Core Insights - The automotive industry in China is transitioning from "selling globally" to "repairing globally," highlighting the growth in high-quality development and the emergence of new business models in the aftermarket sector [2][3] Group 1: Automotive Bonded Maintenance and Remanufacturing - The bonded maintenance and remanufacturing of automotive parts is gaining traction, with various free trade zones in China actively engaging in this emerging service industry [2][3] - The bonded maintenance business allows for high-value products to be repaired in bonded zones, benefiting from special regulatory policies that reduce financial burdens on companies [3][4] - The first bonded maintenance project for non-group produced automotive transmissions was successfully completed in Hainan Free Trade Port, marking a significant milestone [2][5] Group 2: Market Demand and Profitability - There is an increasing demand for bonded maintenance services due to changes in the structure of foreign trade, with high-value products requiring repair after damage abroad [3][6] - The profit margins for bonded maintenance can reach 40% to 60%, making it an attractive business model for domestic companies [6][11] - The market for converting foreign fuel vehicles to electric vehicles is also expanding, indicating a growing trend in the remanufacturing sector [6][9] Group 3: Regulatory Support and Expansion - The Chinese government has been supportive of the bonded maintenance industry since 2019, with various departments releasing guidelines to promote high-level openness and quality development [4][5] - As of 2023, over 260 bonded maintenance projects have been initiated across 23 provinces, indicating a broadening scope of this business model [7][11] - The Ministry of Commerce plans to continue expanding the range of products eligible for bonded maintenance and to promote innovative regulatory practices [7][10] Group 4: Regional Developments and Future Prospects - Guangdong Province reported a significant increase in bonded maintenance import and export value, reaching 21.77 billion yuan in the first five months of the year [10][11] - The establishment of a "global repair center" in Guangdong is underway, aiming to enhance the province's competitiveness in the bonded maintenance market [10][11] - The industry faces challenges, including a shortage of skilled technicians in specialized repair areas, which may hinder future growth [11]