PSA buys controlling stake in Chinese auto spare parts distributor Jian Xin
French car manufacturer Groupe PSA has purchased a controlling stake in Jian Xin, a Chinese auto spare parts distributor for an undisclosed price, in a move to boost its presence in the Chinese market.
The transaction is expected to help Groupe PSA speed up the launch of its aftermarket offering in the China.
The Shanghai-based Jian Xin, which has been in business for more than 20 years, sells over five million spare parts procured from some of the main original equipment manufacturers.
Through the controlling stake in the Chinese auto spare parts distributor, Groupe PSA plans to create a position for itself in the Chinese independent aftermarket (IAM).
The French car manufacturer says that it will also get entry to a competitive and efficient supply chain distribution system that provides delivery times and frequencies that comply with the highest market standards.
Groupe PSA revealed that the aim of the transaction is to accelerate sales growth of multi-brand parts, including in its new Eurorepar range, which the French car manufacturer had particularly developed for the Chinese market.
Further, the transaction also means an opportunity for Groupe PSA to grow its network of multi-brand Euro Repar Car Service garages, with a majority of Jian Xin customers being independent auto repair shops. Groupe PSA expects many of these Chinese auto repair shops to join the network, with over 23 already joining it recently.
Commenting on the Groupe PSA Jian Xin deal, Christophe Musy – Executive Vice President of PSA Aftermarket, said: “Our multi-brand aftermarket strategy, one of the pillars of the Push to Pass strategic plan, aims to meet the needs of all after-sales customers around the world, regardless of their purchasing power and the make or age of their vehicle.
“China will soon be the world’s biggest aftermarket, and we have set ourselves very high ambitions there, which is why we’re already securing strong market positions.”