Automechanika Shanghai show stars with opportunities on China’s aftermarket stage
Hosted by the world’s largest city (pop. 26.3 million) and busiest shipping port (37 million tons per year), this year’s 15th edition of the Dec. 3-6 Automechanika Shanghai is on-track to set yet another record-breaking attendance tally. More than 6,270 exhibitors will be presenting their products and services across nearly 4 million square feet of display space at the vast National Exhibition and Convention Center (NECC).
In 2018 more than 150,568 visitors representing 145 nations filed through the turnstiles – a 15 percent increase over 2017’s attendance -- and an even bigger turnout of buyers is expected to peruse this year’s stated theme of “Where the Future Automotive Ecosystem Begins.”
The concept denotes “rapid advancements in the industry that are currently remapping the automotive value chain,” according to Fiona Chiew, deputy general manager at Messe Frankfurt Hong Kong, chief producer of the event.
“It zooms in on the concept of connectivity; not just through emerging technology, but also the notion of networks and knowledge sharing,” she explains. “The show expands on the automotive ecosystem concept by not only covering the entire supply chain, but also exposing more opportunities for research and development, insurance, investment, future technologies and more.”
An enhanced focus on digitalization, future technologies and services is in the offing to fit with the goal of “shaping more opportunities” for working closer with researchers and other industry institutions and related participants.
“A growing number of special sectors, zones and fringe program events will amplify many of the latest advancements and rising trends throughout numerous areas of the industry,” says Chiew, reflecting on the show’s expanding reach and relevance.
A more modest amount of 235 exhibitors and 9,000 guests were on hand when the show was established in 2004. “Over the past 14 editions, Automechanika Shanghai has continued to thrive alongside Asia’s automotive industry,” she reports. “China has now become the world’s largest auto market.”
With that scope comes a much higher interest in providing aftermarket products and services to a teeming country of 1.40 billion people (the U.S. population is just under 326 million) driving 127 million vehicles over some 3 million miles of roadways in varying conditions of upkeep; a little over half of the of the routes are paved.
A transforming market
Currently carrying a value of $18.4 million, the maintenance, repair and accessorizing industry continues to increase as about half of the vehicles are between four and nine years old. “The rise of China’s automotive aftermarket will bring forward new business opportunities to its underlying sectors and will rely on the continuous smart transformation of the supply chain,” says Chiew.
The Supply Chain and Chain Store zone is especially important as it endeavors to “address many of the changing needs in the transforming local auto market.”
This prevails as “a fundamental part of the show as it embraces companies in the aftermarket that are seamlessly integrating technology and digital communication to connect with their customers,” she notes. Visitors will be able to explore numerous brands specializing in supply chain platforms covering parts, services, chain stores, insurance, used cars, workshop data management software and e-commerce options.
“As the aftermarket game continues to change so does its players, and across the fairground it is clear that a number of new entrants and existing powerhouses are embracing these rapid developments,” according to Cheng Yongshun, vice president of China National Machinery Industry International.
“More opportunities in the sector have created an increasingly dynamic and competitive environment,” he says. “There is no question that companies who are implementing new business models are also creating a more robust value chain footprint.”
“For these reasons and in the wake of current transformations, which are having a dramatic effect on the sector, Automechanika Shanghai will gather players across the entire industry,” says Chiew. “The show will also explore current trends, as well as nurture a host of innovative opportunities across different stages of the aftermarket value chain.”
An annual Repair & Maintenance sector growth rate of 6 percent is expected to prevail until at least 2027, and “the show aims to accentuate some of the associated prospects in its changing landscape,” she says.
“On top of this,” continues Chiew, “the sector will also draw more attention to collision repair in response to the rising need of accident roadside recovery in China. For example, research has found that quality services from collision repair specialists are some of the most highly sought experts in the field. Therefore, new product categories, such as Body & Paint, are highly significant additions to the show.”
This category will display:
- Body repair – grid correction systems, body shaping equipment, welding equipment, body measurement systems, and tools and materials
- Spray paint and anti-corrosion protection – spraying systems and equipment, paint, anti-corrosion protection, point repair and auxiliary materials
- Painting, sheet metal, plastic parts, windows, headlights and rims.
“Dedicated fringe events are also expected to make headways at the show, as a host of new activities make their Shanghai debut. For instance, national body shops will go head-to-head designing custom car bonnets, and will showcase their finished product at the fair in the Body & Paint World Championships,” Chiew previews.
Stimulating industry growth
The International Bodyshop Industry Symposium (IBIS) China 2019, held concurrently with the convention, will bring together influential decision-makers from China’s collision repair industry. Speakers will explore the umbrella topic of “Embracing transformation: seizing the opportunities of change in the Chinese collision repair market”. A networking event will follow the symposium.
“We are very excited to host a variety of events related to the Repair & Maintenance sector,” she elaborates. “Amongst others, (IBIS and the World Championships) are both highly reputable international events. As such, Automechanika Shanghai has become a window for opportunities amongst the local Chinese talent pool, where they can learn new techniques and knowledge as well as show off their current design flair.”
The trend of Chinese motorists becoming increasingly attracted to enjoying the on-the-road aspects of personalization, comfort and luxury serves to “reinforce the fact that customization has become a significant area of the market, which will continue to stimulate industry growth in the future,” says Chiew.
“Despite statistics revealing the sector only accounts for 3 percent of the aftermarket, the relatively young segment still holds a torch for the tremendous opportunities in the country. Automechanika Shanghai recognizes the sector’s growth potential” by supplying a significant amount of floor space to the category.
Exhibitors “will play up to the occasion by presenting some of their most advanced products, services and technologies for car racing, lighting, leisure driving and entertainment, and lightweighting,” she says. “Likewise, the highly anticipated activity zone for Motorsport & High Performance will return once more. The zone will draw even more attention to many of the international motorsport racing competitions, as well as modified parts for high performance vehicles.”
“In conjunction with China’s auto market becoming more diverse, the speed at which efficiency and quality have accelerated significantly too,” says Cheng at China National Machinery Industry International, a co-organizer of the show.
“On top of this,” he adds, “the overwhelming increase for customization will continue to play a vital role in bolstering the demand for interior and exterior accessories and modification. The shift in consumer preference has led to more emphasis on aesthetic appeal and enhanced performance, as well as the delivery of entertaining driving experiences. As such, the new sector will amplify buzz around the fast-growing customization and racing markets.”
Specializing in tires and wheels, Automechanika Shanghai’s accompanying REIFEN show will again be a part of the event.
