Core Insights - The automotive industry is a strategic pillar for economic growth and employment in China, with the after-market emerging as a new consumption growth point due to increasing vehicle ownership and consumer demand for personalization and performance [1][2] Market Overview - As of the end of 2024, China's vehicle ownership is projected to reach 353 million, while new car sales growth is slowing down [1] - The automotive after-market is defined as a series of transactions related to the needs and services arising from the use of vehicles from sale to scrapping [2] Policy and Regulation - In January, the Ministry of Commerce and eight other departments initiated a pilot program for automotive circulation consumption reform, focusing on establishing management mechanisms for the automotive modification industry [1] - The China Automotive Industry Association has released guidelines for 16 legal automotive modification projects, with plans for approval by May [2][3] Consumer Trends - The younger generation is increasingly viewing cars as a lifestyle choice rather than just a means of transportation, leading to a growing demand for vehicle personalization and performance enhancements [2][3] - The automotive modification market in China is expected to exceed 200 billion yuan by 2025, with a compound annual growth rate of over 15% [3] Emerging Opportunities - The demand for vehicle modifications such as film application, body color changes, and audio upgrades constitutes 85% of the modification market [3] - Off-road camping is becoming a new lifestyle trend, requiring vehicle modifications and facilities to enhance comfort and convenience [3] Cultural Impact - Events like the F1 Chinese Grand Prix have attracted significant attendance, indicating a growing interest in automotive sports among the younger demographic [4] - The development of the automotive industry and culture in China is expected to mutually empower each other, fulfilling deeper spiritual needs as economic conditions improve [4]