Why is the market competition for automotive filters fierce?

The market competition for automotive filters. As one of the important components of automobiles, filters are used to remove metal debris and various impurities from engine oil, in order to prevent them from entering the lubrication system and causing wear on parts. The vast filter market has attracted the attention of many manufacturing enterprises, and the entry of domestic and foreign companies has led to increasingly fierce competition in the current filter industry. At present, there are more than 1500 domestic filter production enterprises. Due to the diversity of product varieties and structures of automotive filters, they are suitable for large-scale production with high degree of automation, as well as small-scale workshop production mainly relying on manual operation. The enterprises vary greatly, so most of the production enterprises are small in scale, with more than 40 large and medium-sized enterprises. However, there is currently no monopolistic super large enterprise in the industry.
The fierce competition in the filter market is mainly manifested in the after-sales market, for the following two reasons:
Firstly, filters are vulnerable parts in automobiles that require regular replacement. Therefore, their sales in the aftermarket are very high, which directly leads to a much larger number of filter companies competing for the aftermarket than the supporting market, resulting in a single market.

Secondly, due to the low technology of the enterprises themselves, there are many manufacturers in China's automotive filter industry, and their scale is generally small. Most of them are handmade workshop style automotive filter enterprises with incomplete production conditions, outdated testing methods, and small scale. These enterprises basically cannot meet the requirements of supporting facilities, so they can only compete in the after-sales market. The fierce competition among enterprises has resulted in a low concentration of brands in the aftermarket of filters, with the top 5 filter companies having a market share of only 15%. In the supporting market, the top 5 filter companies have a market share of 40%.

This article is organized by Guangzhou Goodo Filter Co., Ltd. Why is it so intense?