JD Capital has invested significantly in China's expanding automotive aftermarket, capitalizing on its potential for growth amidst a slowing new car sales market.

Target Information

JD Capital has focused its efforts on the automotive aftermarket in China, which is seen as a burgeoning sector amidst slow growth in new car sales. The rapid expansion of car ownership, which has reached 172 million by 2015, has catalyzed the growth of the overall automotive aftermarket to over RMB 800 billion, projected to exceed RMB 1 trillion by 2018. The aftermarket includes a diverse range of services such as maintenance, parts supply, second-hand vehicle trading, and automotive finance.

Unlike traditional automobile manufacturing and sales, the automotive aftermarket operates primarily on existing resources instead of new production. JD Capital has already made notable investments across various sub-sectors of this industry, such as vehicle after-sales service and parts manufacturing. Their notable investment portfolio includes entities such as NTS Automobile Service, Jiaochen Group, and Huifeng Transmission, which collectively strengthen JD Capital's foothold within the automotive ecosystem.

Industry Overview

The automotive industry in China, while experiencing a slowdown in new car sales growth due to the reduction of subsidies and increasing restrictions on vehicle usage, continues to see rising demand driven by economic development and urbanization. With much of the country transitioning into a car-cent