China Automotive Aftermarket

China’s new passenger car sales reached 25.31 million vehicles in 2020, making China the largest new vehicles market in the world. The average age of a car is also expected to rise from 4.6 years in 2018 to 5.5 years in 2023. Increasing car stock and the aging of cars have helped the aftermarket in China thrive. According to a Deloitte report, the auto maintenance market in China will grow at rate of 9.7% annually over the next several years and is expected to reach $249 billion by 2025.

Chinese authorities have also attached more importance to the auto aftermarket in recent years. The government issued policies such as the “Notice on Establishment and Implementation of Vehicle Emission Inspection and Maintenance System” to better regulate this market. These policy moves will help shape and likely accelerate the development of the auto aftermarket soon.

Although car repair parts and accessories are currently dominated by domestic Chinese suppliers, these suppliers primarily provide basic and low-end products and services. Foreign suppliers still take up considerable market share in some high-tech, high value-added products like engine lubricant oil, child car seats, car film products, and car detailing products. Many opportunities may arise from these segments of the market.

For more information contact Office.Beijing@trade.gov.