The automobile spare parts and components is one aspect of the industry that is often overlooked, despite the market constantly evolving. However, due to rapid advancements in technology, along with the rise of e-commerce and digitalization, the industry is set for major changes that could change the future of auto parts shopping.
Omnichannel approach
It is crucial to bridge the digital and physical divide when it comes to shopping experiences for their customers. Auto parts retailers have to create more opportunities to personalize each auto parts buying journey to best suit a customer’s needs. In this day and age, moving your offline store online is no longer an option, but an absolute necessity.
Demand and supply
Inflation has impacted the cost and availability of new vehicles, while chip shortages and tightened consumer budgets have steered the trend of keeping old cars running instead of purchasing new ones. That is why customer demand for car parts is at the forefront. Stricter government car emissions and safety regulations unveiled the need for more environmentally friendly and high-efficiency car parts. That is the reason aftermarket parts such as catalytic converters and electronic chips are in high demand as owners invest in their older vehicles to make them more fuel-efficient and ecologically safe.
An ongoing challenge that is here to stay is supply chain issues. Even though the fulfillment rates at auto parts stores have improved since the pandemic, some retailers still face supply issues with manufacturers and suppliers trying to fill orders. For instance, if a particular component is out of stock, it could take around 3 to 5 months to fill all backorders.
Advancements in technology
Robust materials in production of spare parts and components, along with developments like 3D printing technology, ensure there are endless possibilities for the future. For instance, 3D printing is capable of creating spare parts and components from a wide range of materials, allowing for customized, on-demand production of parts that are specific to individual vehicles. It could greatly boost efficiency, as it eradicates the requirement for excess inventory and long lead times.
Shift towards electric and autonomous vehicles
This trend is set to have a major impact on the future of the auto parts market. For starters, electric vehicles (EVs) require different components from traditional vehicles, with the most notable example being the battery. As EVs become more common, suppliers will have to adjust production and supply chains to keep up with the demand for these parts. Autonomous vehicles will also become more common, so suppliers have to focus on the production of parts, which include advanced sensors, lidar systems, and other technology that allows the vehicle to sense and respond to its surroundings.
Sustainability is a key issue
Sustainability and environmental impact are issues currently on the radar. Thus, suppliers are looking for more sustainable ways to produce and sourcing materials, such as using recycled or environmentally friendly materials. They are also devising methods to reduce waste in production processes, by implementing more efficient and environmentally friendly manufacturing techniques.
Despite the growing demand for auto parts, the buying process is tedious and time-consuming. The lack of standardization in the industry makes it tough for customers to find the right part, leading to frustration and inconvenience. The process of purchasing auto parts isn’t transparent, so customers often have to rely on the pricing set by the seller, which causes confusion and lack of trust. Technology like Modera’s E-commerce solution can be leveraged to create a better buying experience for customers. It helps focus on standardization, transparency, and convenience to improve the overall customer experience.
