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About the Automotive and Parts Industry

The global automotive and parts industry is a large and diverse sector of the economy, comprising not just the manufacture of cars and trucks, but also the parts that go into the vehicles and the ancillary services to cars and trucks, such as maintenance and repair and insurance. Furthermore, the automotive industry includes sectors such as car and truck leasing and rental, the tyre market the motorcycle market, bus manufacturing and many other subsectors.

The global automotive industry manufactured around 78 million cars, vans, trucks and buses in 2010. These vehicles are fundamental to the proper functioning of the global economy. Some eight million people work in the global automotive industry, which is approximately 5% of total global manufacturing employment. The global automotive industry is also a large contributor of research and development, investing around $100 billion into research, development and production.

The global aftermarket is a huge sector by itself. The US aftermarket employs nearly 4.5 million people and comprises all products and services for vehicles, including including replacement parts, accessories, lubricants, appearance products, tires, collision repairs, service repairs as well as the tools and equipment necessary to make the repair. Overall aftermarket sales total around $300 billion in the US alone. In Europe, the aftermarket industry, including parts and labour, is valued at approximately €165 billion. It is estimated that the aftermarket business accounted for about 50% of leading European automotive OEMs profits.

The competitive intensity in the Chinese aftermarket is already at a high level, with the majority of participants to be even more competitive than Western European counterparts. There are an increasing number of local Chinese car manufacturers competing successfully with international car manufacturers. Examples include Chery, Geely, SAIC10 and BYD11 for cars, and Yutong, Dongfeng and Beiqi Foton for commercial vehicles. Through the dominating role of the big three market players in India - Maruti Suzuki, Tata Motors and Hyundai - the current competitive intensity is rather low. However, because other market players are motivated to break through the domination of the three main players, the competitive intensity is expected to increase in the future.

The global car rental market is a large, competitive industry, worth approximately $50 billion. The US is the largest car rental market, with airport rentals the main segment in that market, worth around $10 billion. Europe is the second largest car rental market, with the European market for leisure car rental worth approximately $7 billion.

The European vehicle leasing market was valued at approximately €124.1 billion in 2010, with the passenger car sector performing particularly well, growing by 10.1%. New leasing volumes for commercial vehicles also increased, albeit at a somewhat slower rate than for passenger cars, gaining 2.8% in 2010 to reach new leasing volumes of €34.9 billion.