The online distribution channel generated significant sales of automotive aftermarket components, led by internet penetration, and ease of access to online platforms selling these parts. As people utilized their time inside homes to prevent COVID-19 spread, they highly opted for vehicle maintenance and repair services through online channels.
With the rising awareness of vehicles’ age, the sales of the e-commerce automotive aftermarket components are projected to rise in the emerging economies of APAC, and LAMEA. For example, the average life of vehicles was around 5.8 years in China, and approx. 12.1 years in the U.S. in June 2020. The surge in the average age of vehicles led by car loans with an increase of up to 5 to 6 years and their enhanced quality ensures long-lasting traction on roads. In addition, the average sales of cars have increased from 6.7 years in 1994 to 8.6 years in 2020 in the U.K.
Emerging economies such as India, Brazil, and China are projected to experience a rise in the average age of vehicles in the near future, further resulting in the increased sales of automotive aftermarket parts. The manufacturers of these components are expected to generate high profits with an increase in the consumer base led by the expansion of an expansion of e-commerce sector and enhanced product portfolios.
The shift in consumer preference, rise in average life of vehicles, and increasing vehicle customizations strengthens the automotive aftermarket industry globally. In addition, B2B captures significant sales of the automotive aftermarket components, accounting for over 73% revenue share, due to the easy payment options, doorstep delivery, massive discount on bulk purchases, and hence lures customers with reduced logistics costs.
Moreover, the surging economies and rise in disposable income of the population have encouraged increased participation in buying automobile components online. It has resulted in a boom in online automobile dealings led by the escalation of automobile ownership, and hence boosts the demand for substitute parts, creating a pool of opportunities for B2C bifurcation.
The increase in the sales of automotive replacement parts is led by the wide range of product availability, easy buying options led by hassle-free transactions, and timely delivery that boosts the online purchases of automotive aftermarket components.
APAC generates the highest sales of automotive replacement parts through online distribution channels, accounting for 38%. The rise in the sales in APAC is driven by the emergence of the world’s largest automotive industry in the region, with an annual production counting for 50 million vehicles per year. In addition, the increasing GDP and rise in disposable income of the population in developing countries such as South Korea, China, and India proliferate the consumption of automotive replacement parts.
Therefore, the rising disposable income of the population in emerging economies, and the increased age of vehicles purchased through car loans boost the e-commerce automotive component replacement industry.
