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The era of branded service competition for Chinese auto companies has arrived
On October 19, Shanghai Volkswagen unveiled its new service brand, "Techcare (Caring) Public Caring," marking a significant step in its customer-centric approach. General Manager Chen Zhixin explained the concept behind "Caring": "It’s about shifting the focus from car care to proactive service for both people and vehicles. It's not just about customers being with us, but more importantly, us being with our customers every step of the way."
This initiative reflects a broader trend among domestic automakers in China, who have long recognized the importance of building strong service brands. For example, Beijing Jeep introduced the "Friend" service model, while Mercedes-Benz China promoted the "Star Emblem Concept." Similarly, Shanghai General Motors launched "Buick Care," Nanjing Fiat introduced "Simple Life," and Southeast Automotive aimed for a "McDonald’s style" of service. These efforts highlight the growing emphasis on customer experience.
Recent European studies show that customer satisfaction with after-sales service significantly increases the likelihood of repurchasing from the same brand—three times higher than satisfaction with the product itself. Experts suggest that while automotive products are important, the real value lies in the service. Brands must tailor their services to meet specific needs and reflect their unique identity. A strong service brand not only ensures quality but also builds long-term loyalty and market stability.
As vehicle sales enter a period of shrinking margins, after-sales service has become a critical battleground. Companies are now competing at a higher level by focusing on branded services, which offer more than just standard support—they create emotional connections with customers.
To maintain this edge, automakers are investing in both "hard" and "soft" services. Hardware infrastructure, such as service centers and trained teams, is essential. For instance, Beijing Hyundai operates 186 4S shops and 70 specialized service stations, ensuring 24/7 availability. Meanwhile, Chery has expanded its network to cover nearly 350 dealerships across 31 provinces, making it one of the most widely available service providers.
In addition to physical networks, companies are enhancing "soft" services through better management, staff training, and personalized experiences. Nanjing Fiat has implemented green channels for quick repairs, while Southeast Automotive conducted nationwide skill certifications for service personnel. These initiatives aim to elevate the customer experience and ensure consistent quality.
The impact of a strong service brand is far-reaching. As one Beijing dealer noted, "After-sales service is the key to long-term profitability." With the cost of a car purchase accounting for only a third to half of a vehicle's lifetime cost, after-sales service represents a massive, untapped market. Consumers increasingly view service as a major factor when choosing a brand.
In a competitive and saturated market, consumers are becoming more discerning, leading to "aesthetic fatigue" toward traditional marketing tactics. In response, automakers are turning to differentiated after-sales services as a key differentiator. Building a strong service brand is now seen as a strategic necessity.
Industry analysts emphasize that service branding enhances overall brand image and creates a more human connection with consumers. The combination of product, image, and service branding forms a powerful brand force that can protect against competition.
Looking ahead, Chinese automakers are exploring independent service models tailored to their own strengths. Foton Motors has declared this year as the "Service Year," offering free maintenance services nationwide. Chery focuses on practical improvements, prioritizing timely spare parts delivery. These efforts reflect a growing understanding that service is not just a cost center, but a core driver of competitiveness.
Experts believe that innovation in service, combined with a focus on full-service, standardized, and humanized approaches, will be crucial for Chinese automakers to build lasting success. With the right strategy, they can create a competitive edge that resonates with consumers and strengthens their market position.
Reporter: Wang Xin