The future development of automotive aftermarket is unstoppable

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In the past five years, China's auto manufacturing industry has grown at a rapid rate, and the objective profit figure in the auto market has reached RMB 230 billion. However, the proportion of domestic automobile services in the entire automotive market is only about 20%. In contrast, in mature foreign auto markets, the proportion of auto service industry is as high as 60%, and auto sales account for only 20%. This difference is enough to confirm the great potential of China's auto aftermarket.

In people's minds, car dealerships have always revolved around the will of the automaker and go it alone. However, in fact, this emerging market in the post-market is quietly striding toward group operations. Recently, Guanghui Group, which has been fighting for many years in the northwestern auto market in China and owns more than 200 dealerships, even stated that it "will build a Fortune 500 company."

While striding forward in the Chinese auto industry, some people saw that with the development of the automotive industry, the automotive aftermarket also has a huge market potential. In the early days, the establishment of a branded 4S store or a large automotive market was the main channel for car marketing, but Later, with the rapid expansion of the auto market and the unstable development of the market, the single-brand and single-brand management roads have become narrower and narrower, resulting in operational risks. Therefore, group management and multi-brand management have become inevitable choices. A large number of powerful automotive sales groups have emerged in China. Such as Shanghai's Dongchang, Yongda, Beijing Zhongyida, Express, Auto Repair Group, Guangzhou’s Wuxi, Zhejiang’s Yuantong, and Xinjiang’s Guanghui have all become large car sales groups in the post-car market. The large-scale automobile market, 4S stores, brand stores and sales outlets all over the country's urban and rural markets. These companies have played a huge role in car sales promotion and after-sales service, and their scale, profit and reputation are no less than those of auto OEMs.

Speaking of the identity of car sales companies, it can be described as a wide variety of things—state-owned, joint-venture, and self-employed. For instance, Beijing Auto Group is a state-owned enterprise, Xinjiang Guanghui has a share in TPG Investment Corporation, and Beijing Express is completely private capital. The trend of China's auto after-market grouping is not the same as that of the Chinese auto market and the global mature automobile market. The development road is basically the same. In the 1970s, car dealers in the United States were mostly self-employed. In the 1980s, there were some small groups. In the 1990s, there were truly large-scale groups. Now the best dealers are large-scale groups, and the largest ones have 400 Most of the dealers around the home are 200 or 100. The 2008 international financial crisis affected the entire automobile sales industry in the United States. The main failures were small group of dealers because they did not have sufficient capital and talents and could not win better business models. After years of practice, it has proved a universally applicable principle: If you want to make a big industry, the growth of the manufacturing industry alone is not enough. It must be supported by the development of the retail industry and the service industry before it can be condensed into strength. At present, the main business of the automotive aftermarket covers sales, maintenance, automotive finance, used-car trading, etc. Its growth is a driving force for the entire vehicle industry.

However, we also see that the current domestic car dealerships and the vehicle manufacturers are still in cooperation. Many vehicle manufacturers are also worried that once their dealers become bigger and stronger, they will lose control over the channels, which will affect the implementation of the marketing strategy of the entire vehicle company; at the same time, some vehicle companies are also worried that the dealers once formed Grouping, you can not concentrate on marketing your own brand. For this or that worry, hesitated, Jin Zhenjun, General Manager of Guanghui Group, had his own views. He thought: “If we can make a company a standardized and standardized automobile sales service excellence brand, who is the shareholder and what is the relationship? ! Vehicle sales and service companies are becoming bigger and stronger, which will definitely bring great benefits to automakers.” The goal of Guanghui Group is AutoNation, the largest auto sales service group in the world’s top 500 companies, and its annual sales. The amount is about 30 billion US dollars. Last year, Guanghui did not include 230,000 used-car sales, and its sales exceeded 32.5 billion yuan. They have full confidence in the impact of the world's top 500 companies.

It seems that the pace of grouping in the automotive aftermarket is overwhelming, and automakers should follow the trend and find a way to achieve a win-win situation and a harmonious development.