Automotive E-Commerce Market Advances as OEMs Focus on Aftermarket Network Expansion

Pune, India, May 2020, MRFR Press Release/- Market Research Future has published a Half-Cooked Research Report on the Global Automotive E-Commerce Market.

Automotive E-Commerce  Overview

Market Research Future (MRFR) expects the automotive e-commerce market 2020 to procure an expansion rate of 18.4% between 2024 and 2030 (assessment period). We will provide COVID-19 impact analysis with the report.

COVID-19 Analysis

An impact analysis on COVID-19 by MRFR reveals that there has been a significant drop in vehicle sales in the first few months of 2020, given the shutdowns across countries and the oil price fluctuations. Leading automotive OEMs are adopting several tactics to mitigate the negative impact on their businesses by assessing their dealerships to resume services. The short-term impact of COVID-19 in the automotive sector has led to shutting down of assembly plants in the United States (US), manufacturing interruptions across Europe and ceased export of Chinese components. However, till the time a COVID-19 breakthrough is not achieved, the automotive industry can remain resilient, given the ongoing efforts by leading companies to curb revenue losses by adopting recovery tactics such as mergers and acquisitions and more.

Out of all the technology-based developments in today’s time, e-commerce’s impact on the automotive industry remains unparalleled. Therefore, it is expected that the automotive e-commerce market can remain resilient in the near future, with lesser long-term impact of COVID-19. Automotive e-commerce in Canada and the U.S has witnessed a surge of more than 60% only in April 2020, indicating that the pandemic has been a significant opportunity for the industry.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Automotive ECommerce Market Research Report

Primary Drivers and Main Deterrents

The prime focus of the OEMs in the automotive e-commerce market is on business expansion by boosting their aftermarket network across the globe. Electronic channels are increasingly being deployed by vendors to elevate the brand visibility as well as transparency, which benefit the market. Frequent technological innovations combined with the rising customer expectations for quality products at lower prices also promote business growth.

Efforts put in by automotive players to achieve a first-class value chain management to reach more number of customers can also support the e-commerce automotive market. Increasing prevalence of digital channels in the automotive industry is another important growth booster in the market. More and more independent workshops are now opting for e-commerce to order spare parts given their low cost. Economical aspect along with timely delivery ensured by leading brands is deemed to boost the revenue generation in the approaching years.

The automotive e-commerce market also earns significantly due to the increasing customer expectations and the fine balance being achieved between the physical and digital capabilities by the consumers. The 24/7 assistance that the sales channels offer first-time buyers with respect to model selection and other information also enhances the appeal of online purchase of automobiles.

Industry Trends

Collaboration between Parts Distributors

The parts distributors in the automotive industry are coming together to offer their customers with diversified options and optimum supply. Since, it is challenging to cater to every demand via an individual network, these sorts of strategies are working in favor of the distributors who are striving to deal with the current pandemic crisis.

Better Price transparency

Customers’ demand and its fulfillment are considered to be important aspects of automobile ecommerce. Price comparison and the ability to choose from a diverse product range is what makes a deal perfect in the eyes of the customer. 

Market Segmentation

Component, vehicle type and consumer are the top segments according to which the automotive e-commerce industry has been extensively navigated by the MRFR experts and covered in the report.

The primary components included in the market study are infotainment and multimedia, engine components, tires and wheels, interior accessories, electrical product and more.

Vehicles types outlined in the report are commercial and passenger vehicles.

The main types of consumers in the market are B2B and B2C.

Regional Study

Asia Pacific or APAC, Europe, the Middle East & Africa or MEA and North America are the key markets for automotive e-commerce.

With a significantly elaborative e-commerce sector, Europe is slated to reach the top spot during the conjectured period. The region makes remarkable profits on account of frequent advancements in computing technology paired with the growth of the latest digital data sources. E-retailers in the region extensively deploy analytical tools to gather customer data, which complete with location-based abilities help them offer personalized auto parts to the consumers. Further, e-commerce vendors advertise vehicle modifications in such a way that the young population is drawn in and purchase the latest models. These marketing tactics work in favor of not only the automotive e-retailers but also the regional market.

APAC is one of the key markets in the automotive e-commerce market, thanks to the high concentration of leading e-commerce companies like Alibaba Group, Amazon.com, E-bay Inc and Flipkart Internet Private Limited, to name a few. Initiatives including Digital India, along with the collaborations between e-commerce platform vendors and the brick & mortar stores also enhance market growth in the region. The thriving automobile manufacturing sector in Korea, India and China is another factor that backs the industry expansion. Online sales channels are the most preferred mediums to keep up the vehicles sales among renowned players in the region, especially during unexpected crisis. For instance, in 2020, Tesla (China) posted record sales, delivering 10,160 vehicles in the country, which is company’s highest for a single month. Tesla has been offering its customers home delivery services post corona outbreak, which has helped boost the sales rate of its cars.

Top Players

Notable players in the automotive e-commerce market are Wal-Mart Stores, Inc. (U.S.), Denso Corporation (Japan), JD.com, Inc. (China), Taobao (China), Tmall.com (China), Amazon.com, Inc. (U.S.), eBay Inc. (U.S.), Snapdeal (India), American Tire Distributors Holdings, Inc.(U.S.), Alibaba Group Holding Limited (China), to name a few.

Latest News

April 2020

Volkswagen (India), in an attempt to offer its customers the ability to choose their preferred car model from their homes in the wake of COVID-19 outbreak, has integrated its 116 service touch-points and 137 sales to allow online bookings. The customers are now able to visit the company’s website and can choose from the range of models, receive product details as well as the pricing information of the car.