The domestic Big Three suppliers of automotive parts have made strides in recent years, but they still fare poorly compared to their Japanese counterparts. The primary market for auto parts is vehicle manufacturers, accounting for two-thirds to three-fourths of the industry’s total production. The balance of production, around 30%, goes to service/replacement parts distributors, and the rest ends up in the retail market. As a result, auto part suppliers are competing in an increasingly global market.
Exports of auto parts to the United States increased rapidly in recent years. In 2006, U.S. auto parts exports grew by almost 30 percent, to $220 billion. This represents nearly thirty-seven percent of the total value of automotive exports. However, the number of exports to emerging economies has increased at a significantly faster rate than in established industrial nations. Therefore, the auto parts industry remains vulnerable to these competitive pressures.
In addition to traditional auto parts, many light trucks are now multi-purpose vehicles. They combine the comfort of a passenger car with the benefits of a truck. They require different chassis, steering systems, and suspension systems. Auto part suppliers also provide the vehicles’ air conditioning systems. The automotive industry’s competitiveness is a huge opportunity for Pakistan’s auto parts sector. In addition, a significant portion of the country’s economy is devoted to the automobile industry.
The automotive parts industry has evolved from a humble corner hardware store to a global business that produces components and entire automobiles. By the early 21st century, the industry produced parts for world car and truck producers and is estimated to reach $1.1 trillion in annual sales. This industry is truly global, as suppliers operate in every continent except Antarctica. But, where is the future for this industry? As more parts are produced and exported, the need for suppliers will only continue to grow.
In 2005, domestic shipments of auto parts and truck parts totaled $200.3 billion. As of 1997, the shipments grew at a rate of 1.73 percent annually. The industry is cyclical, with the highest levels being realized in 2000 and 2001, and then dropped sharply during the recessionary period of 2001. In 2005, shipment levels had almost reached the level of 2000. Nonetheless, the automotive parts industry is likely to grow even further in the coming years.
The car’s engine, transmission system, and auxiliaries make up the core of the automobile. The engine, known as the internal combustion engine, is a major component of the vehicle’s transmission system. Other essential auto parts include the wheels, tires, and suspension system. In addition to these major components, the automobile’s chassis is also comprised of major assemblies. This includes the engine, the transmission system, the propeller shaft, axles, steering system components, and the control system.
Aftermarket auto parts allow vehicle owners to customize their vehicles by modifying the parts. These auto parts are not part of the original manufacturer’s specification, and may violate the laws of your locality. These parts often violate local emissions and window tinting laws, so you should never assume that they will be legal in your area. Always check your vehicle’s warranty before making any modifications to the vehicle’s performance. The right car parts will keep your car running smoothly for years to come.