How about making auto parts now?

Many people who make money in the aftermarket say that business has become more and more difficult in recent years. If we didn't do auto parts business before and the old customers maintained the current sales level, we would never increase new projects or expand investment.

What people here say doesn't sound so beautiful, but it really makes sense. So, why is it more and more difficult to do business in auto parts industry?

The supply of products in the auto parts market exceeds demand, and there is no sales volume. China's manufacturing industry is not boasted, but actually made. When all products in the automotive aftermarket can be easily manufactured, there will be more and more goods on the market.

This is why there are more and more upstream suppliers, and it is more and more difficult for terminal retail to survive. Too many auto parts products are squeezed and can't be sold, and business will naturally become more and more difficult.

The auto parts chain platform integrates resources, and the market competition becomes greater. Any auto parts chain platform always has a great appetite to stage the big fish eat small fish. Whether it is a direct store or a franchisee, it is bound to get a share in the existing market. The secret of auto parts platform enterprises to seize the market is first, high quality and low price, and second, service upgrade. As long as these two points are achieved, it is not far from turning a small platform into a big platform.

Once the auto parts chain becomes larger, the smaller middlemen and agents in the auto parts industry will face the risk of being annexed or closed down. It's cruel to think about it.

The sales of auto parts are networked, the price is severely squeezed, and the profit is thin. E-commerce has an impact on the whole industry, and it is difficult for the auto parts industry to be immune. Although there are certain technical barriers in the auto parts industry, many car owners dare not or will not buy their own auto parts online, but this advantage will definitely become smaller and smaller.

The price comparison of the platform is the most direct. For the same goods, the online price is always much lower than the offline price, which also makes the profit of physical stores thinner and thinner, making it difficult to survive.

With the increase of electric vehicle sales, the incremental market of traditional automobile parts becomes uncertain, that is, the market of fuel vehicles will definitely be replaced. Nowadays, electric vehicles, Tesla and other big tram companies are sparing no effort to promote electric new energy vehicles.

When more and more people choose electric vehicles, the market of traditional auto parts will inevitably be impacted and the stock market will become smaller and smaller.

The above four points are the reasons why the auto parts industry is becoming more and more difficult to do. People who have used car parts will feel very sad. After all, this industry will never be more prosperous than before.

Although the business of auto parts industry has become difficult, we still rely on this industry to survive. Only now, what we have to do is to think for a long time, and it is the right way to come up with corresponding countermeasures.

I don't know much about cars. Bye!

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