Core Insights - The penetration rate of new energy vehicles (NEVs) is projected to reach 51.5% by April 2025, indicating a significant shift in the automotive market towards NEVs [2] - The automotive aftermarket is evolving from a marginal role to a core driver of domestic demand, with a market size expected to reach approximately 2.9 trillion yuan by 2029, growing at a compound annual growth rate (CAGR) of around 20% from 2024 to 2029 [2][3] - The rapid growth of NEVs is creating new demands in the aftermarket, such as battery recycling and "three electric" repairs, while also presenting challenges like a shortage of skilled technicians and a lack of standardization [2][8] Market Dynamics - The automotive aftermarket's strategic importance has been elevated under the "dual circulation" strategy, with recent policy frameworks aiming to break down circulation barriers and promote consumption culture [3] - By the end of 2024, the total number of motor vehicles in China is expected to reach 453 million, with NEVs accounting for 31.4 million vehicles, representing 8.9% of the market share [3] - The traditional fuel vehicle aftermarket is entering a maintenance peak as the average vehicle age surpasses six years, while the NEV sector is experiencing rapid growth in new service areas [3][7] Consumer Behavior - The maintenance frequency for NEVs is significantly lower than that of traditional fuel vehicles due to their simpler mechanical structure and reliance on software updates [4][5] - New generation consumers are driving demand for a comprehensive "car life" experience, seeking personalized and high-quality services beyond basic transportation needs [5][6] Industry Challenges - The aftermarket faces structural challenges, including a 50% talent gap in NEV maintenance and a lack of transparency in used car transactions [8] - The aftermarket is characterized by a fragmented landscape, with 70% of operators in the modification market operating in a gray area [8] Innovation and Standardization - Standardization is crucial for overcoming industry challenges, with initiatives like CATL's battery health assessment system and Tuhu's maintenance methodology setting new benchmarks [8] - The digital transformation of the talent pool is urgent, with companies like BYD and Alibaba Cloud developing training programs to address the skills gap in the industry [8][9] Business Model Evolution - The aftermarket is shifting from a focus on "fault repair" to "full-service" offerings, with innovative models like battery-as-a-service (BaaS) and usage-based insurance (UBI) emerging [9] - Digitalization is becoming essential for survival, with platforms enhancing inventory turnover rates and facilitating seamless service transitions for consumers [9] Future Outlook - The automotive aftermarket is at a pivotal moment, with participants facing both unprecedented opportunities and significant challenges [9][10] - Continuous evolution is necessary for the industry to navigate cyclical fluctuations and capitalize on the growing market potential [10]