China's auto parts development prospects

As the Chinese automobile market matures, the development potential of the aftermarket is gradually released, and the position of the parts business in the future development strategy of the vehicle manufacturers will also increase, which will become one of the key areas for future market competition. At the same time, the upgrade of spare parts services will bring more new opportunities to the logistics industry.

According to the forward-looking industrial research institute "China's auto parts manufacturing industry deep market research and investment prospects forecast analysis report" data, as of the end of 2017, China's car ownership reached 217 million, has been the world's first car sales for eight consecutive years .


Source: Prospective Industry Research Institute

According to the report, the supply chain management of parts is more complex than the entire vehicle supply chain. The logistics of auto parts mainly faces difficulties such as many types, long tail length and high complexity. Under the premise of increasing aging requirements and cost control, the informationization capability of logistics enterprises is very important, which requires enterprises to have a large number of SKUs' stocking capacity and big data forecasting ability. However, from a global perspective, the number of automobile manufacturers that can effectively utilize digital management in the field of parts management is still relatively small. Zhang Tianbing, the managing partner of Deloitte China's consumer goods and retail industry, said that the logistics and supply chain companies with digital capabilities at this stage will play a leading role in promoting the industry's digital development.

The report further emphasizes that the healthy development of the automotive aftermarket must be based on the continuous intelligent upgrade of the auto parts supply chain. In the future, the auto parts supply chain will have more room for development. Enterprises can realize the dynamic management of inventory by establishing a complete supply chain, and improve the fast transportation between upstream and downstream, in exchange for higher efficiency and lower cost advantages. Zhang Tianbing said: "With the rapid development of the new economy, the market potential of the auto parts supply chain is huge, and the existing pain points and potential challenges will become the focus of the company's open empowerment."

And as emerging technologies drive changes in car buying and after-sales experience, the report believes that automakers must respond positively and rethink how they connect with Internet consumers to meet their growing expectations for product and service experiences. . For example, by portraying consumers' attitudes, needs, behaviors, customer characteristics, and analyzing market service opportunities, and then to the innovation and development of logistics and supply chain, it is an effective upgrade path for future logistics development.

It is also worth noting that due to the deepening reliance of the new generation of consumers on the Internet, people's travel modes are undergoing major changes. The shared travel mode and the development and popularization of new energy vehicles will have an impact on the automotive aftermarket. The shared travel mode can promote the post-market logistics to focus on high efficiency, change the current status of “small, scattered and chaotic” in the end market of auto parts logistics, and develop towards standardization and standardization; although new energy vehicles as emerging industries have changed the current auto parts to some extent. The competitive landscape of the logistics industry, but the transportation, recycling and warehousing of batteries also put new demands on the logistics industry.

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