Auto repair point of view: auto repair prices should also drop
The maintenance and repair of vehicles is a crucial revenue stream for car manufacturers. According to digital data, a car typically lasts 11 to 12 years, and the total cost of maintenance over that period can be equivalent to the original price of the vehicle. Given this massive profit potential, it's no surprise that automakers prefer to slash the prices of new cars by thousands or even tens of thousands of dollars rather than adjust the prices of spare parts that may only cost a few dozen yuan. While significant price cuts help attract customers in a competitive market, keeping part prices high ensures continued profitability.
For major companies like Volkswagen, maintaining high part prices is more challenging than reducing the cost of new cars, especially given their large market presence. Many large companies face similar struggles as consumers do, which has led some smart small and medium-sized enterprises (SMEs) to find their own ways to survive. Rather than passively following market trends and lowering prices, these SMEs are focusing on generating profits through after-sales services and spare parts. This approach allows them to compete more effectively with big companies, even with limited resources.
Whether they can sustain themselves in the long run depends not only on brand recognition but also on how aggressively they cut prices. In a crowded market, their voices often get drowned out by those of larger, more powerful competitors. However, when others start offering lower car prices, SMEs are forced to respond by cutting accessory prices as well. This strategy can have a much greater impact than simply relying on brand reputation.
Last week, Dadi Motors introduced a bold move with its "3xN" service, promising to reduce maintenance costs by 13% and lower the prices of spare parts. Such actions make a tangible difference for consumers—13% is a noticeable saving, and the price reduction on parts is clearly visible. These moves are practical and effective, showing real value to customers.
When SMEs recognize the importance of this shift, they might take advantage of the growing trend of price cuts in the spare parts market. Some smaller companies have already started lowering their after-sales service fees, causing concern among larger firms. They realize that while big companies may promote "big service cards," their efforts often seem like a temporary storm compared to the ongoing changes in the market.
Source: Beijing Entertainment News
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