Report Describes Developing Marketplace Sept. 29, 2004—Shanghai—Technomic Asia, an international strategic consul- tancy specializing in China strategies for U.S. companies, today announced the availability of its “Strategic Assessment of China’s Light Passenger Vehicle Aftermarket.’ This detailed market report provides insight into the rapidly growing industry with analysis of trends and opportunities. The report, which stems from Technomic Asia’s extensive primary research among key industry players, found that increasing private ownership and an overall rise in vehicle quality and reliability are key trends in China’s developing automotive aftermarket. Additionally, the present lack of a dominant company or brand will allow for healthy competition to shape the marketplace. “Prior to this report, there was no single resource for the automotive aftermarket. The ‘Strategic Assessment of China’s Light Passenger Vehicle Aftermarket’ provides a foundation for developing a business strategy,’ said Steve Ganster, managing director of Technomic Asia. Ganster recently presented findings from the report to the Business Opportunities in China’s Automotive Aftermarket 2004 Conference in Shanghai, which was sponsored by the Centre for Management Technology. “Technomic Asia forecasts the light passenger vehicle parc to grow from an estimated 15 million in 2003 to more than 50 million by 2010, driven by aggressive new sales of vehicles,” Ganster said. “Most repair categories are expected to grow at an annual rate of 18 to 20 percent per year. The current parts and service market for light pas- senger vehicles is estimated at more than $11 billion and will grow to over $46 billion by 2010.” To put the China auto market in con- text, there is about one car for every 100 people in China. In North America there are 40 cars for every 100 persons. Today, the eastern provinces of China represent 45 percent of the total auto- motive market, but markets in other regions are rapidly developing. “China’s aftermarket will take shape in the next few years in terms of chan- nel structure, brands and competitive positioning. This time period will be critical for foreign players to establish position,’ Ganster said. Ganster warns that not all businesses are destined to succeed in China, citing current unstructured distribution sys- tems, corruption, counterfeiting and the market’s fragmentation. “Companies need to be very careful in developing their China investment strategies. Making money in China is still very dif- ficult, though long-term opportunities look significant.”