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Automotive Component Industry
Special Focus on U.S. Market
Introduction
What is Automotive Component?
What is Automotive Component?
Automotive parts are defined as either Original Equipment (OE), or aftermarket parts.OE parts that are used in the assembly of a new motor vehicle or are purchased by the manufacturer. Suppliers of OE parts are broken into three levels.
“Tier 1" suppliers who sell finished components directly to the vehicle manufacturer. “Tier 2" suppliers who sell parts and materials for the finished components to the Tier 1 suppliers. “Tier 3" suppliers who supply raw materials to any of the above suppliers or directly to vehicle assemblers. There is often overlap between the tiers. OE production accounts for an estimated 2/3 to 3/4of the total automotive parts production.
Aftermarket parts are divided into two categories:
Replacement parts: Parts are built or remanufactured to replace OE parts when damaged. Accessories: are parts made for comfort, convenience, performance, safety, or customization, and are designed for add-on after the original sale.
Global Market Segmentation
Market Segmentation I (Industrial Segment)
Market Segmentation II (Geographic Segment)
Market Segmentation III (Company Segment)
Market Segmentation
Market Segmentation I (Industrial Segment)
The global automobiles and components industry group grew by 4.3% in 2006 to reach a value of $1,742.1 billion. The CAGR of the industry group in the period 2002-2006 was 3.9%.The industry group is composed of two industrial segments. The automobiles industry accounts for 69.4% of the global value. The remaining 30.6% of the global industry group's value is generated by auto components.
Market Segmentation I
Automobiles 69.40%
Auto Components
30.60%
Automobiles Auto Components
Market Segmentation
Market Segmentation II (Geographic Segment)
The United States generates 37.8% of the industry group’s value. Europe accounts for a further 32.3% of industry group's revenues.
Market Segmentation II
United States 37.80%
Europe32.30%
Asia-Pacific 20.70%
Rest of the World 9.20%
United States Europe Asia-Pacific Rest of the World
Market Segmentation
Market Segmentation III (Company Segment)
The largest company in the industry group is General Motors, which has an 11.7% share of global revenues. In comparison, DaimlerChrysler holds a further 10.8% share of global revenues.
Market Segmentation III
General Motors 11.71%
DaimlerChrysler 10.81%
Toyota 10.71%
Ford 10.71%
Volkswagen 6.51%
Other 49.55%
General Motors DaimlerChrysler Toyota Ford Volkswagen Other
Industry Trend
U.S. Import/Export Trend
U.S. Acquisition Trend
U.S. Asian Countries Trade Balance
U.S. Import/Export TrendExport Trend
U.S. Import/Export Trend
Export in 2006
U.S. Import/Export Trend
Import Trend
U.S. Import/Export Trend
Country wise Import Trend
U.S. Import/Export Trend
Import in 2006
Trade Balance of Import/Export
U.S. Acquisition Trend
Acquisition Trend
U.S. Asian Countries Trade Balance
Conclusion
Conclusion
Global automobile & component industry group value generates 30.60% of auto component, in which U.S. and then Europe is the major contributor to this industry group revenue. General Motor is the major player to this industry group.
The U.S. Import/ Export chart shows that U.S exports are increasing year by year where there was an increase of 6.9% in exports from the year 2005 to 2006 with the value of $ 58.9 million in 2006.
As similar to exports imports also grew by 3.3% from the year 2005 to 2006 with the value $ 95.2 million in 2006. This shows that the inflow of automotive components is more as compare to outflow which takes us to the conclusion of trade deficit.
U.S. trade deficit is a big opportunity for India to avail in automotive component sector. China is a major competitor or we can say threat for India who contributes 7% in U.S. import but now this threat can be overcome, fact says that increasing wages and new environmental regulations are pushing up the cost of manufacturing in China.
Thank You!!By: Pranjali Singh
