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What Is Automotive OEM? OEM vs Aftermarket Parts

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Automotive OEM

Table of Contents

5 Min Read

The global automobile industry is in a state of thrilling transformation. Driven by elements like growing customer demand for features like safety and connectivity and the rapid development of electric and independent vehicle technologies, the market for Automotive OEM manufacturers is experiencing a growth boom. This blog explores the worldwide OEM landscape, its contemporary size, projected boom trajectory, and key drivers.

We’ll also delve into marketplace segmentation, reading the unique components, automobile types, and distribution channels that comprise the OEM ecosystem. Understanding these dynamics is critical for organizations concerned with the automotive supply chain to stay ahead of the curve and capitalize on rising opportunities.


What is an Automotive OEM?

An Automotive Original Equipment Manufacturer (OEM) acts as the backbone of the auto enterprise, or the OEM for the auto industry silently, shaping the cars we drive. Unlike car companies, which you may recognize with the logo, OEMs focus on their expertise in creating the tricky parts and additives that make up a brand-new automobile. Imagine a car as a complex puzzle – OEMs layout and manufacture the individual portions, each one meticulously designed to meet the precise necessities of a particular car model. This guarantees that each component seamlessly integrates with the car’s primary machine, making certain functionalities like excellent performance, protection, and efficiency.

OEMs in automobiles are the building blocks that bring an automobile designer’s vision to life. Their precision and innovation are paramount in delivering motors that meet the ever-evolving requirements of exceptional reliability.



What is OEM?

An automotive OEM, or original equipment manufacturer, is a company that creates parts or whole products that might be sold under another brand. OEMs are those who make the products or components bodily. They do not generally promote these products under their brand. Instead, they deliver them to brands that market and encourage them to clients.

This business version is standard in many industries, especially vehicles and computer systems. It allows brands to be aware of their strengths—layout, advertising and marketing, and distribution—and even leave the production to professionals.


Discover the Top 6 Benefits of OEM Parts

It is essential to maintain your vehicle, whether it is a pre-owned or a brand-new car. However, a few owners skip a few visits to the garage because of the rise in inflation and high fuel prices. Additionally, some buyers prefer to purchase cheap auto parts, hoping they will last a year or two. However, the price and the type of part can impact the vehicle’s age, and they might regret their decision. Therefore, we advise you to go for automotive OEM replacement parts, whether you own a used car or a brand-new one. We have mentioned the benefits of buying OEM auto parts online or offline to make your decision-making convenient.

1) Quality

OEM offers the exact technical specifications for the a1 auto parts initially installed in your vehicle. OEM automotive parts comply with the original automotive manufacturer’s production standards to maintain the same quality auto parts as the ones that were first assembled.

2) Compatibility

OEMs will cause compatibility issues because of the design process. Additionally, their installation is easy, and the vehicle’s operation would be identical. On the other hand, generic parts require more adjustments or modifications to fit, which causes other problems in the long term.

3) Reliability

Regarding material and design, many replacement automotive accessories and parts still need to be considered reliable according to the automotive manufacturer’s requirements. Further, just a small auto part of low quality can impact the whole system. Additionally, the after-market offers fewer basic specs and thicknesses because of their altered budget, which does not give precise quality. However, original auto accessories will provide better long-term reliability and will not be slow to work.

4) Performance

Choosing used OEM parts will ensure your vehicles are safe and operate well. Therefore, to avoid damaging the car and its performance, it is advised to use high-quality parts supplied by OEM. OEM body parts for work vehicles and sports models are genuinely advised.

5) Long-term cost

Purchasing generic parts will lead to additional fees because they cause wear and breakage of the other parts. However, investing in OEM parts will last longer, fit better, and save money in the long term. Additionally, OEM parts require less frequent replacement and repairs, which will help increase your vehicle’s life.

6) Guaranteed Quality

OEM vehicle parts are guaranteed to be perfectly functional and fit for your vehicles. Additionally, investing in cheap and discount auto parts will not work as it should and might not be compatible enough for your cars compared to high-quality OEM parts.


What are the Limitations of OEM?

OEM parts are indeed reliable and offer high-quality performance. However, the resources required to produce a unique product can include development and research costs. Additionally, creating a design before the part is ready for OEM manufacturing and production takes a lot of time. Therefore, investment in automotive OEM products can be high and introduce a risk to the OEM business. We have mentioned a few drawbacks of the OEM below:

1) Revenue responsibility: The brand owner is responsible for the revenue and the business.

2) Product: Your product might lack comparatively to your competitors who would be using the same OEM

3) Limitation on branding: OEMs have limited control over the branding and the product.

4) Experiment: OEMs need an opportunity to innovate new products. However, you can request samples to be produced.

5) High supply demand: Companies deal with OEMs who can sell enough products and fulfill their supply demand.

6) Copied design: Your design component might be stolen from competitors.


What is the Difference Between OEM, Aftermarket Parts, and Genuine Parts?

There is a vast difference between original equipment manufacturers, automotive aftermarket, and genuine OEM parts. Here’s a more detailed breakdown of the critical differences between OEM vs original genuine parts vs aftermarket car parts and accessories:

Difference Original Equipment Management Aftermarket Parts Genuine parts
Origin Made by the same auto OEM companies that manufacture the vehicle or created for the same company but as an external company. Parts are produced by other independent companies, not the original OEM car manufacturer. The parts are supplied by the vehicle manufacturer and included in their packaging.
Quality Generally, use high-quality material. Quality may vary from parts that meet or exceed OEM standards. Genuine parts are as reliable as OEM parts.
Price Higher Price Lower Price Higher than OEM prices
Warranty In almost every case, a vehicle’s warranty isn’t void. The vehicle’s warranty may be void if the parts fail & damage other components. The vehicle’s warranty is mostly not void
Availability Limited availability Wider Selections available Available directly from the manufacturer and, in a few cases, from the parallel import


Top 17 Auto OEMs in the World By Revenue

The global OEMs automotive industry is a massive and dynamic sector, with manufacturers constantly innovating and competing for market share. Here’s a look at the top 17 Original Equipment Manufacturers (OEMs) in the world, ranked by their revenue:

Rank Automotive OEMs Revenue
1 Volkswagen $284.21 B
2 Toyota $260.13 B
3 Mercedes Benz $153.95 B
4 Ford $151.73 B
5 General Motors $147.21 B
6 BMW $139.79 B
7 Honda $114.00 B
8 SAIC Motors $114.00 B
9 Hyundai $105.12 B
10 Stellantis $101.32 B
11 Tesla $96.77 B
12 Nissan $86.48 B
13 BYD $84.89 B
14 KIA $75.81 B
15 TATA Motors $50.92 B
16 Renault $49.68 B
17 Porsche $43.98 B


Top 10 Automotive OEMs in the World in 2024 by Number of Employees

As the auto industry races to change, here are the ten biggest automakers by employee count in 2024. These automobile oem companies are like car-building giants, with tons of people working to bring us the latest rides.

Rank Name No. of Employees
1 Volkswagen 650,951
2 BYD 570,100
3 Toyota 377,369
4 Stellantis 272,367
5 Mahindra & Mahindra 260,000
6 SAIC Motors 215,999
7 Honda 197,039
8 Ford 173,000
9 Mercedes Benz 167,397
10 General Motor 167,000


Top 10 OEM Companies in the World in 2024 by Enterprise Value

Buckle up for a shift in gears! The auto industry is revving its engine closer to a new era, and the most essential gamers are now valued. Here’s a look at the top 10 auto Original Equipment Manufacturers (OEMs) globally in 2024, ranked by their enterprise value.

Rank Name Enterprise Value
1 Toyota Motor 471.29B
2 Tesla 429.19B
3 Volkswagen 214.89B
4 SAIC Motors 179.30B
5 Ford Motor 160.27B
6 Mercedes-Benz Group 155.23B
7 BMW 131.75B
8 Honda Motor 92.07B
9 BYD 64.65B
10 Stellantis 51.14B


Top 10 OEMs in the World in 2024 by EV/EBITDA

Making electric cars and keeping the environment happy costs a lot! Here’s an automotive OEM list of the top 10 manufacturers in 2024, ranked through their EV/EBITDA ratio.

1 Ford 13.48
2 BYD 12.89
3 Toyota 11.2
4 General Motor 6.7
5 Honda Motor 5.92
6 BMW 5.1
7 Hyundai Motor 4.8
8 Volkswagen 3.37
9 Stellantis 1.14
10 The Lion Electric Company -8.43


Automotive OEMs Market Scope and Segmentation

The auto OEM Original Equipment Manufacturer is made for the market and is projected to reach USD 54 billion by 2032, fueled by evolving customer choices, technological improvements, and international enterprise expansion. OEM produces vehicle accessories and parts for a particular automobile company per their specifications and provides their desired packaging. Additionally, unlike aftermarket, automotive OEM suppliers genuine parts to vehicle brands.

Market Scope

1) Evolving Consumer Preferences: The car buying journey is evolving, and demand for connectivity, protection, and gas efficiency fuels the marketplace boom.

2) Technological Advancements: Electric and self-sustaining automobile technologies contribute to market enlargement.

3) Global Industry Expansion: Emerging markets and urbanization force improved demand for motors and additives.


1) Components: Powertrain, Chassis, Electronics, External Body, Car Interiors.

2) Vehicle Type: Commercial Vehicles, Passenger Cars, Electric Cars.

3) Distribution Channel: Retailers, Wholesalers, Distributors.

Understanding market segmentation is crucial for OEMs to confirm particular needs, innovate, and capture possibilities within the dynamic car OEMs enterprise.


Market Insights of Automotive Original Equipment Manufacturers (OEMs)

Europe dominates the top automotive OEM companies marketplace because of a significant growth in vehicle purchases and a great shift closer to advanced brake structures amongst clients. Additionally, the market is expected to reach USD 48.62 billion by 2023, at a CAGR of 4.67% during the predicted period. However, it was valued at USD 33.75 billion in the year 2022. Conversely, Asia-Pacific is witnessing rapid growth, propelled by a surge in automotive leads & vehicle sales and sustained consumer demand. Our analysis extends to inspecting the unique regulatory frameworks across individual nations, the complexities of producing and distributing automotive components, and the aggressive panorama, supplying treasured insights into market tendencies and dynamics for stakeholders to make informed choices.


Global Automotive Original Equipment Manufacturer (OEMS) Market Scope

The scope of the global Automotive OEM (Original Equipment Manufacturer) marketplace is multifaceted, encompassing a wide range of components and offerings tailored to cater to the ever-evolving needs of cutting-edge vehicles. The global market size of auto OEMs was valued at USD 35.33 billion in 2023. Therefore, it is projected to reach USD 50.89 billion by 2031, with a CAGR of 4.67% from 2024 to 2031. Let’s delve deeper into the numerous dimensions of its scope:

1) Market Size and Growth

Currently, the marketplace is valued from USD 34.6 billion to USD 36 billion, reflecting its most considerable automotive OEMs presence in the car industry. Projections indicate a robust boom trajectory, with a Compound Annual Growth Rate (CAGR) expected to be between 4.17% and 4.67% between 2030 and 2032. This increase is expected to propel the marketplace length inside USD 46 billion to USD 54 billion, underscoring the significant opportunities in advance.

2) Drivers of Growth

Several elements are fueling the expansion of the Automobile OEMs marketplace. Shifting client choices is pivotal, with an increasing call for superior capabilities, including connectivity, protection improvements, and stepped-forward fuel performance. Moreover, technological advancements drive transformative adjustments, particularly with the transition toward electric-powered and autonomous automobiles. The global automobile industry’s growth, in addition, amplifies growth possibilities, fueled by the rising ownership of motors throughout numerous geographical areas.

3) Technological Innovations

Technological innovation is a cornerstone of auto OEM car manufacturing. Advancements in substance technology, production procedures, and digitalization are revolutionizing the design and production of vehicle additives. From lightweight substances for more desirable fuel performance to state-of-the-art sensors for independent competencies, innovation remains a key driving force shaping the market’s panorama.

4) Global Market Dynamics

The worldwide auto OEMs market operates within a dynamic panorama characterized by regulatory changes, geopolitical shifts, and monetary fluctuations. Understanding those dynamics is imperative for stakeholders to navigate demanding situations correctly and capitalize on emerging opportunities. Collaborations, strategic partnerships, and agile business fashions are essential to thrive in this rapidly evolving environment.

5) Emerging Trends

Beyond the mounted boom drivers, numerous automotive industry trends are reshaping OEM companies in automotive. These encompass the upward thrust of electric cars (EVs), the combination of synthetic intelligence (AI) in automobile structures, and the advent of mobility-as-a-service (MaaS) platforms. Embracing these tendencies permits enterprise gamers to live ahead of the curve and effectively cater to evolving patron demands.

In essence, comprehending the multifaceted scope of the worldwide Automotive OEM manufacturer’s marketplace is pivotal for organizations throughout the cost chain. By staying attuned to market dynamics, embracing innovation, and fostering strategic collaborations, stakeholders can position themselves for sustained growth and competitiveness in the OEM car companies panorama.


Global Automotive Original Equipment Manufacturer (OEMS) Market Dynamics

Data Bridge Market Research analyses that the automotive original equipment manufacturer (OEMS) market was valued at USD 33.75 billion in 2022 and is expected to reach USD 48.62 billion by 2030, at a CAGR of 4.67% during the forecast period. Let’s quickly look at what’s happening in the Automotive Original Equipment Manufacturer (OEM) market. Here’s a simple breakdown of the main things driving the market:


1) As more people worldwide buy cars, there’s a more significant need for OEM used auto parts to keep them running smoothly.

2) OEMs ensure their products last longer, which gives car owners confidence in their vehicles’ reliability.


1) New technologies are opening up opportunities for automotive OEMs to create better OEM car parts, especially in areas like self-driving cars and batteries.

2) As cars get more complicated, there’s a growing demand for help with maintenance and repairs, giving OEMs a chance to offer better customer support.


1) People are starting to prefer electric and eco-friendly cars, which means OEMs must adapt to new technologies to stay competitive.

2) Problems in the supply chain, like insufficient materials or political issues, can make it hard for OEMs to keep making their products.

Recent Developments

1) MasterBeat Corporation uses Amazon to sell more OEM auto industry products through JTEC Autoworld.

2) CoorsTek Inc. is building a big new factory in Thailand to make more car auto parts.

3) CeramTec GmbH is partnering with Fraunhofer Institute to help OEM automotive manufacturers make better electric car parts.



The future of the Automotive OEM marketplace promises to be dynamic and thrilling. As client preferences evolve and technological advancements continue to reshape the industry, OEMs that can adapt and innovate will be best for success. This blog provided a complete review of the global OEM market scope, segmentation, and critical tendencies. By understanding the drivers, possibilities, and demanding situations that outline this marketplace, groups can make knowledgeable selections about their strategies and investments. Whether you are a producer, supplier, or undoubtedly curious about the future of transportation, this weblog has equipped you with precious insights into the automotive OEM car industry sector.




  • Q. Who is the top automotive OEM in the US?

    We have listed the top OEM automotive examples in the US below.

    • Tesla Inc. Automotive Parent
    • PACCAR Inc. Automotie Parent
    • Rivian Automotive Inc. Automotive
    • Lucid Group Inc. Automotive
    • General Motors Co. Automotive Parent
    • Navistar International Corp. Automotive
    • Fisker Inc. Automotive
    • Ford Motor Co. Automotive Parent

  • Q. What is OEM in automotive, and what does it stand for?

    The answer to the question of what is automotive OEM. A company that produces original parts for automobile manufacturers. OEM stands for Original Equipment Manufacturer.

  • Q. Who is the largest OEM?

    Volkswagen AG is the largest OEM with the highest revenue of $295,850 million.

  • Q. Is OEM the same as the original?

    OEM parts are identical to the original, made by the same manufacturer, and have the exact specifications and materials.

  • Q. Is Tesla an OEM?

    Yes, Tesla Inc. is the leading automobile OEM in the world.

  • Q. How many automotive OEMs are there?

    Fourteen major OEMs have more than five dozen automobile brands under them.

  • Q. How do you tell if a car part is OEM?

    The simplest way to determine if a car part is OEM is to check the brand on the packaging. If the brand is the same as your car manufacturer, there is a high chance it’s an OEM part.

  • Q. Why is OEM cheaper than original?

    OEMs produce parts for other companies that might not have the total capacity to make the required parts. Therefore, OEM parts are cheaper than those from the vehicle manufacturer’s brand.

  • Q. Is it better to buy OEM parts or aftermarket?

    OEM parts are the same as the original ones and are more reliable than aftermarket ones. Therefore, OEM parts are better than aftermarket parts.

  • Q. Why are OEM parts so expensive?

    The availability of OEM parts is limited, which makes them expensive.

  • Q. What are OEM vehicles?

    OEMs produce vehicles that need reparations or replacements; the parts used are OEM vehicles.

  • Q. What is a major OEM?

    A major OEM is a company that produces a product for sale to any other company under its name.

  • Q. What is the difference between OEM and automotive suppliers?

    OEMs are the original producers of a car’s components, and the OEM parts are identical to those used in the vehicle’s production.

  • Q. Do OEM parts last longer?

    Yes, OEM parts are the same as original parts. They last longer and tend to be more reliable than aftermarket parts.

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Team Spyne

Young, enthusiastic, and curious are the three words that describe Spyne’s content team perfectly. We take pride in our work - doing extensive research, engaging with industry experts, burning the midnight oil, etc. Every word we write is aimed at solving our readers’ problems.

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