Compared with the prosperity of the automotive sales market, the Chinese automotive aftermarket has been at a low level of development. The situation of distracted and chaotic has continued for many years. In recent years, some foreign-funded enterprises have entered the Chinese automotive aftermarket in an attempt to obtain real money in a chaotic market. Delphi is one of them. As a world-famous automotive parts supplier, Delphi began to enter the Chinese auto aftermarket in 2004. After six years of development, it has established a relatively standardized dealer team and gradually established a unified aftermarket platform, and achieved good results. benefit. In response to Delphi's aftermarket expansion and its judgment on the development of China's automotive aftermarket, the reporter recently conducted an exclusive interview with Delphi’s Vice President of Global Solutions for Products and Services and Delphi China’s Vice President Situ Yulin. He said: "Delphi hopes to establish a standardized 'rules of the game' by integrating its own dealer team to promote the orderly development of China's auto aftermarket."

To be responsible for the entire lifecycle of automotive products

The reporter has always questioned why Delphi, as a first-rate OEM supplier, paid so much attention to the after-sales market and established a special business unit. Situ Yulin told reporters that the life cycle of auto parts products includes the previous concept design, product research and development, matching and matching of the entire vehicle in the middle period, and providing technical and product after-sales service in the later period. Delphi's business covers the entire lifecycle of automotive products, from product development to production, to supply and service to automakers, and aftermarket and product reproduction. Currently, Delphi has five business divisions, four of which are geared to complete vehicles, and the fifth division is a product and service solution that provides technology and product services to the aftermarket. "The responsibility for the entire life cycle of the product is a responsibility and an opportunity for Delphi. We hope to expand in all areas." Situ Yulin said.

According to reports, Delphi's product and service solutions division was established in 1999 when Delphi left the company. It has been in China since 2004. In the past few years, Delphi has started from scratch in the Chinese after-sales market. At present, the entire dealership system has built three major platforms. The first one is mainly for American cars, the second is for Chinese brands, and the third is for battery products. In addition, Delphi is also exploring the remanufacturing business of auto parts products. Situ Yulin said: "At present, we are continuing to develop these platforms. The goal is to make our product line more abundant and allow our dealer platform to have a wealth of products and services."

Chinese automotive aftermarket needs to be integrated

The decentralized and chaotic state of China's auto aftermarket is the biggest problem faced by all foreign companies coming to “gold rush”. Delphi also needs to find ways to deal with this decentralized situation. Situ Yulin said that Delphi has divided the aftermarket in the Asia-Pacific region into three categories according to its degree of maturity: the first category is a relatively mature market, including Japan, South Korea and Singapore; the second category is the developing market, including China and India; The third category is the market that is still in its infancy, including Nepal and Sri Lanka. “Any industry has a development cycle. The Chinese auto aftermarket needs to be big and strong, and it must go through an integration process.” Situ Yulin believes that at present, China’s auto parts dealers are very fragmented and single, and they do not scale. . Therefore, one of the things Delphi does in the aftermarket in China is to integrate distributor teams to form large-scale auto parts distribution groups according to regions or models. For a certain platform to do the overall norms and integration, and seek common development. With the support and guidance of Delphi, Delphi’s distributors have established a strategic platform company to distribute Delphi’s products to control prices, reduce operating costs, and jointly exploit the market with economies of scale. This model was popular in the Chinese market for some time and was very successful. Dealers also very much agree with this development model, because they also want to become bigger and stronger.

Situ Yulin said: "The dealers joining Delphi's channels must abide by some 'rules of the game' and must agree with Delphi's value system, such as absolutely not selling counterfeit goods, not being able to fight price wars, etc. Delphi integrates the dealer team and not only Powerful support to the construction of its dealer system can also promote the scale and standardization of China's auto aftermarket. We hope the market will develop in an orderly, healthy, and sustainable manner. I believe this will also be the development trend of China's aftermarket."

Take four measures to expand the Chinese market

For future Delphi's development in China's auto aftermarket, Situ Yulin said it will take four steps to expand the market. The first is to establish a good customer base; the second is to continuously introduce leading new technologies; the third is to expand new channels; and the fourth is to expand geographically from first-tier cities to second-tier and third-tier cities. "In China's aftermarket, our top priority is to further broaden the channel for warehouse dealers." Situ Yulin said that Delphi's aftermarket now has three main channels: one for distributors and warehouse dealers; the other is for A smaller retailer, there is a category of e-commerce. These three channels are sold separately. In addition, Delphi also directly supplies the aftermarket products to the 4S shop of the automaker. In the aftermarket of the diesel system, Delphi has a large number of customers and therefore has established a number of diesel authorization service stations in the aftermarket. In order to delve Delphi's after-sales service to the technicians of the auto repair shop, Delphi has also launched a new network concept in recent years - the Delphi Service Center. It also operates through a warehouse-based dealer model. The difference is that although the brand identity of Delphi Service Center is Delphi, its owner is a local entrepreneur and is a franchise model.

Situ Yulin disclosed: “The Delphi Service Center is a new concept globally, but it is developing rapidly. At present, there are more than 4,500 Delphi service centers in the world. We will consider introducing the Delphi Service Center to China in the future.”

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