Digital Auto Care Factbook 2016 - (Page 97)

CHINESE AUTO CARE INDUSTRY In terms of geographic dispersion, the parc is still concentrated along the eastern seaboard of the country in Tier 1 cities in cities like Shanghai, Beijing and Guangzhou. The eastern seaboard has traditionally been the focus of economic development, investment and trade in China. Five provinces comprise an estimated 40 percent of the parc. However, the market is beginning to spread as central and western provinces, and Tier 2 and Tier 3 cities grow and develop across China. Serving these expanding geographic areas is presenting challenges to parts suppliers as these markets have less developed infrastructures and smaller and generally less sophisticated distributors. Another important segmentation of the parc is by National Base, or the home geography of the auto maker which is leading the car's design and technology and often specifies the suppliers for certain parts and materials (e.g. the National base Estimated Share of 2014 Light for Shanghai General Motors is the USA). Based on a parts supplier's global PC Parc by National Base customer base and vehicle maker relationships, this segmentation can affect the scope of its addressable market. Over the last five to seven years, the Chinese parc has become more balanced by National Base. Prior to 2001, Other 3% VW, through its Shanghai VW joint venture, dominated the PC parc with its Santana model. Today, virtually all foreign vehicle makers are active in China USA China and a few leading Chinese makers have evolved to significant scale. This 13% 29% National Base is also skewed by vehicle classification, e.g. the Europeans Korea have the lion's share of the luxury car parc while the Chinese dominate small 9% buses and are very active in low and mid end PCs. Japan 19% Based on a continued slowing in new vehicle sales, which will average around 6 percent per year growth over the next five years (slowing from current ~10 Europe 27% Source: TECHNOMIC ASIA percent to 3-4 percent by end of the decade), the parc's growth will also slow though will still be very robust by international standards. The forecasted 2019 light passenger vehicle parc will surpass 210 million units, growing ~13 percent per year on average, versus the ~20 percent growth rate of the past five years. The parc will continue to age with vehicles in the 4 to 9 year old range growing to 50 percent for PCs and almost 60 percent for small buses. Forecast of China's Light Passenger Vehicle Parc 2012 to 2019 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2012 2013 2014 Total Parc 2015 2016 PCs 2017 2018 2019 Small Buses Distribution In China's Aftermarket Source: TECHNOMIC ASIA Distribution to China's aftermarket remains very dynamic and presents many challenges to suppliers at all levels of the value chain. The OES channel serving the car makers' 4S shops remains the dominant channel at an estimated 65-70 percent of the parts and service aftermarket value. There are over 23,000 4S shops in China which continue to expand into central and west China as those vehicle markets grow. However, there is growing anti-monopoly legislation which aims to "open this channel up" to independent parts and service suppliers as a means to lower the repair costs for consumers. This legislation, coupled with other government 2016 Digital Auto Care Factbook Copyright © 2015 Auto Care Association 97

Table of Contents for the Digital Edition of Digital Auto Care Factbook 2016

Auto Care Association Market Intelligence Committee
Economic Indicators
Key Economic Indicators
National Debt
Aftermarket Dynamics
Industry Employment
Technician Employment and Wages
What Do Our Members Think?
BCI Summary
State of the Auto Care Industry
U.S. Motor Vehicle Auto Care Industry
Introduction to the Channel Forecast Model
2014 to 2018 Forecast Assumptions
U.S. Motor Vehicle Auto Care Industry
Auto Care Sales History and Forecast 2007 to 2018
Auto Care Sales by Distribution Channel
Auto Care Segmentation
Auto Care Service and Retail Outlets
Auto Care Service and Retail Outlet Analysis
Program Distribution Summary
Retail Distribution Summary
e-Tailing
Financial Benchmarks
Financial Profiles of Select Auto Care Companies
Select Auto Care Transactions
Auto Care Industry
Consumer Profile
Replacement Rates for Motor Vehicle Parts and Jobs
Top 10 Replacement Rate Categories By Vehicle Age
Auto Care Industry Segments
Medium And Heavy Duty Truck Industry
Sales of Replacement Tires
Tool and Equipment
Paint, Body and Equipment
BodyShop Business Industry Profile: 2013-14
Vehicle Registrations and Usage
U.S. New Motor Vehicle Registrations
Top 10 Light Vehicle Registrations
U.S. Total Motor Vehicle Population
Hybrid Vehicles
Vehicle Operating Costs
Miles Driven vs. Gasoline Affordability
Gasoline Affordability and Fuel Consumption
Crude Oil and Diesel Fuel Costs
State Summary Statistics
State Summary Statistics
Global Auto Care Industry
Global Economic and Automotive Data
U. S. Trade Data for Selected Motor Vehicle Products
U. S. Trade Data By Country
Canadian Auto Care Industry
Mexican Auto Care Industry
Chinese Auto Care Industry
Glossary and Reference
Glossary and Terms
NAICS Definitions
Auto Care Data Resources
Auto Care Data Resources
Auto Care Association Market Intelligence
Auto Care Association Market Intelligence
Auto Care Association – Lang Market Comparison
Harmonization of Auto Care Industry Data

Digital Auto Care Factbook 2016