Index > Authors> NewsTurbo> How can 4S stores retain consumers amid transformation?

How can 4S stores retain consumers amid transformation?

Source: 21st Century Business Herald | Date: Nov. 3

  • China's automotive aftermarket is experiencing a transformation. At the end of Sept., China's eight ministries and commissions jointly released their "Management Measures for Sharing Maintenance and Repair Technology," requiring OEMs to share their related technology. Prior to the policy, the "Guidance on Promoting Automotive Maintenance and Repair Service Industry and Improving Service Quality" has been introduced, enabling distribution of original components and parts that boast superior quality. The policies are helping break down OEMs and dealers' monopolies in the aftermarket.

  • According to this article, the new policies will tip the balance in consumers' favor, allowing them to choose stores according to their own needs. Amid these changes, it's becoming increasingly important to woo consumers. If OEMs fail to improve their aftersales services, more customers may be swayed away from them, with repair shops and new players eating into their share of the aftermarket.

  • This article suggests that 4S stores create their own aftersales brands and establish 2S or 3S stores to complement the 4S store model. This will help 4S stores expand their presence, thereby affording customers more convenient services. Meanwhile, the move will allow automakers to shift their focus from production to services to supplement their revenues. Some leading automakers have started to take action to steal a march on their counterparts.