Automotive related industries huge profits

Speaking of profit margins in the automotive industry, it really is better to curb mobile phone film, as most car companies can only earn about three dollars from 100 dollars, the profit margin even higher foreign brands such as Audi, only earn 8 dollars. Many brands of fierce fighting proved my country's auto industry, the traditional profit chain model has begun to the third part of the passage, lucrative and under-development of the automotive aftermarket has become their new car prices battlegrounds. Today, the domestic automobile enterprises mainly involved which links aftermarket? What car firms involved in the aftermarket benefit the consumer? How will they profit from this market? Preliminary discussion paper will be more problems.

Car prices have started running into the used car market and other areas after

Automotive aftermarket refers to the repair, maintenance, service and the required automotive parts, automotive supplies market after automobiles and cars sold in the material. This paper analyzes the domestic automobile enterprises in the automotive aftermarket expansion of derivatives business, the impact on consumers and the market may produce the car. For consumers, the cost of car use during the period of service with their lives, so service quality is often the decisive factor in consumer car.

For most car owners, they are more familiar with service-oriented maintenance, which is the development of my country's market early and more mature business segments. This maintenance is still currently two main dealer service, but huge profits attracted many incoming car prices.

For example, SAIC announced the chain of physical service brand in 2015 - the car home to enjoy, to the maintenance and basic business cut into the automotive aftermarket. Today, the car home to enjoy most of the stores from the beginning of the development of a more diversified form a single integrated store shop, center stores, community stores, gas stations, shops, businesses have become more diverse on-site shuttle bus from the basic maintenance , emergency and other services.

It is worth mentioning that car to enjoy home after a market test the water after the success of the car, SAIC has launched a car to enjoy the new car, car sharing used car, car sharing payment, car sharing with other platforms, through the intervention of second-hand cars, auto parts, etc. after in-depth market services and mining more profitable, while also providing consumers with an integrated online and offline, one-stop service loop.

In addition to SAIC derived enjoy home used car service by car, domestic car prices have begun to layout to enter this field. This aspect comes from used car lift restrictions on migration, encourage and support the export business of used car policy, on the other hand due to the continued growth of the market. China Marketing Association latest data show that from January to September 2019, the country's second-hand car trading a total of 10.585 million, an increase of 4.32?total transaction amount 667.05 billion yuan, an increase of 5.79?r

It is worth mentioning that the traditional car companies such as Great Wall Motor, Chery Automobile is not only focused on the domestic used car trade, has also launched a used car export business. Wholly owned subsidiary of the Great Wall which is often a good car (Tianjin) Automobile Import and Export Co., Ltd. completed its first single used car export business in the end of July 2019, the first export of second-hand vehicles sent to multiple Asia and Cambodia, Nigeria, Ghana, etc. non-state.

Chery Automobile International has now also set up a special department for used car export business, and to develop a second-hand car export target market and plan accordingly. According to Chery said its first batch of used car exporting countries as Cambodia, Nigeria, Ukraine, Kazakhstan and other large market demand.

Repairer forces in areas such as new cars Weimaraner, Wei to car respectively in August and November this year launched a second-hand car platform, their layout in the used car field were explored for the used car electric hedge to a large extent, for example, It proposed "Weimaraner Care +" program, the Weimaraner official certification of used electric cars can enjoy at 61.8?according to the original car-type base prices after subsidies) depreciated value, much higher than the current mainstream of new energy vehicles three-year average hedge rate of 32.3?rWei official channels to the sale of second-hand cars will be subject to "Nio Certified" certification which will be the vehicle 286 indicators of professional testing to rule out an accident, flood damage, fire vehicles. Edit found Wei to official ES8 sold a second-hand car, and ultimately to 548,000 yuan compared to the official pricing (the amount of subsidies will not be counted) sold at a price of about 7?also higher than the market used car electric Residual rate.

This means that, as the new record car prices, Weimaraner, Wei to join second-hand car market is not competitive in order to obtain higher profits, but in order to solve the electric car hedging rate and other issues. By addressing the pain points of second-hand electric car purchase issue and other aspects of the assessment, allowing users to rest assured that the old have to sell second-hand electric car, and continue to feel comfortable buying a new electric car.

Although some car prices have gradually entered the used-car field to compete, but compared to third-party service providers and related used car dealers is relatively weak profitability. However, innovative services for its existing imperfect systems provided, and with the increasing scale of users, car prices in the future or will obtain huge profits through the layout in advance. And with car prices as the leading used car business will help strengthen the industry credit system and improve the quality of operators, consumers will have faith because of branding, interaction between the two sides can effectively promote the healthy development of the used car market.

In addition to second-hand cars, domestic car prices are also being explored auto finance and car insurance and other aftermarket services, such as Great Wall Motor October 28 announced that it will join forces to create a new insurance service with the German insurance giant ERGO Group (ERGO Group) professional organizations to provide quality of life for the car owned Great Wall Motor's dealers and end users, while providing comprehensive insurance solutions for Great Wall Motor and its financial and travel platform. Although the Great Wall of insurance services has not yet officially launched, but its introduction can be seen, its insurance services solutions cover both auto finance and insurance services, and will also launch innovative solutions, or provide new services to existing markets example.

New car prices hit Xiaopeng Motors in August this year launched a "smart online claims service", when the owners of an accident, reported to simplify the process and shorten the time insurance payments. Use this online report features the fastest to get the insurance company Peifu Kuan within 1 day. Xiaopeng car is the first car companies to launch App features online report, which is currently being subjected to a number of regional and insurance companies limit, but will form a new trend or to drive online service upgrades car prices, car owners upgrade experience when accident claims.

Car prices after the market what should be or as innovative

As can be seen from the above sort, the automotive industry in the current downturn, there are many car companies began to penetrate markets in the future, but for the development of mature markets compared to developed countries, China's car prices can explore in this area there are many. Take Japan, Toyota, Honda and other car brands in addition to the monopoly market by auto sales, but also to obtain substantial profits from the market and other business services, and thanks to their strong sales service network. Toyota, for example, Toyota's Japanese car company has 283 sales agents in the whole of Japan established more than 5,000 sales and service outlets in central Tokyo had an average of 3.6 kilometers Toyota sales and service shop, which is huge for Toyota profit foundation.

"Fortune" magazine published by the world's top 500 information display, Volkswagen's net profit in 2018 was $ 13.1 billion, Toyota's net profit of $ 22.51 billion, which means that global auto sales in the first Volkswagen Toyota's profit is only 50?while sales of both is almost the same: in 2017, Volkswagen sales of 10.74 million, Toyota is 10,380,000; 2018, Volkswagen sales of 10.83 million, Toyota is 10,520,000. In the global automotive market competition knife with blood the moment, Toyota can be promoted to become a high premium on the world's most profitable car company can not rely on the product, which is the secret weapon that continued from Denver aftermarket.

But at the same time our car prices from aftermarket Nuggets emulate Toyota and other companies, but also be careful not to copy all in order to avoid "acclimatized." Because if the domestic auto brand building self-sale stores nationwide or independent service channels, in addition to increased construction costs, but also may lead to conflicts between the dealer. Therefore, how to measure to enhance consumer demand for aftermarket sale profits on the basis of price, expertise, response speed on one of the main issues before the domestic car prices.

In addition, the domestic automobile enterprises should also focus on emerging markets after the business segments, such as charging for electric services, software services, and other functions. To charge market, iResearch report statistics show that as of the end of 2019, China's public charging service industry market size will more than 15 billion yuan, while in 2020 the market size will reach 200 billion yuan, which means including charging huge pile potential operators, including charging facilities.

In addition to traditional car companies currently outside as SAIC SAIC Yue, etc., new car prices, such as Wei Chong, the Weimaraner, Xiaopeng and other operators charge the same initial layout, but most users are still serving their own brand-based, do not scale large and insufficient profitability. However, my country's industry is currently charging has great potential and did not form a stable market structure, leading to explore the car prices charged in addition to providing a better experience for owners outside, it may be the first to find the profit model in order to get a good return.

Future trends, product development and popularization of electrification on the one hand will reduce existing market after profit pool (electric car oil filter does not require frequent maintenance, etc.), but also will create new after-market services, such as network-linked car online predictive maintenance, automotive software customization and personalization features services and richer customization aftermarket demand, which is likely to become the next service point profit car prices.

Concluding remarks: For now, the domestic automobile enterprises have the layout in repair shops, specialized maintenance and repair, and gradually infiltrate and actively occupying the second-hand car, auto finance/insurance and charging operations and other markets. But my country's auto after-sales market is still the main distributor for the service, domestic car prices have not yet formed a relatively mature profit model.

But to explore the domestic automobile enterprises in innovative service model to enhance the brand and product value, etc. will improve the consumer's intuitive car experience, it would be helpful to create and enhance brand image, gathering a loyal fan and the mining market profits. Today, after China's auto market is still under-exploited, enormous potential areas to explore in the field of car prices is difficult to smooth sailing all the way, but after being subjected to the market and customers live a double test, or will they in the future by providing more high value-added cars services thus gain huge profits.

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