Challenges in the Automotive Aftermarket: A Deep Dive

As we reach the halfway point of 2025, the automotive aftermarket is facing increasing difficulties. According to an AC Automotive survey, 84% of shops reported declines in both output and profits in the first half of the year, with 77% experiencing a drop in per-vehicle output and 75% seeing a reduction in the number of vehicles serviced. The acceleration of the replacement process for old fuel vehicles, now included in the subsidy program for trade-ins, has significantly compressed the demand for long-term vehicles, which should normally be at a peak for chassis maintenance and major repairs, thus impacting the traditional profit sectors of repair shops. Additionally, price wars on e-commerce platforms have become commonplace, with industry benchmark prices for maintenance dropping to as low as 198 yuan, and leading chains offering maintenance for just 1 yuan. Car wash prices have plummeted to 8.9 yuan, and tire services have been caught in a spiral of both price and service degradation. The tactics of competing on lower prices have become increasingly unscrupulous, with many repair shops enticed by low-cost lubricants engaging in private marketing schemes, bombarding customers with unsolicited messages in WeChat groups. Some have even introduced absurdly low-priced services such as 30 yuan for 24-hour mobile tire repairs, oil burning treatments reduced from 2500 yuan to 688 yuan, and car wrapping services for just 2980 yuan. The chaotic state of the automotive service market is a culmination of years of downturn. Under this pressure, many service shops are floundering, desperately seeking solutions by jumping onto every trend, only to find themselves overwhelmed and ultimately underperforming. In the past two years, oil burning treatments gained popularity, with every repair shop on the street promoting their expertise through short videos, while disparaging competitors. The result? The early adopters have yet to fully capitalize on their advantages, while newcomers engage in brutal price competition, leaving customers confused about who the true experts are. This cycle of 'jumping on trends and causing chaos' essentially reflects the industry's 'dependency on short videos.' Everyone is focusing on the viral trends, aspiring to become influencers, yet few are assessing whether their foundational practices are sound. Rather than analyzing macroeconomic opportunities, they should be considering the specific needs of car owners in their local communities. Today, we delve into three methods to break the cycle of 'jumping on trends': they may seem simple, but they are effective. 1. Focus on Small Data, Don’t Be Deceived by Big Data Recently, at an industry summit, a product supplier’s spokesperson passionately presented a PPT claiming that the new energy maintenance market would exceed 100 billion, and that the automotive aftermarket in counties would grow over 20%. The shop owners in attendance were electrified, believing that transitioning to new energy would elevate them to success overnight. However, when I asked a service operator from a small city about the proportion of new energy vehicles in their county, he pondered and replied, 'I think it’s less than 1% on the streets.' This illustrates the trap of big data—it presents a broad landscape but fails to reveal the specifics. Big data can indicate trends but does not necessarily relate to your business, potentially leading to anxiety and poor decisions. The real insights lie in the small data derived from daily operations. One shop owner in a first-tier city doesn’t rely on industry reports; instead, he focuses on two key aspects: customer notes on appointments (like needing a ride for children or elderly family members) and maintenance records. By analyzing this information, he added quick service stations and created a children's play area, introducing package deals for air conditioning cleaning that increased his customer spending by 20%. Conversely, some owners react to big data trends without understanding their own clients; they overlook the importance of service quality and technical expertise. 2. Study Micro Situations, Don’t Rely on Macro Data Some owners lament about the 'bad macro environment.' When one complained, I asked if he noticed that the shop next door had changed its sign to a more upscale design. He didn’t know how much more they made last month. Many people blame the economy for their struggles but miss the fact that competitors may be thriving due to systematic operational strategies. The macro economy is like weather forecasts; they inform you of the rain but not whether your location is prone to flooding. Microeconomics is about managing your specific area effectively. Instead of worrying about the replacement of fuel vehicles by new energy ones, consider if your long-time customers with older models will inquire about hybrid options during their next service. Focus on how to create memorable experiences for your clients instead of panicking over market trends. 3. Address Customer Pain Points, Not Competitor Moves During the peak of oil burning treatments, I witnessed absurdity: a shop owner saw a competitor offering a two-year warranty for 1388 yuan and decided to undercut them by offering a three-year warranty for 888 yuan without understanding the real causes of oil burning. When customers asked if they could guarantee no rework would be needed, he was at a loss. This highlights the danger of merely mimicking competitors without grasping what customers truly need. Customers dealing with oil burning issues are primarily concerned about the reliability of repairs and not just the price. By listening to their complaints and hesitations, you can tailor your services to meet their needs more effectively. In conclusion, slow down to go further. The automotive service industry relies on community trust built over time. Those who chase quick profits are like buildings on sand; they will collapse at the first gust of wind. Successful shops that endure for decades share a common trait: they focus on their own growth rather than chasing fleeting trends. When someone tells you about a hot project, ask yourself how many of your customers truly need it and if you can provide a trustworthy solution better than others. Clarifying these questions is crucial for success in the automotive service sector.