The automobile service industry has a market capacity of 80 billion and foreign capital has intensified its penetration.


On April 27th, with the formal opening of Shanghai Baixie Pai Auto Service Co., Ltd., “Aust-Agnes Bacchuszhuang Store”, Japan’s largest automotive supplies chain Au De Bacques took the first step to enter China. It is reported that a number of foreign-funded automotive service companies have plans to open stores in China and will compete fiercely in the Chinese market in the next two to three years.

Au De Bacchus blooms all over China in five years

It is understood that Shanghai Baixie Pai Auto Service Co., Ltd. is a joint venture established by Japan's Aode Bacchus Group, Shanghai Pai Auto Technical Service Co., Ltd., and Japan's KOSHIDA Co., Ltd., with a total investment of 35 million yuan, and the proportion of the three parties is 65 respectively. %, 20% and 15%.
Xu Hao, general manager of Shanghai Pai’s Automotive Technical Services Co., Ltd., one of the joint venture partners, stated that the Au De Bacs chain will meet the needs of all owners as much as possible, from providing automotive perfumes to large-scale car conversions, from Santana to Mercedes-Benz. BMW and other high-end cars.
It is reported that Au De Bacchus is Japan's first comprehensive automotive supplies store with a one-stop service, and has more than 500 chain stores worldwide. The chairman of the company, Sumano Ichino, announced a plan to “grasp the cities” in China: The joint venture company plans to enter the Beijing market next year and will open 100 chain stores in China within five years.
The infiltration of foreign investment in the automobile service trade has intensified while Australia de Bacchus has taken root in China. Its direct competitor in Japan, Huang Hat Co., Ltd. also decided to open its China in Shanghai International Automobile City under construction. The first store, with an area of ​​16,500 square meters.
It is not just Japanese companies that have the same considerations. The world's largest car repair chain company, American AC Deco, has also disclosed that in the next two to three years, it will develop more than 200 car repair chain stores in China.
Zhang Yuxian, deputy director of the Development Research Department of the National Information Center, believes that after China's accession to the WTO, China will promise to gradually open up services to foreign investors. In order to seek more initiatives in the Chinese auto market, foreign investment has penetrated both in the past from purely manufacturing participation to procurement and sales services.
It is understood that a mature international automotive market, after-sales service accounted for more than 50% of the profits of the entire industry chain, the current national after-sales market capacity of more than 800 billion yuan. From the current point of view, the automotive service market is the only area that has not been fully opened to foreign investors. Therefore, the giants of the international auto service market are also stepping up their landings in China and are only waiting to be flexed when the market is released next year.