The domestic Big Three automakers account for two-thirds to three-fourths of the world’s auto parts production, but their relationship with suppliers isn’t so great. While independent car parts suppliers in earlier times were geographically closer to their customers, nowadays they aren’t. They are mostly exported to the commercial market for repair or replacement. As a result, their primary target market is vehicle manufacturers. The next part of the story is the world’s auto parts.
The auto parts industry includes thousands of small manufacturers. Its global reach reaches to over a billion people. The automotive industry is a highly competitive industry, with a growth rate of over 4.3%. The demand for electric vehicles is growing faster than production of traditional automobiles. The industry has become a global hub for auto parts suppliers. In the United States alone, there are forty-two major carmakers. Their combined sales amount to more than $70 billion.
The automotive parts industry is a diverse industry. In fact, it is the most globalized business. With offices in almost every country, the industry spans every continent except Antarctica. Regardless of the continent, the auto parts industry is thriving on every continent except Antarctica. The global market is predicted to grow to $1.1 trillion by 2010. If we look at the world’s largest automakers, auto suppliers will produce an estimated $4 billion by 2020.
While many suppliers offer a variety of quality products, the majority of auto parts are imported from other countries. Offshore imports are handled by air freight and truck transports. These companies also ship parts through rails and ships. The international market for auto parts is expected to grow at a CAGR of nearly 5% over the next five years. Moreover, e-commerce sales of auto parts is growing in every country. With an online presence, this company is able to provide its customers with a huge variety of automobile components.
While the automotive industry is a worldwide industry, some parts companies have local operations. Some of them even have their own repair shops. However, most suppliers sell to both OEMs and aftermarkets. Therefore, there is a lot of diversity in the auto parts market. The largest suppliers are the largest and most profitable. For example, they sell to the commercial market and the aftermarket. For the most part, the auto parts industry is the most competitive in the world.
In the United States, most car parts are imported from foreign countries. The auto parts industry employs about 730,000 people. The number of companies involved is down to about 50 in 2005. The industry is still highly fragmented. In Japan, the automotive parts industry comprises a total of 785,000 suppliers, while the number of countries that export them is just as large as in the U.S., with a revenue of $135 billion.