Over 70% of the stores' revenue and profit fell in the first half of the year, and 50% were worried that the epidemic would reduce car owners' desire to consume丨Report

With the end of the first half of 2022, the sudden outbreak of the epidemic has also shown signs of improvement.However, the business situation of auto service stores is not optimistic.

The auto repair industry is not only facing the repeated tests of the epidemic, but also potential threats caused bysoaring oil prices, competition from large platforms and chains, increasing penetration ofnew energy , and shrinking customer budgets.

How will auto service stores adjust in the second half of the year?

The following is AC Motor's research report on the auto repair business in the first half of the year, hoping to provide some reference for the store's sprint in the second half.

01. Over 70% of revenue and profits fell year-on-year, and 60% of unit yields fell year-on-year

Judging from the survey results, from January to June 2022, the three indicators of overall revenue, profit and bicycleoutput valueof terminal stores all declined year-on-year.Specifically:

● In terms of revenue, over 70% of the auto service stores declined compared to the first half of last year, of which 60.7% of the auto service stores declined by more than 10%.

Some of the views on this year's auto repair business are excerpted as follows:

○ Compared with new customers, it is necessary to pay more attention to the service satisfaction of old customers, and to stabilize the foundation to not panic;

○ Reduce the scale, reduce labor costs, and increase business scope;

○ Consumers have higher and higher requirements for professional + service. To win the market, stores must implement data-based operations and refined management;

○ The market will be reshuffled, e-commerce, 4S, and comprehensive repair shops will exist for a long time, and it is difficult for small stores to survive;

○ Stabilize the basic market, reduce prices appropriately, and survive first.We have begun to enter thenew energy vehiclemaintenance sector;

○ In the first half of the year, traffic was significantly reduced, and e-commerce subsidies were blooming everywhere. While conquering cities and territories, the data of e-commerce stores themselves were actually not flattering. Other stores had various promotions to attract customers, and then reduced profits.While the market environment is not good, the involution will only get worse.

○ I think the overall situation this year is still good. As for some views on the industry’s decline, I don’t agree. As long as practitioners are serious and down-to-earth, the automotive aftermarket still has hope and a future.