MOTOR Information Systems announced the release of a new educational white paper for OEM parts manufacturers and the greater automotive parts industry titled, “How to Generate More Demand for OE Parts.”
The new white paper explores additional demand potential OE parts manufacturers can create by leveraging the right coded data for parts availability. The automotive industry is in a state of change with the advent of electric and autonomous vehicles and the ownership model moving toward mobility-as-a-service. The one constant in this changing market is the need to properly maintain vehicles no matter the propulsion system or ownership model. MOTOR states that maintaining vehicles with OE parts ensures proper fit and function.
“There is great opportunity to create additional parts demand from OE manufacturers given the abundance of cars on the road today with sophisticated drive trains and technology,” said Jeff Nosek, executive vice president, MOTOR. “These cars are built with great quality, and servicing them with OE parts keeps them operating at an optimal level. This paper is an opportunity to educate OE manufacturers on how trusted data providers today can amplify this parts demand across the channel.”
Automakers have long had successful and robust mechanical wholesale and collision wholesale programs designed to sell parts. These programs, while robust, fail to capture a sizeable portion of part sales for older vehicles.
Industry estimates show that the global automotive aftermarket industry is expected to reach $722.8 billion by 2020. However, many dealers and OEs are missing out on a large opportunity, MOTOR states, since a majority of this is represented by non-OE parts utilized by independent auto repair shops.
Independent shops, which perform more than 70% of all post-warranty service and repairs, typically buy most of their parts from non-OE sources that often don’t offer OE-branded parts in their database, MOTOR states. There is significant untapped opportunity for OEs and dealers to sell more of their parts to independent repairers, and this additional demand can be met with existing programs by partnering with a trusted data provider to code OE parts and make that enhanced information available to everyone involved in the parts-purchasing decision.
To download the white paper, click here.