China's automobile market after-hours business calls are mainly cut into the maintenance


The slowdown in the growth rate of the Chinese auto market and the increase in cost pressures have made the auto aftermarket a new profit growth point. At present, e-commerce companies relying on the Internet are testing the auto aftermarket.

For a long time, the 4S shop, which integrates vehicle sales, Spare Parts distribution, after-sales service and information feedback, is a mainstream model of the Chinese automobile industry. However, due to the market environment and the pressure of its own operating costs, this almost monopolistic model has frequently been criticized for its drawbacks.

Many Chinese owners complain that 4S stores are expensive to maintain and maintain, and there are invisible consumption and cutting corners. Many industry insiders also stated that China's auto market lacks an effective regulatory mechanism and can only rely on the manufacturer's telephone to pay a visit to supervise, but 4S stores evade the supervision of manufacturers by stimulating owners.

The global business consulting company, Ai Ruibo, recently released the 2013 China Automotive Outlook Report. The survey shows that from 2011 to 2012, the profit rate of parts suppliers fell from 8% to 7.1%, and the dealer’s interest rate also fell from 44.7% to 2.2%.

Zhang Jian, deputy general secretary of the Shaanxi Automobile Industry Association, said that in China, sales and after-sales of 4S stores are integrated, including infrastructure, vehicle purchases, and factory deposits, etc., building and operating a 4S shop requires tens of millions or even 100 million yuan of funds.

“In the sluggish automotive market environment, 4S stores have to transfer the pressure to consumers.” said Mr. Lou, a senior lecturer on imported brand cars.

At the same time, Beijing, Shanghai and other large cities have emerged a new type of after-market service model in recent years. Shanghai's car-free worry-free network is widely considered a successful case in the industry.

According to Mr. Chen, an insider, the e-commerce market is mainly about the maintenance and repair market. It is a new thing that has just begun.

It is reported that the e-commerce model is mainly through the site directly with auto parts suppliers, maintenance product manufacturers direct docking, getting goods from them, consumers then directly from the site to buy, low prices, quality can also be protected.

At present, e-commerce platforms such as Auto Parts Network are exploring ways of cooperation between websites and maintenance points. Soon, the maintenance and repair of vehicle owners can be solved through one-stop service.

E-commerce test water aftermarket, sought after by young Chinese. Their acceptance of new things is relatively high, but they may occupy less than 40% of the market, Mr. Chen said.

“Taobao was only welcomed by the marginal groups when it first emerged, but no one expected it to develop so quickly within a few years.” Mr. Chen said, “Taobao offers commodities, and we provide new maintenance and repair models. ”

Today in a western city like Xi’an in China, there are auto parts cities that will also open e-commerce models. Hai Wei Auto City Manager Guo Weimin said that Haina Auto Parts City has set up a website and has passed the rating to supervise the credibility of dealers and repair shops.

However, the new model also faces challenges. Zhang Jian pointed out that "the most critical issue is to ensure the quality of maintenance and supply channels, as well as the quality of personnel in maintenance companies."

“At present, the e-commerce model is not suitable for luxury car after-sales service, but with the openness and transparency of information, it is only a matter of time to enter the luxury car aftermarket. For many domestic brands, this model is still applicable.” Say.

Experts believe that 4S stores will not only be affected by e-commerce, but will also be subject to pressure from independent maintenance markets. In the United States, 70% to 80% of car repairs are out of sales. This also forced China's 4S stores to seek their own transformation.

Zhao Wei, deputy sales manager of BMW authorized dealers in Xi'an, agreed. "Our store is going to make sales and maintenance separate," he said.

People in the industry believe that China's auto aftermarket is maturing, and that the addition of e-commerce can inject new vitality and, more importantly, cultivate Chinese auto culture.

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