With sales in the Chinese automobile market shifting from dealerships to online and other channels, the growing importance of automobile after sales market maintenance services is undeniable. The Chinese automobile after sales market is predicted to value 700 billion RMB ($113.57b) in 2015, becoming the largest in the world. As such it has attracted a great deal of attention from manufacturers and other enterprises vying for increased market share.
Manufacturers of tires, lubricants, spark plugs and other parts are all setting up official shops on Tmall.com and Jingdong.com. Meanwhile, OEMs have also begun making the push towards online services.
Leading the pack is Shanghai GM Buick, which opened an after sales shop on Tmall.com, the first enterprise in China of its kind to do so. Representatives from Shanghai GM stated that the Buick brand is setting a new milestone in both the online to offline market and the Chinese automobile market as a whole. A similar after sales service shop from SAIC Motor went online on Tmall.com not long after, where owners could make their orders directly online, helping them save costs for various maintenance services.
Online ordering, pricing discounts and professional service have helped raise the popularity of such online after sales shops. After logging on, consumers need only to choose from a variety of services and select the basic fuel type, engine type and work time for said service, as well as any additional parts they require. Owners can save over ten percent on maintenance work when going through Tmall.com.
The growing attention after sales services are receiving is partly due to how profitable they are. According to statistics, over 50 percent of manufacturers' profits comes from after sales services. By offering these services, automobile manufacturers will not only help improve their overall market share but can make sure that these profits go straight to them and not to third parties maintenance shops.
