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Auto aftermarket attracts big players

By Li Fangfang (China Daily)
Updated: 2009-11-23 08:03

Growing demand

Statistics show that in 2008, the lubricant market demand in China was about 5.5 million tons, behind only the United States.

That demand in China is estimated to increase by 3.5 percent annually to 2013, making the country the fastest-growing market in the world.

Research shows that, as China's vehicle population registers 10 percent-plus annual growth, there is huge potential for the car care market.

The scale of China's auto aftermarket sector is about 100 billion yuan per year currently, a figure expected to reach $23 billion (157 billion yuan) in 2010.

"That's why, although the whole automobile industry was enduring a downturn last year, we still made a huge investment in the China market and continue to build our brand," Hennessy said.

Related readings:  China auto sales top 10m  China's auto sales continue to rise on robust demand  China's biggest overseas auto parts merger sealed  China to be largest auto market in the world

"To reap the benefits of the market, ExxonMobil will customize services that truly benefit car owners. Building a foothold in China means continuously enhancing our investments in China, improving our span and network and continuously improving service," Hennessy said.

The Mobil 1 Car Care Outlet network has rapidly expanded since its entry into the China market, with 100 outlets by 2006, 500 by 2007, 800 by 2008 and 1,000 by this fall.

"We see the tremendous growth of the domestic auto market in recent years, but we also see a large number of first-time car owners here who have little experience in maintaining and repairing their cars," Hennessy said.

"We realize that to win in China, we have to grow in two ways, with good products and professional service," he said.

Hennessy said establishing high trust and customer satisfaction levels have been critical to ExxonMobil's market strategy.

"Our interaction with Chinese car owners allows us to hear their needs and respond with improved products and comprehensive service," he said.

Given China's vast geography and extreme driving conditions, he said it is necessary to help car owners respond to variable driving conditions and provide products adapted to local markets.

Hennessy said the Mobil 1 Car Care Outlet network has evolved from offering simple oil changes to service centers that offer a greater variety of services, including the latest diagnostics equipment operated by skilled mechanics.

The outlets also feature computerized maintenance records that can be accessed by car owners at any of the 1,000 stores.

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