The 3 Big Challenges for OEM Part Sales in the USA Right Now

Parts sales are essential for every Original Equipment Manufacturer (OEM), irrespective of industry type, market positioning, or customer focus. This is especially true in the United States (US), where the battle between automotive manufacturers and independent aftermarket parts manufacturers rages. 

Here are the top three challenges for automotive OEMs in increasing parts sales (and some examples of the strategies and tactics currently being pursued).

1.      Competition from Aftermarket Parts

The challenge:

• Aftermarket parts manufacturers offer lower-cost alternatives with widespread availability.

• Some aftermarket brands focus on innovation, offering performance upgrades or alternative materials outperforming OEM specifications.

• Repair shops and consumers often perceive aftermarket parts as "good enough" for a lower price.

OEM Strategies & Examples:

• Extended Warranties & Service Bundles – Automakers emphasise that OEM parts come with manufacturer-backed warranties.

  Example: Toyota promotes Toyota Genuine Parts by offering extended warranty coverage when used in the OEM’s authorised crash repair network.
  

• Launching Competitive Aftermarket-Like Offerings – Some automakers have introduced their own aftermarket-style parts brands.

  Example: Ford created Omnicraft, a parts brand aimed at non-Ford vehicles, allowing independent shops to buy OEM-quality parts at competitive prices.
  
  

• Branding & Consumer Education – Automakers run marketing campaigns emphasising OEM quality, durability, and fitment advantages.

  Example: Honda's "Keep Your Honda a Honda" campaign educates customers about the risks of using non-OEM parts.

2. Supply Chain Disruptions & Rising Costs

The challenge:

• Global shortages (e.g., semiconductors and raw materials) have delayed production and raised costs.

• Government trade tariffs, freight costs and port congestion increase the cost of moving parts.

• Dependence on offshore suppliers makes OEMs vulnerable to geopolitical risks.
  

OEM Strategies & Examples:

• Nearshoring & Regionalized Supply Chains – Automakers are shifting some production closer to the U.S. to reduce supply chain risks.

  Example: General Motors (GM) and Stellantis have invested in North American battery and semiconductor plants to secure key parts.
  

• Digital Supply Chain Management – Companies use AI and predictive analytics to improve inventory tracking and demand forecasting.

  Example: Ford leverages AI-driven supply chain analytics to anticipate shortages and adjust sourcing in real-time.
  

• Multi-Supplier Sourcing & Vertical Integration – OEMs are diversifying suppliers and, in some cases, bringing production in-house.

  Example: Tesla’s in-house battery production reduces reliance on external suppliers like Panasonic and LG.

3. Shift Toward E-Commerce & Direct-to-Consumer (DTC) Sales

The challenges:

• More consumers and repair shops buy parts online from platforms like Amazon, eBay, and RockAuto.

• Dealerships, the traditional sales channel for OEM parts, are struggling to compete with digital marketplaces.

• Consumers expect seamless online experiences with competitive pricing.

OEM Strategies & Examples:

• Launching Direct-to-Consumer Online Marketplaces – Automakers are setting up official e-commerce sites.

  Example: GM launched GMPartsStore.com, allowing customers to buy OEM parts online directly from GM.
  

• Partnering with Third-Party E-Commerce Platforms – Some automakers leverage Amazon or other platforms instead of competing against them.

  Example: Stellantis (Chrysler, Jeep, Dodge) partnered with Amazon to sell Mopar parts directly on the platform.
  

• Digitizing Dealer Networks – OEMs integrate online ordering with dealership networks to ensure faster delivery.

  Example: Volkswagen’s e-commerce parts program allows customers to order online and pick up at a local dealer.

Automakers are responding to aftermarket competition, supply chain disruptions, and e-commerce shifts by innovating their supply chains, launching direct sales channels, and diversifying their offerings. Still, the role of the automaker’s authorised crash repair centre network remains pivotal to success – just like its counterparts in the United Kingdom (UK) and Europe.