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The more Xiaomi cars are sold, the more anxious are over 400000 auto repair shops?

Publish Date: 2024.04.10

  Xiaomi Motors has gone crazy, causing pressure on its peers, while also taking away businesses such as tires, maintenance, and window film... Is it true that the repair shop only has car washing and beauty left?


  Xiaomi cars are selling like hotcakes!


  Within 24 hours of its launch, the Xiaomi SU7 is priced at 88898 units. "I've never seen so many people before," said several Xiaomi dealerships in Shanghai, admitting that it's normal for test drives to be scheduled until two or three in the morning


  The hot sales of Xiaomi cars have also triggered a rapid response from peers.

  Will the trend that Xiaomi Motors has stirred up in the aftermarket business ultimately affect the aftermarket, leaving only car washing and beauty services for its automotive service stores?


  01. How many aftermarket businesses has Xiaomi taken away?


  Firstly, what impressed the automotive service stores the most was that the solar film business may no longer be available.


  At the Xiaomi car launch event, "Sunscreen" captured the pain points of many users, with double-layer silver plating on the sunroof glass, three-layer silver plating on the front windshield, and a 99.5% UV isolation rate

  Secondly, the space of the color changing film has also been extremely compressed.


  Xiaomi Motors offers 9 colors, including 5 with metallic paint finish. Three highly popular colors are free of charge, and car owners can choose other colors for only 7000 yuan.


  Thirdly, the tire business is not related to repair shops in the short term.


  In the official information of Xiaomi Motors, it is clearly stated that except for the 19 inch Michelin E-Primacy low roll resistance tires, the other three models are customized by the tire brand in combination with the SU7 performance energy. Suggest purchasing customized tires through official channels.


  Even for tire repair services, Xiaomi Motors provides offline service vehicles that can be door-to-door, and are free of charge and unlimited in frequency.


  Fourthly, daily maintenance and painting services are locked down by official channels.


  Firstly, Xiaomi Motors provides two free basic maintenance services and two free paint spray coupons per year; The maintenance cost is transparent, with the first maintenance (first year or 20000 kilometers) costing 480 yuan, the second year around 750 yuan, and the third year around 1400 yuan.

  Moreover, Xiaomi's official statement clearly states that maintenance and repair must be carried out at designated locations, otherwise it will affect multiple warranties. Moreover, the warranty can be enjoyed by second-hand car owners even if they follow the car, which means that the chance of independent after-sales service is even more slim.


  Finally, Xiaomi's reserved space for the modification market is also limited.


  Some stores have indicated that chassis armor should be able to be made; Next is to modify the air kit, which of course requires the owners of the modification factory to develop.


  Of course, some car service owners have also expressed that with Xiaomi's strong research and development capabilities and supply chain capabilities, these personalized customized products are highly likely to be launched on Xiaomi Auto Mall. At the press conference, Lei Jun brought over 100 peripheral products, including mobile phone holders, outdoor Bluetooth speakers, walkie talkies, strong flashlights, and more.


  Some experts in the film industry have also expressed that Xiaomi's discovery of user pain points in glass insulation has opened up new marketing ideas for car companies, which may attract other car companies to follow up. As car companies become more and more focused on user experience, it is also possible for new cars to come with their own car clothing in the future.


  02. Is there only car wash and beauty left in the repair shop?


  In fact, to put it even more "terrifying", there have been disagreements over whether car service stores should wash new energy vehicles.


  At present, many automotive service stores have reported a significant increase in the demand for new energy vehicles to be washed in stores, which has even affected the experience of fuel car customers in the stores. This has made the stores very conflicted:


  One is that new energy vehicles entering the store for car washing are simply car washing, making it difficult to convert into other businesses. Even if they are converted into films, it is only a one-time transaction;


  Secondly, many new energy vehicle customers are former customers of gasoline vehicles in the store. Although customers have changed cars, their customer relationship is still good, and not providing car wash services will affect their reputation.


  This means that in the era of new energy, the traditional automotive service stores have disappeared from the conversion chain of vulnerable parts such as car washing, beauty, maintenance, and tire chassis.


  So, do car service stores really not even have the opportunity to "drink soup"?


  With the steady increase in the number of new energy vehicles, the replacement of fuel powered vehicle engine systems by three electric systems has led to a reduction in the market share of traditional fuel powered vehicle maintenance. This is not a trend, but a reality that is happening.


  Although the automotive aftermarket has undergone structural adjustments, new energy vehicles have also brought four waves of opportunities to the aftermarket service system:


  Firstly, there are opportunities for host authorization. Opportunities involving sales, after-sales service, or sales service integration. The first wave of integrated sales and service opportunities released by Xiaomi Motors were all divided up by the 4S Group.


  According to AC Automobile, Strong Comprehensive Repair Chain is already preparing for Xiaomi Automobile's second wave of authorization opportunities.


  Secondly, there is an opportunity to modify the beauty sticker. This is currently the hottest track that car service stores are most concerned about, and it has also attracted Dalian lock-in players such as Cat, Dog, and Tiger. The entry threshold is relatively low, and a group of beauty salons that are skilled in marketing, new media, and strong service capabilities have already received this dividend.


  Third, opportunities for electrical testing and maintenance. Due to its complexity and professionalism, as well as its long warranty period, this wave of opportunities is mainly authorized by car companies.


  Fourth, maintenance opportunities for commercial and used vehicles such as ride hailing services. The number of new energy ride hailing vehicles is not low, and the driving distance is long, the warranty period is early, and there is a large demand for power battery testing and maintenance. Comprehensive repair shops with resources and technical strength are relatively easier to win this wave of business.

  Fifthly, there are opportunities for maintenance and sheet metal spray painting for customers to overflow.


  The person in charge of a specialized repair chain in Xi'an told AC Automobile that, without obtaining authorization from Tesla, they contributed nearly 3 million yuan in revenue to serving Tesla customers in 2023, including accident repairs, body and paint spraying.


  In his view, this is the spillover effect of new energy vehicles. New energy vehicles will eventually return to the old path of gasoline vehicles. With the expansion of scale, the authorization system or direct sales system will always face the problem of difficult cost efficiency balance, and some car owners will flow out of the system due to long waiting times and price issues.


  He also admitted that repair shops need to have two conditions to wait for the spillover effect of new energy vehicles: first, to improve their technical level and service capabilities, especially in the field of three electric vehicles; The second is to live until this day arrives.


  Write at the end


  Overall, Xiaomi's high-profile entry into the automotive industry and aftermarket will gradually show its momentum.


  For independent after-sales stores, it is more important to recognize the development pattern of the aftermarket under the trend of new energy.


  On the one hand, strive to become a part of the ecosystem of new energy vehicle companies. With the increase in the number of new energy vehicles, the pressure on car companies to make profits, and the aging of vehicles, warranty expiration, the after-sales service of new energy vehicles requires the joint participation of after-sales enterprises to enrich the after-sales ecosystem. How to become a part of the ecosystem of new energy vehicle companies


  On the other hand, in the maintenance market constantly squeezed by new energy vehicles, to find one's core competitiveness, whether it is specialization or refinement, one must find a way to survive from the changes in vehicle structure and customer structure.


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