I. Industry Risk Analysis

(1) Policy Risk

Currently, the policy risks in the automotive cleaner industry are concentrated in the policy implementation stage: The rapid upgrading of environmental protection standards leads to frequent adjustments to product formulas. Entrepreneurs need to continuously invest in research and development to meet new regulations such as VOCs emission limits and biodegradability requirements. Stricter market supervision may cause an extended review period for production licenses, resulting in short – term obstacles to product launches. Mandatory regulations on the storage and transportation of chemicals in some regions have increased warehousing and logistics costs, restricting the supply – chain flexibility of small and micro enterprises. The “green barrier” policies in international trade put dual pressure on export – oriented enterprises in terms of ingredient certification and label compliance. The uncertainty during the policy transition period increases the risk of unsold inventory.

(2) Economic Risk

The automotive cleaner industry is currently facing multiple risks under economic cycle fluctuations: During the economic expansion period, the market growth depends on the prosperity of automobile consumption. However, rising interest rates suppress car – buying demand, indirectly impacting the cleaner market. During the recession period, consumers tend to cut non – essential maintenance expenses. Coupled with the rising costs of basic chemical raw materials (such as surfactants and petroleum derivatives) under inflationary pressure, profit margins are eroded, and the ability to pass on price increases is limited by homogeneous competition. In addition, the tightening of environmental protection policies increases compliance costs, and the popularization of new energy vehicles reduces the frequency of using traditional fuel – vehicle cleaners, leading to a structural decline in demand in the industry. Entrepreneurs need to be vigilant against the risk of inventory cycle mismatch to avoid being caught between over – capacity and cash – flow disruption when demand declines.

(3) Social Risk

The younger consumer group has significantly enhanced awareness of environmental protection and health. They prefer automotive cleaners with natural ingredients and degradable packaging, forcing enterprises to upgrade green technologies but facing a sharp increase in R & D costs. In contrast, middle – aged and elderly users still rely on traditional strong – effect chemical products, creating a market segmentation. At the same time, Generation Z users are sensitive to brand values. If enterprises fail to establish a clear environmental protection image on social media, they may fall into a marketing failure dilemma. Established enterprises have strong channel monopolies, making it difficult for new brands to break through the trust barrier. Coupled with the tightening of global “dual – carbon” policies, non – environmentally friendly enterprises are at risk of being removed from the market due to non – compliance at any time.

(4) Legal Risk

The automotive cleaner industry faces multiple legal risks: Firstly, environmental protection regulations are becoming increasingly strict. Exceeding the emission standards of volatile organic compounds (VOC) in production may trigger high – value fines or even production suspension. Secondly, chemical raw materials need to comply with the “Regulations on the Administration of Hazardous Chemicals”. Using unregistered corrosive or toxic ingredients will result in product withdrawal and administrative penalties. Thirdly, packaging and promotion need to comply with the “Advertising Law”. Exaggerated descriptions of efficacy such as “formaldehyde removal” and “zero pollution” are likely to be regarded as false advertising. Fourthly, the lack of product safety certification (such as not passing the China Environmental Labeling Certification) will lead to mandatory product removal from e – commerce platforms. Fifthly, when selling products across borders, non – compliance with international chemical standards such as the EU REACH may lead to overseas lawsuits. Entrepreneurs need to establish a triple compliance defense line including raw material ingredient testing, environmental protection equipment investment, and advertising话术 review.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurship Opportunities

Currently, entrepreneurship opportunities in the automotive cleaner industry are concentrated in the fields of environmental protection upgrading, scenario segmentation, and technology integration: Develop non – corrosive cleaners for the protection needs of new energy vehicle battery packs and electronic components, and develop low – volatile organic compound (VOC) formulas in line with the National VI standards. Tap into the “maintenance + experience” needs of high – end car owners and launch subscription – based fine – washing service packages, and implant a cleaning data module for in – vehicle intelligent devices. Use the idle time of community car – washing shops to build a regional B2B intelligent cleaner distribution platform, and achieve on – demand supply and empty – barrel recycling through Internet of Things devices. Focus on solving the intensive cleaning management scenario of commercial vehicle fleets, and provide an integrated solution of cleaners + intelligent spraying equipment + sewage classification treatment.

(2) Suggestions on Entrepreneurship Resources

Entrepreneurs in the automotive cleaner industry need to focus on integrating resources in three aspects: Upstream, establish a stable raw material supply system through regional chemical enterprises or contract manufacturers, and give priority to small and medium – sized suppliers with environmental protection certifications to reduce costs. In the middle stream, cooperate with contract manufacturers with hazardous chemicals production qualifications in a light – asset model, and use the resources of university chemical laboratories to develop differentiated formulas (such as nano – coating and biodegradation technology). Downstream, adopt a dual – channel approach of “direct sales on e – commerce platforms + joint operations with auto repair shops”. Obtain traffic support through Douyin’s local life services and Kuaishou’s industrial belt policies, and connect with logistics cloud warehouses to achieve regional delivery within 48 hours. Pay special attention to the policies for the transformation of university scientific research achievements and subsidies for the clean energy industry, and bind core R & D personnel through technology – based equity participation.

(3) Suggestions on Entrepreneurship Teams

When forming an entrepreneurship team in the automotive cleaner industry, give priority to recruiting members with experience in chemical R & D, environmental protection regulations, and supply – chain management. The core team should cover at least three major functions: technology R & D, marketing, and operation management. The founder should lead the establishment of a product compliance review mechanism (such as EU REACH and Chinese GB standards). The technology leader should have a background in surfactant or automotive aftermarket R & D. The marketing members should be good at cooperating with B – end auto repair chains and operating C – end e – commerce channels, and a member familiar with the storage and logistics of hazardous chemicals should be arranged. Establish a dynamic equity distribution mechanism to link core members with key goals such as product iteration and channel expansion. Regularly hold industry policy interpretation and competitor analysis meetings, and verify the team’s execution ability through small – scale regional pilots.

(4) Suggestions on Entrepreneurship Risks

Entrepreneurs in the automotive cleaner industry need to give priority to controlling product compliance. Select environmentally certified raw materials and complete the MSDS (Material Safety Data Sheet) registration to avoid risks under the “Regulations on the Administration of Hazardous Chemicals”. Establish a small – batch flexible production model, and reduce inventory overstock through the pre – sale system and joint operations with regional auto repair shops. In response to the increasing penetration rate of new energy vehicles, develop high – value – added products such as special cleaners for battery packs to avoid low – price competition in traditional products. Build an immediate response mechanism for user feedback (such as enterprise WeChat communities) to quickly iterate product formulas and packaging designs. In cash – flow management, reserve operating funds for more than 6 months, avoid relying on franchise fees for expansion, and focus on expanding direct – supply channels to B – end repair shops and community auto beauty shops.