Automobile Suppliers are usually classified into two categories: General Carriers and Specialty Carriers. General auto suppliers are suppliers of a range of automobile products including automobiles, trucks, buses, taxicabs, and many more. They often act as suppliers to dealers, wholesalers, direct suppliers, and auto brokers. Carriers on the other hand specialize in supplying specific brands of automobiles to individual consumers. They may also provide warranties or financing options. Carriers can either be nationwide or regional.
The car industry is a highly competitive sector and automobile suppliers often face stiff competition from thousands of suppliers across the world. Automotive product specifications and prices are always subject to constant change. Suppliers try to stay ahead of their competitors by constantly improvising their strategies and providing innovative solutions. This is one of the reasons why an efficient and well-funded automotive supplier network is very important for any company in the automotive industry.
There are three types of automotive suppliers namely, national manufacturers, regional or international automotive suppliers. National manufacturers are the major suppliers of vehicles and engines to the domestic market. They sometimes export vehicles and sell them domestically as well. They often dominate the whole automotive supply chains and they often dictate terms and conditions to regional or international automotive suppliers.
Regional or International suppliers have factories all over the world and they also export vehicles and engines to regional or international markets. They have access to a larger market, which they can exploit via various marketing strategies. They can cater to a specific segment of consumers or a general audience. Many manufacturers prefer to have a national manufacturer as an outlet for their vehicles. The manufacturer can sell the cars directly to the customer or sell the cars to a distributor who will in turn sell the cars to retailers.
Automobile Suppliers is the backbone of any successful auto aftermarket. Without suppliers providing them with quality components, vehicles and engines, there will be no aftermarket business at all. But due to the dominance of suppliers in the automotive aftermarket, there are certain restrictions placed on them. Automobile manufacturers impose certain obligations on suppliers as per the prevailing auto aftermarket regulations.
Automobile aftermarket is the largest global market today. The large number of automotive suppliers can restrict the freedom of the dealers to choose the best aftermarket components for their cars. There are certain restrictions imposed by the federal government on the number of units that can be sold per day. These obligations are usually implemented to protect the interests of the American consumer. In the present scenario, it is the automotive suppliers that hold the true power to shape the future of the entire aftermarket industry in the United States.