According to a new report available from, the Chinese aftermarket is rapidly becoming the key profit center for the country’s automotive dealers.

The report, “China Automotive Distribution Industry and Forecast Report, 2013,” noted that China’s Pangda Automobile Trade’s new vehicle sales business was 7.28 percent in the first half of 2012, while its after-sale market reached 34.26 percent. Automotive dealer Yongda Auto’s new vehicle sales business had a gross margin of 5.24 percent in the first half 2012. It’s after-market business was as high as 43.58 percent.

Overall, the revenue from after-market sales is about 10 percent of new vehicle sales and the gross margin is about 80 percent of new vehicle sales.

The used-vehicle market has almost doubled since 2007 from 2.658 million units to 4.817 million units in 2012.
To regulate the used-car market, the Ministry of Commerce of the People’s Republic of China issued a “Criterion for Appraisal and Evaluation of Use Car (Exposure Draft)” in July 2012. According to the report, this criterion is predicted to be officially issued sometime during the first half of 2013.