According to the report of the China Association of Automobile Manufacturers, in addition to policy factors, economic factors, and social and cultural factors to promote the growth of China's automotive aftermarket, there are also technical factors.
According to a report by the China Association of Automobile Manufacturers, new technologies such as big data and AI models are accelerating changes in the automotive industry. For example, big data and AI technologies are transforming many aspects of the automotive aftermarket, from vehicle diagnostics and repair services to customer relationship management. For example, by analyzing the data collected by the vehicle's sensors, potential failures can be predicted and maintenance can be scheduled in advance, reducing the risk of sudden failures. The application of AI large models also shows great potential in the fields of marketing, vehicle diagnosis, maintenance services, and financial and insurance program calculation.
The application of large models in the field of automobile maintenance
By analyzing the data collected by the vehicle's sensors, large models are able to predict potential failures of vehicle components and enable maintenance to be carried out in advance. This predictive maintenance can reduce vehicle downtime and reduce repair costs. For example, a vehicle's sensors such as engine, tire pressure, brake wear, and fluid levels continuously collect data and send it to a central system for analysis to detect any signs of wear or failure. In addition, AI-powered diagnostic tools are able to analyze the vehicle's sensor data to identify issues that may not be perceived by a human technician. These tools can communicate directly with the vehicle's on-board computer system, providing detailed vehicle status reports, including engine performance and emission levels.
The application of large models in the field of automobile marketing
Personalization and enhanced customer experience
Accurate recommendation: The large model can provide accurate vehicle recommendations for auto brands by analyzing consumer behavior data, browsing history, purchase preferences, etc. For example, an AI-powered recommendation engine can recommend models that meet a user's needs based on their search habits and interests.
Hyper-personalized advertising: Using the analytics capabilities of large models, automotive brands can create dynamic, personalized ads that adjust ad content based on users' real-time behaviors and preferences to increase ad conversion rates.
Content Generation & Creative Marketing
Automated content creation: Large models can automatically generate high-quality copy, blog posts, advertising words, and other content based on brand tone and target audience. This not only saves labor costs, but also ensures consistency and professionalism in the content.
Creative generation: Brainstorm with large models to generate innovative campaign concepts and strategies that help brands stand out in a competitive market.
Chart: Changes in the number of automobiles and new energy vehicles in China (2018-2023) unit: 100 million units
Industrial chain level
Automobile: China's car ownership has grown rapidly, and the proportion of new energy has increased. By the end of 2024, the number of new energy vehicles in the country will reach 31.4 million, accounting for 8.90% of the total number of vehicles, of which 22.09 million are pure electric vehicles, accounting for 70.34% of the total number of new energy vehicles. According to data disclosed by the Ministry of Public Security, as of the first half of 2024, 31 cities have more than one million cars, including Beijing, Shanghai, Shenzhen, Suzhou, Hangzhou, Chengdu and other super first-tier and first-tier cities, as well as second-tier and even third-tier cities such as Weifang, Baoding, Tangshan and Harbin.
Vehicle age: According to the survey of the F6 Big Data Research Institute, the average age of passenger cars in China in 2021 is 6.1 years, of which 32% are 1-3 years old, 27% are 4-6 years old, and nearly 60% are less than 6 years old. In 2023, the average age of passenger cars in China has increased to 6.8 years.
Chart: Average age of passenger cars in 2023
According to the annual report on the development of China's automotive aftermarket, the increase in the average age of vehicles may lead to the expansion of the automotive aftermarket. As the average age of vehicles increases, the demand for vehicle repair and maintenance rises significantly. Wear and deterioration of vehicle components is more prominent, requiring more frequent maintenance and replacement. This is a direct driver of growth in repair services and parts replacement businesses in the automotive aftermarket. In addition, the increase in the average age of vehicles leads to an increase in the frequency of replacement of vehicle parts, especially wearing parts such as brake pads, tires, filters, etc. The need to replace these parts has led to steady business growth in the automotive aftermarket.
According to the annual development report of China's automotive aftermarket, there is usually a positive correlation between the cost of car maintenance and the age of the vehicle. Generally speaking, cars that are less than 4 years old are mainly maintained regularly, and their annual maintenance costs are mostly not more than 1,000 yuan. When the age of the car is in the period of 4 to 8 years, because some wearing parts begin to enter the replacement cycle, the maintenance cost will increase accordingly, and the annual maintenance cost is about 2,000 yuan. For cars that are more than 8 years old, the maintenance cost will rise sharply due to the fact that the non-wearing parts have gradually entered the replacement stage, and the annual maintenance cost will often exceed 5,000 yuan.
Related:
Analysis of the 2024 China Automotive Aftermarket Annual Development Report (1)
Analysis of the 2024 China Automotive Aftermarket Annual Development Report (2)
Analysis of the 2024 China Automotive Aftermarket Annual Development Report (3)
