Business / Auto Policy

Antitrust law may reshape vehicle sector

By JOHN JULLENS/DAVID WANG (China Daily) Updated: 2015-01-06 07:50

Parts suppliers are expected to develop different channels, quality assurance processes and tracking systems with brand names on parts becoming increasingly important.

They could also form upstream partnerships or joint ventures with OEMs, or integrate with repair and maintenance chains. Large Chinese spare part players are also expected to emerge.

Large dealer groups contacted by PwC and Strategy & reported they have plans to develop multi-brand centralized repair shops, while others said they were planning to develop quick service chains.

Based on the feedback given by PwC and Strategy &, enforcement of the antitrust law will almost certainly have important consequences for the shape and structure of the auto industry in China.

Some of these consequences may be more predictable and have been highlighted above, for instance, the emergence of independent parts suppliers.

Others may be less foreseeable-for example, OEMs' control over dealerships-and will depend on the approach taken by regulators.

At a minimum, participants across the entire vehicle value chain still need to monitor developments and be ready to adapt to new market demands if they are to survive and flourish in 2015 and beyond.

John Jullens is partner, automotive and industrial leader at Strategy &, and David Wang is associate director at PwC China Consulting.

Previous Page 1 2 3 Next Page

Hot Topics

Editor's Picks
...