Is OEM Installation Slowing? 2026 Rules Open a New Battlefront for Interior & Exterior Aftermarket

On June 23, the Ministry of Commerce and eight other departments jointly issued the “Notice on Several Measures to Cultivate and Expand Automobile Aftermarket Consumption,” and simultaneously released a list of 40 pilot cities for automotive circulation and consumption reform. Regulations across six key segments—vehicle modification, RV camping, classic and vintage cars, maintenance and insurance, motorsports, and vehicle leasing—have been comprehensively relaxed.

This marks another significant policy boost for the automotive aftermarket, following the 2023 "Guiding Opinions on Promoting High-Quality Development of the Automotive Aftermarket" (the "Version 1.0" policy) issued by the Ministry of Commerce and eight other departments. For the interior and exterior trim industry, the signal conveyed is far more significant than mere deregulation: at a time when OEMs are relentlessly cutting costs on factory-installed components and feature specifications have reached a saturation point, this policy effectively extends the competitive battlefield from the pre-production phase to the decade following a vehicle's rollout. Within the 180 billion RMB aftermarket—of which interior and exterior modifications account for 60%—this segment represents the most promising source of structural growth over the next three years.

1. Breaking down the policy to the operational level: What specific avenues have actually been opened up?

For the interior and exterior modification sector, the truly valuable elements are the policy provisions regarding vehicle modification, combined with practical examples of implementation already underway at the local level.

At the central government level, vehicle modification has for the first time been positioned as a “systemic breakthrough.” At a State Council Information Office press briefing, Vice Minister of Commerce Sheng Qiuping referred to this policy framework as the automotive aftermarket “Version 2.0,” built around four core directions: breakthrough, establishment, expansion, and optimization.

The “establishment” aspect is the most critical direction for the interior and exterior industry. It includes implementing tiered and categorized management for vehicle modification, defining a positive list of approved modification items, exploring the establishment of a Subcommittee on Automotive Modification under the National Automotive Standardization Technical Committee, and improving the CCC certification and market access system for modification components.

This policy mix is highly significant: it signals a shift of aftermarket modification parts from fragmented “small workshop supply” toward a standardized, certified, and regulated supply chain. This effectively becomes the true entry threshold for interior and exterior suppliers.

The “expansion” aspect pushes modification from a niche hobby market into a mainstream consumer choice, explicitly encouraging personalized and customized consumption.

Local Level: Pilot Cities Moving Fast On the local implementation side, Chongqing has taken an early lead.

On June 16, Chongqing traffic police introduced a nationwide first: a fully online filing system for vehicle exterior modification registration.

For small and micro non-commercial passenger vehicles, four types of modifications are now included:

• wheel replacement

• roof rack installation

• grille replacement (different styles of radiator grille)

• bumper replacement

Previously, vehicle owners had to drive to vehicle administration offices for inspection and queue for processing. Now, through the “Jingkuai Ban” (Police Express Service) WeChat account, users can upload photos and mail their vehicle registration documents, completing the entire process without any physical visit.

At the same time, Chongqing has also defined a set of “red lines,” which clearly outlines the compliant operating scope for interior and exterior modifications. Permitted modifications include wheel replacement (without changing original size specifications), roof rack installation (height not exceeding 30 cm), grille style changes, and bumper replacement—all on the condition that original factory technical parameters remain unchanged. Strictly prohibited modifications include installing rear wings, modifying exhaust systems, altering lighting units, changing wheel dimensions, modifying seat layouts, or replacing brand logos/emblems.

40 Pilot Cities: Vehicle Modification as a Key Direction 

The reform pilot cities—including Beijing Chaoyang District, Tianjin, Guangzhou, and Hainan—have explicitly incorporated vehicle modification into their innovation agendas. The underlying logic follows a “city-by-city policy, pilot first” approach, where successful practices are scaled nationwide after validation. Chongqing’s “fully online processing system” may only represent the first wave of this broader rollout.

2. Why Interior & Exterior Trim Is the First to Capture the Policy Dividend

Vehicle modification has historically been a non-standard, fragmented market. Color-change film shops, seat upholstery workshops, and small aftermarket suppliers operated in a highly dispersed environment, with no unified warranty system and constant compliance uncertainty during annual inspections. With the relaxation of policy restrictions, the market logic has fundamentally shifted.

OEMs Enter the Market: Factory-Backed Modification Becomes a Second Growth Curve

Traditionally, the vehicle delivery process ended at the dealership. Now, it is evolving into a new model: “delivery + official customization packages.” Major OEMs are actively integrating factory-certified modification packages into their sales system, creating a second growth curve: Companies such as BYD, Geely, Li Auto, and NIO are planning to launch factory-certified color-change films and interior upgrade packages in 2026. These packages are priced in the range of RMB 5,000 to 20,000, and include full OEM warranty coverage. Changan Automobile and SAIC Motor have already introduced “official aftermarket electronic rearview mirror retrofit kits” and are actively distributing them through dealer channels. As a result, interior and exterior customization is transitioning from an informal aftermarket segment into a standardized, OEM-led value-added ecosystem.

Exterior Parts: From “One-Time Front-End Configuration” to “Repeatable Aftermarket Consumption”

Color-change films, paint protection films (PPF), wheel surface treatments, and grille styling kits were previously difficult to offer in the OEM (front-end) configuration stage due to limited SKU flexibility for personalization. In contrast, the aftermarket allows far greater flexibility. CMS (cockpit/multimedia system) retrofit channels are a typical example. OEM optional configurations often cost tens of thousands of RMB, making consumers hesitant, whereas compliant aftermarket kits are more affordable and easier to scale through distribution channels. Companies such as OFILM and Yuanfeng are already actively developing aftermarket CMS channels.

Interior Components: The “Exemption Zone” Defined by Article 22 of Order No. 164 Becomes the Core Battleground

Article 22 of Order No. 164 clearly states that “adding interior vehicle decoration” does not require change registration, as long as it does not affect driving safety or license plate identification. 

At the same time, interior materials and components such as trim panels, headliners, ambient lighting, and audio wrapping are considered compliant and exempt from filing, provided they meet GB 8410 flammability standards. This includes a wide range of legally compliant modifications within the exemption zone: seat reupholstery (graphene heating, vegan leather, bamboo fiber materials) door panel upgrades (solid wood or aluminum trim) steering wheel wrapping (without changing the steering column) Previously, even 4S dealerships were reluctant to offer such “interior upgrade packages.” Now, these have become fully compliant commercial offerings.

3. Does the Economics Add Up?

Industry estimates suggest that by 2026, China’s automotive modification market will reach approximately RMB 180 billion, with interior and exterior components accounting for 55%–60% of the total. However, the penetration rate of compliant modifications in China is only 3%–5%, compared with 8%–15% in mature markets such as Europe and the United States. This 5–10 percentage point gap represents the structural upside that current policy reforms aim to unlock and convert into market growth.

More importantly, the value per vehicle should be viewed from a lifecycle perspective: 

• Front-end logic:Before a new vehicle rolls off the production line, purchases are made in a one-time, lump-sum manner. Components such as seat fabrics, door panels, and dashboards typically contribute only a few thousand to just over ten thousand RMB per vehicle in BOM value, and this figure is under continuous downward pressure year after year due to cost reduction trends.

• Aftermarket logic:With vehicles aged over 7 years now accounting for more than half of the total fleet, and an average vehicle lifecycle of 10–15 years, the exploitable aftermarket value per vehicle can reach RMB 30,000–50,000. This includes color-change films, interior reupholstery, CMS upgrades, and health-oriented cockpit systems—consumption that occurs in multiple stages rather than a one-time purchase, forming a recurring revenue model rather than a single transaction cycle.

4. What Are the Three Types of Players Capturing?

• Automakers (OEMs): OEMs are turning “official modification” into a second S-curve growth engine beyond traditional vehicle production. Brand-owned modification platforms from companies such as Li Auto, NIO, and BYD are already introducing the first batch of SKUs, including color-change films, interior upgrade packages, and CMS retrofit kits. With front-end BOM optimization reaching its limit, OEMs are shifting competition toward brand trust and compliant warranty coverage in the aftermarket space.

• Tier 1 Suppliers & Material Providers: These players are extending from front-end supply chains into the aftermarket. Manufacturers of IME smart surfaces are launching door-panel touch retrofit kits Producers of graphene-based seat materials are offering heated seat upgrade packages for aging vehicles via 4S dealer channels Companies specializing in bamboo-fiber materials are combining interior re-trim + formaldehyde removal solutions Unlike OEMs, the aftermarket has higher tolerance for cost, allowing advanced materials that were previously considered “too expensive for front-end adoption” to finally be commercialized.

• 4S Dealers & Modification Chains: In the past, revenue ended at vehicle delivery. Now the model is shifting toward “delivery + modification + maintenance integration.” Per-vehicle after-sales value is increasing from a few thousand RMB to tens of thousands RMB. As modification becomes more compliant, insurance companies are also less likely to deny claims—making this one of the most important new after-sales growth narratives for 4S dealerships in recent years.

CMF in 2023, CMS in 2024, and intelligent surfaces in 2025—the three major front-end plays have already been fully articulated across the industry. The policy issued by nine government departments on June 23, 2026, effectively extends the competitive battlefield from “before a new vehicle rolls off the production line” to “up to 10 years after delivery.” As vehicle modification shifts from a fragmented non-standard market into an OEM-led track, the growth logic for interior and exterior systems is also being redefined. The RMB 180 billion automotive modification market allocates less than 60% to interior and exterior segments. The next phase of industry focus is clearly moving downstream, toward the post-sale lifecycle.