Original Equipment Manufacturer(OEM) is the actual manufacturer of a vehicle's components; OEM Vehicle parts are similar to the parts used to produce a vehicle. Other vendors manufacture aftermarket parts, which may or may not be of consistent quality or compatibility with the vehicle.
Fremont, CA: The automaker typically guarantees OEM parts to be compatible with the vehicle; installation may also be insured in some cases. However, many vendors do not certify compatibility for aftermarket parts, which may or may not be compatible.
When replacing damaged vehicle components, consumers may choose to buy OEM parts to ensure that the replacement parts are fully compatible with the vehicle and produced to the same quality standards. As the original suppliers of a vehicle's components, OEMs frequently have their products sold by branded car dealerships and available for order directly from the automaker. OEM parts are recommended by the manufacturer and are often significantly more expensive than aftermarket parts. Both OEM and aftermarket products have distinct advantages and disadvantages for the customer. New technologies, such as 3D printing, can transform OEM supply chains and boost competitiveness in the future.
A wide range of companies manufactures aftermarket parts at various price points, which allows for a wide range of options but can also lead to a confusing experience. OEM parts typically only provide one or two options for consumers, making the experience of replacing parts much simpler.
The automotive parts industry's fierce competition creates a strong need for OEM and aftermarket manufacturers to differentiate themselves in the parts market. This competition among aftermarket manufacturers results in a wide range of prices and unique features of parts. Some aftermarket parts are equal or higher quality than OEM products, whereas other parts companies compete by offering lower-priced, lower-quality products.
The OEM parts are then sold to an automobile manufacturer, which adds value to the original product by incorporating it into a vehicle. Individual consumers or other end users are then dealt with the automotive vehicle.