What Is the full form of OEM?
An Original Equipment Manufacturer (OEM) is the original manufacturer of components or parts required by a product of another company and are commonly referred as “contract manufacturers”. The other companies then resell products to its own customers while putting the products under its own branding.
History of OEM:
The history of the term OEM falls back to late 1900’s from the Dutch phrase, “onder eigen merk” which, in english simply means “under own brand.”
Example of OEM:
A company that manufactures the tires of your new car. Let’s say you buy a Honda city that comes with Apollo Tyres. Here, Apollo Tyres are considered as an OEM or Original Equipment Manufacturer.
OEM VS aftermarket parts:
Car parts from OEM are identical to the actual parts used in manufacturing of a vehicle. Aftermarket parts are produced by 3rd party vendors and may not have the greatest quality and compatibility with your vehicle. In the end this comes down to your personal preference of quality and cost.
Pros of OEM Parts:
- Quality assured
- Comes with warranty
- Easy to choose the required part
Cons of OEM Parts:
- Expensive
- Sold mostly at dealerships only
- No variety in parts
Why use OEM Parts for repairs?
Did your vehicle meet with an accident? You may choose to go with after market body parts at cheaper prices but it’s not recommended because aftermarket body panels, most of times do not have proper crumple zones that are necessary for crash safety. This is the reason why many insurance providers also ask for extra money when you request for OEM parts over the after-market parts. It’s always recommended to check your insurance provider terms and conditions regarding these parts before you sign up.
What’s the difference between OEM and ODM?
The main difference between OEM and ODM is that OEMs manufacture product based on design specification provided to them, while ODMs also design the product themselves before manufacturing them. ODM stands for Original Design Manufacturer and is an acronym to OEM in the manufacturing sector. While many people confuse between the two terms and use them interchangeably, they are not quite the same.
What is OBM?
OBM stands for Original Brand Manufacturer and is a company that retails their own branded products that are either the entire products or component parts produced by a second company. They sell the goods under their own brand name in order to add value. The OBM will be responsible for everything including the production and development, supply chain, delivery and the marketing.
Top 25 OEM Parts suppliers in the world:
| Company | Products |
|---|---|
| Robert Bosch | Powertrain solutions; chassis systems controls; electrical drives, car multimedia, electronics, steering systems & battery technology |
| Denso Corp. | Thermal, powertrain control, electronic & electric systems,small motors, telecommunications |
| Magna International Inc. | Body exteriors & structures; power & vision technologies; seating systems & complete vehicle solutions |
| Continental | Advanced driver assistance systems, electronic brakes; stability management, tires, foundation brakes, chassis systems, safety electronics, telematics, powertrain electronics, injection systems & turbochargers |
| ZF Friedrichshafen | Transmissions, chassis components & systems, steering systems, braking systems, clutches, dampers, active & passive safety systems, driver assist systems including camera, radar & lidar |
| Aisin Seiki Co. | Body, brake & chassis systems, electronics, drivetrain & engine components |
| Hyundai Mobis | Automotive electronics, infotainment, ADAS, EV systems, module systems, lighting, airbags & brakes |
| Lear Corp. | Seating & electrical systems (E-Systems) |
| Faurecia | Faurecia seating & interiors; Faurecia Clarion Electronics & Faurecia clean mobility |
| Valeo | Micro hybrid systems, electrical & electronic systems, thermal systems, transmissions, wiper systems, camera/sensor technology, security systems, interior controls |
| Yazaki Corp | Wiring harnesses, connectors, junction boxes, power distribution boxes, instrumentation & high voltage systems |
| Panasonic Automotive Systems Co. | Premium audio systems, navigation systems, compressors, batteries, motors, monitors, sensors; switches & HUDs |
| Adient | Seating & seating systems & components |
| Sumitomo Electric Industries | Electrical distribution systems, electronics & connection systems |
| Yanfeng | Interiors, exteriors, electronics, seating & safety |
| Thyssenkrupp | Steering, dampers, springs & stabilizers, camshafts, forged machined components, bearings, undercarriage components, axles, forged crankshafts & drivetrain components, high-strength lightweight steels & electrical steel |
| Mahle | Piston systems, cylinders, valvetrains, alternators, air & liquid management systems, vehicle climatization, engine & powertrain cooling, battery cooling, actuators, electric drives & starters |
| JTEKT Corp. | Bearings, steering systems, driveline systems & machine tools |
| BASF | Coatings, catalysts, engineering plastics, polyurethanes, coolants, brake fluids, lubricants, battery materials |
| Aptiv | Electrical & wiring products, body controls, infotainment, safety & autonomous driving technologies |
| Samvardhana Motherson Group | Rearview mirrors, plastic modules cockpits/IPs, door trims & bumpers, wiring harnesses, plastic parts, rubber components, lighting, air intake manifolds, pedals, shock absorbers, HVAC systems & roof hatches |
| BorgWarner Inc | Turbochargers, electric motors, electronic control units, engine valve-timing, ignition systems, thermal systems, transmission-clutch systems, transmission-control & torque management systems |
| Toyota Boshoku Corp | Seats, door trim, carpet, headliners, oil & air filters, door panels |
| Gestamp | Metal components & assemblies, body-in-white, chassis |
The above data was collected from AutoNews.com. Check the complete list of top 100 suppliers, here.