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With a population of more than a billion people, many of whom are buying vehicles for the first time, China continues to be an untapped treasure trove for aftermarket manufacturers and even distributors.
Anthony Cardez, executive director for the Overseas Automotive Council (OAC), has heard stories of someone going to a Chinese factory and only finding a gigantic parking lot with only a few vehicles and mainly bicycles and scooters.
The OAC, along with the Automotive Aftermarket Industry Association (AAIA) and the China International Automotive Parts Expo (CIAPE) show, sponsored a seminar on Sunday titled, “Breaking Into the Chinese Aftermarket: Getting it Right.” CIAPE is a division of China’s Ministry of Commerce.
Zhi Luxun was the presenter, and Meng Fanxuemale, CIAPE Secretary General, offered translatation. Also in attendance was Li Rengui, CIAPE’s president.
“We really wanted to get a very strong base of support for our members to serve the Chinese aftermarket,” says Lee Kadrich, AAIA’s vice president of government affairs and trade. The Chinese aftermarket, he adds, is still in its infancy but is growing quickly.
AAIA offers its members resources like contacts for the best potential joint-venture opportunities in China. “This is all about taking our products into China and playing offense,” adds Kadrich.
He says that on the flip side, Chinese companies are hungry to align themselves with U.S. brands. “At the super level, there have been joint ventures for many years,” he continues. “They feel they can get their best suppliers to hook up with U.S. branded companies.”
“There’s an opportunity (in China) because vehicle population is growing and economic stability is growing,” says Cardez. “So this is an opportunity for the exhibitors and for members and both of our organizations to listen and share knowledge.”
Doing business in China involves many nuances that may be unfamiliar to those who only do business domestically, so Cardez recommends that U.S. business gain as much knowledge as possible before seeking Chinese joint-venture partnerships.
For more information, visit www.mema.org or www.aftermarket.org.
