Mei Ri Jing Ji Xin Wen·2025-09-17 13:45Core Viewpoint - The mechanical parking garage industry in China is facing significant challenges, with declining revenues and underutilization of existing facilities, despite initial optimism about their potential to alleviate urban parking shortages [2][4][5]. Industry Overview - The mechanical parking garage was initially seen as a solution to the urban parking crisis due to land scarcity and high costs associated with traditional parking lots [1][4]. - National policies have been established to encourage the development of mechanical parking systems, but practical implementation has not met expectations [1][4]. Company Performance - Five Yang Control's revenue from mechanical parking services has decreased from over 1 billion yuan in 2020 to 550 million yuan in 2024 [2][6]. - Sanpu Co., Ltd. reported a drop in mechanical parking-related sales from 160 million yuan in 2022 to 81.27 million yuan in 2024 [2][6]. - Dongjie Intelligent's revenue from smart mechanical parking systems has also seen a decline, with figures dropping from 150 million yuan in 2021 to just 406,240 yuan in 2024 [6][7]. Utilization Issues - Despite the construction of over 12,000 mechanical parking garages nationwide, the actual usage rate is below 62%, with some areas experiencing vacancy rates as high as 45% [5][9]. - Many drivers prefer traditional parking spaces over mechanical garages, leading to significant underutilization of the latter [5][9]. Design and Operational Challenges - Mechanical parking garages often have design flaws, such as insufficient space for larger vehicles, which discourages usage [8][9]. - The operational complexity and maintenance requirements of mechanical systems contribute to inefficiencies, with users experiencing longer wait times for retrieving vehicles [9][10]. Market Potential and Future Outlook - Despite the current challenges, there remains a significant parking space shortage in urban areas, with an estimated gap of over 80 million parking spots nationwide [14][15]. - Innovative designs and improved technology could enhance the appeal and functionality of mechanical parking garages, potentially addressing both parking difficulties and financial viability [12][13][15].