Automotive aftermarket competes for intelligent transformation

In recent years, electrification, intelligence, networking and sharing (i.e. the “new four”) have gradually become the mainstream of the automotive industry, and the whole industry has undergone unprecedented changes. Accordingly, the automotive aftermarket has also ushered in new development opportunities.

Automotive aftermarket competes for intelligent transformation

Under the impetus of the “New Four”, the automotive aftermarket is also accelerating its evolution. File photo

After-market ushers in new frontier

The Economic Reference News reporter was informed that the 7th International Auto Parts and After-sales Service Exhibition held in Chengdu recently revealed a new trend in the industry: with the continuous promotion of new technologies in the field of the whole car, the related parts manufacturing, circulation, data, maintenance technology diagnosis, customer service and other applications supported by digitalization, began to become the new direction of the automotive aftermarket focus on promoting.

Nowadays, the electronic and intelligent level of parts and components is already the high point of competition in the automotive after-market. For this reason, the exhibition is dedicated to the display of many intelligent products and technologies of the automotive aftermarket. Among them, exhibitors and products with advantages in electronic and electrical, intelligent network connection were particularly highlighted.

Yu Guang, deputy general manager of Messe Frankfurt (Shanghai) Co., Ltd, one of the organizers of the exhibition, said that with the continuous promotion of the “new four” in the automotive industry, the automotive aftermarket has also ushered in a new stage of development and opportunities. Therefore, the exhibition highlights the new technologies, new models and new trends in the industry, helping the industry to strengthen the chain and make up for the chain and move towards high-quality development. At the same time, it also helps Chinese automotive and after-market products continue to consolidate their important position in the global supply chain under the pattern of the new four.

In fact, the rapid spread of new technologies in the field of vehicle manufacturing has led to new changes in the closely linked automotive aftermarket, whose main features are the increasing depth of development of relevant technologies and products, the rapid increase in the electronic and intelligent levels of parts and services, and the in-depth transformation of the industrial chain. Therefore, who can use digital technology, and based on the depth of understanding of the industry, complete the digital and industry adaptation, will become the key to win the current round of automotive aftermarket industry change.

Industry insiders believe that under the role of the “new four”, the car no longer has only the attributes of transportation, but has evolved into a carrier of content and services. Correspondingly, the future of the automotive aftermarket will also change.

For example, compared with traditional cars, the demand for electronic parts in new energy vehicles has increased a lot, and services such as car system upgrade and maintenance have started to spread rapidly, which makes the proportion of related services mainly system maintenance and emerging applications in auto repair services increase year by year.

New opportunities in the trillion dollar blue ocean

According to the latest statistics from the Ministry of Public Security Traffic Management Bureau, the number of motor vehicles in China has reached 380 million, the number of drivers has reached 465 million, and the output value of the automotive aftermarket has reached nearly 1.5 trillion yuan.

At the same time, with the rapid implementation of 5G, artificial intelligence, big data and other technologies, the automotive aftermarket has also begun to change from a product-based industry to a service-based industry, which is in urgent need of Internet technology-driven services to improve the technical level of the entire industry and the service experience of customers.

Yu Guang said, in the international trade of auto parts, 50% of auto parts and related products are produced in China. For this reason, the company hopes to use the exhibition platform to dig deeper into the value of the industry and continuously enrich the display of new energy, intelligent network connection, new materials, future mobility services, and innovative applications of automotive chips, in order to promote the industrial transformation driven by Internet and digital technology.

As the world’s largest automotive consumer, the scale of China’s automotive aftermarket is also growing continuously, and gradually moving from the zero-sum game stage of fighting alone to the collaborative development stage of “data intelligence, category integration and ecological sharing”.

However, despite the trillion dollar scale of the automotive aftermarket, there are still problems such as high fragmentation, non-standardized competition and slow improvement of industrial efficiency.

Data show that there are about 600,000 to 700,000 auto maintenance enterprises in China, of which the proportion of first-class and second-class enterprises is 3% and 17% respectively, while the proportion of third-class stores is as high as 80%. Therefore, scattered, chaotic and small has been the industry pain point of China’s automotive aftermarket, how to promote industrial upgrading through digitalization and intelligent technology, to achieve the integration and upgrading of the industry as a whole, it has become a pressing problem for China’s automotive aftermarket to solve.

In this regard, experts said that the new technology is deepening the transformation of the industry chain, and a series of large head enterprises will appear in the future to lead the development of the industry.

Change has already begun

At present, the “new four” to the automotive aftermarket has brought about changes, industry demand for automotive semiconductors, power devices and emerging electronic integration devices and other related products is increasingly prominent.

Data show that the cost of a traditional fuel car automotive electronics accounted for about 15% to 28% of the cost of the vehicle, while the proportion of new energy vehicles is close to 65%. The industry believes that, with the age of auto parts into the replacement cycle, as well as device replacement and other needs, intelligent under the auto parts after-market or will usher in rapid growth.

In this process, changes in the auto repair industry are particularly prominent. Traditional auto repair mainly focuses on body structure, appearance, engine and other targeted repairs; nowadays, auto repair revolves around the upgrade and maintenance of vehicle systems. As a result, the maintenance tools also transition from various types of wrenches, jacks, cylinder liner pullers, etc., to intelligent solutions based on car code reading cards, diagnostic computers, intelligent cloud detection, etc. gradually.

At the same time, governments at all levels, enterprises and platforms are also constantly promoting the optimization of the environment to help promote the intelligent transformation of the automotive aftermarket.

Take Zhejiang as an example, Zhejiang is a large domestic auto province, and Wenzhou and Taizhou are the gathering place of auto parts and other after-market enterprises. 2019, Zhejiang Province issued the Action Plan for the High-Quality Development of Auto Industry, proposing to build a high-quality development system of auto industry integrating innovation chain, industry chain and service chain with the strategic transformation of industrial structure and high-end products as the main line.

At the national level, the National Internet Information Office has also recently issued a draft of the auto data security management regulations for comments, to regulate and clarify the application of intelligent technology.

Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Association, said that the introduction of these policies has created a good environment for the intelligent development of the automotive industry chain. In the future, the intelligent development of the automotive aftermarket will continue to accelerate and become an important new growth point for the automotive industry chain. (End)

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