competitive landscape?

The research closes with conclusions and a future outlook. China is currently a highly fragmented market with regional variations and absence if any giant franchising corporates that dominate the entire domestic Chinese automotive aftermarket. The market share of franchised model servicing or maintenance shops is likely to surpass that of 4S shops, which charge a relatively higher servicing fee and maintenance cost. Besides, individual workshops will also shift to the franchise model of operating to become competitive.

Table of Contents

1. Executive Summary
Key Findings
Market Engineering Measurements
Automotive Aftermarket Development Lifecycle
Chinese Automotive Aftermarket—Revenue Forecast
Key Automotive Aftermarket Hotspots in China
Total Number of Aftermarket Participants
Consumer Preferences by City
Key Elements Driving Aftermarket Franchise Development
Key Factors to Consider While Entering the Chinese Aftermarket
2. Research Scope, Objectives, Background, and Methodology
Research Scope
Research Aims and Objectives
Research Background
Research Methodology
Key Participants Compared in this Study
3. Definitions and Segmentation
Chinese Automotive Aftermarket Definition
4. Automotive Aftermarket Overview
Country Overview—China
New Car Sales by China City Tier
Key Influencing Trends
Comparison Between OES Parts and Independent Aftermarket (AM) Parts
Timeline of Chinese Automotive Aftermarket Development
Automotive Aftermarket Development Lifecycle
5. Vehicle in Operation Analysis
China—Vehicle in Operation
Chinese Automotive Aftermarket—Revenue Forecast
China Vehicle in Operation by Brand
China Vehicle in Operation by Age
6. Franchising in the Automotive Aftermarket—Outlook
Timeline of Automotive Franchise Aftermarket
PEST Analysis of Automotive Aftermarket Franchise Development
Total Number of Aftermarket Participants
Consumer Spending by Geographical Distribution
7. Consumer Behavior
Consumer Preferences by City
Preferred Buying Channels for Automotive Aftermarket Products
Average Annual Vehicle Maintenance Expenditure
Average Vehicle Service Schedule Interval of Chinese Consumers
Comparison of Different Channels for Buying Vehicle Spare Parts
8. External Challenges—Drivers and Restraints: Automotive Aftermarket
Market Drivers
Market Restraints
9. Analysis of Franchising in the Automotive Aftermarket
Chinese Automotive Aftermarket Distribution Structure Overview
Key Elements Driving Aftermarket Franchise Development
Barriers to Developing the Aftermarket Franchise Business
10. Comparative Analysis
Three Categories of the Automotive Aftermarket
Comparison of Different Types of Automotive Aftermarket Businesses
Comparison Between OES Parts and Independent Aftermarket (AM) Parts
Service Provider Business Operating Costs
11. Distribution Channel Analysis
How OEM Distribution Works in China
Company Profile—SAIC Group
Company Profile—Tyreplus
How TyrePlus Distribution Works in China
Company Profile—Bosch
How Bosch’s Distribution Works in China
12. Automotive Aftermarket Franchise Development Strategy Portfolio
Company Profile—Harson Service
Company Profile—Harmony Group
Company Profile—Suremoov Auto Repairing
13. Automotive Aftermarket Regulation
Impact of Regulation on Automotive Aftermarket
Emission Standards
14. Part Analysis
Manufacturer-level Replacement Parts Revenue
Automotive Aftermarket Top Part Suppliers
Replacement Rate of Frequently Replaced and Safety-related Parts in the Chinese Aftermarket
Case Study—Fee of Workmanship Comparison
15. Online Platform Strategy
Various Types of eCommerce Service Providers
Main eCommerce Platform Models
Online eCommerce Shopping Platform
Online eCommerce Platform—Parts Distribution Structure
Online eCommerce Platform—Vehicle Service Distribution Structure
16. Forecasts and Trends—Automotive Aftermarket
Market Engineering Measurements
Chinese Automotive Aftermarket Revenue Scenario Analysis
Forecast Scenario Assumptions to 2022
Key Factors to Consider While Entering the Chinese Aftermarket
Key Automotive Aftermarket Hotspots in China
Success Stories
17. Growth Opportunities and Companies to Action
Growth Opportunity 1—Growth in Vehicles in Operation
Growth Opportunity 2—Increasing Age of Vehicles in Operation
Growth Opportunity 3—Rising Awareness of Importance of Vehicle Maintenance
Growth Opportunity 4—Diversity in Aftermarket Products
Growth Opportunity 5—Favorable Government Policy
Strategic Imperatives for Success and Growth
18. Conclusions and Future Outlook
The Last Word—3 Big Predictions
Legal Disclaimer
19. Appendix
Table of Abbreviations

Infographic



List of Figures & Charts

1. Automotive Aftermarket: Key Hotspots, China, 2015
2. Automotive Aftermarket: Revenue Forecast, China, 2010–2022
3. Automotive Aftermarket: Key Industry Participants, China, 2016
4. Automotive Aftermarket: Comparison Between OES Parts and IAM Parts, China, 2016
5. Automotive Aftermarket: Key Market Drivers, China, 2017–2022
6. Automotive Aftermarket: Key Market Restraints, China, 2017–2022
7. Franchising in the Automotive Aftermarket: Barriers to Developing an Aftermarket Franchise Business, China, 2016
8. Automotive Aftermarket: Three Categories of the Automotive Aftermarket, China, 2016
9. Automotive Aftermarket: Comparison of Different Types of Automotive Aftermarket Business, China, 2016
10. Automotive Aftermarket: Comparison Between OES Parts and IAM Parts, China, 2016
11. Automotive Aftermarket: Service Provider Business Operating Cost, China, 2016
12. Automotive Aftermarket: Company Profile—TyrePlus, China, 2016
13. Automotive Aftermarket: Company Profile—Bosch, China, 2016
14. Automotive Aftermarket: Impact of Regulation, China, 2016
15. Emission Standard Implementation Process, China, 2010–2018
16. Automotive Aftermarket: Manufacturer-level Replacement Parts Revenue by Category, China, 2016–2022
17. Automotive Aftermarket: Top Aftermarket Suppliers by Product Type, China, 2016
18. Automotive Aftermarket: Replacement Rate of Spare Parts, China, 2016
19. Automotive Aftermarket: Fee of Workmanship Comparison, China, 2016
20. Automotive Aftermarket: Market Engineering Measurements, China, 2016
21. Automotive Aftermarket: Forecast Assumptions, China, 2010–2022
22. Automotive Aftermarket: Key Hotspots, China, 2015
23. Automotive Aftermarket: Success Stories, China, 2016


1. Franchising in the Automotive Aftermarket: Key Findings, China, 2010–2022
2. Automotive Aftermarket: Market Engineering Measurements, China, 2016
3. Automotive Aftermarket: Automotive Aftermarket Development Lifecycle, Global, 2016
4. Automotive Aftermarket: Revenue Forecast, China, 2014–2022
5. Automotive Aftermarket: Percent of Aftermarket Participants by Type of Operation, China, 2010 and 2016
6. Automotive Aftermarket: Customer Preference by City, China, 2015
7. Franchising in the Automotive Aftermarket: Key Elements Driving Aftermarket Franchise Development, China, 2015
8. Automotive Aftermarket: Key Factors to Consider for Entering the Aftermarkets, China, 2016
9. GDP Growth, China, 2010–2016
10. Automotive Market: New Car Sales by China City Tier, China, 2010–2016
11. Automotive Aftermarket: Key Influencing Trends, China, 2016
12. Automotive Aftermarket: Key Influencing Trends, China, 2016
13. Automotive Aftermarket: Timeline of Aftermarket Development, China, 1990–2016
14. Automotive Aftermarket: Automotive Aftermarket Development Lifecycle, Global, 2016
15. Automotive Aftermarket: Vehicle In Operation, China, 2011–2015
16. Automotive Aftermarket: Revenue Forecast, China, 2014–2022
17. Automotive Market: Vehicle in Operation by Brand, China, 2016
18. Automotive Aftermarket: Vehicle in Operation by Age, China, 2015–2022
19. Automotive Aftermarket: Timeline of Automotive Aftermarket Franchise Development, China, Pre 2005–2025
20. Franchising in the Automotive Aftermarket: PEST Analysis, China, 2015
21. Automotive Aftermarket: Percent of Aftermarket Participants by Type of Operation, China, 2010 and 2016
22. Automotive Aftermarket: Consumer Spending by Geographical Distribution, China, 2016
23. Automotive Aftermarket: Customer Preference by City, China, 2015
24. Automotive Aftermarket: Preferred Buying Channels of Aftermarket Products, China, 2016
25. Automotive Aftermarket: Average Annual Vehicle Maintenance Expenditure, China, 2016
26. Automotive Aftermarket: Average Vehicle Service Schedule Interval, China, 2013–2015
27. Automotive Aftermarket: Comparison of Different Channels of Buying Vehicle Spare Parts, China, 2016
28. Automotive Aftermarket: Value Chain, China, 2016
29. Franchising in the Automotive Aftermarket: Key Elements Driving Aftermarket Franchise Development, China, 2015
30. Franchising in Automotive Aftermarket: Key Processes Driving the Aftermarket Franchise Business, China, 2016
31. Automotive Aftermarket: Three Categories of the Automotive Aftermarket, China, 2016
32. Automotive Aftermarket: Service Provider Business Operating Cost, China, 2016
33. Automotive Aftermarket: OEM Distribution Channels, China, 2016
34. Automotive Aftermarket: Company Profile—SAIC Motor, China, 2016
35. Automotive Aftermarket: TyrePlus Distribution Channels, China, 2016
36. Automotive Aftermarket: Bosch’s Distribution Channels, China, 2016
37. Franchising in the Automotive Aftermarket: Company Profile—Harson Service, China, 2016
38. Franchising in the Automotive Aftermarket: Company Profile—Harmony Group, China, 2016
39. Franchising in the Automotive Aftermarket: Company Profile—Suremoov Auto Repair, China, 2016
40. Automotive Aftermarket: Types of eCommerce Service Providers, China, 2016
41. Automotive Aftermarket: Types of eCommerce Platforms, China, 2016
42. Automotive Aftermarket: Online eCommerce Platform Parts Distribution Structure, China, 2016
43. Automotive Aftermarket: Online eCommerce Platform Vehicle Service Distribution Structure, China, 2016
44. Automotive Aftermarket: Revenue Scenario Analysis, China, 2010–2022
45. Automotive Aftermarket: Key Factors to Consider for Entering the Aftermarkets, China, 2016
46. Franchising in the Automotive Aftermarket: Conclusions and Future Outlook, China, 2010–2022



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