(Yicai) Oct. 13 -- China’s commerce ministry and eight other government departments will promote growth and competition in the vehicle aftermarket by supporting development of new energy and smart connected autos, according to the ministry.

China will optimize the distribution environment for auto parts, encourage the development of distribution models, including chain operations, strengthen NEV after-sales maintenance training, and develop green auto maintenance, according to measures outlined in a document posted on the ministry's website yesterday.

China's auto service market was worth CNY1.2 trillion (USD164.3 billion) last year, and will likely swell to CNY1.9 trillion by 2027, according to a report by China Insights Consultancy.

“Vehicle after-sales service in China accounts for only 12 percent of the entire life cycle of the auto industry, and that for NEVs accounts for less than 1 percent, lagging behind the development of manufacturing,” Yan Fengmin, an official at the General Administration of Quality Supervision, Inspection and Quarantine, said on Sept. 22.

The country will also support the building of camp sites for self-driving RV campers to promote road tourism, under the proposed measures, and will encourage local governments to open car museums and drive-in cinemas and organize auto events.

Furthermore, financial institutions will also be called on to optimize services for vehicle purchases and use based on legal compliance and controllable risks, per the measures.

The auto aftermarket refers to all after-sales services for vehicle, including financing, maintenance and parts, recycling for scrap, auto culture, and car sports.

Tuhu Automotive Service became the first auto aftermarket firm listed on the main board of the Hong Kong Exchanges and Clearing with a registered capital of HKD24 billion (USD3.1 billion) on Sept. 26. It had revenue of more than CNY6.5 billion (USD889.9 million) in the first half of this year, according to its listing prospectus.

With NEV aftermarket is receiving more and more attention, carmakers are shifting their focus from production to after-sales services, with BYD and Nio joining the car insurance business to develop more high-profit service systems in the vehicle aftermarket.

Editor: Martin Kadiev