Market Opportunities for Automotive Aftermarket in China (January 2021)

48 pages. China's strong growth in car sales, contributed by fast economic growth and demographic dividend over the past two decades, is expected to surpass the United States to become the world's largest auto market by 2025. The growth in new car sales has worked in favour of the automotive aftermarket segment, feeding into an estimated demand that will merely hit USD 200 billion in 2025 driven mainly by repair and maintenance services. This will give rise to the parts replacement market which includes rubber automotive parts. To capitalize on these opportunities, MRC has conducted a study to explore current and evolving distribution channels of aftermarket parts in China. The report pointed out, China's auto aftermarket industry remains fragmented and disorganized despite the promising market growth. Nonetheless, it provides information on the supply channels and potential buyers for Malaysian products. At the same time, the report also highlights that the digitalization in the auto aftermarkets is evolving into new channel models, which provides an alternative platform to penetrate the Chinese automotive aftermarket.