The automobile industry has been evolving since its inception in the 19th century Europe. A great many transitions have taken place since then and the industry continues to evolve. One of the necessities that arose from the evolution of automobile industry was its aftermarket. The automotive aftermarket industry has thrived for long and continues to grow in proportion with the automobile industry. North America has dominated the automotive industry in the first half of the 20th century and the latter half was dominated by Western Europe and Japan which became mass producers and major exporters of automobiles.
The automotive aftermarket comes into play post sales of automobiles by the original equipment manufacturer (OEM) to the consumers. Automotive aftermarket covers the manufacturing and remanufacturing of vehicle parts, accessories and components to the distributors and retailers. The automotive aftermarket is as diverse as the automobile industry and it does not necessitate that the services and vehicle parts are manufactured or owned only by the OEMs. The automotive aftermarket has two sectors, one is organized which has the OEMs using high-value precision instruments to meet the demands, whereas the unorganized sector has manufacturers which use and sell low-value products and hold a fair share in the market.
The automotive aftermarket consists of replacement parts which are remanufactured in case of a damage or wear and tear, and the accessories which are add on for a vehicle and helps in enhancing several features, such as safety, design, performance, comfort, convenience, etc. Just as there are myriad of vehicles which differ in design and features, similarly there are different types of accessories and vehicle parts, with varying quality and prices. The stringent government regulation and rise in the number of accidents, along with the growth of automobile industry, have boosted the global automotive aftermarket. The industry is expected to follow the upward trajectory in the coming years.
The automotive aftermarket is an established industry, with constantly rising demands for auto parts and components. The average age of the vehicles now ranges from 3 years in China o 11.4 years in the U.S. This trend is being followed by the global automotive aftermarket. The global rise in demands of auto parts and components has given a stronghold to the OEMs and they have a global base. E-tailing channels, with different products and offers, are also on the rise.
Due to the presence of local manufacturers in the automotive aftermarket industry, the auto parts and components are available to the consumers at a cheaper price and people prefer this as it cuts their repairing cost. Extended warranties on an automobile may also incur losses for the company if the auto parts are replaced multiple times during the warranty period. Despite these challenges the automotive aftermarket is a billion dollar industry and an emerging market, which offers multiple opportunities to many companies investing in this field.
BIS Research has done an extensive market research report on ‘Global Automotive Aftermarket’. The market analysis report will provide an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.
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