Over the past month, the automotive aftermarket industry has witnessed significant developments, with the release of the 2024 China Automotive Aftermarket Maintenance & Repair White Paper drawing widespread attention. This report unveils the current market dynamics through multi-dimensional data analytics, delivering critical insights into operational realities and strategic opportunities for stakeholders

Market Polarization: Growth and Contression Coexist

According to the White Paper data, China's automotive aftermarket exhibited weakened growth momentum in 2024, with declines across three core metrics: workshop visits (-8.3% YoY), per-vehicle output value (-5.1%), and profit margins (-2.4pp). Notably, the traditional "Golden September & Silver October" peak season has vanished, particularly in Tier 1 cities where 54% of service centers reported negative visit growth - including 13% experiencing over 25% drops. Conversely, 46% of operators achieved positive growth, with 14% exceeding 25% increases, highlighting a clear market polarization trend.

Consumer Evolution: Rise of Rational Mobility Spending

The change in car owners' consumption habits is a significant factor driving this trend. After the full lifting of pandemic restrictions, the growth in vehicle mileage has not met expectations, and consumption willingness has also declined. The proportion of car owners consuming only one service item per workshop visit has continued to increase, while the proportion of those consuming four or more items has decreased. This reflects that car owners' spending in automotive maintenance has become more rational and restrained, making it increasingly challenging for repair shops to convert customers to higher-margin projects.

NEV Disruption: Unlocking Profit Frontiers

However, new opportunities emerge amidst challenges. The rise of new energy vehicles has provided domestic tire brands with a 'turnaround' opportunity, with domestic tire brands accounting for 57% of sales in the new energy sector. Additionally, in the independent aftermarket, the engine oil market share has reached nearly 70%, a 5-percentage-point increase compared to 2023, further capturing market share from 4S stores. The penetration rate of new energy vehicles in the independent aftermarket is also increasing, providing repair shops with new business growth points.

King Da Cheng: Deep-Dive Strategy in Aftermarket Challenges

King Da Cheng has been deeply engaged in the automotive aftermarket since 2012, establishing a strong foothold in the industry through its comprehensive supply chain, professional services, and solid reputation. In the future, the company will focus more on technological innovation and industrial chain synergy by optimizing supply chain management and improving service efficiency to meet diverse market demands.

In the field of new energy vehicle maintenance, King Da Cheng is actively expanding its presence. To address the unique technical requirements of new energy vehicles, the company will strengthen technical training to enhance the professional skills of service personnel. Additionally, with the development of intelligent and connected technologies, King Da Cheng is exploring new service models such as remote diagnostics and smart appointment systems to improve service efficiency and customer satisfaction.

Harvest Momentum: Sprinting on Prepared Ground

Facing the future, King Da Cheng will maintain sharp market insight, keep pace with industry trends, and continuously innovate service models and technological approaches. We firmly believe that only through relentless innovation and proactive advancement can we secure an invincible position in the automotive aftermarket. The industry's future will be marked by both opportunities and challenges. With an open mindset and pragmatic strategies, King Da Cheng is poised to embrace these developments, sustaining our passion for the sector and commitment to its evolving demands.