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Auto aftermarket attracts big players
By Li Fangfang (China Daily)
Updated: 2009-11-23 08:03

Auto aftermarket attracts big players
China is the world's fastest-growing lubricant market, with demand expected to increase 3.5 percent annually through 2013. [Asiannewsphoto]

Fei Manqing realized early that a partnership with a leading global brand can be a shortcut for Chinese small business owners. Fei also entered a market that is attracting many leading multinational companies - China's booming automotive aftermarket sector.

Fei signed a contract with ExxonMobil Corp, the world's largest publicly traded oil and gas company, in 2004 to become a member of the ExxonMobil Esso Oil Change Center and then joined its Mobil 1 Car Care network in 2006.

She received hundreds of thousands of yuan to redecorate her stores, as well as management and training support from ExxonMobil.

"Now we have unbelievable monthly revenues of more than 500,000 yuan, four times the figure in 2004 before we joined hands with ExxonMobil," said Fei, general manager of Shanghai Chejie Automobile Technical Service Co, which has 60 auto service stores in Shanghai.

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Like ExxonMobil, rival Shell Oil Co also is expanding its aftermarket presence in China.

"Although the 3S (sales, service and spare parts) and 4S (sales, service, spare parts and survey) stores are still the major distribution network for Shell lubricants, we see a bright future in China's emerging auto fast-service industry," said Shen Jian, general manager of Shell Lubricant China.

In July, Shell celebrated the opening of its 100th high-end auto service store. Now Shell has 1,200 chain stores in China.

ExxonMobil last month opened a new Mobil 1 Car Care Outlet, bringing to 1,000 the number of the company's professional car maintenance outlets in the country.

"The opening of the 1000th outlet affirms the expansion of the Mobil 1 Car Care Outlet network and brings ExxonMobil a significant step closer to its commitment of enabling trouble-free driving nationwide," said James Hennessy, vice president of ExxonMobil Lubricants & Petroleum Specialties Co.


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