In today’s auto parts stores, one must have faith in the enterprise, believing that after enduring the hardships, spring will arrive.
This is not mere self-comfort; it is the inevitable path for the industry’s development and transformation.
This is a true portrayal of many people: every morning at eight o’clock, the rolling shutter door clatters up, and a single order can last the entire day; millions of goods are piled up in the warehouse, and daily orders have almost halved compared to before, causing heavy anxiety; hundreds of repair shop owners’ phone numbers are saved in the phone, but recently, it’s been so quiet that it’s unsettling.
What people talk about most is no longer “How’s business been lately?” but “Can we still keep operating?”.
The auto parts industry is indeed becoming increasingly challenging. We haven’t fully grasped the components of new energy vehicles, and the profits from traditional consumable parts have already hit rock bottom. The pressure to survive is also very real. Rent is due every three months, salaries need to be paid at the end of the month, and social insurance contributions have to be made. Bills are staring us in the face every morning we wake up.
Some bosses bitterly laughed: “In the past, one year was worth three years, but now it takes three years to survive one year. Many peers can’t hold on anymore. They either transfer their businesses or close down. Messages like ‘clearance sale of unsalable accessory products’ in WeChat Moments are becoming more and more frequent.”.
But I really want to say: if you want to do auto parts business nowadays, you need to have confidence in the enterprise.
Why “have confidence in the enterprise”
In this knockout competition, not being eliminated is itself a testament to competitiveness.
In an industry environment characterized by extreme internal competition, having confidence in the chosen products, confidence in the clients we collaborate with, confidence in our company’s team, and maintaining a clear understanding of current trends such as new energy, new media, and AI, is often more important than mere ability. Such confidence enables us to approach business with joy and positivity, converse with clients in a more pleasant manner, and perform financial analysis of revenue and costs with ease. By leveraging digitalization to revitalize business operations and striving for daily improvement, we can become the preferred partner for auto repair shops. This, in turn, is a win for us.
According to data from the China Automobile Dealers Association, nearly 15,000 4S stores have closed down over the past five years, indicating that the once-impregnable channel fortress is disintegrating at a visible speed. F6-related data shows that nearly 11,000 auto repair shops closed down or transferred ownership in 2025, and these numbers are still on the rise.
Amidst the tumultuous waves, persevering in opening your doors signifies that your cash flow can still sustain, that you still have a group of repair shop customers willing to purchase from you, and that your team is still standing together.
This is not just about surviving, this is about competitiveness.
Perseverance does not equate to stubbornly carrying on
Of course, persistence doesn’t mean clinging on. Those who can endure may not be the strongest, but they are definitely the first to make adjustments. At present, there are at least three things we can start with.
① Reduce inventory to give cash flow a break. Use data to filter out unsalable SKUs that haven’t been shipped in nearly 90 days and dispose of them decisively, even if it means taking a loss. The cash you gain is much more valuable than the dead stock. Focusing limited resources on core components with fast turnover and raising the inventory turnover rate above the critical threshold is like oxygenating your business.
② Actively adjust the product structure and seize the incremental opportunities presented by new energy. Don’t just focus on traditional consumables and compete with platforms on price, as that is a battle you cannot win. The wave of new energy brings not only challenges, but also opportunities. The ownership of hybrid vehicles is surging, and their demand for accessories has begun to increase. Many platforms have not yet fully explored categories such as chassis parts, thermal management accessories, and high-voltage wiring harnesses. Taking the initiative to study these new increments, even if it means preparing a few fast-turnover SKUs in inventory, is paving the way for the future. Being half a step ahead in product structure means that when the opportunity arises, you will be the one who is ready.
③ Lock in a small niche and focus on it. You don’t have to serve all cars or cover all parts. Focus on one or two car models with a large number of vehicles in your area, and strive to be the first choice for repair shops when it comes to “all the complex issues of this model”. Alternatively, maximize your distribution density, ensuring that within a county or a specific area, repair shops can reach you within half an hour upon receiving a call. This kind of local absolute advantage is where platforms cannot go deep, and it is also the foundation for you to take root and survive.
Looking ahead, this industry will not disappear. With 323 million gasoline-powered vehicles on the road and the average age of vehicles still increasing, maintenance is a perpetual and rigid demand. The aftermarket for new energy vehicles is also taking shape, and the demand for parts for hybrid models has already begun to surge.
Schlussfolgerung
So, there’s no need to envy others who are thriving, nor should you be anxious about the present dullness.
In such an environment, just staying afloat, not giving up, maintaining regular business operations, securing stability, and stabilizing one’s life, is already a victory over many.
In the world of adults, enduring the trough is the greatest ability.
