User:Jjjbrz985/Automotive aftermarket

The automotive aftermarket is the secondary market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The parts, accessories, etc. for sale may or may not be manufactured by the OEM. According to a report by the International Trade Administration in the US Department of Commerce, "Aftermarket parts are divided into two categories: replacement parts and accessories. Replacement parts are automotive parts built or remanufactured to replace OE parts as they become worn or damaged. Accessories are parts made for comfort, convenience, performance, safety, or customization, and are designed for add-on after the original sale of the motor vehicle." The automotive aftermarket industry is a multi-billion-dollar sector that is driven in part by the governmental regulatory rules for vehicles and new technologies that allow ease in manufacturing replacement parts.

The aftermarket encompasses parts for replacement, collision, appearance, and performance. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models.

Consumers have the option of repairing their vehicles themselves (the "do-it-yourself" or "DIY" segment) or can take the vehicle to a professional repair facility (the "do-it-for me" or "DIFM" segment). The aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained, or customized.

The history of the aftermarket automotive industry dates to before the 1950's and people were modifying or making "custom cars" even before that time by modifying them for racing or trends in body styles. Later, The popularity of many television shows that featured celebrity mechanics fixing up cars and adding parts in the 2000's aided in further raising demand for aftermarket parts and modifications as well as online and brick and mortar stores that deal in aftermarket parts.

Size of the automotive aftermarket
The United States automotive aftermarket is estimated to be worth $318.2 billion (2013), contributing more than 2.3% to GDP. The aftermarket employs 4.2 million people who work at manufacturers, distributors, retailers and repair shops.

In the United States, online sales of aftermarket accessories have showed year over year increases over traditional brick and mortar stores. In fact, according to Hedges & Company, "Sales of auto parts & accessories continued to climb in 2015, and will continue the trend into 2016 to reach $7.4 billion dollars, posting around a 16% increase over 2015."

The demand for the aftermarket industry also varies internationally. A study at Yale University compared the variations in perception of remanufactured auto parts between Japanese consumers and found they knew less about remanufactured parts and were less likely to see the benefits of using remanufactured parts versus OEM parts. They were also more skeptical of the industry which showed the need of raising awareness in the industry about the benefits and quality of aftermarket parts.

Singapore, which does not have a domestic automobile industry, is an especially important destination for businesses exporting automotive parts and accessories due to its high automobile turnover stemming from the peculiarities of its driving laws. (In short, car owners are legally required to get rid of their cars after ten years of use and Singapore's compensation scheme to offset the registration fee of new cars has incentivized more frequent turnover.)

High automobile turnover and the preference for new parts means that the market for remanufactured and reconditioned auto parts is very small. Combined with a high demand for "accessories, car-care products, prestige items, and new spare parts," Singapore's automotive aftermarket is large. In fact, Singapore has become a major automotive components manufacturing base, as several leading multinational corporations (MNCs) have established international procurement offices as well as their Southeast Asia distribution centers.

In Canada, the automotive aftermarket is a C$19.4 billion industry that employs about 420,000 people.

In Australia, the automotive aftermarket industry in 2013 was estimated to generate a AUD$5.2 billion turnover, with 21000 staff, and 1400 manufacturers.

in Europe, the total volume of Independent Aftermarket (IAM) amounted to 127 billion Euros in 2015 (end-user prices without labor and tax). At that moment there were 54 parts traders with annual turnover over 100 mio Euros in Europe, 6 of them exceeded 1 billion Euros.

Meeting platform for the international automotive aftermarket is the B2B trade fair Automechanika which takes place every two years in Frankfurt. At last edition the hot topics were connected cars, autonomous driving, alternative drives and the workshop of the future.

Distribution Pathways for the Industry
The distribution of aftermarket parts is done in different sectors. The automotive aftermarket industry distributes parts through retail and wholesale pathways and The U.S. Automotive Aftermarket Automotive Industry Size and Trends Report notes that the rapid expansion of this industry is partly driven by online websites and people who either want to fix their cars themselves or have someone fix it for them using replacement parts. There are also choices of certified parts, genuine parts, and uncertified parts when choosing how to repair a vehicle.

Among online retailers, Amazon.com and eBay Motors are the largest sellers of aftermarket parts and accessories in the U.S. by both units sold and revenue, and are expected to grow 25% in 2014, far outstripping traditional chain stores.

As DIY parts sales soften at the retail counter, chain stores have pushed themselves into the DIFM commercial business, eating into distributors’ and wholesalers’ market share. Since 2007, DIY sales at the chain stores have fallen a total of 3% to 5%, while commercial sales have brought in a double-digit sales increase. AutoZone’s DIFM sales in 2013 alone increased over 13%.

Online sales of auto parts and accessories in the United States, excluding online auctions and used parts, have been projected to pass $10 billion in 2018.

Covid-19 restrictions have had some impacts in the aftermarket industry. However, workers in this industry were deemed "essential workers" during the pandemic which helped keep the disruptions to the industry at a minimum which is a positive for the industry.

Concerns and Considerations
One important consideration in the aftermarket automotive industry is the quality and viability of using aftermarket parts versus the O.E.M. or original equipment manufactured parts. Mark Johnson, senior editor for Automotive Body Repair News, discussed new ways that the A.S.A. (Automotive Service Association) collision division was planning on testing and certifying aftermarket parts to standardize the market. This will help provide an assurance that will make using aftermarket parts consistent for repair shops and for insurance companies.

In addition to these steps, a study by a group of researchers and Emeritus professor at Florida State University’s College of Business conducted a study examining the issues around insurance companies and their policy of using aftermarket parts for repairs on insured vehicles as well as government oversight of this area. Their findings were positive for the use of aftermarket auto parts and they found them to be as reliable as O.E.M. parts when tested. They further found that insurance companies and consumers benefited from the use of the aftermarket parts because it encouraged competition which lowered prices as well as could reduce repair fraud. This study helped alleviate some controversy surrounding the issues.

Another study conducted by researchers from the Department of Mechanical Engineering at the Government Engineering College in Kerala, India studied the claims of achieving better vehicle power when adding aftermarket high-performance air intake filters to vehicles instead of using O.E.M paper filter parts. Their results showed that some areas of performance such as, fuel economy and acceleration were slightly better with the aftermarket performance part, but the high cost of adding the high-performance part were not justified by the slight improvement in performance. Despite these findings the information allows one to make the decision on whether to use high-performance parts based on evidence.

Legal issues
Automobile manufacturers have attempted to hinder or suppress automotive aftermarket sales by means of copyright or patent infringement litigation. For example, in British Leyland Motor Corp. v Armstrong Patents Co. in the UK, the House of Lords decided in 1986 that Leyland could not claim copyright infringement in order to prevent the aftermarket sale of replacement tailpipes to purchasers of those motor cars.

Aro Mfg. Co. v. Convertible Top Replacement Co. is a 1961 U.S. Supreme Court case in which the Court redefined the U.S. patent law doctrine of repair and reconstruction: "No element, not itself separately patented, that constitutes one of the elements of a combination patent is entitled to patent monopoly, however essential it may be to the patented combination and no matter how costly or difficult replacement may be."

In 2005 Harley-Davidson filed a patent and trademark infringement lawsuit against two aftermarket engine manufacturers producing drop-in replacements for Harley's engines, namely S&S Cycle and Delkron, Inc. Harley accused S&S and Delkron of copying parts for Twin Cam engines and using Harley trademarks without permission. S&S argued that the suit was without any legal basis, and asserted that "a mutually beneficial relationship existed" between them and Harley.