News Reader

ZF opens center in Shanghai for sales, aftersales

2015-01-05

ZF Friedrichshafen AG has opened a center in Shanghai to support its sales and aftersales services in China.

The center has a floor area of 7,500 square meters (80,730 square feet) and will house a training area for aftermarket parts dealers, a spare parts distribution hub and a remanufacturing operation, said Shih-Jen Yeh, managing director of ZF Services China.

ZF plans to launch the remanufacturing operation in the second half of 2015. It will be the German supplier's fourth global remanufacturing operation. Others are in Germany, the United Kingdom and the United States, according to Yeh.

"Remanufactured parts are of the same quality as the parts ZF supplies to automakers," Yeh said. "That's the difference between remanufactured parts and repaired parts."

ZF Services, ZF's aftersales division, supplies spare driveline, transmission and chassis parts for passenger vehicles, trucks, off-road vehicles, marine and wind power equipment in China. It has 55 licensed repair shops and 130 spare parts dealers in China.

In October, the Chinese government required automakers to share vehicle technical data with independent repair shops starting next year. The policy also encourages automakers' licensed repair shops to share their parts with independent stores. ZF opened its Shanghai center in October.

Asked how the government policy will affect China's automotive aftermarket, Yeh said it's hard to gauge the impact before the government issues rules to implement the requirements.

But he noted that Chinese car owners consider the quality of replacement parts to be more important than low prices. Such a trend will help spare parts sales of companies such as ZF, he said.

In 2013, ZF Services had sales of 2.8 billion yuan ($452 million) in China, representing more than 25 percent of its global sales.

Yeh said, "Our sales growth last year was 13 percent and we expect to continue achieving more than 10 percent growth in 2014."

 

 

Automotive News China

www.autonewschina.com

Go back