BEIJING, Dec. 28 (Xinhua) – China will further improve automobile circulation networks and try to develop leading companies in automobile retailing industry during 2011-2015, according to the guideline for development of automobile circulation industry during 2011-2015 recently released by the Ministry of Commerce (MOC).
The guideline sets the target that the country's top hundred auto retailing enterprises are to generate more than 30 percent of the industry's total sales revenue by 2015.
Meanwhile, China will coordinate development of replacement, distribution, and auction business for second-hand cars and expand coverage of recovery services for scrapped vehicles in the next five years.
China's automobile industry has undergone great changes in recent years, and possessed great potential in areas of after-sales businesses such as repairing and maintenance services, automobile fittings, accessories and the automotive materials, said He Liming, head of China Automobile Dealers Association.
He noted that China's automobile after-sales sector is still in its infancy period compared to developed countries, where profit from after- sales services can be three times that from vehicle sales.
China's sales revenue from automobile after sales business grew from some 88 billion yuan to 240 billion yuan during 2005-2009, and the figure is expected to reach 490 billion yuan by 2012 with an annual compound growth rate of 26.9 percent.
