Report Forecasts Opportunities in Chinas Auto Aftermarket
Raleigh, NC and Shanghai, China July 12, 2011 Parts and service in Chinas light passenger vehicle market reached an estimated US$55 billion in 2010, driven by strong expansion and continued aging of the vehicle parc, according to new research conducted by Technomic Asia, an international market consultancy specializing in China strategies for western companies.
The report, titled A Strategic Assessment of Chinas Light Passenger Vehicle Aftermarket, Sixth Edition, stems from Technomic Asias ongoing primary research into the Chinese auto marketplace and its key players. Other major findings indicate that the light passenger vehicle car parc has expanded to more than 62 million units, with middle-aged vehicles (4-9 years old) reaching a 50 percent share. More information is available at www.technomicasia.com/auto.
The aging and expanding parc, coupled with private ownership of 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 primary author of the report.
The market is fragmenting as more vehicles from recent market entrants, notably the Japanese, hit the road, Ganster said. Both local and international parts and service companies, as well as retailers and other service organizations, are aggressively developing their infrastructures to penetrate this dynamic market. Though many challenges exist, the outlook for growth remains robust, with the market expected to expand at 21 percent per year through 2015.
The markets greatest opportunity, and also its most significant challenge, is in solving the complex and multi-layered distribution structure, states Ganster. For companies who can bring scale, expertise and sound strategy to solve distribution challenges, the prize will be great.
This unique China auto report offers valuable statistics, insights and analyses to assist management to successfully address this important m! arket, i ncluding:
- Perspective on Chinas automotive market, including a long-term growth outlook for Chinas light vehicle market in terms of types of vehicles, key OEMs, growth drivers and constraints, etc.
- Overview of the automotive aftermarket in terms parts and service, covering size, segmentation, parts types, key players and trends
- An assessment of Chinas automotive parc in terms of size, vehicle composition, age, technology base and future growth
- Detailed descriptions of key market segments, covering maintenance and light repair, collision and other repairs with insights on market size, segmentation, services provided, pricing, etc., and current and forecasted 2015 value by vehicle and service type
- A detailed evaluation of the parts supply chain, with descriptions of structure, key players, pricing characteristics and future dynamics
- Perspective on key opportunities and challenges facing players in Chinas automotive aftermarket
For more information on the report, or to purchase a copy, please visit www.technomicasia.com/auto or call our offices at +1-919-855-5437 (U.S.) or +86-21-6473-2588 (China).
About Technomic Asia
Technomic Asia, a division of Tompkins International (www.tompkinsinc.com), is a business strategy and supply chain consultancy with more than 30 years of experience helping clients plan and execute Asian growth and operational strategies. Technomic Asia assists companies in entering the Asian market or in expanding their business by providing critical market insight, an understanding of business pote! ntial an d assistance in designing the optimum strategy for success. Technomic Asias Steven Ganster authored of The China Ready Company, a book that details the process to develop a successful China strategy. www.technomicasia.com
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Media interviews with Steve Ganster contact amaruggi AT providentpartners DOT net or call 612-293-7640
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