China's auto aftermarket is optimistic about the growth of ultra-trillion-size accessories suppliers in 2017

With the continuous growth of the total number of vehicles in China and the increase in the age of automobiles, the outlook for China's auto market has become clearer. According to a report by a third-party market research and consulting company, the size of China's auto aftermarket is expected to exceed RMB 1 trillion in 2017, and after that, the market will continue to release its potential and achieve approximately RMB 1.654 trillion in 2021. Sales scale.

Under this market scale, not only traditional 4S stores, independent aftermarket parts suppliers, auto parts distributors and repair shops will also benefit. The reason is: With the increase of vehicle age, due to the vehicle's out of warranty period and the owner's increase in cost performance requirements, the percentage of owners who choose to independently check and service after-sales channels has increased significantly. Of course, this shows some clues from the performance of some independent aftermarket accessory companies.

As a member of the independent aftermarket, ContiTech's sales in the past two years are very optimistic. Recently, Rolf Sudmann, global head of ContiTech's Automotive Aftermarket Business Unit, revealed in an interview with Gasgoo reporters that after 2016, ContiTech will continue to show double-digit growth in the Chinese auto market this year. The average age of passenger cars in China is still younger than those in Europe, North America and other countries, but as the age of cars increases, vehicles will enter the high-frequency period of maintenance. In other words, China's auto aftermarket has huge potential."

Rolf Sudmann (Left), Global Head of the Automotive Aftermarket Business Unit of ContiTech Drives Group (left) and Bee Lie Poo, Head of Auto Sales Asia Pacific, ContiTech Powertrain Group (right)

If the outbreak of the automobile aftermarket market still takes several years, it is now a crucial period for entering this market. In fact, in the past two years, more vehicles, parts and components, and even other types of companies have participated in it, making the auto aftermarket an unprecedented “buzz”. Under this circumstance, independent after-sales service providers must strengthen the necessary after-sales products, channels, and services, whether for their own market share expansion or to cope with the test brought by huge market demand.

In the automotive aftermarket, ContiTech's growth in powertrain sales is mainly driven by packaged products, and these accessory kits will be upgraded almost every year. At the 2017 Shanghai Frankfurt Auto Show held recently, ContiTech’s latest 2017 accessory package appeared. It is understood that the accessory kit contains necessary auxiliary components such as V-ribbed belts, tensioners, idlers, tensioners, and mounting materials that can be matched to different models. This is mainly due to the consideration of the repair shop in replacing the belt drive system. In view of safety and cost considerations for the occupants, it is generally advisable to replace the worn-out parts together. The provision of the package not only improves the work efficiency of the repair shop, but also saves the cost for the owner.

In addition, ContiTech plans to launch oil-immersed timing belts with low frictional losses and low CO2 emissions in the Chinese market in 2018. It is understood that this belt can be applied to the engine timing system and the oil pump drive, and has excellent noise performance. In the timing system, the lower power loss of the belt drive mechanism can effectively reduce carbon dioxide emissions. In addition, the oil-impregnated timing belt benefits from the low elongation of the belt. Longer oil change intervals in the precise camshaft timing and engine life can save system costs.

For after-sales service providers, product launch is only the first step. How to achieve the value of the product can ultimately be achieved through the channels it establishes to meet the customer's needs. In 2015, ContiTech has more than 60 distributors selling its aftermarket products in some Chinese cities. In 2016, this number further increased to 75. According to Rolf Sudmann, on this basis, the number of ContiTech dealers continued to increase in 2017. “We will continue to develop and fully support our traditional business model. In addition, we will also develop online platforms. In addition, we also cooperate with the distributor alliance to provide a complete set of product procurement, sales and distribution for the entire aftermarket. service."

In the past two years, the hot online platform has injected vitality into the auto market. The e-commerce platform represented by Tmall and Jingdong has gradually acquired the auto parts suppliers. As mentioned above, ContiTech has also been actively developing online platforms in the past two years, and has established Tmall flagship stores and Jingdong flagship stores in 2015 and 2016 respectively. According to reports, through the "ContiTech Auto Parts Official Flagship Store," the majority of customers can purchase timing belts, timing packages, multi-ribbed belts, and triangular belts according to product classifications, and can also obtain relevant product information through vehicle models to facilitate customers. Search, compare related products and get a one-stop online shopping experience.

Rolf Sudmann said: “Cooperation with online e-commerce has helped us to increase our brand recognition. We also provide product catalogs, product applications and technical information on the e-commerce platform to provide users with more convenience. In our opinion, we value not only the sales performance, but also the long-term cooperation with Tmall and Jingdong. We hope to share information with online e-commerce companies and jointly discuss how to achieve closer cooperation and achieve a win-win situation."