Where does the market chaos and fake multi-parts companies go?

Global counterfeit auto parts 80% in China! To see this amazing number, I believe that the first feeling of many Chinese car owners is that we are all using counterfeit auto parts.

Before the “3·15” in the past, the Beijing Municipal Bureau of Industry and Commerce Chaoyang Branch seized more than 700 pieces of counterfeit generic brand accessories worth more than 400,000 yuan in the Shenghua Auto Parts City of Wangsiying in the area under its jurisdiction. The Daya Bay Branch of the Huizhou Bureau of Industry and Commerce seized a total of 418 kilograms of 45 barrels of counterfeit Shell registered trademark lubricants. The usual situation is that we ourselves go to Auto Parts City and even if we buy simple accessories, we are in danger of being deceived.

Contrary to the chaos in the auto parts market, the business opportunities in the automotive aftermarket are increasing with the growth of car ownership. Yu Yuanchun, vice president of the China Automobile Dealers Association, recently stated that it is expected that the Chinese auto aftermarket will increase to approximately 490 billion yuan by 2012, and auto parts will account for the bulk of the car aftermarket cake.

Although the business opportunities are large, but the market is chaotic, where should the parts and components companies go?

Relevant experts believe that the automotive aftermarket is different from the supporting market. In addition to the sales system capabilities, brand building for end users is one of the most critical factors. For example, a domestic brake customer's brand awareness of a certain end customer is about 30%, which drives its sales to increase from 60 million yuan in 2007 to 200 million yuan in 2011. In contrast, a world-class brake pad company is behind a Chinese car. Market sales have remained at 10 million yuan, because its client brand awareness is only 3%.

Compared with local auto parts companies, the international parts giant has apparently gained insight into this. Recently, Delphi, Philips, Federal-Mogul, and Tenneco, the four largest global auto parts manufacturers, jointly organized a large-scale marketing campaign for “Auto Parts to Terminals” in Shanghai. This has just opened up 100 activities in the country. Prologue, it is expected that there will be more than 50 world-class brand manufacturers such as Bosch added to the event later. The joint action of international giants indicates that the competition in China's auto aftermarket is heating up. If there is no active domestic component company that is already in a weak position, the space for survival will be increasingly narrow.

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