Aftermarket producers are sourcing auto parts from and selling auto parts to all four corners of the

Amazingly, car ownership in China has quadrupled in the past decade. As their service infrastructures develop, China and other emerging automotive markets will eventually assume the role of leading growth markets for aftermarket part consumption as well. By 2010, there are projected to be 55 million vehicles in China, a reflection of the rapid growth of China's automotive base. Yet along with this automotive boom in China, India and other areas in Asia and Eastern Europe, significant customs risks also come. The playing field for aftermarket components can be changed just as quickly, depending on the perceived needs of governments to protect or foster their local industries.

Market Needs

Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto aftermarket repair services and auto parts. Convenience is a must for most middle and upper class consumers and travelers.

Service Business Analysis

The market of auto part repair services and parts sales is very fragmented. The majority of auto shops usually offer either repair services or auto parts inventory. Middle and upper class customers to whom will cater its services are less price sensitive as they value the convenience of quick turnaround (on any model/make of car) and high quality of services. Competition and Buying Patterns.
Competitors

Primary competitors are engaged principally in the retail sale of auto parts, tires and accessories, automotive maintenance and service and the installation of auto parts. Larger competitors have adopted the "supercenter" store model, a freestanding, "one-stop" shopping automotive warehouse that features state-of-the-art service bays. These "supercenters" carry thousands of stock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and "buy-for-resale" customer sectors.

Large competitors' stores typically carry the same basic product line, with variations based on the number and type of cars registered in the different markets. A full complement of inventory at a typical supercenter includes an average of approximately 25,000 items.

* Automotive product lines usually include: Tires.
* Batteries.
* New and remanufactured parts for domestic and imported cars, including:
1). Suspension parts
2). Ignition parts
3). Exhaust systems
4). Engines and engine parts
5). Oil and air filters, belts, hoses and air conditioning parts
6). Lighting
7). Wiper blades
8). Brake parts
9). Chemicals, including: oil, antifreeze, polishes, additives, cleansers and paints
* Mobile electronics, including: sound systems, alarms, and remote vehicle starters.
* Car accessories, including: seat covers, floor mats, and exterior accessories.
* Hand tools, including: sockets, wrenches, ratchets, paint and body tools, jacks and lift equipment, automotive specialty tools and test gauges.
* A selection of truck, van, and sport utility vehicle accessories.


The motor vehicle aftermarket encompasses all products and services purchased for light and heavy duty vehicles after the original sale including replacement parts, accessories, lubricants, appearance products, belt tensioner, ball bearing, service repairs as well as the tools and equipment necessary to make the repair. Automotive aftermarket crash parts are used in just 15 percent of repairs. Overall aftermarket sales increased in 2008 to $285.5 billion, an increase of 4.0 percent from 2007. Sales in automotive aftermarket (cars and light trucks) totaled $211.4 billion and sales in the heavy duty vehicle aftermarket totaled $74.1 billion in U.S..
Auto Part Repair Market

There are two categories of automotive manufacturers: original equipment manufacturers and aftermarket manufacturers like belt tensioner, ball bearing manufacturer. Auto part aftermarket manufacturers look for high quality, rapid service with as much convenience as possible. Most individuals in this market segment are willing to pay an extra premium within the pricing of auto part repair services to avoid the common inconveniences of having a vehicle tied up in a repair shop. Auto part suppliers should establish a significantly large regular customer base which will establish a healthy, consistent revenue base to ensure stability of the business. In addition, emergency towing of local and freeway traffic comprises approximately 20% of revenues. Convenience, regular referrals from tow truck companies, and high quality, rapid service are critical to capture this segment of the market for auto part suppliers. In Poland, nearly 80 percent of the auto part products manufactured by its automotive industry are exported to other EU countries. Until recently, automotive suppliers in India focused on supplying the auto part aftermarket in India alone. As the auto part aftermarket has matured, auto parts producers are increasingly supplying local original equipment manufacturers and tier one suppliers, while exporting parts and facilities to the nearby Association of Southeast Asian Nations (ASEAN) countries. India currently accounts for about 1 percent of the global automotive components sourcing market, but is expected to reach 4 percent by 2015.

Aftermarket producers and distributors, building on the lessons learned by vehicle manufacturers and original equipment suppliers, are quickly gaining customs experience around the globe and in emerging markets - with the help of firms such as Ernst & Young. As global footprints expand and supply chains lengthen and become more complex, many companies are confronting customs risks for the first time.

Clutch Bearings Industries Co., Ltd. (autoparts-tensioners.ready-online.com) was founded in 1992 by a management team with about 25 years of accumulated experience and know-how in the line, and the company has now become one of the top-two such suppliers in Taiwan.

Main Products/Service:

Clutch Release Bearings, Idler Pulley Bearings, Belt Tensioner Bearings, Wheel Bearings, Hubs ABS Rings, Collars, Automotive Bearings, C.V. Joints, Wheel Hub, Other Special Bearings and Collars, Engine Bearing, Pulley, Rear Axle Assembly, Axle, Hub, Clutch Release Bearing.