LIU - Over the last decade, China has become the world’s biggest vehicle market, so, in the medium term, we expect to see strong growth in demand for spare parts. It’s worth noting, though, that the average age of vehicles in China is just five years at present. Average mileage is also relatively low, so vehicles are not serviced nearly as often as in the USA.
Notwithstanding the tremendous potential for growth, the Chinese aftermarket presents a whole series of challenges for the Elring brand. Unlike the OEM segment, where you have just a handful of competitors, the aftermarket is much more diversified, with hundreds of competing firms.
That creates a huge range in terms of both price and product quality. In China, one of the big challenges facing premium aftermarket suppliers such as Elring is protecting themselves against counterfeit products
and patent violations.