As car enthusiasts converge on the annual Guangzhou auto show, few have anything except a shiny new set of wheels in mind. But explosive growth that transformed China into the world’s largest auto market is also giving life to a new industry here: used cars.
With customers choosing to maintain existing vehicles instead of buying new ones due to rising inflation, the aftermarket will receive a boost from the estimated 6.6 million vehicles – built between 2009 and 2011 – that are reaching the end of their.
A rapid increase in the installed base of vehicles has spurred demand for service maintenance and parts, boosting the Latin American automotive aftermarket. While Brazil, which has recently become the world’s fourth largest automotive market, will continue to pull regional growth, the aftermarket is expected to undergo structural changes in the coming years following new regulations and increasing competition.
