Opportunities & challenges in emerging autoindustry to padf

• After Sales Market – Currently, China’s aftermarket sales constitute merely 20% of the total revenue from the car accessories and spare parts as against 60% in the Western markets. It presents a major opportunity for the increased aftersales market in future. Along with it is the expected growth in the aftermarket solutions in China.

• Smaller & Cheaper cars – The emerging automotive industry in China is focusing on smaller and cheaper cars with also the stress on lightweight vehicles.

Besides these factors, there are opportunities such as rising market for used cars as well as recreational vehicles. There are plans to promote Vehicle Power Batter development and charging pillars which will further boost the electric vehicle industry in China..

Challenges • Efficient Dealer Network – The rapid expansion in many OEMs’ business in past few years has led to clumsy and inefficient dealership network with either very high or extremely scarce dealer-density in a few cities. It ultimately ends up in reducing their margin due to unnecessary competition and finally results in a dealer’s bankruptcy in the event of lack of financial support from the OEM. A state-of-the-art Dealer Management System is the answer to this problem.

• Changes in consumption behavior – In the past few years, declining stockmarkets, increasing house prices, demanding customers and the overall fiercely competitive market is affecting China’s high-end automotive market and significantly pressurizing the dealers by reducing their margins.efficient dealer management software china can come to their rescue by providing optimum pricing strategy and thereby enable optimization of their margins and profits.

• More informed Customers – Today’s customers have the technology at their disposal. They rely on the internet to get the lowest transaction price amongst various dealers. Digitization of DMS can help dealers provide the real-time data to his customers and help them stay one step ahead of his counterparts.

With a handful of challenges to overcome, China’s emerging automotive market offers a range of opportunities. Taking them in stride would help the country achieve its goal in the near future.