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China’s fast-growing automotive market presents opportunities for all

China’s auto market is creating “explosive growth opportunity” for companies prepared to adapt their approach, according to a new report by Gao Feng

The report, Rising Opportunities in China’s Automotive Independent Aftermarket, was produced by Bill Russo, Jason Zhang, Jackie Tang and Peter Hu.

The authors say China’s automotive market has “entered a new phase” which brings “enormous opportunities”. 

The study specifically examines the complexity of China’s independent aftermarket, including the distribution channel and service shops.

It also highlights the key success factors, market dynamics and emerging marketing channels in the independent aftermarket, and assess the implications of these developments for key players along the value chain.


Edward Tse, CEO of Gao Feng, says: “China’s auto aftermarket is an explosive growth opportunity for organizations that are prepared to adapt their approach to the China context.”

He adds that, as the China market enters a more mature stage with slower new car sales growth, “key players must act now to find opportunities to profitably grow their participation in this business”.

Unlocking this potential will require an expanded set of capabilities, says the report, often developed in collaboration with new partners offering a combination of products and services to a maturing market.

In this environment, automakers, suppliers, parts distributors and service shops are all seeking ways to offer a clear and differentiated value proposition in order to succeed in the aftermarket, and they must act quickly to compete with new entrants who are seeking to disrupt the traditional service model, says Gao Feng.