Aftermarket (automotive)
Encyclopedia
The automotive aftermarket is the secondary market
of the automotive industry, concerned with the manufacturing
, remanufacturing
, distribution
, retailing
, and installation of all vehicle parts, chemicals, tools, equipment and accessories for light and heavy vehicles, after the sale of the automobile by the original equipment manufacturer
(OEM) to the consumer.
Estimated as a $257 billion market in the United States, the aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained or customized.
The aftermarket encompasses parts for replacement, collision, appearance, and performance, including electric propulsion
. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models on the road.
Consumers have the option of repairing their vehicles themselves (known as the do-it-yourself segment) or can take the vehicle to a professional repair facility (known as the do-it-for me segment).
The aftermarket employs 4.54 million people in the United States at manufacturers, distributors, retailers and repair shops (source: AAIA).
In Canada, the automotive aftermarket is a $16.7 billion (CDN) industry that employs more than 410,000 people (source: AIA Canada).
Automobile manufacturers have at times attempted to hinder or suppress automotive aftermarket sales by means of copyright
or patent infringement
litigation. See, for example, British Leyland Motor Corp. v. Armstrong Patents Co.
in the UK, and Aro Mfg. Co. v. Convertible Top Replacement Co.
in the United States.
Secondary market
The page applies to the finanical term; For the merchandising concept, see Aftermarket .The secondary market, also called aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold....
of the automotive industry, concerned with the manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
, remanufacturing
Remanufacturing
Remanufacturing is the process of disassembly and recovery at the module level and, eventually, at the component level. It requires the repair or replacement of worn out or obsolete components and modules. Parts subject to degradation affecting the performance or the expected life of the whole are...
, distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
, retailing
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
, and installation of all vehicle parts, chemicals, tools, equipment and accessories for light and heavy vehicles, after the sale of the automobile by the original equipment manufacturer
Original Equipment Manufacturer
An original equipment manufacturer, or OEM, manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a...
(OEM) to the consumer.
Estimated as a $257 billion market in the United States, the aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained or customized.
The aftermarket encompasses parts for replacement, collision, appearance, and performance, including electric propulsion
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models on the road.
Consumers have the option of repairing their vehicles themselves (known as the do-it-yourself segment) or can take the vehicle to a professional repair facility (known as the do-it-for me segment).
The aftermarket employs 4.54 million people in the United States at manufacturers, distributors, retailers and repair shops (source: AAIA).
In Canada, the automotive aftermarket is a $16.7 billion (CDN) industry that employs more than 410,000 people (source: AIA Canada).
Automobile manufacturers have at times attempted to hinder or suppress automotive aftermarket sales by means of copyright
Copyright
Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time...
or patent infringement
Patent infringement
Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may vary by jurisdiction, but it typically includes using or...
litigation. See, for example, British Leyland Motor Corp. v. Armstrong Patents Co.
British Leyland Motor Corp. v. Armstrong Patents Co.
British Leyland Motor Corp. v. Armstrong Patents Co. is a 1986 decision of the House of Lords concerning the doctrine of non-derogation from grants. This doctrine is comparable to, but somewhat broader than, the doctrine of legal estoppel, assignor estoppel, or estoppel by deed in U.S. law...
in the UK, and Aro Mfg. Co. v. Convertible Top Replacement Co.
Aro Mfg. Co. v. Convertible Top Replacement Co.
Aro Manufacturing Co. v. Convertible Top Replacement Co., , is a United States Supreme Court case in which the Court redefined the U.S. patent law doctrine of repair and reconstruction...
in the United States.
See also
- AAIAAAIAThe Automotive Aftermarket Industry Association is a not-for-profit trade association based in Bethesda, MD. AAIA’s 23,000 members and affiliate companies manufacture, distribute, sell and install motor vehicle parts, accessories, tools, equipment, materials, supplies, and services...
- Aftermarket exhaust
- Aftermarket (merchandise)
- Car tuningCar tuningCar tuning is both an industry and a hobby, in which an automobile is modified in order to improve its performance, handling and appearance. As most vehicles leave the factory set up for average driver expectations and average conditions, tuning has become a way to personalize the characteristics...
- RetrofitRetrofitRetrofitting refers to the addition of new technology or features to older systems.* power plant retrofit, improving power plant efficiency / increasing output / reducing emissions...
- SEMASEMASpecialty Equipment Market Association of the automobile aftermarket was formed in 1963 by Roy Richter, Ed Iskenderian, Willie Garner, Bob Hedman, John Bartlett, Phil Weiand, Jr., Al Segal, Dean Moon, and Vic Edelbrock, Jr...
- Virtual tuningVirtual tuningVirtual tuning, colloquially known as 'chopping', is the 2D graphical modification of automobiles, with the use of raster graphics editing software. Modifications such as aerodynamic body-kits, wheels, front mount inter-coolers and carbon fibre body panels, are super-imposed on a stock image in...