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 themanufacturer. 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 1suppliers. “Tier 3" suppliers who supply raw materials to any of the above suppliers or directly tovehicle assemblers.There is often overlap between the tiers. OE production accounts for an estimated 2/3 to3/4of the total automotive parts production.Aftermarket parts are divided into two categories: Replacement parts: Parts are built or remanufactured to replace OE parts whendamaged. Accessories: are parts made for comfort, convenience, performance, safety, orcustomization, 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 SegmentationMarket Segmentation I (Industrial Segment)The global automobiles and components industry group grew by 4.3% in 2006 to reach avalue of $1,742.1 billion. The CAGR of the industry group in the period 2002-2006 was3.9%.The industry group is composed of two industrial segments. The automobilesindustry accounts for 69.4% of the global value. The remaining 30.6% of the globalindustry groups value is generated by auto components. Market Segmentation I Auto Components 30.60% Automobiles 69.40% Automobiles Auto Components
Market SegmentationMarket Segmentation II (Geographic Segment)The United States generates 37.8% of the industry group’s value. Europe accounts for afurther 32.3% of industry groups revenues. Market Segmentation II Rest of the World 9.20% Asia-Pacific United States 20.70% 37.80% Europe 32.30% United States Europe Asia-Pacific Rest of the World
Market SegmentationMarket Segmentation III (Company Segment)The largest company in the industry group is General Motors, which has an 11.7% shareof global revenues. In comparison, DaimlerChrysler holds a further 10.8% share of globalrevenues. Market Segmentation III General Motors 11.71% DaimlerChrysler 10.81% Other 49.55% Toyota 10.71% Ford 10.71% Volkswagen 6.51% General Motors DaimlerChrysler Toyota Ford Volkswagen Other
Industry Trend U.S. Import/Export Trend U.S. Acquisition Trend U.S. Asian Countries Trade Balance
Conclusion Global automobile & component industry group value generates 30.60% of autocomponent, in which U.S. and then Europe is the major contributor to this industry grouprevenue. 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 wherethere 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 thevalue $ 95.2 million in 2006. This shows that the inflow of automotive components ismore 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 newenvironmental regulations are pushing up the cost of manufacturing in China.