The breakthrough of 300 million motor vehicles brings magnificent prospects for auto parts market
According to the data of auto production and marketing in March released by China Association of Automobile Manufacturers (CAAM), the sales volume of passenger car in March is growing rapidly, and the growth rate is slightly lower than that of the same year. From January to March, the sales of passenger cars increased slightly, and their increase in speed was slower than that in the same period of the previous year. The main reason for the slowdown is that last year's purchase tax preferential policy overdrafts some of the demand in advance, which has led to a slowdown in the growth of car consumption this year. In the context of the overall slowdown in the new car consumption, the aftermarket of cars has become a huge "cake" because of the huge amount of motor vehicles in the country.
According to the Traffic Management Bureau of the Public Security Ministry, at the end of March 2017, the number of vehicles for the first time exceeded 300 million, among which the car retains the quantity amounts to 200 million. There are more than 1 million cars in 49 cities and more than 2 million cars in 19 cities. There are more than 3 million cars in 6 cities which are Beijing, Chengdu, Chongqing, Shanghai, Suzhou and Shenzhen. According to the report issued by an analysis organization, it is estimated that the scale of the automotive aftermarket will reach 1,060 billion yuan in 2017 (excluding auto finance), which will increase by 21.4% compared to the same period last year. It is expected that the scale will exceed 1.2 trillion in 2019.
In terms of policies, the Ministry of Commerce recently released "the Measures for Administration of Automobile Sales", which will be implemented on July 1st. The rules break the single system of brand authorization, which means that the car sales no longer have to be authorized by car enterprises. This will significantly improve the market liquidity of auto parts and nurture a more mature automotive aftermarket .