For a long time, the automobile retrofitting industry has been in the “grey zone” and the laws and regulations impose stricter restrictions on car retrofitting. However, in 2018, the state issued a policy to unfreeze the vehicle conversion industry from the top floor, and in 2019, the motor vehicle identification regulations (ga801-2019) further reduced the restrictions on the retrofitting of motor vehicles, which have given further impetus to the development of the vehicle conversion industry in the country. Foreseeing from this paper shows you the current state of development of the automotive industry in china。
Overview of the development of the automotive sector
- car modification comes from racing
Car modifications are based on car racing. Automotive modifications are those made in cars originally produced by automobile manufacturers, including, inter alia, body modifications, power modifications, vehicle safety modifications and modifications to vehicle intelligence, which have the effect of improving car performance and aestheticizing car appearance. They can generally be divided into physical, interior and power system modifications。
– we have a relatively short history of auto modification
Our automobile retrofitting industry also has a shorter history of development than other developed countries. Our automobile retrofitting industry was introduced from hong kong, china, only in 1997, with early growth mainly in guangdong and then in beijing and sichuan。
— generating clear regional characteristics
At present, the auto retrofitting industry in our country has developed a more visible regional character, mainly in the pearl triangle, the long triangle, the sea of rim and the south-west. Owing to its early and more economically developed development, the pearl triangle has a high demand for the vehicle retrofitting market. In addition, a considerable market for retrofitting products has begun to emerge in guangzhou, shenzhen, dong-chung, nakayama, pearl sea and foshan。
Political laws and regulations are more restrictive but have been reduced
Compared to most foreign auto retrofitting industry policies, our laws and regulations place more restrictions on car retrofitting. The law of the people's republic of china on road traffic safety (amendment), the regulations for the implementation of the law of the people's republic of china on road traffic safety and the regulations for the registration of motor vehicles impose certain restrictions on the modification of cars, including, inter alia, their models, motor models and frames。
However, the programme for improving the implementation of the institutional mechanism for the promotion of consumption (2018-2020), issued by the office of the state council in october 2018, gives the state the direction to unfreeze the automobile retrofitting industry from the top, and refers to the active development of related industries such as car retrofitting. In addition, the motor vehicle identification protocol (ga801-2019) issued in june 2019 further reduced restrictions on the modification of passenger vehicles。
Actively proposing solutions to the problem
There are four major problems in the automobile retrofitting industry. First, the automobile retrofitting industry is less mature, there is insufficient support for vehicle retrofitting in the whole vehicle technology and product, and there is no regulatory system for retrofitting parts, retrofitting operations, etc. Secondly, the regulatory system for the automobile retrofitting industry is less well developed, and standards and norms for retrofitting parts, modifications, testing, etc. Remain blank. Moreover, our adaptation technology is still less advanced than abroad, with most of the retrofitters remaining only on the outside aesthetic level, while neglecting the safety of cars. On the other hand, most insurance companies in our country, after the risk of retrofitting the vehicle, only pay compensation for part of the original vehicle and not for part of the retrofit。
However, in response to these problems, the relevant government departments and industry propose appropriate solutions. In 2019, lee shufu, chairman of the guilli holdings group, proposed to speed up the introduction of vehicle conversion policies and regulations that are in line with the national day. The safety insurance corporation's newly added equipment loss insurance clause also included some vehicle modifications in the insurance settlement。
Developments in relevant industries in recent years have contributed to the development of the automobile retrofitting market
– the branding of a car is customized
In the past two years, the automobile industry has begun to increase consumer purchasing power through industrial upgrading, such as auto customization, which has been influenced by factors such as the saturation of automobiles and declining car sales。
• post-car market development to promote the car retrofitting industry
On the other hand, after-sale services have been increasingly emphasized by major producers. In 2019, the market for the post-car market in china reached rmb 132. 27 billion, and the development of the post-car market has been a powerful stimulus to the development of the vehicle retrofitting industry。
Note: data for 2013-2017 are published by the association for post-cargo markets and data for 2018-2019 are measured in the light of developments in previous and current years。
- refurbishment of second-hand vehicles
At the same time, the dynamism of the second-hand car market in recent years has also given further impetus to the refurbishment of cars, with the number of second-hand vehicles traded in 2019 having increased by 7. 96 per cent。
- there's more to the race
In addition, the rally, the short-track races, the cross-country races, the kadin races, etc. Have taken place in our country, where numerous international events have been held, such as f1, roc, fe, etc. The organization of international events has given further impetus to consumer pursuit of car performance and appearance。
The industry market is over $100 billion
According to the analysis of the domestic and external automotive retrofitting industry published by the chinese association of automotive retrofitting supplies, the size of our vehicle retrofitting market in 2014 was around 45 billion yuan. In 2019, the size of our vehicle conversion market was estimated to have exceeded $100 billion。
