The world economy has gone global, and almost all the products are now available online. Keeping up with the practice of online shopping, the automobile industry has also gone virtual. Automotive e-tailing, a product of this new practice, refers to the selling of automotive components online. Components, such as tires and wheels, interior accessories, powertrains, infotainment multimedia consoles, and electrical and electronic products,can all be bought over the internet. The automotive e-tailing environment caters to the demand generated by the owners of passenger cars, two-wheelers, and commercial vehicles.
With a transparent logistics and distribution network, the demand for automotive components has increased in recent years. Owing to this exponential increase in demand, the automotive e-tailing market generated $26,064.0 million in 2016, and it will advance at a CAGR of 13.1% during 2017â€“2023,to generate over $59,4000.0million by 2023.The increasing penetration of the internet and growing shift toward online shopping have made automotive e-tailing vastly popular.
The surge in the demand for vehicles has already led to an increasingsale of automobile components. With the easy availability of products, such as wheels and tires, on e-retail platforms, people are more frequently overhauling their vehicles in order to keep them running for a longer time. E-tailing offers the benefit of a hassle-free transaction and a wide range of options to choose from on a single platform. As a result, recent years witnessed a surge in the number of such portals, especially in the Asia-Pacific (APAC) region.
These portals are mostly operated by organized companies,which have a worldwide presence. Some of the major e-commerce companies offering automotive components are O’Reilly Automotive Inc., Amazon.com Inc., Advance Auto Parts Inc., eBay Inc., Alibaba Group Holding Ltd., Delticom AG, Flipkart, Robert Bosch, and Wal-Mart Stores Inc. Owing to the increasing demand for automotive e-tailing, these firmsare focused on expanding their operational base through partnerships and geographical expansion.
According to P&S Intelligence, the popularity of automotive e-tailing will increase rapidly in the APAC region because of the growing sales of commercial vehicles, two- and three-wheelers, and passenger cars, which is why their aftermarket components are in a huge demand in the regional emerging economies. Because of an increase in the gross domestic product (GDP) and government initiatives in China, Japan, and India, many startups are catering to the increasing demand for automotive e-tailing here. However, the increasing penetration of the internet remains the key reason for the present success of the automotive e-tailing concept in the region.
Elsewhere on earth, the European automotive e-tailing market is growing because of the increasing number of component suppliers and rising number of internet users. Developed nations of Europe, especiallyGermany and the U.K.,account for the most purchases of automotive aftermarket parts online. In the same way, an increase in the access to online services dealing with and stores offering automotive components will give impetusto automotive e-tailing in the North American region, with the maximum online sales of vehicle parts taking place in the U.S.
Thus, the emergence of new online shopping platforms and rapid penetration of the internet will be the prime reasonsleadingto the increase in the sales of vehicle parts via e-commerce portals.