7.2. EXTENT OF COMPETITION As mentioned earlier, the fortune of the autoparts industry is inevitably linked with the performance of the automotive sector, its dominant customer. Thus, we need to put light on the relationship of the vendors with the OEM. 60 percent of the auto part manufacturers produce the auto parts first and then find the buyer for their products. The remaining 40 percent, mostly formal vendors, first find buyers, the automotive manufacturer, for whom they produce later. The OEMs usually have more than one auto parts manufacturer supplying them with the same part. Thus the vendors share of supply of the parts mostly falls between 10-40 percent. However there are extreme cases where one auto part manufacturer is the sole supplier of that respective part, for example, Ruba Tech Manufacturer is the sole supplier of door seals to Master Motors. Table 7.7 presents the vendors share of supply of parts to the OEMs.
