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The future of the automotive industry in Henan Province has a promising future

April 08, 2023

Yesterday, at the “Recorded after car market” forum, the “golden industry” view of the car aftermarket was frequently mentioned for guests and resonated with participants. What is the "gold content" of the gold industry? What are the development puzzles of “after the steam”? The biggest names in the car's "to force" theory are brilliant.


The former market has grown slightly and the latter has seen a major outbreak


A consensus


How large is the car aftermarket?


At the forum's scene yesterday, Zhao Hang, director of the China Automotive Research Center, disclosed to the participants a set of data: In 2011, China’s fiscal revenue accounted for 1.13 trillion yuan, accounting for more than 10% of the tax revenue. According to the automobile's pre-market and post-market's March 7 opening, it is possible to calculate a huge space including post-sale, service, auto finance, auto insurance and other post-markets.


This topic was just thrown out and immediately aroused strong sympathy among guests.


Not long ago, the auto aftermarket had an exhibition in Zhengzhou, which attracted the attention of nearly 300,000 people, and the turnover exceeded 20 billion yuan, which fully demonstrated the enormous potential of this market.


The observation by Liu Xiaoming, secretary general of the Henan Automotive Industry Association, is equally encouraging. He said that at present, the focus of the 4S shop's earnings mainly comes from other aspects of sales, such as maintenance, finance, replacement of used cars, decoration, and riders' clubs, which account for about 70%.


Behind this, the Chinese auto market has entered a micro-growth, only maintaining a growth rate of 5% to 8% per year. The aftermarket and used car market are the biggest cakes in the future.


“The future will be the era of the Internet of Things. The automobile is the co-ordinate of this world. The industrial chain of the automobile aftermarket will become longer and longer and the prospects will be unlimited.” The remarks of Dong Lin, deputy chief editor of the Henan Daily Newspaper Group, made the topic prominent "Modernization" elements.


Wang Chuhe, president of the Dahe newspaper company, described the romantic picture in a poetic language. After the explosive growth of car consumption, life and lifestyle on wheels became part of many urban families and even rural family lives. Auto aftermarket components, car kits, car rental, auto finance, etc. form a colorful picture.


Market is not standardized, growth is "barbarous"


a bit confused


Although the post-market is good, but in reality, it is covered with "thorns."


The Henan Daxing Auto Home Group, formerly known as Wantong FAW, has been involved in automobile distribution and aftermarket for many years. However, the CEO of the company, Li Zizheng, was hard-pressed after the “self-exposure” at the forum. “One is the problem of market regulation, entry barriers are low, and repair shops and roadside shops are heavily flooded. The other is the talented person. The level of technicians is mostly junior high school education, and the comprehensive ability cannot reach. The management team has grown up from the sales staff. Obvious lack of knowledge, to bring some influence on after-sales service."


It is not only distributors who have this kind of confusion. The two major automotive manufacturers participating in the meeting, Tang Yuxiang and Guo Zhenluo also "send the question" about the status of the industry.


Most of the automotive aftermarket in China is relatively scattered and chaotic. There are fewer companies with scale or standardization, institutionalization, and standardization; the market is immature, and the main vehicle and 4S stores, including related parts and components, hold their respective customers. The market is unprofessional, inaccurate, and even counterfeit, lacking big capital to integrate.



However, Xu Jian, editor-in-chief of Automotive Herald, interprets it from another perspective: Barbarian growth is a very normal stage performance and there is no need to criticize it too much. Instead, it is an opportunity.


“The current non-standardization precisely shows that our opportunities and potential are enormous. This process is exactly the opportunity for the industry to expand into new areas of development.” Liu Xiaoming shared the same view.


With the help of policies, after the steam "runs"


An appeal


“The new car is difficult to trade due to factors such as restrictions on purchases and licenses, and there is no market for used cars.” At the beginning of the forum, Zhao Hang clarified the difficulties of all car dealers.


Many of the current traffic regulations and policies have “added blockage” for the development of the post-steam market. Gao Hua, editor-in-chief of Friends of the Auto magazine, pointed out that as an integral part of the automotive aftermarket, there is the collection and repair market for classic cars in the field of automobile modification, but the huge market prospects are now restrained by policies.


His views were echoed by many guests present at the meeting and collectively called for the government authorities to formulate an open incentive policy. Xu Hao believes that China's auto consumption is undergoing a period of transition from the primary to the advanced stage. Policy makers cannot simply “control the card” and change their mentality to promote the development of auto aftermarket.



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Mr. Liu Keda

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syzdhx@163.com

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