Being part of a highly globalized industry, businesses engaged in the production and distribution of motor vehicles had to face a range of concerning events in 2019. Continuing global trade frictions, a deteriorating overall economic climate and uncertainties caused by unfavourable political moves made a significant number of companies adjust their targets in terms of output and turnover.

As the second biggest economy in the world (after USA) and most important trade partner for numerous countries, economic indicators for the People’s Republic of China are particularly observed.

Although the sales volumes of Chinese vehicle manufacturers were also shrinking recently due to the situation described above, the automotive market in China is still growing and of great importance for independent automotive aftermarket (IAM) actors.

The average age of passenger car in China now reached 5 years and will continue to increase in the future. This will lead to ever growing number of car related services no longer covered by vehicle manufacturer's warranties thus creating a huge demand gap in the aftermarket services of car repair and maintenance to be filled. Besides, China plays an increasing role in the development of alternative powertrains and digital application systems. After the first half of 2019 3,4 million new energy vehicles (NEVs) were registered in China, making it the biggest NEV parc worldwide.

Meanwhile online giants like Baidu and Alibaba make large investments in autonomous driving technologies. And when it comes to state subsidies for these sectors, fully electric and fuel cell electric as well as intelligent vehicles are heavily backed by governmental support. This goes in line with China’s general industrial policies with the aim to level up the Chinese economy and finally position China as the leading manufacturing superpower.