In the era of inventory (stock era, referring to a market with limited growth potential), the automotive after-sales market has become highly competitive. Many after-sales groups continuously expand their networks, equip facilities, and increase staff, yet their operating results fall short of expectations. They face a dilemma where scale continues to grow, but profitability does not show a clear advantage. The root cause is that these groups fail to leverage synergistic value and adhere to the single-store operating logic of competing on price, manpower, and foot traffic, resulting in wasted platform resources. The true differentiated competitiveness of group stores comes from three capabilities that are difficult for individual stores to replicate:

▍Leveraging Scale Bargaining to Tap into Body and Paint Business Profits

Body and paint services are a key traffic entry point for after-sales but are often a profit weakness for most stores. Independent single stores have a monthly body and paint repair volume of approximately 50-80 units, with fragmented volumes and almost no bargaining power with insurance companies. They can only accept low labor rates and long payment terms.

The core advantage of group stores lies in their aggregated business scale. Assuming a single store has 800 monthly inbound vehicles with a 70% body and paint ratio, that's approximately 560 monthly body and paint repairs. For a group of 10 stores, the monthly body and paint repair volume can reach 5,600 units, providing strong bargaining power with insurance companies.

Implementation Points: The after-sales department, in collaboration with the finance department, should review insurance records from the past three months, Statistics (should be translated as "compile statistics on") repair volumes, labor rates, gross profit margins, payment terms, and outstanding debts to form a "Group Body and Paint Insurance Benefit Analysis Table." Focus on 2-3 mainstream insurance companies and strive to sign annual framework agreements at the group level to improve body and paint profitability.

▍Building New Energy Qualifications to Establish Differentiated Competitive Barriers

Ordinary street-side stores generally lack qualifications for three-electric system (battery, motor, electronic control) inspections and authorizations from new energy vehicle (NEV) brands, limiting them to basic maintenance services and resulting in low user trust. This presents an opportunity window for group stores, which can rely on their compliant facilities, certified technicians, and professional equipment to prioritize two incremental businesses:

First, apply for body and paint authorizations from NEV brands such as Xiaomi, NIO, Li Auto, Zeekr, and Aito, which are still expanding their service networks. Applying as a group entity significantly increases approval rates compared to single stores.

Second, prioritize the layout of three-electric system inspections without solely pursuing high-threshold three-electric system repair authorizations. Focus on conducting battery impact inspections, SOH (State of Health) assessments, and high-voltage insulation tests for out-of-warranty vehicles and used NEVs. Implement standardized actions: proactively offer inspections for NEVs that have been in service for over three years; mandate battery inspections and issue reports for all used NEV acquisitions, establishing professional trust that is difficult for single stores to replicate through visual reports.

▍Establishing a Closed Loop for New Energy Used Cars to Unlock Premium Gains

The biggest pain point in the circulation of used NEVs is the opacity of battery conditions, with buyers concerned about battery degradation and hidden faults. Third-party inspections are costly and cumbersome, leaving significant unmet demand in the market.

Group stores possess four advantages—vehicle sources, customer sources, facilities, and qualifications—enabling them to build a closed-loop system: trade-in acquisitions → internal battery inspections → standardized refurbishment → certified used car sales.

Conducting battery inspections internally costs less than 50 RMB per unit in equipment and labor, replacing expensive third-party inspections. Mandatory standards: issue SOH inspection reports for all NEV trade-ins; provide group inspection endorsements and warranty commitments for all used NEVs sold, thereby enhancing product premiums.

Three-Month Implementation Timeline:

Month 1: Data Review and Channel Expansion. Compile insurance body and paint records across the entire group; engage with ride-hailing, leasing, and corporate fleets, focusing on NEV operational fleets with higher maintenance frequencies. Secure maintenance frameworks for over 500 units to lock in stable off-season traffic.

Month 2: Launch New Businesses and Drive Conversions. Introduce 99 RMB basic and 199 RMB full battery inspection packages to attract customers; enforce job requirements for "front desk to promote, technicians to mention, and acquisitions to inspect"; set performance targets: monthly inspections ≥ 80 units, with post-inspection repair and trade-in conversion rates ≥ 15%.

Months 2-3: Secure Agreements and Deliver Profits. Leverage aggregated data to complete insurance negotiations, driving labor rate increases, shortened payment terms, and traffic allocation, striving for a steady 35-percentage-point increase in body and paint gross profit margins.

The core competitiveness of after-sales groups never lies in the simple accumulation of outlet numbers but in the comprehensive capabilities of resource integration, system implementation, and building competitive barriers. By effectively utilizing the three trumps of insurance bargaining, new energy qualifications, and used car closed loops, and implementing them step by step, groups can break free from single-store competition and achieve simultaneous improvements in profitability and competitiveness.

Layout | Zheng Li

Image Source | Qianku Network