Rising car ownership boosts the rise of branded parts

In 2012, China’s car ownership increased further. The production and sales volume of finished vehicles were 19,271,800 and 19,306,400, respectively, which was a year-on-year increase of 4.6% and 4.3% respectively. The growth rate was steady and there was progress. As of June 2012, China’s vehicle ownership was 114 million vehicles. By 2015, it will maintain a high growth of 8% to 10%. CMIC expects China's auto parts market to approach 1.5 trillion in the three years from 2013 to 2015.

In contrast, the growth rate of high-end cars is relatively large, and mid-range models are still the main force in the market. The deepening of the urbanization process and the increase in disposable income of residents have driven the steady growth of the auto industry and provided great support for the growth of the auto parts industry. According to statistics, in 2012, China's auto parts industry sales increased by 11.9% year-on-year. From the perspective of the performance of regional markets, the high sales of auto parts in the East, South and Northeast regions are the main markets for auto parts in China, and the development potential of the “two west and two north” regions in the southwest, northwest, northeast, and north China. Huge, is becoming a powerful demand engine for the development of the automotive parts industry.

Due to the implementation of the restrictive purchase policy in big cities, the increase in car sales did not increase the profitability of car dealers in selling cars. 4S shop sales profit due to decline in car sales, and to obtain profits in parts and components, and thus pay more attention to the car after-sales warranty, with particular emphasis on new car sales and car extension services; and because of the decline in car beauty products sales and profits, but also began Focus on the fast car repair business. As a result, the market for branded parts' survival and development has greatly expanded, and major companies have also invested large amounts of capital and intelligence into the subject of “How to adapt to the transformation of terminal marketing and guide the consumer trust of terminal and vehicle owners”. This will be further promoted. The terminal transformation and upgrading.

In general, the situation of domestic brand parts is generally good. CMIC experts concluded that the ownership of private cars is increasing, and the scale and service quality of auto repair service companies are on the rise. Private auto owners will pay more attention to product cost-effectiveness under the premise of ensuring product safety and reliability. Therefore, the brand auto parts market space is also getting bigger and bigger.

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