China's automotive aftermarket is expected to play a growing role in driving consumer spending as the sector moves toward greater scale, standardization and consumer experience, industry experts and executives said.

"The auto aftermarket is an important component of national efforts to spur automobile consumption. It will continue to develop toward larger scale, stronger regulation and greater brand maturity during the 15th Five-Year Plan period (2026-30)," said Wu Songquan, senior chief expert at the China Automotive Technology and Research Center.

According to an action plan released last month by the Ministry of Industry and Information Technology and five other departments, China aims to cultivate three consumption sectors each exceeding 1 trillion yuan ($141.4 billion) by 2027, with intelligent connected vehicles identified as one of them. In this regard, the plan calls for pilot reforms in automobile circulation, expanded secondhand vehicle trading and the development of modification, rental, motorsports and RV camping segments to grow the entire auto consumption chain.

China's auto aftermarket is expected to reach 1.7 trillion yuan this year, making it the world's largest market for automotive services and transactions, said a report by market consultancy iResearch.

Despite its rapid rise, the auto aftermarket still lags behind vehicle manufacturing, Wu said. "The output value of automotive services and the aftermarket should significantly exceed that of vehicle manufacturing. However, China's auto aftermarket remains far behind the manufacturing side, leaving huge potential that must be unlocked through reform, innovation and sound guidance," Wu said.

The broad definition of the auto aftermarket covers all transactions and services that follow vehicle sales, among which secondhand vehicle circulation is a key pillar.

"The secondhand car market and the new car market influence and reinforce each other. In mature markets, secondhand vehicle sales typically surpass or far surpass new car sales," Wu added.

Data from the China Automobile Dealers Association showed that the country recorded 7.57 million secondhand passenger car transactions in the first half, up 0.52 percent year-on-year. In comparison, new passenger car retail sales reached 10.9 million units, up 10.8 percent.

To address the gap, a special action plan on boosting consumption released by the central government in March called for intensified efforts to strengthen the secondhand car business, simplify transaction procedures and facilitate cross-region registration.

"In traditional trading systems, vehicles may pass through three or more intermediaries, with each layer adding an estimated 5 percent in cost," said Wang Xiaoyu, co-founder and senior vice-president of trading platform Guazi Used Car, adding that connecting individual sellers and 4S (sales, service, spare parts and survey) platforms can contribute to reducing redundant circulation links and passing savings on to consumers, effectively stimulating purchasing demand.

"The rise of AI is also helping unleash great potential of the secondhand market by offering users more professional guidance and precise model recommendations, further improving transaction efficiency," Wang said.

Tapping the emerging market for used new energy vehicles, the company has also upgraded its inspection and aftersales system, adding specialized checks for electric motors, electronic controls and battery packs, and introducing services such as a 100-day battery degradation warranties to enhance consumer confidence, the senior executive said.

"Leveraging full-chain platform capabilities, we aim to promote the development of a more vibrant secondhand car circulation ecosystem," Wang noted.

Beyond transactions, service providers in related sectors such as car rentals are also responding to policy guidance and expanding service offerings to elevate consumer experience.

"We just launched a six-part quality service system covering safety, reassurance, damage protection, cross-city returns, long-distance delivery and full-trip support," said Li Jia, vice-president of domestic car rental company CAR Inc.

"The unified framework is all for enhancing renting experiences for consumers," Li said.

For example, the cross-city return service breaks geographical constraints by supporting returns across more than 360 cities nationwide, while the long-distance delivery option extends service reach by enabling door-to-door pickups and returns. Meanwhile, the 24/7 customer support team ensures rapid response to any unexpected issues, providing comprehensive on-road assurance, Li added.

"The scope of the automotive aftermarket is continuously expanding. Going forward, the sector is expected to develop toward greater specialization and segmentation," said Lang Xuehong, deputy secretary-general of the CADA.

"Drawing on Western experiences, rising vehicle ownership and aging fleets will give rise to a variety of new business models."