As the global automotive supply chain manufacturers mostly invest in the development and production of electric vehicles, but the old car repair market is still there, global manufacturers are turning to Taiwan AM supply chain to place orders, automotive component customer demand has changed, and the original manufacturers have turned to the original AM manufacturers. Place an order for OES (original factory commissioned manufacturing parts).
Overview of the automotive after-sales service market:
In the environment of the vigorous development of electric vehicles, Taiwan's automotive component supply chain has not only obtained the opportunity to develop electric vehicle components, but has also won the favor of major automakers against the trend, and has been able to penetrate the original factory logistics system and expand its operating territory. In addition to the components needed for the assembly of new cars by car manufacturers, traditional OEM automotive component factories will often have to prepare materials for five to ten years after the new car is discontinued to meet the needs of car owners for subsequent maintenance. This is also one of the reasons for the higher cost of original components.
Taiwan’s auto parts and components were the first to focus on the AM market, focusing on the best-selling car models on the market to develop self-developed components. Consumers or maintenance plants can choose different sources of parts to replace, and the price is significantly lower than that of the original parts. In addition to product prices in the AM market, a complete range of products is also an important competitive condition. Taiwan's automotive component industry also has international competitiveness because of its complete product range.
With the advent of the new generation of automobiles, automakers are actively developing electric vehicles. At the same time, the supply chain system is also responding to the needs of automakers, accelerating the development of relevant parts and components for the needs of electric vehicles. With a large burden, Taiwan's auto components have thus obtained greater business opportunities. The component factory pointed out that the car factory came to Taiwan to place an order, which effectively reduced the supply cost of old cars.
- Classification of automotive components:
台湾汽车零部件只是分为起源al factory car parts and after-sales repair parts. The original factory car parts can be divided into original factory commissioned manufacturing (OEM) and original factory commissioned to design and manufacturing (ODM). These are all used in new cars. Genuine brand parts; and after-sales repair parts can also be divided into original factory parts (OES). After the vehicle has been used for some time, the after-sales repair parts used for vehicle maintenance can be replaced by the original parts, and the other non- OEM parts (AM) are mostly used for repair and modification.
Most of Taiwan's component manufacturers focus on the AM market. Due to the limited domestic market and export-oriented, the major export areas are the United States and Europe. Taiwan’s collision components account for more than 80% of the global market, and it supplies more than 90% of global plastic AM products. Taiwan’s collision components can be described as the world’s leading supplier, such as sheet metal parts, bumpers, etc., in the U.S. and European markets. High market share.
- AM industry characteristics:
The demand for automotive AM components stems from automotive maintenance and modification. Most manufacturers use reverse engineering to develop molds. After successful development and mass production, most of them are sold to overseas markets. The following describes the characteristics of the AM industry:
- Reverse engineering import technology is required: retrospectively design according to the original OEM parts, reconstruct the surface data, and then copy the components. Once the data is established, the drawing can be changed and innovated.
- Highly dependent on mold development technology: mold design and development are carried out according to the drawing data completed by reverse engineering. Once the development is successful, mass production can be carried out.
- Flexible manufacturing with a small amount and variety: The flexible manufacturing characteristics of a small amount and variety to meet customer customization are the main reasons for attracting foreign customers.
- Most of the products are exported abroad: As the number of foreign cars is increasing, there will be more demand for AM parts for maintenance and modification, mainly in Europe and the United States.
- Where the AM market is:
After-sales parts for car lights have a positive relationship with car ownership, road usage, and road driving length. Global car ownership is estimated to reach 1 billion by 2010, and North America is the largest car ownership market, reaching 250 million. It accounts for 40% of the global car ownership, and it is also a potential market for AM parts for emerging markets where cars have not yet been popularized.
AM usage in European and American markets:
The United States is the world’s largest AM market. The car insurance rate is nearly 90%. Therefore, insurance companies influence the repair market. When consumers go to car repairs, most of them choose OE parts, which account for 80%, while AM parts only 14 %, the rest are recycled parts accounting for 6%. After these AM products are sold from manufacturers to distributors, they are then distributed to general repair shops or automobile department stores. When parts need to be replaced, 87% of consumers are insured and paid by insurance companies for repair costs. Another 13 % Of consumers do not participate in the insurance and pay for the repairs by themselves, which shows the influence of American insurance companies on the AM industry and maintains the quality of products through their verification systems, such as CAPA (Certified Automotive Parts Association), AQRP (ASSURED QUALITY REPLACEMENT) PARTS).
The relatively large-scale AM suppliers in Europe include Spain and Italy, but the speed of developing molds is much slower than that of Taiwan AM manufacturers. However, European consumers have a relatively high acceptance of AM parts, reaching 30%. Taiwanese manufacturers are currently in addition to the North American market. In addition, the second major overseas market.
AM verification system for European and American markets:
To ensure the quality of AM products and increase consumer confidence, the European and American markets have adopted a professional product verification system to check the products. The professional certification system ensures the quality of AM products and suppliers so that the quality of AM products can be checked and inspected.
In Europe, there is an E-Mark certification system whose purpose is to confirm product quality and set barriers to product competition. The relevant regulations on vehicle parts and components are called ECE regulations. There are 114 articles, ranging from R1 to R113 and RE3. Its certification bodies include That cham in the United Kingdom and IDIADA in Spain.
Comparison of original auto parts (OEM) and sales service (AM)
OEM零件大而稳定,但总教授it is often compressed by upstream OEMs, and the gross profit margin is mostly less than 10%.
AM parts are small in quantity and diversified, but the gross profit can be as high as 30%. Above, but the source of orders is relatively unstable. Due to the stricter quality requirements and control of original auto parts, only a few manufacturers in Taiwan can meet the standards, so most manufacturers still mainly export AM products.
Outlook of automotive after-sales service market
With the advent of the new generation of automobiles, automakers are actively developing electric vehicles. At the same time, the supply chain system is also responding to the needs of automakers, accelerating the development of relevant parts and components for the needs of electric vehicles. With a large burden, Taiwan's auto components have thus obtained greater business opportunities.
Taiwan AM manufacturers will continue to focus on foreign sales in the future, expanding their market share and further entering the international supply chain. In addition to actively transforming from AM to OEM, they are also upgrading from traditional components to automotive components, and the market is also shifting from European and American markets to China in emerging markets, Taiwan uses its flexible production and ICT industry advantages, hoping to make good use of these advantages to expand the global market and create good results.
