Auto value chain seen shifting downstream

Résumé détaillé

"As China's auto market enters a new stage in which both new vehicle sales and the existing vehicle fleet are driving growth, the automotive value chain is increasingly extending…

China's growing market for services throughout a vehicle's life cycle is opening fresh opportunities to expand domestic demand, as an aging fleet and the shift to electric mobility create needs extending well beyond the showroom.

The market could exceed 10 trillion yuan ($1.5 trillion) by 2030, up from an estimated 7.2 trillion yuan in 2025, according to a recent industry white paper jointly released by the China Automobile Dealers Association, China Automotive Technology and Research Center and automotive platform Dongchedi.

The report provides the first clear definition of the automotive consumption services sector's scope, dividing it into vehicle transaction services, covering new car selection and purchase as well as used-car trading and aftermarket services that support vehicle ownership, including maintenance, charging, finance, insurance, customization and automotive culture.

"Automotive consumption services span both producer and consumer services and constitute a strategic, integrated industry for expanding domestic demand, stabilizing employment and improving people's quality of life," said Huang Yonghe, a former senior chief expert at the CATARC.

For the automotive industry, the foundation is the vast number of vehicles already in use. Ministry of Public Security figures show that China had 371 million automobiles by the end of June 2026, including 48.97 million new energy vehicles, or 13.2 percent of the total.

In this regard, the average age of passenger cars in China reached about 7.3 years in 2025, with vehicles aged seven years or older accounting for more than half of the fleet, driving growing demand for services for vehicles already in use, the report said.

Older vehicles sustain demand for repairs and replacement parts, while electrification creates additional business in battery diagnostics, charging equipment maintenance and software services.

The country's automotive maintenance and repair market generated approximately 1.15 trillion yuan in output…

Début de l'article, extrait de China Daily Business. Pour lire la suite, ouvrez l'article chez le média.