China Automotive Aftermarket Growth Accelerates with Expanding Vehicle Fleet

China Automotive Aftermarket Growth is expected to accelerate as the country's vehicle fleet continues to expand and the number of aging passenger vehicles rises. During a press conference held by China's State Council Information Office (SCIO) on June 23, officials highlighted the automotive sector's growing contribution to the national economy while emphasizing the emerging opportunities within the aftermarket. As vehicles increasingly evolve beyond transportation into intelligent mobile living spaces, demand for maintenance, repair, upgrades, accessories, and related services is anticipated to strengthen across the country's rapidly maturing automotive ecosystem.

China Highlights Automotive Industry's Economic Contribution

At the June 23 press conference, the Vice Minister of China's Ministry of Commerce stated that automotive retail sales currently contribute around 10% of the country's total retail sales of consumer goods. The industry also represents approximately 6% of China's manufacturing investment, while automobiles and auto parts account for nearly 6% of the nation's total goods exports. These figures underline the automotive sector's strategic importance to China's economy. In addition, China's total vehicle ownership has reached 370 million units, with the country maintaining its position as the world's largest automotive market for 17 consecutive years based on annual vehicle sales.

Automotive Aftermarket Positioned for Strong Expansion

The conference also highlighted the significant opportunities emerging within the automotive aftermarket as the industry's transformation continues. Modern vehicles are increasingly being viewed as intelligent mobile living spaces rather than solely transportation tools, creating additional demand for advanced services and vehicle upgrades. Globally, the automotive aftermarket has already exceeded a value of USD 1 trillion, while the Asia-Pacific region is forecast to become the world's largest regional aftermarket by 2026. These market trends indicate expanding business opportunities for manufacturers, suppliers, service providers, and technology companies operating throughout the automotive value chain.

China's Aging Vehicle Fleet Supports Future Demand

A major factor supporting continued aftermarket expansion is the growing number of older vehicles operating across China. According to information shared during the press conference, passenger vehicles that are more than seven years old now account for over 50% of the country's passenger vehicle fleet. As vehicles age, owners typically require more frequent maintenance, replacement components, repairs, inspections, and technology upgrades. This demographic shift within the national vehicle fleet is expected to accelerate demand across multiple aftermarket segments, reinforcing expectations that China's automotive aftermarket is entering a period of sustained and rapid growth.

Frequently Asked Questions

Why is China's automotive aftermarket expected to grow rapidly?
China's automotive aftermarket is expected to expand because vehicle ownership continues to increase while a growing proportion of passenger vehicles are now more than seven years old, creating greater demand for maintenance and related services. Older vehicles generally require more frequent servicing, replacement parts, repairs, inspections, and upgrades throughout their lifecycle. Combined with the industry's transition toward intelligent mobile living spaces and continued growth in vehicle ownership, these factors are expected to support long-term expansion of the automotive aftermarket across China.

What economic role does China's automotive industry currently play?
China's automotive industry contributes significantly to the national economy through retail sales, manufacturing investment, exports, and sustained vehicle demand, making it one of the country's most important industrial sectors. According to officials, automotive retail sales account for around 10% of consumer goods retail sales, while manufacturing investment linked to the sector represents about 6%. Automobiles and auto parts also contribute approximately 6% of total goods exports, demonstrating the industry's broad economic importance.

How does vehicle age influence the automotive aftermarket?
As vehicles become older, owners typically require additional maintenance, repairs, replacement parts, inspections, and technology upgrades, leading to increased demand for aftermarket products and services over time. In China, more than half of the passenger vehicle fleet is now over seven years old, indicating a large and expanding customer base for aftermarket businesses. This aging fleet is expected to remain one of the strongest drivers supporting continued growth throughout the automotive aftermarket sector.