As one of the mainstay industries in China, the automobile industry experienced the first ten years of prime development in the 21th century. At present, the growth rate of new automobile sales volume is slump while that of the after-sales market remains high and possesses a positive prospect. The automobile reserve increased continuously with the economy and reached 184 million by Jun. 2016. The sales volume approached 24.6 million in 2015. The demand for automobile maintenance grows rapidly with the reserve, sales volume and longer average service time of automobiles in China. According to CRI, the market size of the automobile maintenance reached CNY 800 billion in 2015 with the CAGR of 14.9%, far surpassing the growth rate of the automobile industry and GDP in China.
CRI market research indicates that automobile maintenance enterprises are classified into three types including 4S, fast repair chain and traditional repair stores or factories. At present, 4S stores only provide after-sales services for authorized brands as special authorized ones of whole vehicles, which lead to scattered maintenance services and low concentration rate. Fast repair chain stores are small in number accounting for less than 1% of the total and regional without brand and scale effect spanning China. Meanwhile, traditional roadside repair shops or factories are larger in number but inferior in scale, quality and level of components and technologies than the above two types. Presently, the automobile maintenance market is at the stage of growth. It is estimated that the industry concentration rate will increase continuously.
In terms of the reserve per capita, it is estimated that over 350 million new automobiles will enter the market at the prevalence stage from 2016 to 2025, which will drive the maintenance market.