Choosing high-quality vehicle spare parts is critical in the automotive industry. Retailers are responsible for providing their customers with good quality spare parts that ensure their vehicles last longer. However, with so many different brands of spare parts available, it may be challenging to know which ones to choose.
This article will provide tips and guidelines to help sellers choose the best spare parts to sell in their stores, keeping their customers satisfied and coming back for more.
The market size of automotive spare parts
According to research, the global automotive industry was worth USD 427.51 billion in 2022 and is predicted to grow at a CAGR of 4.0% from 2023 to 2030. The pursuit of drivers to boost vehicle functionality, especially in terms of speed and sound, is the major propeller of the market. In addition, many companies are going digital due to the ease and convenience of online shopping, which is expected to increase market demand.
Unforeseen changes that affected the market growth
Unfortunately, problems associated with production costs; high research and development expenditures; and other manufacturing constraints impede the market’s growth. Following the pandemic in 2020, there were changes in consumer purchasing behavior. The inability to purchase new vehicles due to financial constraints caused consumers to use owned automobiles longer or opt for fairly used cars. Interestingly, the latter will fuel the demand for automotive spare parts for vehicle maintenance.
The market segments
Based on equipment type, the market is segmented into original equipment (OE), do it yourself (DIY), and do it for me (DIFM). The OE segment has remained dominant since 2022, accounting for over 71.1% of the total revenue. Nevertheless, the DIY segment is expected to witness relatively fast growth between 2023 and 2030 because its customers are people with technical knowledge and interest in repairing and maintaining their cars. On the other hand, DIFM customers usually get parts themselves but have them professionally installed.
In the replacement part market segment, the tire dominated the market in size. However, the other categories led in revenue with a total share of 48.3% in 2022.
The retail segment was the highest in the distribution channels, holding a share of 56.0% in 2022, and is anticipated to grow further by 2030. Still, the wholesale distribution segment would experience an increase in revenue from 2023 to 2030.
What dominates the market?
According to the same reports, genuine parts dominated the market in 2022 with 51.8% of the total income. Genuine parts are often produced by car companies and have original equipment manufacturer (OEM) numbers. These parts have the highest assurance of quality and usually include a warranty. The con, however, is that they are expensive. Therefore, certified parts are more cost-effective alternatives to genuine parts.
These parts are tested and verified by the Certified Automotive Parts Association (CAPA), a non-profit organization founded in 1987. Then, there come the uncertified parts, also known as counterfeit parts. Despite their lack of credibility and warranty, this segment is foreseen to witness a significant increase in income due to the relatively low cost.
Regionally, Asia Pacific has the highest demand and accounts for 28.5% of the total revenue in 2022. For the past few years, countries like India and China have experienced massive development both in economy and technology. The advancement of car manufacturing processes, as well as the digitalization of delivery services, are the core factors that are driving sales in the region.
Why stock up on high-quality automobile spare parts?
Low-quality components can affect the vehicle’s health
Low-quality components are detrimental for several reasons. First, they may not fit correctly, leading to premature wear and tear and causing further problems in the long run. Second, low-quality parts may also fail to function correctly, compromising the safety of the vehicle’s occupants. Moreover, these components can negatively affect the vehicle’s performance and fuel efficiency, resulting in reduced mileage and higher costs for the owner.
The industry is filled with low-quality automobile spare parts that are uncertified and do not meet industry standards. As a result, selling such components to customers causes a lousy reputation for retailers, subsequently hampering sales. Therefore, choosing and selling only high-quality automobile spare parts to customers is crucial to ensure the vehicles’ optimal performance and consumer safety.
Counterfeit spare parts can result in fatal accidents
Counterfeit spare parts are mostly illegal and unverified. As a result, such components may fail during use, leading to brake failure, engine failure, or other critical issues. In addition, counterfeit parts often look identical to genuine parts, making it difficult for retailers to identify the problem until it’s too late. Therefore, buying spare parts from reputable suppliers is advisable to avoid the risks of selling fake products to customers.
High-quality parts can elevate the vehicle’s lifespan
High-quality parts can significantly enhance the lifespan of a vehicle as they are designed to work effectively with other parts of the car. As a result, they can prevent undue strain on the other components and prevent damage that may occur with low-quality components. Besides, high-quality parts are less likely to break or malfunction, allowing the vehicle to run more smoothly and efficiently.
Furthermore, high-quality parts usually come with warranties or guarantees, providing peace of mind to the vehicle owner. Overall, investing in high-quality parts is profitable for businesses that retail them.
Things to consider before purchasing automobile spare parts
Consider the needed auto electrical spare parts
It is essential to consider the needed auto electrical spare parts responsible for powering and controlling different electrical components in the vehicle. These electrical components, such as batteries, alternators, and starters, are crucial for ensuring the proper functioning of various systems in the car, such as the ignition, lighting, and audio systems.
Also, retailers should confirm that the spare parts match the make and model of the car and meet the required specifications to ensure the vehicle’s optimal performance. Neglecting this may result in poor engine performance, decreased fuel efficiency, and even system failure, leading to more significant issues that may enquire higher repair costs.
Do research on preferred automobile products
This factor is non-negotiable when purchasing automobile spare parts because it helps to make informed decisions on the best pieces that suit the consumer’s needs. Sellers should compare and contrast the features and quality of different brands; read customer reviews and product ratings; and get advice from professionals or experienced users to identify the market’s most reliable and high-performing products.
Note the automobile spare part’s OEM number
The original equipment manufacturer (OEM) number is a unique number that helps identify the exact components required for a specific vehicle model. They can be found in any authorized station. Some manufacturers even have special catalogs for their spare parts.
Knowing the OEM number can help businesses to avoid purchasing counterfeit or low-quality parts. Moreover, having access to the OEM number aids in sourcing high-quality spare parts from reliable and trustworthy suppliers. In addition, these numbers guarantee proper fit and compatibility of the replacement part and ensure optimal performance and safety, thereby avoiding unnecessary expenses caused by incorrect part installation.
Discuss the shipping and payment with the preferred vendor
Shipping and payment options may vary based on the supplier’s location. As a result, retailers must ensure they agree with the options to avoid any future misunderstandings or complications.
Moreover, suppliers may have specific policies on shipping and payment that may only be suitable for some vendors, and discussing these beforehand can help avoid any issues that may arise later.
Choosing quality spare parts can be daunting, but it is crucial for a successful after-purchase automobile business. Additionally, it is essential to keep up with industry trends and advancements and establish a strong relationship with credible suppliers to ensure consistent and timely delivery of vehicle spare parts.
By considering the factors listed above, retailers can be sure of the best provision for their buyers, helping to build a reputable business by earning the trust and loyalty of customers.