Inevitable Future Trend of Auto Parts Industry

The changes and the development in the China's auto parts industry are imminent



Developed by now, every piece of the profits of traditional shopkeeper in the China's auto parts industry market has been excavated and exhausted, non-standard operating advantage is gradually losing. Although it is painful for the traditional shopkeeper to transit to terminal peddler, the costs are enormous, and full of risk, but they will die if do not go to the terminal, which has become the consensus of the domestic auto industry. Traditional subaru outback parts market has been greatly compressed, the changes and the development in the industry are imminent.

The terminal market of auto parts industry will enter an era of fierce competition



The terminal market of auto parts industry will enter an era of fierce competition, individual enterprises will be subject to many constraints if they become bigger and stronger. First, the Chinese market is the feast of the international car dealers, the rapid growth of the automobile market does not leave enough time to the tender growth of the independent aftermarket, it will be very difficult for the enterprises to get bigger relying solely on their own. Secondly, traditional Chinese auto parts market based on decentralized management, norms cost is high, which is difficult to bring up the scale chain enterprises. Again, the newborn non-sizable independent aftermarket chain is difficult to contend with the powerful vehicle aftermarket system.

Auto parts enterprises must make up the lesson of the service



Clearly, the auto parts enterprises must make up the lesson of the service if they want to compete with the automobile companies in aftermarket. The independent aftermarket enterprises without strength are difficult to provide the services as well as the automobile companies. At the same time, any auto parts enterprises in the current independent aftermarket solely rely on their own, which do not have the strength to meet the requirements of the repair factory's "full" requirement for auto parts. In addition, the strength of any single Subaru OEM auto parts companies is insufficient to establish a strong distribution system and cannot solve the stock pressure of terminal network to meet "full" auto parts" through timely delivery. The 2S shops whose car sales chain are vigorously developing are constantly diverting downstream of the auto parts enterprises –independent repair station's living space. Automobile companies have also launched the independent aftermarket authorization 2S shop to sell their own brand of auto parts, such as GM, FAW, SAIC and Toyota.

The competitive strength of the auto parts alliance enterprises will also be greatly increased

In addition, multinational auto parts giants also spent great efforts to build authorized brand repair plants to control the terminal, such as Bosch, Aisin Seiki. The international independent aftermarket auto parts chain enterprises also began to get involved in the independent automotive aftermarket in China, such as Germany's Cooper. Though the independent aftermarket auto parts enterprises are small, but the enterprises with different characteristics can achieve resource sharing, complementary advantages purpose through cooperation, the competitive strength of the alliance enterprises will also be greatly increased.

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