China likely to see automotive after-sales market over 1 trillion yuan in 2020

Shanghai (Gasgoo)- China's automotive after-sales market size is expected to reach 1.435 trillion yuan ($204 billion) in 2020, according to the information delivered at a forum held recently by China Machinery Industry Federation (CMIF). It is reported that in the auto industry, 60% profits come from the service sector. However, the market profit has been dented by customer disloyalty, conventional management and service modes and opacity in the industry, according to some insiders.    

Fu Yuwu, honorary director of China Society of Automotive Engineers (SAE-China), suggested the after-sales market should be deeply integrated with technology. The market needs an intelligent service ecosystem, a professor named Ming Xinguo from Shanghai Jiao Tong University said, as the whole society has entered into an era of service and experience economy.           

User-centered service should be a top priority for companies, according to Professor Ming. For instance, customized service is supposed to be provided when they buy cars. Service to make drivers pleasant is also a need. In addition, it is better to offer preventive, predictive, prefabricated maintenance to make customers stickier. Another point he made is data-driven service. On the basis of data collection, perception, classification, prediction and decision-making are carried out. Then accurate implementation is conducted according to the decision. During the process of execution, value is delivered to customers.