Source: International Business Daily. Editor: Ou Yunhai.
Automechanika Shanghai, the Shanghai International Trade Fair for Automotive Parts, Equipment and Service Suppliers, has continued to grow over the past 12 years. Last year, Automechanika Shanghai successfully moved to National Exhibition and Convention Center. From November 30 to December 3 this year, the 12th edition returned again. The exhibition set new records in scale as well as in the number of exhibitors and visitors. According to Cao Jiansheng, chairman of the board of Messe Frankfurt Shanghai Co., Ltd., the total exhibition area reached 312,000 square meters this year, up 12 percent from the previous edition. The expanded exhibition area effectively met the display needs of more exhibitors. A total of 5,756 companies participated, up 7 percent from the previous year. About 120,000 professional visitors from 140 countries were expected to attend.
Smart Connectivity Becomes a Hot Topic
With rapid development of internet technology and driven by requirements for vehicle performance, fuel economy and safety, auto parts are moving toward intelligence, lightweight design, environmental protection and energy saving. Zhang Fusheng, chairman of China Automotive Industry International Corporation, said at a press conference during the exhibition that the automotive industry faced significant downward pressure in 2016. As industry restructuring deepens, the automotive sector is undergoing pressure for change. As it shifts from a marketing-led model to a consumer-led model, the automotive aftermarket is entering a golden development period. The aftermarket contains enormous development potential, and its development will determine the future of the industry. Trends in industry development are closely linked to the development of the exhibition. As new companies from the internet and communications fields enter the automotive industry, new ideas and concepts are impacting industry development. More enterprises are restructuring and entering smart connectivity and new energy vehicles. According to Gartner, a leading global IT research and advisory company, by 2020 one in every five vehicles on the road worldwide will use some form of wireless network connection. This means that 250 million connected vehicles will appear over the next four years, and market opportunities in this field will continue to emerge.
The exhibition is also constantly innovating while following industry development trends. According to Cao Jiansheng, since 2015 Automechanika Shanghai has separated Electronics and Systems from the Auto Parts section and made it the fourth major industry section. Related automotive communications, components and equipment products are included in the Electronics and Systems section. The Smart Internet zone in this section focuses on cutting-edge connected technologies, autonomous driving and mobile services. Exhibitors include not only vehicle suppliers, but also companies in vehicle information systems, mobile phones and network terminals, software development, internet services, and transportation technology enterprises that provide products and solutions for future connected vehicles and transportation systems.
The Automotive Aftermarket Continues to Innovate Models
China's economy has entered a new normal, and so has the automotive industry. Han Xiaojun, general manager of China Automotive Industry International Corporation, said that as vehicle ownership continues to grow, the automotive aftermarket has also become a market focus for automakers and dealers. A new golden industry serving nearly 200 million vehicles is showing strong momentum. At the same time, the overall industrial structure of the aftermarket is undergoing major changes, and innovative models are emerging continuously. Many enterprises are using internet platforms to expand their aftermarket presence, improve quality, and connect online e-commerce systems with offline supply chains.
Industry insiders have pointed out that one important reason why there is still no successful maintenance chain in China is the lack of a matching parts supply system. More and more after-sales companies are now recognizing the importance of supply chains. Many enterprises are working to connect the entire auto parts supply chain. Some leading maintenance chains have already realized the importance of integrating parts supply behind the scenes, and some have begun building their own parts supply systems.
In the entire parts circulation process, although the concept of auto parts e-commerce has been widely promoted, the role of dealers remains irreplaceable. Many parts manufacturers have opened flagship stores on e-commerce platforms and want to build omnichannel online and offline systems. In reality, however, online channels do not play a major sales role for auto parts manufacturers. Correspondingly, online parts brands are extending into offline channels, and more online brands are strengthening links with terminal repair shops.
The automotive aftermarket is facing fundamental change, and improving service capability is crucial. As a major industry event with a large number of exhibitors and visitors, Automechanika Shanghai's organizers strive to provide refined services. During this edition, 50 concurrent events were held, including summit forums, technical seminars, matchmaking meetings and application training, covering the latest industry information and focusing on cutting-edge technologies.