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Aftermarket parts up 3%.

The U.S. automotive hard parts aftermarket will grow from $7.35 billion in 1993 manufacturer-level revenues to $8.95 billion by the year 2000 at a 3% compound annual rate, projects a new study released by Frost & Sullivan.

As of the year 2000, 49% of market revenues will come from undercar parts, 14% drive train parts and 13% each engine parts and cooling systems, forecasts the report. Improvement in OEM-level quality is bringing longer replacement cycles, reducing demand for replacement parts.

The aftermarket is largely unaffected by economic downturns since most parts are non-discretionary; they must be fixed or replaced when they malfunction or the car will be unusable.

There has been a breakdown in the structure of the traditional aftermarket. Some players have gained new buying power, while survival of independent garages, jobbers and some other channel participants is increasingly in question. Manufacturers will continue to consolidate. High availability, competition from overseas manufacturers and new concentrations of buying power have contributed to severe price competition. The distribution system that survives will be the one able to give end-users the replacement parts they need fastest and cheapest.

The aftermarket continues to lag a few years behind developments in the new-car market. At the OEM level, manufacturers are trying to make more environmentally friendly cars with more value-added and greater fuel economy. The evolution of new automobile designs in turn promotes parts proliferation in the aftermarket.

Hard parts include brake parts, exhaust parts, ride control, steering and suspension parts, alternators, carburetors and related kits, fuel and water pumps, radiators, belts, hoses, transmission parts, clutch parts, joints, gaskets, pistons, pins and piston rings, valves and valve train components, anti-friction bearings, engine bearings and seals.
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Title Annotation:annual automotive hard parts market growth through year 2000
Publication:Rubber World
Article Type:Brief Article
Date:Oct 1, 1994
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