For today’s automotive aftersales organizations, dealer loyalty is no longer a given. Once a captive channel for OEMs, dealers are under growing pressure to protect margins, even if that means sourcing outside the traditional OEM channel. At the same time, consolidation across North America is reshaping the landscape, with dealers combining into multi-branded groups that bring greater scale and higher expectations.
For OEMs, this presents both a risk and an opportunity. On one hand, a loss of influence and revenue as dealers defect to the grey market. On the other, a chance to forge stronger partnerships through smarter pricing, more responsive inventory support, and a collaborative approach to planning and performance.
Loyalty Isn’t Guaranteed—and It’s Under Pressure
Traditionally, OEMs could count on their dealers to source service parts directly. But today’s dealers are more cost-conscious, digitally enabled, and willing to look elsewhere when OEM support falls short.
Add to that the surge in e-commerce marketplaces, aggregators, and direct-to-consumer sales from non-OEM suppliers, and one thing becomes clear: loyalty is no longer a given. It has to be earned, then continually reinforced.
But earning that loyalty is getting harder. Dealer consolidation is accelerating, fueled by the drive for scale and profitability. According to 2024 research from Automotive News, the top 10 dealership groups now control 9.3% of the 17,000 dealerships in the U.S.—a record high. Meanwhile, the top 150 groups accounted for 24.1% of total retail sales in 2023, up nearly a full percentage point from the year before.
These larger dealer groups have more negotiating power and higher expectations. They want real-time data, transparent pricing, and enterprise-grade support.
The Cost of Dealer Defection
When dealers source parts from the grey market—whether for cost, speed, or perceived reliability—OEMs lose more than revenue. They lose visibility, control over quality, and, critically, their link to the end customer.
According to automotive research specialists, Berryls, only 35% of spare parts are currently purchased through the OEM channel, with the remaining 65% going through independent or grey market sources. That level of leakage represents a clear and growing threat to OEM profitability and brand control.
Even minor channel leakage can significantly impact profitability. And when a non-genuine part fails, it’s often the OEM’s brand that takes the hit.
What Dealers Expect Now
As loyalty shifts from default to decision, OEMs must understand what dealers need to stay engaged:
- Availability and predictability: High-demand parts must be on hand without overstocking.
- Fair, transparent pricing: Arbitrary or misaligned pricing erodes trust—especially when alternatives are a click away.
- Ease of doing business: A seamless digital experience, from ordering to returns, is now expected.
- Shared data and insights: Larger groups increasingly expect collaborative planning backed by real-time intelligence.
Leading OEMs are already evolving. According to Bain & Company, many businesses are leveraging AI and advanced analytics to achieve tailored pricing, improve parts forecasting, and gain deeper visibility into dealer-level availability.
Loyalty, Earned, & Kept
The OEMs best positioned for long-term aftermarket growth will treat dealer loyalty as a strategic asset—one that’s built, not assumed.
That doesn’t just mean competitive pricing or faster fulfilment. It means actively helping dealers grow their business. It means using data to anticipate needs, improve availability, and deliver value. And it means recognizing the grey market not as a nuisance, but as a wake-up call to offer a better alternative.
Because in today’s aftermarket, loyalty isn’t bought. It’s built.