Business case

Strategic market entry in China’s automotive aftermarket

Situation: Strategy and business changes
Strategy

Context

Our client, a leading automotive purchasing group, was navigating the competitive and fragmented landscape of China’s independent automotive spare parts distribution market. With China experiencing rapid growth, the client sought to evaluate market dynamics, identify key trends and select potential high-value distributors. Its aim was to comprehensively assess, prioritise and negotiate partnerships with top-performing distributors to establish a foothold in this burgeoning market.

Key Takeaway

Our work provided the client with in-depth insights into China’s independent automotive spare parts sector. We identified and evaluated strategic targets, ensuring the feasibility of the project, and we facilitated successful negotiations, resulting in four strategic partnership agreements.

Accuracy Role

We conducted an exhaustive analysis of the independent automotive spare parts ecosystem in China, examining market structure and geographic distribution. Our efforts included market screening to identify and initially evaluate potential targets. We then performed in-depth analyses of selected distributors, detailing their operations, strategies and financial standing using both public data and direct interviews. We prioritised targets, facilitated initial contacts, organised on-site visits across China and supported negotiation processes by attending meetings and managing stakeholder communications until partnerships were formalised.

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