Growth in the Chinese automotive aftermarket continued at a healthy pace through the first half of 2015, according to key market indicators reported by the supplier members of the China Aftermarket Forum (CAF) of the Automotive Aftermarket Suppliers Association (AASA).
The CAF Member Trends survey presents the latest information on the China aftermarket based on supplier sentiments. In the June 2015 survey, the majority of respondents indicated a positive change in aftermarket sales compared to 2014. Members reported that average aftermarket sales in China increased 11 percent, an uptick from the previous quarter.
The average increase for passenger car independent aftermarket sales was 13 percent, a pace slightly behind 2014, but an increase compared to the previous quarter. Respondents reported a 9 percent increase in passenger car OE service, up from 2014, and the majority also reported increases in new order volume. CAF supplier members indicated that hiring continues to be strong and 50 percent of survey respondents reported capacity additions.
In the CAF survey, aftermarket suppliers continue to cite counterfeits as their largest issue in China, as well as the lack of formal distribution channels for their products. Some members also noted the ongoing challenges for the independent aftermarket from OEM approaches in the marketplace.
The CAF Member Trends survey provides members with general information on business conditions and market trends to allow high-level benchmarking of sector performance. Participation in the survey is available solely to AASA members who belong to the CAF, and only survey respondents receive the full survey results report.
AASA is positioned in China to assist its supplier members in advancing their business interests in the country’s growing aftermarket. AASA represents the collective supplier group, based on its dedication to a robust industry that enables members’ business success. The AASA CAF is the only aftermarket executives’ council of its kind in China, and the AASA China Aftermarket Office recently was launched in the Motor & Equipment Manufacturers Association (MEMA) China Center in Shanghai.
For more information about the AASA China Aftermarket Forum or the MEMA China Center, contact [email protected].
Jay Burkhart is AASA vice president, chief strategy officer and executive director of the AASA China Aftermarket Office. Based at the global headquarters of MEMA in Research Triangle Park, N.C., Burkhart provides strategic guidance and global aftermarket direction to Dr. Yilong Chen, managing director of the new MEMA China Center in Shanghai, also the location of the AASA China Aftermarket Office. Burkhart recently joined AASA after 16 years with Federal-Mogul, including the role of senior vice president, global aftermarket. He also previously served as vice president of global marketing at Tenneco Inc.
The AASA CAF is a peer group comprised of members of the AASA with operations in the People’s Republic of China. Its mission is to support the growth of member companies’ business within the Chinese automotive aftermarket. The CAF accomplishes this mission through offering opportunities to meet with peers and other selected constituencies, facilitating collaboration among the members, and representing member interests via coordinated member participation in relevant industry groups.
AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products that support 710,000 employees in the United States. AASA is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is the light vehicle aftermarket division of MEMA.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
