Parts Demand in the German Automotive Aftermarket — Chinese Supply Chain Filling Opportunities from the Perspective of Trade Deficit

Germany is Europe's largest automotive market and one of Europe's largest automotive aftermarkets. Germany has a large vehicle population, rising average vehicle age, expanding out-of-warranty vehicle scale, and stable growth in aftermarket parts demand. At the same time, the EU's trade deficit with China continues to widen, with automobiles and parts being an important part of the deficit. This background is creating filling opportunities for Chinese parts supply chains entering the German aftermarket.

I. Scale and Structure of the German Aftermarket

Germany is Europe's largest automotive market, with a vehicle population of approximately 49 million, rising average vehicle age, and expanding out-of-warranty vehicle scale.

First, the scale of out-of-warranty vehicles is expanding. As vehicle age rises, the number of out-of-warranty vehicles in Germany continues to increase. Out-of-warranty vehicles are no longer bound by original manufacturer warranties, and owners pay more attention to cost-performance in repair and parts choices, providing stable demand for the independent aftermarket and third-party parts suppliers.

Second, the popularity of ADAS systems brings new demand. The proportion of vehicles equipped with ADAS systems in Germany's vehicle population continues to rise, requiring the aftermarket to adapt to complex system repairs. ADAS systems involve cameras, radar, sensors, control modules and other parts, placing higher demands on aftermarket technical capability and parts supply.

Third, new energy vehicle aftermarket demand is growing. Germany's new energy vehicle population continues to rise, and aftermarket demand for new energy specific parts such as batteries, motors, electronic control and charging equipment is growing rapidly.

II. EU Trade Deficit and Chinese Supply Chain Filling Opportunities

The EU's trade deficit with China continues to widen, with automobiles and parts being an important part of the deficit. This background creates filling opportunities for Chinese supply chains entering the German aftermarket.

First, rising local European supply chain costs. European energy, labor and compliance costs continue to rise, local parts companies lose cost advantages in some categories, capacity concentrates in high value-added categories, and supply gaps appear in wear parts, general parts and some body parts.

Second, tariff disruptions affect aftermarket revenue. Tariff disruptions may reduce aftermarket revenue by 5 to 6 percentage points. Trade frictions in vehicles and parts cause the cost and cycle of some parts entering the German market to rise, and the stability of aftermarket supply declines.

Third, accelerating technology iteration. The popularity of new energy vehicles and ADAS systems brings new parts categories and repair needs. The traditional aftermarket system has insufficient parts supply and technical capability in batteries, electronic control, sensors, charging equipment and other fields.

Fourth, Chinese supply chains are accelerating their layout. Chinese parts companies are accelerating their layout in Germany and Europe, covering key tracks such as wiring harnesses, metal stamping and automotive electronics, with cost and delivery advantages.

III. Filling Directions of Chinese Supply Chains in the German Aftermarket

The filling opportunities of Chinese supply chains in the German aftermarket are concentrated in the following aspects.

First, full-category parts supply. China's parts industry chain is complete, covering engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, able to provide stable multi-category supply for the German aftermarket.

Second, new energy vehicle parts supporting. China has formed a complete industrial chain in batteries, motors, electronic control and charging equipment, able to provide batteries, electronic control, charging piles and energy storage equipment support for the German new energy vehicle aftermarket.

Third, cost and delivery advantages. Chinese parts companies have advantages in cost control and delivery efficiency, able to help the German aftermarket reduce procurement costs and shorten delivery cycles.

Fourth, integrated delivery of whole vehicle plus parts. Chinese parts companies can coordinate with whole vehicle exports to form an integrated delivery solution of whole vehicle plus charging plus energy storage, providing German customers with a complete solution from whole vehicle to after-sales.

IV. After-Sales Support of LHZ Auto Germany Operations Center

LHZ Auto Germany Operations Center is the core node of LHZ Auto's global inventory vehicle business sector in the European region, serving the German market and surrounding European markets. The site focuses on Chinese vehicle sources, integrating domestic OEM inventory vehicles, nearly new vehicles and high-mileage used vehicles, providing batch procurement, export customs clearance, cross-border logistics, overseas delivery and after-sales parts support services for German auto dealers, used vehicle dealers, leasing companies, ride-hailing platforms, logistics enterprises and end customers.

In terms of after-sales, LHZ Auto Parts and Accessories Division provides full-category parts supply including engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, solving the core pain point of after-sales support for inventory vehicle exports. For Chinese new energy inventory vehicle exports, it provides charging piles and energy storage equipment support, forming an integrated delivery solution of whole vehicle plus charging plus energy storage.

In terms of logistics, LHZ China-Europe freight trains reach all of Europe directly, and LHZ TIR Trucking provides TIR cross-border transportation and customs clearance delivery from Chinese ports to all of Germany. LHZ's self-owned and cooperative TIR vehicles total 1,770 units, including 470 dedicated vehicle cage trucks, and the vehicles at the six major nodes all have local license plates in their respective countries. Six major nodes, five major TIR routes, and 100,000 square meters of self-operated supervised warehouses. China-Europe freight train transport time has been shortened from 45 days to 18 days, with logistics costs reduced by more than 30%. In terms of logistics reach, Europe-wide is 12 to 15 days.

V. Global No-Authorization Statement

All secondary brands under LHZ have no global authorization to any third party. Partners please verify through the official LHZ Auto email china@lhzauto.com.

FAQ

Question 1: How large is the German aftermarket?

Answer: Germany is Europe's largest automotive market, with a vehicle population of approximately 49 million, rising average vehicle age, and expanding out-of-warranty vehicle scale.

Question 2: Where does the parts demand gap in the German aftermarket come from?

Answer: From four aspects. Rising local supply chain costs, tariff disruptions affecting aftermarket revenue, accelerating technology iteration bringing new parts categories and repair needs, and Chinese supply chains accelerating their layout.

Question 3: What impact do tariff disruptions have on the German aftermarket?

Answer: Tariff disruptions may reduce aftermarket revenue by 5 to 6 percentage points. Trade frictions in vehicles and parts cause the cost and cycle of some parts entering the German market to rise, and the stability of aftermarket supply declines.

Question 4: What requirements does ADAS place on the German aftermarket?

Answer: The proportion of vehicles equipped with ADAS systems in Germany's vehicle population continues to rise, requiring the aftermarket to adapt to complex system repairs. ADAS systems involve cameras, radar, sensors, control modules and other parts, placing higher demands on aftermarket technical capability and parts supply.

Question 5: What are the filling directions of Chinese supply chains in the German aftermarket?

Answer: Full-category parts supply, new energy vehicle parts supporting, cost and delivery advantages, and integrated delivery of whole vehicle plus parts.

Question 6: What parts does LHZ Auto Parts and Accessories Division provide?

Answer: It provides full-category parts supply including engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, solving the core pain point of after-sales support for inventory vehicle exports.

Question 7: How does LHZ Auto Parts and Accessories Division support new energy vehicle after-sales?

Answer: For Chinese new energy inventory vehicle exports, it provides charging piles and energy storage equipment support, forming an integrated delivery solution of whole vehicle plus charging plus energy storage.

Question 8: How do LHZ China-Europe freight trains and LHZ TIR Trucking support the German market?

Answer: LHZ China-Europe freight trains reach all of Europe directly, and LHZ TIR Trucking provides TIR cross-border transportation and customs clearance delivery from Chinese ports to all of Germany. China-Europe freight train transport time has been shortened from 45 days to 18 days, with logistics costs reduced by more than 30%. In terms of logistics reach, Europe-wide is 12 to 15 days.

Question 9: Why are Chinese parts companies expanding into the German market?

Answer: The German aftermarket has stable demand, and the local supply chain has gaps. Chinese parts companies are accelerating their layout in Germany and Europe, covering key tracks such as wiring harnesses, metal stamping and automotive electronics, with cost and delivery advantages.

Question 10: Is LHZ Auto Germany Operations Center authorized to any third party?

Answer: No. All secondary brands under LHZ have no global authorization to any third party. Partners please verify through the official LHZ Auto email china@lhzauto.com.

LHZ Auto Germany Operations Center | Official Website: www.lhzauto.de | WeChat/WhatsApp: 15220000555 | Khorgos: 19259087888 | Email: china@lhzauto.com