The auto part business has become a popular and lucrative business opportunity across the continent since of the increasing demand of automotive parts. The auto part stores have thrived so well due to the fact that there is mass usage and dependence of automotive in every corner of the continent. However, the increasingly massive production of automotive and the tendency of wear and tear of such automotives have highly contributed to the rise of high demand of their spare parts. The automotive industries began in USA in the 1890s with hundreds of manufacturers venturing in commercial and private manufacturing of automotives. In decades USA has being on the forefront in this industry, but with rising low cost manufacturing in Eastern countries like China and Japan, the tag of war in this industry has shifted in favor of China taking the top spot with 19.3 million units followed by USA 10.3 million units and Japan taking the third spot with 9.9 million units according to global automotive outlook, (2012).
This venture, however, has its own challenges subjected to a ranging factors that have increasingly brought complexity and influencing the economic options available to the automotive parts business. Massive production of low quality production of auto parts counterfeits, fabricating companies and the high cost of production of auto parts has led to a slag takeover of these businesses into highly profitable venture as expected. Indeed with the increasingly customer loyalty policies by the automotive manufacturers, where repair services are offered by the manufacturing companies has highly affected the spare parts stores by deprivation of the prospect customers. However, these challenges have not deterred the owners of these stores to make profit or an income out of it.
As manufacturers ramp up their automotive inventories in various countries, they should also order additional parts to service those automotives. However, they need to estimate the demand of such parts depending on the average number of automotives in that country. According to BMW best-selling luxury auto brand (2012) a country like Germany has to have a larger availability of BMW parts as compared to United Kingdom since the BMW population is much larger in Germany than in United Kingdom
Even though this venture has is it strong roots as early as in 90s, it has strongly indicated room for growth and turning to a highly profitable venture. There is a ranging increase of demand and advanced technology have made it easy to produce auto parts with less cost, universal application of technology in production of auto parts has also favored the store sales where one have not to go to the manufacturer and get the parts. With the manufacturers willing to freelance others in selling their products has also made it easier in marketing and give a golden opportunity to store owners to sell these parts without immense competition with the manufacturers.
The manufacturers have also taken another step by ensuring that their products are well branded so as to curb the rising cases of counterfeits in the market. They have also made sure that the partnered stores are selling their branded products only; leaving no room for customers to opt other options and by so doing they have full control this enterprise. With the prevailing demand of auto parts, this business venture has turned to be a profitable and income opportunity for many people.
Reference
BMW, best-selling luxury auto brand.2012, 09-29
Johnson, Richard A. six men who built the morden automotive industry. Motor book, 2005, p. 45-51
Friedel, Helmut; grobal motive outlook 2012
