China Automotive Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 52.58 Billion |
| Market Size (2029) | USD 70.22 Billion |
| CAGR (2024 - 2029) | 5.96 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Automotive Logistics Market Analysis
The China Automotive Logistics Market size is estimated at USD 52.58 billion in 2024, and is expected to reach USD 70.22 billion by 2029, at a CAGR of 5.96% during the forecast period (2024-2029).
- China's automotive industry underwent substantial shifts which in response, the Chinese government has implemented measures to rejuvenate automobile consumption. These measures include providing fiscal and taxation support, accelerating the elimination of obsolete diesel trucks, and optimizing second-hand vehicle trading channels. Additionally, the government has introduced subsidies for new energy vehicles and invested in infrastructure development to support the automotive sector, such initiatives will keep the market afloat.
- China remains the world's largest vehicle market, leading in both annual sales and manufacturing output. Projections indicate that domestic production will hit 35 million vehicles by 2025. Furthermore, bolstered by a global surge in interest for electric vehicles, Chinese automobile sales overseas have seen notable growth. In October, signs of improvement emerged in China's manufacturing sector, highlighted by a 1 percentage point uptick in the Caixin China General Manufacturing Purchasing Managers' Index (PMI), reaching 50.3, as reported by Global Times.
- The swift growth of the electric vehicle market plays a pivotal role in this industry's trajectory. With its dominant stance in the electric vehicle arena, China has recorded a pronounced uptick in vehicle exports. Enhancements in logistics infrastructure, marked by upgraded warehouse facilities and specialized transport corridors, have been instrumental. The government's supportive policies, which include subsidies for electric vehicle manufacturers and investments in charging infrastructure, have further fueled this growth.
- To navigate the complexities of vehicle transportation and parts handling, companies are increasingly turning to AI and IoT technologies, aiming to optimize logistics and boost efficiency. For instance, from the begining of 2024, SAIC Motor Corporation, one of the largest automotive manufacturers, has rolled out an automated warehousing system integrated with IoT sensors and AI algorithms. As a result, the integration of AI and IoT is becoming a standard practice in the industry, driving further advancements and setting new benchmarks for efficiency and reliability.
- This growing automotive sector, increasing vehicle sales, and exports are expected to drive the country's automotive logistics market.
China Automotive Logistics Market Trends
Chinese Investment in NEVs (New Energy Vehicles) Driving the Market Growth
The 2024 J.D. Power China New Energy Vehicle - Automotive Performance, Execution and Layout (NEV-APEAL) Study underscores a pivotal trend in the automotive logistics market: the steady ascent of New Energy Vehicles (NEVs) in China. Chinese NEVs have achieved an average NEV-APEAL score of 789 out of 1000, marking a notable 13-point rise from 2023. This consistent upward trend signals an increasing consumer acceptance and satisfaction with NEVs, subsequently fueling the demand for streamlined logistics solutions.
The swift growth of the NEV sector is reshaping associated industrial chains, with a pronounced focus on the battery sector. Power batteries play a pivotal role in influencing a vehicle's battery life, safety, and overall cost. Chinese manufacturers have shown a clear preference for lithium Iron Phosphate (LFP) batteries, setting themselves apart from the Western markets that lean towards Lithium Nickel Manganese Cobalt (NMC) batteries. By April 2024, new passenger cars achieved a retail penetration rate exceeding 50%, a milestone previously held by traditional petrol vehicles. This shift not only highlights the burgeoning dominance of NEVs in the market but also accentuates the escalating demand for specialized logistics services to facilitate their distribution.
The surging NEV market is amplifying the demand for customized transport and handling services within the automotive logistics domain. This burgeoning demand is not just expanding the supply chain but is also catalyzing infrastructure development and promoting sustainable logistics practices. As logistics firms pivot to address these evolving demands, they unlock fresh revenue streams, simultaneously playing a pivotal role in the transformation of China's automotive landscape.
In conclusion, the rapid advancement of NEVs in China is not only reshaping the logistics market but also driving significant changes in the automotive sector. The increasing consumer acceptance and the shift towards sustainable practices present both challenges and opportunities for logistics companies, ultimately contributing to the evolution of the entire automotive ecosystem.
Warehousing Segment Fuels Growth in the Market
Various service segments are fueling market growth. With the expansion of China's automotive industry, the warehouse segment has become pivotal in the overall supply chain. In response to increasing goods volumes, companies are significantly investing in expanding their warehouse capacities.
Moreover, with the rise of e-commerce and increased vehicle production, automotive manufacturers are seeking robust warehousing solutions to manage fluctuating inventory levels. For example, in 2024, Yusen Logistics expanded its warehousing operations in China, integrating automated storage and retrieval systems to enhance inventory management and minimize handling times.
Furthermore, there's a growing adoption of advanced inventory management systems leveraging IoT technology for real-time stock monitoring. For instance, COSCO Shipping has deployed smart inventory management solutions, enabling precise tracking of automotive components throughout its network.
In conclusion, the growth of China's automotive industry is significantly driven by advancements in transportation, warehousing, and inventory management services. These innovations are essential in meeting the increasing demands for efficiency and reliability in the market.
China Automotive Logistics Industry Overview
The Chinese automotive logistics market is highly fragmented and competitive, with the presence of several local automotive logistics companies in the country apart from international firms. International players like DHL and Nippon Express compete with local players like SAIC Anji Logistics and Yusen Logistics. And many other players including China Ocean Shipping (Group) Company (COSCO), HYCX Group, Sinotrans Limited, etc.
Players in the automotive sector are tailoring a diverse array of services by integrating cutting-edge technologies. For instance, Recently in 2024, Shenzhen's updtaed with AI-integrated factories, the supply chain - the backbone of any manufacturing setup - has undergone a significant transformation. With the help of advanced analytics, these factories can now accurately predict raw material needs, optimize inventory levels, and ensure timely procurement. This not only minimizes holding costs but also reduces wastage.
China Automotive Logistics Market Leaders
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China Ocean Shipping (Group) Company
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SAIC Anji Logistics
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Yusen Logistics Co. Ltd.
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Sinotrans Co. Ltd
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Nippon Express
*Disclaimer: Major Players sorted in no particular order
China Automotive Logistics Market News
- September 2024: Hyundai Glovis, a South Korean logistics firm and a subsidiary of the Hyundai Motor Group, signed a memorandum of understanding (MoU) with BYD, a prominent electric vehicle manufacturer from China. The agreement emphasizes Hyundai Glovis's dedication to providing its pure car and truck carriers (PCTCs) and global container logistics infrastructure to BYD, specifically targeting logistics and maritime transportation for finished vehicles.
- May 2024: DHL has launched its latest electric vehicle (EV) Center of Excellence in Shanghai, China, with the goal of enhancing the local and global footprint of EV companies and their related sectors. The Shanghai EV Center of Excellence (COE), managed by DHL Global Forwarding, operates through a network of 35 branches and features over 50 warehouses and cross-dock facilities. This COE focuses on end-to-end logistics for EV products, including batteries, electric motors, and charging infrastructure. The services encompass domestic pickups with certified transportation for exports to and from various locations in China, ensuring temperature and humidity monitoring, EV-compliant warehousing, and last-mile delivery.
China Automotive Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Current Market Scenario
4.2 Market Drivers
4.2.1 Growing New Energy Vehicles Sales
4.2.2 Government Initiatives and Support
4.3 Market Restraints
4.3.1 Trade War between China and the United States
4.3.2 Supply Chain Disruptions
4.4 Market Opportunities
4.4.1 Digital Transformation
4.4.2 Expansion into Emerging Markets
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Industry Value Chain Analysis
4.7 Government Regulations and Initiatives
4.8 Overview of China's Automotive Industry (Overview, Development and Trends, Statistics, etc.)
4.9 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Finished Vehicle
5.1.2 Auto Component
5.2 By Service
5.2.1 Transportation
5.2.2 Warehousing, Distribution, and Inventory Management
5.2.3 Other Services
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China Ocean Shipping (Group) Company
6.2.2 SAIC Anji Logistics
6.2.3 BLG Logistics
6.2.4 HYCX Group
6.2.5 Yusen Logistics Co. Ltd
6.2.6 DHL
6.2.7 Nippon Express
6.2.8 GEODIS
6.2.9 Sinotrans Co. Ltd
6.2.10 DHL Supply Chain
6.2.11 Apex Group*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution by Activity, Transport and Storage Sector-contribution to Economy, etc.)
8.2 Trade Statistics: Imports and Exports
8.3 External Trade Statistics related to the Automotive Sector
China Automotive Logistics Industry Segmentation
Automotive logistics involves the planning and execution of a complicated car transportation process. The automotive logistics market in China encompasses various segments of the supply chain, including transportation, warehousing, distribution, inventory management, and other services. This report provides a comprehensive analysis of the Chinese automotive logistics market, detailing the sector's economic contributions, an overview of the market, size estimations for key segments, emerging trends, market dynamics, and key component flow statistics.
The China Automotive Logistics Market is segmented by service (transportation, warehousing, distribution, and inventory management, and other services) and type (finished vehicle and auto components). The report offers the market size in value terms in USD for all the above mentioned segments.
| By Type | |
| Finished Vehicle | |
| Auto Component |
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Other Services |
China Automotive Logistics Market Research FAQs
How big is the China Automotive Logistics Market?
The China Automotive Logistics Market size is expected to reach USD 52.58 billion in 2024 and grow at a CAGR of 5.96% to reach USD 70.22 billion by 2029.
What is the current China Automotive Logistics Market size?
In 2024, the China Automotive Logistics Market size is expected to reach USD 52.58 billion.
Who are the key players in China Automotive Logistics Market?
China Ocean Shipping (Group) Company, SAIC Anji Logistics, Yusen Logistics Co. Ltd., Sinotrans Co. Ltd and Nippon Express are the major companies operating in the China Automotive Logistics Market.
What years does this China Automotive Logistics Market cover, and what was the market size in 2023?
In 2023, the China Automotive Logistics Market size was estimated at USD 49.45 billion. The report covers the China Automotive Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Automotive Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Automotive Logistics Industry Report
Statistics for the 2024 China Automotive Logistics market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. China Automotive Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
