The Basics of Automotive Suppliers: Why Choosing the Right Supplier Impacts Your Business
Choosing the right automotive suppliers can have a huge impact on the quality of your business. But if you don’t know too much about the industry of automotive supplying it can be tough deciding which companies to buy from.
We’re here to tell you a bit more about the industry so you can make well-informed decisions on your purchases. Keep reading for definitions, examples, trends, and industry knowledge simply explained.
What’s an Automotive Supplier?
An automotive industry supplier is a business that manufactures goods used during the production of an automobile. Then, products are supplied to an automobile manufacturer. They’re synonymous with the Original Equipment Manufacturer (OEM).
Such products can include individual components like screws. Or, they can be entire pieces such as pre-assembled doors. Examples of individual components also include bearings, seals, or metal sheets.
As these components and pieces essentially make up an automobile, it makes sense to choose quality goods from a regarded company to craft a well-made vehicle.
Automotive suppliers vary from small and medium-sized businesses to large corporations. These include companies like Bosch or Continental.
Ranking of the Top Automotive Suppliers
There are, of course, automotive industry suppliers known for delivering quality goods.
Bosch was the clear leader in 2018, with sales of $49.53 billion. Denso was next with sales of $42.79 billion, and Magma International made $40.83 billion.
There are very few cars produced worldwide that are designed without components and features from any of these top players. That’s regardless of whether they’re affordable family cars, lavish limousines, electric cars, or any other type of vehicle.
If you’re not sure where to turn to for your automobile parts, then one of these three suppliers is an easy choice for guaranteed quality goods.
Trends for Automotive Suppliers
There are trends that have been arising from automobile suppliers. Today, suppliers are focusing on the enhancement of mobility, connectivity, and autonomous driving.
The huge businesses thrive in doing this by separating entire business units that no longer fit into the portfolio in the long term. Then they buy components where gaps are free in future offerings.
One example is Continental’s collaboration with Osram. The venture stands for advanced lighting and laser technology for autonomous vehicles. The idea is to create innovative light and sensor systems for the mobility of the future.
Choosing components and pieces from automotive suppliers that are following the trends is a good idea. Building automobiles that are modern and advanced may catch the eye of enthusiasts.
Choosing Automotive Suppliers to Buy From
Selecting the right automotive suppliers is important. As mentioned, using parts and mechanisms from suppliers creates an automobile, so you’ll want to make sure you choose quality goods.
A good idea is to conduct some research on suppliers. Therefore, a fail-safe option is to go for items from the three most popular suppliers in the industry.
In short, want to discover more? Here are the tier 1 automotive suppliers.