Market Challenge - Counterfeit and aftermarket parts flooding the market

Global aftermarket automotive parts market growth can be hampered due to increasing production and sale of counterfeit and low-quality aftermarket parts. There has been significant increase in number of small manufacturers, especially in developing markets in North America and Asia Pacific that are manufacturing replica parts without following strict quality benchmarks and regulations. These counterfeit parts are then blended in with genuine aftermarket parts and sold through both offline and online distribution channels. The widespread availability of such substandard parts poses mechanical and safety risks for the vehicles. It also negatively impact the brand image and sales of established aftermarket parts manufacturers. Furthermore, lack of strict monitoring on manufacturing facilities in some regions has facilitated this counterfeiting activity. If not addressed properly, this issue has the potential to undermine customer trust in the aftermarket industry.

Opportunity: Expansion of e-commerce platforms for aftermarket parts sales

Global aftermarket automotive parts market can witness growth opportunities due to rising popularity of e-commerce platforms for parts sales. More customers now prefer purchasing auto accessories and replacement parts online due to the convenience offered as compared to traditional brick-and-mortar retailers. E-commerce retailers have a wider selection and can offer competitive prices due to lower overhead costs. Several leading aftermarket parts manufacturers are heavily investing in developing their own online stores and ensuring seamless purchase experience. Major third-party e-commerce portals expand their automotive product categories, and this helps customers to easily compare prices and specifications online before deciding on a purchase. The growth of online retail channels will allow aftermarket parts brands to access more customers globally and increase product reach in a cost-effective manner.