Converting cars must be legal now! Do you agree?

The long advocated legalization of car modification has recently made new progress.

According to the Joint Promotion Office of Automotive Compliance Modification, the inaugural meeting and first plenary session of the Automotive Modification Standards Working Group were successfully held on March 11th.

Note: The Joint Promotion Office for Automotive Compliance Modification was jointly established by China Automotive Information Technology Co., Ltd. and the China Automotive Strategy and Research Center

The meeting pointed out that the current automotive modification market has great potential, but the lack of relevant automotive modification management policies, regulations, and standards hinders market development. Therefore, it is necessary to accelerate the improvement of the "Guidelines for the Construction of Automotive Modification Group Standards System".

Enormous market potential after modification

For a long time, the automotive modification industry worldwide has been in a gray area, and law enforcement agencies have only turned a blind eye to this, leaving a certain degree of flexibility for each other.

The domestic automotive modification industry is even more so. Although our automotive culture is relatively weak compared to developed countries, and the foundation of automotive modification culture is therefore somewhat thin, in reality, the potential of the domestic automotive modification market will exceed the imagination of everyone present.

According to statistics from the World Automobile Organization, the world's automobile ownership reached 1.5 billion in 2021, with China's automobile ownership exceeding 300 million, accounting for 20% of the world's automobile ownership.

At the same time, China has developed to the size of the world's largest single market, currently accounting for 30% of global car sales, which is 10 percentage points higher than the second ranked US market.

Based on the rapid increase in China's automobile ownership, it is believed that the proportion of China's automobile ownership in the world will continue to increase and become a leading market in the future. However, the scale of the modified market is much smaller than that of other developed countries.

According to relevant data, as of the end of 2021, the global automotive modification market has exceeded 300 billion euros (2115.6 billion yuan), with the main components of the market being Europe, North America, and Japan. These three major automotive markets are also the most developed areas in the international automotive industry.

In contrast, in the environment where the post modification market in China needs to be developed, the market size for the whole year of 2020 was only 65.2 billion yuan, which is not proportional to the large number of cars owned.

It is worth mentioning that the consumption structure of the domestic automotive modification market is very single, with basic modification projects such as automotive film application, body color modification, and upgrading of automotive audio equipment accounting for 85% of the entire modification market, which is completely different from the composition structure of developed regions.

This may be due to the gradual opening up of policies in recent years, where laws and regulations allow vehicles to be modified based on the appearance color of cars, thereby driving the demand for body color modification and film application.