The Southeast Asian e-commerce in automotive aftermarket is predicted to reach $9,184.6 million by 2030, growing at a CAGR of 11.4% during the forecast period. The higher convenience offered by online shopping websites acts as a major driver for the industry advance. The availability of a wide selection of products, simple transactions, and prompt delivery are leading to a transition away from traditional brick-and-mortar storefronts to online retailers for automobile spare parts.
Several e-retailers, such as Wal-Mart Stores Inc., Alibaba Group Holding Ltd., and Amazon.com Inc., provide automotive components on their online stores, thus making it simple for customers to access them. Furthermore, it is trivial and difficult for regular customers to estimate the value they would be deriving from automotive aftermarket products and services against the cost they would be paying for them, due to vehicle compatibility requirements and the specifications of those products and services.
Because of the freedom to browse the product offerings without being influenced by the sales tactics one needs to be wary of during an offline purchase, customers are choosing e-commerce platforms to avoid making overpriced automotive aftermarket purchases. This helps to bridge the trust gap between the retailer and the customer.
The increasing digitization rate worldwide is essentially projected to open up potential prospects for industry competitors. Customers can now purchase goods from anywhere and compare costs of various goods with just a few swipes on a smartphone screen, thanks to e-commerce. The courier sector has been significantly impacted by consumers' growing preference for online shopping. Customers are demanding a greater service quality as they become more reliant on digital services, which include e-commerce.
Traditional automotive retailers are also establishing their online presence to augment revenue generation and offer better services to customers. To enhance and expand their service offerings, auto parts suppliers have begun increasing their investments in business-to-business (B2B) interfaces, merchandising, and e-commerce.
Thailand is predicted to dominate the regional market. The growing urban population and disposable income of the working population are contributing to the growth of the used car industry. The growing population in the middle-income group in Tier II cities has essentially led to the booming demand for used cars. Moreover, the easy availability of financing options has aided the industry's growth, thereby raising the demand for replacement components.
The process of having a car serviced or repaired at a private shop, however, can be time-consuming and difficult for many car owners. While independent workshops put car owners at risk of fraud, lack of standardization, and subpar after-sales service, relying on authorized dealers involves high costs and long lines. Thus, the trend of DIY is growing among the people of Thailand, in turn, driving the sale of automotive aftermarket products via online channels. Moreover, many parts manufacturers are now offering branded products on online platforms, which further drives the market.
The Southeast Asian e-commerce in automotive aftermarket is highly fragmented in nature, with several parts manufacturers and third-party retailers offering operating online platforms. Some major players in the market are Robert Bosch GmbH, BU Autoparts, Ubuy Co., HELLA GmbH & Co. KGaA, Meritor Inc., Amazon.com Inc., eBay Inc., Alibaba Group Holding Ltd., and Bellipart.