Report: Chinese Aftermarket to Grow by 7.5% Per Year

The Chinese aftermarket is forecasted to grow 7.5% per year through 2030, according to a report by McKinsey.

According to the report, the rest of Asia will be the second-fastest-growing market with a growth rate of 6.1%. The North American market is forecasted to grow at a rate of 1.7% per year and followed by Europe at 1.5%.

The China International Tire Expo (CITEXPO) reported that the number of passenger vehicles in operation (VIO) in China will grow from 185 million to 401.7 million from 2017 to 2025. In addition, the average age of a car in China is 4.4 years, according to the report “Chinese Automotive Aftermarket, Forecast to 2025″ by Research And Markets.

Currently, foreign and joint venture companies manufacturing automotive parts are dominating the market, with a 70% revenue share as of 2017, CITEXPO says.

CITEXPO says one disruptive trend in the Chinese automotive aftermarket is the diversification by eCommerce platforms, which are likely to increase from 12.7% in 2017 to 40% in 2025.