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Why the raining season matters so much for car repairers in China

The coast of China, in the East and in the South-East especially, is influenced by periodical typhoons.
Some areas, like the East coast (Shanghai, Jiangsu and Zhejiang areas) are getting their rain season from May to July, others are less lucky and get consistent rain throughout the year, such as Guangdong.

But the curse of one may well be the blessing of another: automotive repairers, especially those focused on electronics, are growing in Guangdong, the richest province and most populous province in China, inhabited by more than 110 million people – to which we should add the population from Hong Kong SAR and Macau SAR, which rely, for some services, on the bordering Guangdong province, especially considering the lack of space of those two areas.
The poor protection of the delicate electronics of the cars, combined with the weather, cause periodical breakdowns of the vehicles, which brings to the market a huge request of quick, cheap and professional electronic repairers for control units, cabling and sensors. In fact, while insurances offer packages which actually include the damage due to the rainfall, they do need, in order to protect their interests, to get massive contracts with professional repair shops, so that they can reduce their unavoidable costs.
On the other side, vehicle repairers are using the chance to offer other services – mostly related to the customization of the cars with accessories, spray paint, mechanical improvements and electronic tweaks. Most are to improve the comfort of driving – due to huge traffic in many Chinese cities, and the fact most drivers tend to use their vehicle a lot for both work and leisure, but there are also more specific services for other niches.

Since in China the car is a status symbol – and the brand, cost and the way it is maintained are all factors that add up to the value they can provide to its owner, most people care that their car is impeccable: no scratches, no damages to the paint, the engine and the brakes should not be too noisy and, of course, the brand should be at least a premium one. That explains why so many will choose to buy a vehicle from the BBA category (Benz, BMW, Audi) – or, for pure electric, Tesla.

It is no surprise that the automotive market is recovering quickly from the coronavirus crisis, according to the CAAM (China Association of Automobile Manufacturers) with the month of April 2020 being on the same trends of April 2019 (2 million vehicles sold in April 2020 vs 1,98 million in April 2019): being able to afford a good car, especially during hard times, means that you will have no problem to pay back the investment, which implicates that you know how to make business. Which will, eventually, give you better chances at almost anything that implies business. The same logic, of course, stands for other products.

The movement of the insurance companies makes sense – just like the one of the electronic repairers. And there could be yet other businesses blooming: for example idro-repellent, portable vehicle protections. In an environment where garages and parking buildings are expensive and too few to satisfy the demand, being able to apply a protection to such an important asset anywhere has a big value for those who cannot afford a private parking place.
There are advantages also for spare parts sellers – and, even more, for specialized refitters: often smaller shops which have the equipment and the knowledge to repair and set to stock components of the vehicles for their customers, working exclusively as B2B.

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