Policies promote the acceleration of integration of the auto parts industry, and the future scale may exceed 4 trillion yuan

Recently, with the reduction of tariffs on imported vehicles and parts, many multinational automobile companies have lowered the prices of imported vehicles, which has attracted widespread attention from the society. More importantly, compared with complete vehicles, the impact of the reduction in tariffs on parts may be more extensive. For a long time, parts have been a shortcoming of China's automobile industry, and the automotive aftermarket has long been small, scattered and chaotic. However, the industry believes that with the vigorous development of China's automobile industry and the support of policies, the parts industry and the automotive aftermarket are ushering in new opportunities. It is expected that the scale will exceed 4 trillion yuan in the future, and industrial integration will accelerate.

The parts industry welcomes new opportunities

As the foundation of the development of the automobile industry, the auto parts industry has become a solid support for helping China's independent automobile industry to become bigger, stronger and better. Over the past 60 years, the domestic auto parts industry has continued to grow, and with the joint ventures promoted by reform and opening up, as well as the market dividends brought about by the explosive growth of domestic production and sales, it has achieved exciting leapfrog development.

It is understood that there are more than 100,000 auto parts companies in China. In the fierce market competition, a number of well-developed and strong companies have emerged, and have made remarkable achievements in core technology innovation, supporting market breakthroughs, industrial strategic pattern, and internal enterprise reform. While the innovation of automobile industry policies continues to advance and the overall industry development begins to transform and upgrade, the automobile parts industry and the automotive aftermarket have also ushered in new development opportunities.

Su Hui, executive vice president of the Tangible Market Branch of the China Automobile Dealers Association, said that compared with the reduction in import tariffs on complete vehicles, the reduction in the tax rate on auto parts is actually more important. Because the reduction in the tax rate on auto parts is classified and graded, this has a greater impact on the price of imported auto parts. The cost of later maintenance and repair of domestic high-end models has always been high, and the high price of parts is an important reason. This tax rate reduction will have a relatively large impact and change on the price of maintenance services for high-end imported cars, and will also bring changes to the overall development of the domestic automotive aftermarket.

It is understood that in recent years, with the continuous increase in the number of domestic cars, my country's auto aftermarket has also entered a period of rapid development. It is expected that in the next two years, the overall output value will exceed 4 trillion yuan, with more than 13,000 auto parts companies above a certain scale, and the products basically cover nearly 1,500 parts in the automotive industry chain.

Faced with such huge market potential, many multinational automotive parts and service companies have expanded their business in China, and many Internet companies have also begun to vigorously enter the automotive aftermarket field.

At the recently held 5th Chengdu International Auto Parts and After-sales Service Exhibition, nearly 600 companies from Germany, France, South Korea, the United States, Japan, Spain and other countries and China participated. Zhou Shaolan, deputy general manager of Frankfurt Exhibition Shanghai Co., Ltd., one of the organizers of the exhibition, said that with the continuous development of the automobile industry and policy support, the domestic automotive aftermarket has great development potential. As the most important auto parts exhibition in the southwest region, the number of domestic and foreign auto parts and service companies participating in the Chengdu Auto Parts Exhibition has increased year by year, and this year has increased by more than 12% compared with last year, indicating that companies are very optimistic about the development prospects of China's automotive aftermarket.

Entering a new stage of high-quality development

As the market size continues to expand, the automotive parts and automotive aftermarket have also begun to transform and upgrade, entering a stage of high-quality development.

Yu Kai, chairman of the China Automotive Technology and Research Center, said that my country's economy has shifted from high-speed growth to high-quality development. As a major automobile producer and seller, my country's automobile industry has entered a new stage of high-quality development. It is crucial to build a new type of whole-partner cooperation relationship. The development potential of the auto parts industry and the aftermarket is huge.

Liu Shangxi, president of the Chinese Academy of Fiscal Sciences, analyzed that the reduction of automobile import tariffs will have a positive effect on global economic recovery, global economic growth and global employment from a global perspective, especially for automobile exporting countries, which will have a direct growth effect and employment effect. By reducing tariffs, competition will be further intensified, and the pace of transformation and upgrading of my country's automobile manufacturers, including domestic national brands, will be greatly accelerated, which will also promote the supply-side structural reform of the automobile industry. For ordinary people, it will not only enrich the domestic market supply, but also bring consumers a richer and more affordable consumption experience.

Industry experts said that the important trends in the future automotive industry provide rare opportunities and expansion advantages for the development of the automotive industry, as well as ways to make up for shortcomings. In the face of modularization and integration of parts, electrification, and technological changes such as intelligent manufacturing, the state, local governments, and enterprises should clarify the overall and full industry chain development goals, efficiently integrate resources, find differentiated development paths, and support and improve industrial support resources and guidance and support systems to actively realize the transformation and development of the domestic parts industry and the optimization and strengthening of the independent parts industry.

Regarding the future development of auto parts and aftermarket, experts said that on the one hand, the government should formulate strategies, create a good development environment, and increase support for key backbone enterprises. On the other hand, manufacturing and service companies should also find their correct positioning, attach importance to innovation, integrate various advantageous resources, and effectively promote the steady development of China's auto parts industry.

Automotive aftermarket integration accelerates

In the process of transformation and upgrading of the automotive parts industry and the automotive aftermarket and promoting high-quality development, the integration of the entire industry is also accelerating.

Chen Min, CEO of Tuhu Auto Service, one of the largest Internet auto service companies in China, said that China's auto aftermarket has always been scattered, small and chaotic, with a low overall level of intelligence, serious imbalance in service capabilities, information asymmetry and uneven product quality. In order to meet market demand, the speed of industry integration will continue to accelerate in the future.

In recent years, China has frequently issued policies to regulate the development of the automotive aftermarket. The future policy direction is to use market-oriented mechanisms to promote the integration and upgrading of the automotive aftermarket, improve the service level of automotive aftermarket companies, and adapt to the increasingly diverse needs of consumers. With the continuous release of policies such as import auto tariffs and the liberalization of joint venture equity ratios, the degree of openness of the automotive market has continued to increase, which will further accelerate the integration of the automotive aftermarket and make the automotive aftermarket develop in a more standardized and transparent direction.

The strength of market integration has already begun to emerge. Recently, 28 well-known domestic and foreign auto aftermarket companies, including Aisin, Bosch, Federal-Mogul, Shell, Kangdexin, Kumho, and Tuhu Auto Care, initiated the establishment of the Auto Aftermarket Integrity Service Alliance to promote the establishment of service standards such as genuine series and 15-minute after-sales rapid response, and plan to train 100,000 high-level technical service technicians within 5 years to enhance the quality of aftermarket services.

At the same time, the All-China Federation of Industry and Commerce, the Chain Operation Working Committee of the China Automobile Maintenance Industry Association, and many auto parts and aftermarket service companies have recently jointly promoted the establishment of a one-stop service platform for centralized procurement and logistics of spare parts. Through authorized direct sales and direct supply of branded spare parts, and centralized ordering and unified procurement by joint maintenance companies, one-stop logistics delivery is achieved.

It is understood that the one-stop service focuses on supporting the transformation and innovation of maintenance enterprises, and supporting member enterprises to use the e-commerce open platform for efficient and assured procurement. At the same time, it supports maintenance enterprises to build professional technical support systems such as sheet metal spraying centers, diagnosis centers, and maintenance technology information sharing centers, improve the company's information operation strength, mobile marketing capabilities, and data-based performance management level, and build a team of knowledgeable, skilled, innovative, high-quality professional talents to promote the transformation and upgrading of the automobile maintenance industry to the modern automobile service industry and continuously improve service quality. This is an innovation in promoting high-quality development in the process of transformation and upgrading of the automotive aftermarket.

Experts said that the next one or two years will be a critical period for the development of China's automotive aftermarket, and the integration of markets and policies will be further strengthened. At the same time, the service model will be further innovated, and the new service model based on information technology and complementary online and offline services will become the main direction of the future market.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.