While the automobile industry has changed dramatically in recent decades, the history of the Auto Parts supplier industry is the same. Initially, Henry M. Timken sold parts he had invented. Later, other auto manufacturers bought out suppliers to control the distribution of their parts. Other suppliers eventually merged and grew into larger companies. Today, a vast range of Auto Parts suppliers make up the entire industry, from small parts to entire vehicle systems.
The global auto parts market is segmented into two major segments: the OEM and the aftermarket. The OEM segment accounts for over 67% of the total auto parts market. The aftermarket segment is experiencing a faster growth rate as automotive ownership continues to increase around the world. As a result, China is the world’s largest auto parts market, representing over 25% of the world’s total demand. However, there are some factors contributing to this growth.
The automotive industry is comprised of thousands of independent suppliers. About 100 of these companies have annual sales of $1 billion or more. Among these, Germany has the largest number of companies, with 23 of the top 100. In 2004, there were approximately 1,500 Tier 1 automotive suppliers in the U.S.; by 2024, the number is expected to shrink to 500 to 700. Of these, only fifty will be system integrators dealing directly with vehicle manufacturers.
The industry has come a long way from humble beginnings in corner hardware stores selling nuts and bolts to a global industry that produces entire automobiles. In the early 21st century, the Auto Parts industry is a thriving business, and it is projected to reach more than $1 trillion in goods by the year 2010. It is truly global with suppliers operating on every continent except Antarctica. The industry also accounts for over 20% of the global automotive market.
Auto Parts suppliers are a crucial part of the automotive industry. These parts help keep your vehicle on the road, and can even help you get from point A to point B. The price of the most common auto parts is anywhere from $150 to $500. The cost of collision repair can be high, and using non-OEM parts may invalidate your vehicle’s warranty. Also, if you’re leasing a vehicle, don’t use aftermarket car parts, as they may not fit in damaged body panels.
If you’re buying a new car, you’ll want to consider OEM or aftermarket auto parts. Aftermarket parts are cheaper and may be the only option for older cars. Although some of these aftermarket parts may be of questionable quality, they’re often equivalent to OEM parts and available on a wider range. The cost depends on your insurer’s replacement schedule. Most insurers depreciate the new parts, so aftermarket parts may not be the best option.