The Auto Aftermarket Parts is the secondary market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The parts, accessories, etc. for sale may or may not be manufactured by the OEM. According to a report by the International Trade Administration in the Department of Commerce, "Aftermarket parts are divided into two categories: replacement parts and accessories. Replacement parts are automotive parts built or remanufactured to replace OE parts as they become worn or damaged. Accessories are parts made for comfort, convenience, performance, safety, or customization, and are designed for add-on after the original sale of the motor vehicle." The aftermarket encompasses parts for replacement, collision, appearance, and performance, including electric propulsion. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models. Consumers have the option of repairing their vehicles themselves or can take the vehicle to a professional repair facility. The aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained, or customized.
The United States automotive aftermarket is estimated to be worth $318.2 billion (2013), contributing more than 2.3% to GDP. The aftermarket employs 4.2 million people who work at manufacturers, distributors, retailers and repair shops. In the United States, online sales of aftermarket accessories have showed year over year increases over traditional brick and mortar stores. In fact, according to Hedges and Company, "Online sales in 2013 showed nearly a 16% increase over 2012 and online sales will continue to show aggressive growth over the next several years." Singapore, which does not have a domestic automobile industry, is an especially important destination for businesses exporting automotive parts and accessories due to its high automobile turnover stemming from the peculiarities of its driving laws. High automobile turnover and the preference for new parts means that the market for remanufactured and reconditioned auto parts is very small. Combined with a high demand for "accessories, car-care products, prestige items, and new spare parts", Singapore's automotive aftermarket is large. In fact, Singapore has become a major automotive components manufacturing base, as several leading multinational corporations (MNCs) have established international procurement offices as well as their Southeast Asia distribution centers.
