Rapid growth in car ownership

As of June 2017, the number of vehicles in China has reached 205 million vehicles, and it still maintains a rapid growth trend. Affected by the increasing number of car ownership, China's auto maintenance industry has also made considerable progress. The data shows that in 2014, the output value of China's auto repair industry reached 500 billion yuan, and it increased at a rate of more than 10% per year. It is expected that by 2020, China's auto repair industry will reach trillion market.

Development Status of Automobile Maintenance Industry

The automobile maintenance industry is divided into one type of vehicle maintenance, two types of auto repair, and three types of auto repair. In the current standard, the business scope of Class I and Class II is the same, and the operations of Class III have a certain depth, which solves the problem of over-range operations that currently exist in the automotive maintenance market.

China Automobile Maintenance Industry Classification Analysis

Source: Forward-looking Industry Research Institute Automobile Maintenance Industry Report

At present, China's automobile maintenance industry has become an independent and socialized industry. It has initially formed a car repair network system based on a class of enterprises, with the second type of enterprises as the backbone and the three types of enterprises as supplements with reasonable layout and convenient service. According to statistics, there are more than 300,000 domestic (including motorcycle) maintenance companies in the country, employing more than 2.5 million people, and annual maintenance output value of 30 billion.

Automotive Maintenance Market Structure (Unit: %)

Source: "Fusion Industry Research Institute Automobile Maintenance Industry Report"

In addition, the rapid development of automotive technology has led to advances in vehicle maintenance technology. Vehicle maintenance is increasingly showing its own high-tech features. It is developing in the direction of equipment modernization, information networking, diagnostic expertise, and management computerization. The repair model has been developed. From the traditional disassembly repair type to a diagnostic replacement type. The intensive knowledge and comprehensive skills have become an important feature of modern car maintenance professional skills. The car maintenance industry is also gradually developing into an independent technical service with great development space and potential and increasing service requirements. Sex industry.

The acceleration of the high-tech process in the automobile maintenance market has led traditional car maintenance companies to be replaced by modern car maintenance companies. High-tech maintenance equipment, high-tech personnel, modern management, etc. are taking over after the sunset, the old car maintenance companies, and bring fresh vitality and life to the enterprise, and promote the development of the automotive maintenance market.

Problems in the automotive maintenance industry

Despite the rapid development of the automobile maintenance industry, the overall market is relatively turbulent and is still in an initial phase of adjustment and expansion. Specifically, the automobile maintenance industry mainly has the following problems.

First, due to the low actual threshold, disorderly market competition, and relatively low cost equipment market, vehicle maintenance equipment manufacturers have lowered their prices to gain market share. Price warfare has become the main means of marketing, and the industry’s profit rate has continued to decline. .

Domestic and foreign independent maintenance and accessories company gross profit ratio comparison chart (unit:%)

Source: "Fusion Industry Research Institute Automobile Maintenance Industry Report"

Second, the overall quality of China's auto maintenance technicians is low, and there are serious shortages of professional and technical personnel. With the rapid increase in the number of car ownership in China and the increasing number of imported cars, and the increasingly complex models, this contradiction may further intensify.

Third, a single marketing tool. With the development of automotive technology, the speed at which equipment products are upgraded is increasing. In the marketing of automotive repair and maintenance equipment, many traditional methods may no longer be suitable.

Fourth, some auto repair companies still have problems with random increases in car accessories, arbitrary charges, and unauthorized increases in operating charges without the owner’s permission. The pre-communication mechanism for opaque fees and charges is not perfect.

Fifth, the market access of industry management departments is not strict, and law enforcement supervision is not in place. As a result, unlicensed vehicle repair, non-standard roadside shops, road maintenance vehicles and other phenomena continue to be prohibited.

Sixth, with the increase in the number of car ownership, the number of outlets has also increased, and there have been cases of blind investment sites. The maintenance outlets are too concentrated and unevenly distributed.

Finally, the development of fault diagnosis technology is not enough. The current diagnostic equipment can only diagnose part of the performance and fault of the car, and it lacks convenient and practical diagnostic equipment. It is still mainly based on artificial experience.