Auto-parts suppliers focus on after sales
- Source: Shanghai Daily
- [08:47 December 10 2010]
- Comments
An increasing number of auto parts suppliers are eying China's emerging after-sales market, which boasts higher profit margins and could better weather a slowdown in vehicle sales.
"China's after-sales market is developing very rapidly with rising consumer awareness towards product quality," Jason Li, project engineer at ArvinMeritor, said yesterday at a booth at Automechanika Shanghai, Asia's largest trade fair for automotive parts, equipment and services.
Revenue from the after-sales market is expected to reach 185.5 billion yuan ($27.8 billion) in 2011. And the number is forecast to grow 8 percent annually to about 252.3 billion yuan by 2015, according to a report jointly released by the Society of Automotive Engineers of China and a research center under the State Council.
"International auto parts suppliers are attaching more attention to China due to its high profit margin," added Li.
United States-based ArvinMeritor is among scores of industry giants such as Continental, Delphi and Honeywell to exhibit at the show for the first time.
A record 3,115 exhibitors from 27 countries and regions have displays at the show, an increase of 24 percent from last year. And exhibition space is up 33 percent this year to 138,000 square meters, according to Michael Johannes, vice president of Messe Frankfurt Exhibition GmbH, the organizer of the event.
Automechanika opened yesterday at Shanghai New International Expo Center and ends on Saturday. More than 45,000 professional buyers are expected, up 18 percent from last year.
