New energy vehicle market penetration expected to exceed 30 percent
On May 26th, the 11th Yunshan Auto Repair Conference was held in Guangzhou. This year's conference, with the theme of "walk by light", attracted authoritative experts and scholars from China Automobile Circulation Association, OEMs, insurance, auto repair and auto parts and other auto industry chain to attend the conference, gathering 400+ industry elites to discuss the challenges and opportunities faced by the auto aftermarket under the turbulent industry, and explore the conflicts and growth logic under the changing situation of auto industry.
It is understood that it is the 25th anniversary of the founding of Huasheng Group, at the meeting, Huasheng frankly shared the progress, achievements, lessons learned and future development path of the transformation and upgrading of embracing the new changes, and invited more industry chain partners to work together to create a new situation of China's automotive aftermarket!
New energy vehicle market penetration rate is expected to exceed 30%Recently, the domestic passenger car market sales data released by the Passenger Association showed that the cumulative retail sales of domestic narrow passenger cars in 2022 were 20.543 million units, an increase of 1.97% over the previous year. Among them, the cumulative retail sales of traditional energy vehicles were 14.868 million units, down 13.34% from the previous year, with sales declining for the third consecutive year. New energy vehicles retailed 5.674 million units, an increase of 89.83% over the previous year. It is worth mentioning that the domestic market penetration rate of new energy vehicles reached 27.62% in 2022, continuing to expand its territory in the Chinese auto market.
It is understood that in the past year, under the influence of a number of factors, the Chinese automotive industry has experienced a decline in efficiency. On the one hand, traditional car companies accelerated their transformation, and the development of new energy vehicles began to shift from policy- and subsidy-driven to market- and consumption-driven; on the other hand, the influence of external factors from foreign new energy car companies intensified the industrial changes. The auto industry is facing multiple trends such as slowing production and sales growth, continued penetration of new energy, and global market differentiation to reshape.
Although China's auto industry experienced ups and downs last year, the data from the China Association of Automobile Manufacturers displayed at the meeting showed that China's share of the world market reached 33.5% by 2022. Among them, the share of new energy vehicles exceeds 63%.
At the meeting, several experts expressed optimism about the prospects of China's new energy vehicle market, and they predicted that the domestic market penetration rate of new energy vehicles is expected to exceed 30% in 2023. The new opportunity of auto market may drive the transformation and upgrading of auto after-market industry.
Huasheng two-wheel drive to expand the business new bureau
At present, the domestic automotive aftermarket is in the harvest period of traditional fuel car aftermarket and also enters the rapid climbing period of new energy aftermarket.
"The next 3-5 years is the transformation of new energy window period, luxury fuel car business before 2030 still has the survival and development space, but the whole after-market into the accelerated elimination and integration stage." Zhou Dajun, chairman and president of Huasheng Group, said that in 2024, the automotive aftermarket will also usher in new energy out of warranty maintenance opportunities, and the independent aftermarket maintenance service capacity and operational efficiency will become the key to new energy aftermarket operations.
It is understood that when the industry began to roll in and out also continue to accelerate, traditional engine systems and other traditional mechanical and electrical business volume in the future will be significantly reduced, and subsequently replaced, such as accidents sheet metal spraying, air conditioning, chassis, battery repair and other new energy vehicle maintenance business increase.
Cui Dongshu, Secretary General of the Automobile Market Research Branch of the China Automobile Dealers Association, said that new cars and after-sales service are still the two pillars of production value/profit for Chinese luxury brand dealers; in the future, only through deep excavation of customer value, expansion of user operation space, reshaping the after-sales value chain and continuous optimization of business structure can the core competitiveness of the overall profitability be effectively improved.
Industry community to boost transformation and upgrading
At the conference, Mr. Shi Shuai, Roland Berger Partner and Vice President of Greater China, believed that with the new energy and other new trends, the automotive aftermarket will evolve in five major directions: more concentrated industry, richer ecology, more diversified income, flatter channels, and more intelligent services. From the perspective of OEMs, they shared and emphasized the importance of refined service and collaborative organizational development to improve customer satisfaction and effectively meet market demand. Zhao Mei, Senior Director of Ping An General Insurance, explained the trends and development opportunities of auto insurance from the perspective of how to establish a good "auto service ecosystem" in the new era.
At the end of the conference, as the final speaker of the conference, Zhou Yin, Vice President and Director of Huasheng Group, shared the theme, reviewing how Huasheng has faced many uncertainties in the market development in the past 25 years and forged ahead with consistent strength of mind, determination and strength of battle. She believes that the industry should return to the essence of business, keep pace with the times and build profitability, which is the key to survive and live for a long time under the ebb of capital.
In the face of the new energy trend of the industry's continuous internal volume, forum guests agreed that development is the basis and key to solve all problems, the crisis is also an opportunity to force the industry to continue to transform and upgrade, only to build an industrial community, build a healthy market norms, in order to promote the benign development of the industry and create a new situation of mutual benefit and win-win.