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Navigating the 2023 Landscape: Automotive Aftermarket and Feeding Industries


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The automotive aftermarket and feeding industries stand as the backbone to the vehicle production sector, providing a vast array of parts, chemicals, equipment, and accessories post-sale by the original equipment manufacturer (OEM). From production to remanufacturing, distribution, sale, and installation, these industries serve a crucial role. The Certified Automotive Parts Association (CAPA) sets high quality and safety standards globally for aftermarket parts.

As a car owner or a frequent visitor to the maintenance garage, it's almost certain you've purchased an aftermarket product. The beauty of this industry is its versatility, catering to all budgets and requirements. Let's delve into how the aftermarket industry benefits consumers, retailers, the auto industry, and economies at large!

Global Snapshot: Automotive Aftermarket

The COVID-19 pandemic has undeniably impacted the industry, resulting in a slump in demand and disruptions to the supply chain. The global automotive market, already under pressure, had to bear additional strain. However, recovery is on the horizon, with Technavio predicting a growth of USD 164.58 billion in the global automotive aftermarket from 2022 to 2027.

Evolution and Emerging Trends

According to a report from the McKinsey Center for Future Mobility (MCFM), the automotive aftermarket has consistently boosted the profitability of the entire auto industry. Presently, the sector is undergoing significant changes due to evolving customer expectations, rapid tech adoption, and shifts in competitive dynamics. These transformations will indubitably influence value creation and organizational structures.

Key Drivers of Market Change

  1. Digitization of interfaces and channels

  2. The rise of professionally managed fleets

  3. Emerging markets with an emphasis on services

  4. Advanced tech trends in the auto sector

  5. Profit dip due to shift towards electric power

  6. Increased emphasis on new software

  7. Autonomous driving causes fewer accidents and less frequent maintenance

  8. Competitive changes due to emerging competitors, especially from e-commerce

Why Digital is the Future?

Several reasons favor digital transformation:

  1. Possibility of shortening the value chain through diverse distribution channels

  2. Entry of new players and logistic models (e.g., large-scale online retailers)

  3. Increasing digital access among B2B and B2C users

Why the Shift to E-commerce?

Consumers are increasingly turning to online channels for price comparison, quality assessment, and reviews. Traditional methods of buying auto components are gradually making way for e-commerce platforms like Amazon or eBay, thanks to their convenience and accessibility.

Egypt's Standpoint: Benefiting from Global Updates

Egypt's automotive aftermarket is flourishing, thanks to the country's high vehicle ownership and sales. Government initiatives to reduce vehicle emissions and replace traditional petrol engines with eco-friendly alternatives have further boosted the market. E-commerce platforms are gaining popularity, offering ample opportunities for local manufacturers, distributors, and service providers.

The Egyptian automotive aftermarket and feeding industries still require support and development. Events like Autotech can provide networking opportunities with key players, insights into market trends, and growth avenues for your business.

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