Issue: Jul 2017


AUTOMECHANIKA Shanghai 2017 reflects power of East Asian market



by Ed Richardson

Increasing diversity and depth of the Asian automotive sector is reflected in the line-up for the 2017 edition of Automechanika Shanghai.

China remains the powerhouse and pivotal driver of the automotive market in the world. In 2016 the production and sales of automobiles in China reached 28.119 million and 28.028 million respectively. The automotive market in the surrounding region is thriving too. Asia-Pacific ranks as the fastest growing market with a projected compound annual growth rate of 8.3% from 2015 to 2022.

Automechanika Shanghai, which will run from 29 November – 2 December 2017, is growing apace with the automotive sector. “The steadily growing market in China and the rest of Asia has created a healthy breeding bed for the automotive market to evolve and advance. We have seen that the region plays an increasingly important role in automotive developments. It is reflected in part by our expanding show scale and participant numbers. More Western companies are joining and eagerly bring their proficiency to the region through our show,” says Fiona Chiew, Deputy General Manager of Messe Frankfurt (Shanghai).

Key segments of the show which will expand include: Parts & Components, which will occupy one extra hall; the Accessories & Customizing sector will extend half a hall; while Repair & Maintenance and Electronics & Systems sectors will see a bigger participation from leading companies.

Based on its 2016 success, a new REIFEN zone will be housed in a hall delivering a full range of tire products, equipment and related services. "Tires are one of the key components in the automotive aftermarket and are indispensable in the entire automotive value chain,” says Cheng Yongshun, Vice General Manager of China National Machinery Industry International. “Tire dealers are increasingly offering vehicle services and, conversely, car dealerships are venturing into tire business.”

An E-mobility and Infrastructure zone will see bigger participation this year, with exhibitors and research institutes from around the world. They will help steer the rapid emergence of connected mobility and autonomous driving. Automobile associations and the local industry in China are endorsing and promoting the connected mobility technology. Falling within the Electronics & Systems sector, the specialized zone of Connectivity, which was introduced during the 2016 show, will be further enhanced and enlarged with a bigger display.

The advancements in the connected mobility realm also increase penetration and crossover into other automotive sectors, including the three other main industry sectors: Parts & Components, Repair & Maintenance and Accessories and Customizing. The inflow of smart technology and connectivity in the automotive industry also transforms diagnostic and repair processes, by which data can be sent directly from the car to workshop and more sophisticated testing equipment and data-driven services are required. A myriad of solutions including new workshop technologies, IT management solutions for fleet, workshops and dealerships will be showcased.

Following the same roadmap, a new product group of Alternative Drive Systems & Digital Solutions which encompasses electro-mobility and alternative drives, connected cars and vehicle safety; mobility services and new workshop technologies will be added.

After market

According to a research report of the 2016 China automotive aftermarket, China's auto market is leaning from production and consumption towards service. With the increase of the average lifespan of vehicles, spending on repair and maintenance also rises considerably. The aftermarket market volume in 2016 exceeded US$14,64 billion, with the aftersales segment growing by 36%.

Spare parts production enjoyed a compound annual growth rate of 12.4% in China from 2011 to 2015 and expected to contribute 38.8% of total auto parts revenue in the world in 2017. The global automotive aftermarket is projected to exceed US$1 trillion by 2022. Asia-Pacific ranks as the fastest growing market with a compound average growth rate of 8.3% from 2015 to 2022. The expanding vehicle parc is poised to spur demand for product markets including tires, engine parts, spark plugs, filters and bearings.

Comments from delegates 2016

“This is my first time to come to the fair as all my suppliers are here. This is the biggest show in China for auto parts but also for Pakistan.”

Mr Muhammad Ahmed Khan, Ayub Motors & Co – CEO, Pakistan

“We are glad to have our first appearance here. We are here as we hope to introduce our new parts trading business to our Chinese customers, partners and individual service workshops. This platform not only let us promote our new business, but we can also exchange ideas and new thoughts with our friends in the industry.”

Mr Sven S. Peters, Beijing Mercedes-Benz Sales Services Co Ltd

"We are here not only to meet dealers, but also to get in touch with end-consumers in order to know their demands and requirements. Over the years, Automechanika Shanghai has become the most important fair for us."

Mr Hollmann Jan, Vice President Marketing, Bosch Automotive Aftermarket (China) Co Ltd

“Automechanika Shanghai is the most comprehensive show. It's also the right place to check what the competitors are doing.”

Mr Enzo Sacchi, Corghi – Area Manager, Italy

"Automechanika Shanghai is one main effective way to promote our export business. Every year our exports to China are increasing, especially the parts and components. There is also a growing number of the suppliers of the P&C sector in our country."

Mr Yüksel Öztürk, Member of the Board, Automotive Industry Exporters Association, Turkey (Turkey pavilion)

"The show often gives us an unexpected surprise. This year it has 18 overseas pavilions with more foreign exhibitors and buyers found. At the same time, there are a lot of new technologies, including electronic systems, new energy automotive technology and automotive parts found here.”

Ms Lin Jing, Secretary-General, Sichuan Automotive Engineering Marketing Committee

 



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THE FUTURE OF CONNECTED AND ELECTRIFIED POWERTRAINS IN VEHICLES By TE Connectivity

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