Independents look to tap potential of after-sales market

It is expensive to train a qualified technician, she said, as it takes a long time and a lot of resources. This means that independent repair stores are not able to train their technicians as well as authorized 4S stores.

The manager said that her company is establishing several "fast maintenance and repair service centers" in big cities next year. Customers will get quality auto parts directly from the automaker at a lower price than 4S stores, and technicians there will be trained by the automaker.

However, Sun said he doesn't think that training is such a big issue. He said that most vehicle problems are diagnosed by machines nowadays, and many parts are easy to assemble, so the entry standard for technicians is not high.

Moreover, his target customers are those looking for routine auto maintenance and repair services. "It won't be very complex," he said.

Sun said he believes that the policy is good for the industry, as market competition will stimulate both 4S and independent stores to improve their services.

"In the past, vehicle owners worried about the quality of services and auto parts provided by independent stores," Sun said. "But with more transparency in maintenance and repair technology and the source of auto parts, independent stores will draw more customers because their locations are normally easier to approach and prices are more competitive."

Moreover, Sun said that the new policy will break the barriers facing 4S stores, which only allow them to offer after-sales services to vehicles of the brands they sell. "Maybe one 4S store can offer services to multiple brands in the future," Sun said.

This is already a reality.

Motorcare, a vehicle maintenance and repair service brand established at the beginning of this month, is targeting itself at this emerging market.

It is a joint venture between Federal-Mogul Motorparts, a US-based auto parts manufacturer and supplier, and China Auto CAIEC Ltd, an auto trade company that owns several 4S stores across the country, covering brands such as BMW, Nissan, Infiniti and Toyota.

"Through the network of company-owned stores and outlets that we develop together under the Motorcare name, service technicians will have significantly enhanced and convenient access to a broad array of premium-branded automotive products," said Daniel Ninivaggi, CEO of Federal-Mogul Motorparts.

Ninivaggi said that the rapidly growing and aging vehicle population in China is creating huge demand for repair technician servicing.

"The fast-growing and rapidly aging vehicle population in China means that there is a sizable market to pursue," Ninivaggi said. "As the average age of a car is now approximately four years, it means that the large vehicle population will have a greater need for servicing and repairs outside the original equipment manufacturers' warranty period."

Yin Jianhong, general manager of China Auto CAIEC Ltd, said that the anti-monopoly policy is favorable to the car repair market, as it will break the monopoly of parts sales channels and encourage expansion in the auto service chain, ultimately providing consumers with high-quality services at reasonable prices.