Industry consolidation will continue.
Enterprises with poor overall competitive strength will face shuffling out. The general trend of automobile aftermarket development will be the reduction of brand quantity, while brand specialization and centralized trend are obvious. A large number of well-known brands are concentrated in the hands of a few enterprises, and the development trend of the same industry The same tends to monopolize and scale.
The advent of the meager profit era.
With the increasingly fierce market competition and the constant regulation of the marketing market, the period of profitability in the automotive aftermarket industry has passed, and it has entered a meager profit era. In the past, pure profits were as high as 30%-40%, and even more. Today’s enterprises generally only have 15-20% of profits, while in some local markets, the profits are only 5%-10%.
More companies will acquire SMEs in a “copy” manner.
Enterprises with successful brand competitions sometimes feel that production capacity is insufficient when orders are increased. In addition to expanding production scale, these enterprises will also entrust other companies to produce. However, due to various technical reasons, equipment problems and other reasons, quality is often not guaranteed, so there will be a “copy” approach to the acquisition of small and medium enterprises.
The government will continue to increase support for the automotive aftermarket industry
The Chinese government has always provided strong support for the development of an active aftermarket, and the strong automobile consumption also provides unlimited business opportunities for the automotive aftermarket. So far, the automotive aftermarket has entered a period of high growth. However, due to the more traditional concept of automobile consumption, the development of the automobile aftermarket industry has been relatively slow, and the stamina is slightly insufficient.
In order to better enlarge and strengthen the automobile industry and build a new cluster advantage of the automobile aftermarket industry, the government also intends to actively support and promote the automobile industry chain through policy support, and subsidize and preferential policies for various domestic automobile aftermarket exhibitions.