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Aftermarket executives convening at Automechanika Shanghai for international exchange of industry knowledge

Friday, September 7, 2018 - 07:00
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Sealing deals
The 2017 edition of Automechanika Shanghai set records for attendance as 6,051 exhibitors from 40 countries and regions welcomed 130,928 attendees representing 142 nationalities who traversed 15 show halls encompassing 3.6 million square feet.

This year’s event is expected to be even larger, with 3.7 million sq.-ft of display space hosting 6,250 exhibitors and more than 140,000 attendees.

Messe Frankfurt Traders-Link (Beijing) Co Ltd“Automechanika Shanghai seems to highlight the very latest trends of the industry, and also has a very rewarding schedule of fringe activities in terms of topic and speakers,” reports Fan Zefang, secretary general of the Shanghai Automotive Parts and Accessories Trade Association. “It is very important to further strengthen the upstream and downstream aspects of the supply chain for our association members, and we think that participating in a global show like this really allows them to do that.”

General Manager Paul Kuriakkose of KTK Germany, an international supplier of commercial vehicle parts, points out that “at Automechanika Shanghai, I can meet old suppliers and many new ones under one roof, and no other place in China can offer such a wide coverage.”

“We are very satisfied with the show,” concurs I-Hsien Chen at Taiwan’s Cardinal Technology Co. Ltd., “as it lets us discover new products and new exhibitors each year. It is also a place for me to seal the deals with suppliers for next year, so it’s a show we can’t afford to miss.”

Strategic partnerships
China has been the world’s largest automotive purchaser since 2009 as a rising middle class has led to heightened personal vehicle ownership, including a surge in used-car sales. The average length of a new-car warranty is two years, and half of the overall Chinese fleet is currently four-to-nine-years-old.

(Seeking to curb high levels of urban air pollution, the Chinese government is enthusiastically putting a charge in widespread adaptation of electrically powered cars and light trucks, colloquially called New Energy Vehicles.)

According to a report from the Ipsos consultancy, entitled, The Boom of China’s Automotive Aftermarket Is Imminent, the nation’s aftermarket was valued at $118 billion in 2015 and is expected to expand at a 12.7 percent yearly pace to reach $214 billion by 2020.

“Following the beaten path of mature markets, the Chinese market will surely be consolidated as it matures, with help from capital investments,” the company forecasts.

“Auto parts manufacturers ought to consider closer cooperation with emerging industry players as well as leading aftermarket franchise stores, due to current dominant do-it-for-me mentality of Chinese consumers,” Ipsos advises. “Besides offering cost-effective parts, auto parts manufacturers should position themselves as strategic partners and place more emphasis on technical support, product training and other value-added service to help franchise stores build competitive advantage and to develop and retain customers.”

“It is clear that healthy development of the automotive aftermarket will rely on continuous smart transformation of the auto accessories supply chain,” according to a June analysis jointly issued by Deloitte and JD Logistics. “The auto accessories supply chain will have ample space for development. By building a complete supply chain, companies can manage inventory dynamically as well as improve upstream and downstream transport time in return for higher efficiency and cost advantages.”

“As the new economy prospers, the potential of the auto accessories supply chain is tremendous,” says Zhang Tianbing, leader of Deloitte China’s consumer products & retail sectors. “Existing pain points and potential challenges will become the main driver for companies to unleash their power.”

SPECIAL NOTE: All Show Images Courtesy of Messe Frankfurt Traders-Link (Beijing) Co Ltd
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