Chinese automobile after sales grows to 600b RMB in 2014

Gasgoo.com (Shanghai February 5) - The China Chain Store and Franchise Association and Jingkui Investing jointly released a report detailing the state of Chinese automobile dealership after sales services in 2014, Beijing Business Today reported today. The automobile after sales market in China reached a total of 600 billion RMB ($97.63b), up 30 percent from the previous year.

The report shows that 85 percent of automobile owners in the country take their vehicles to get serviced at least once half a year. The average amount spent on each service trip was 5,279 RMB ($858.93), up 50 percent from the previous year. The country’s after sales market is estimated to continue to grow 30 percent, with its total value topping 1 trillion RMB ($172.71b) in 2018.

Su Shuang, director of the alliance between the China Chain Store and Franchise Association and Jingkui Investing. points out that the after sales market in China is still not highly concentrated and quite small. However, Mr. Su also points out that there is large potential for growth in the market. In order to explore this market, the role of branded automobile dealership chains is very important, with 30 percent of enterprises using such dealerships to expand their businesses.

The report also recommends that enterprises take advantages of new opportunities offered by emerging e-commerce platforms, which is changing the landscape of the market and forcing weaker and stubborn participants out.