Theoretical basis for the formation and functioning of the automotive spare parts market in the context of european integration

Vasyl Raskin
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Vasyl Raskin: Chernihiv Polytechnic National University

Economic Synergy, 2024, issue 3, 135-148

Abstract: This article explores the theoretical foundations and operational dynamics of the automotive parts market within the context of European integration. The study introduces a proprietary definition of the automotive parts market from a systems approach perspective, and examines the complexities of subject interactions throughout the distribution process from manufacturers to end-users. It delineates the necessity to differentiate between «automotive parts market» and «automobile manufacturing market», acknowledging the prerequisites for such distinctions as reflected in the domestic literature. The paper analyzes the market system for automotive parts, highlighting key systemic functions including formative, distributive, controlling, communicative, informational, pricing, integrative, and regulatory functions. It also investigates the stages of market development-namely, decentralized (spontaneous), network, and integration stages-emphasizing the benefits the domestic market derives from European integration processes. The research addresses the rise in demand for personal vehicles and the quest for innovative solutions driven by technological progress, which stimulate the growth and development of the automotive parts market. It discusses the existing fragmentation and inadequate theoretical coverage in contemporary research, underscoring the need for further studies to accumulate knowledge for future academic use. The absence of a concept that fully captures the scope and characteristics of its market functionality as a commercial category is noted, with a more comprehensive understanding of the market essence proposed through a value-oriented interaction of market subjects. This comprehensive exploration contributes to the academic understanding of automotive parts market dynamics and provides valuable insights for scholars, practitioners, and policymakers engaged in the automotive industry and market systems research. It emphasizes the transformative impact of European integration on the sector, enhancing cross-border trade and regulatory standards. Future research will be vital in navigating the challenges and leveraging the opportunities presented by this evolving market landscape.ged in the automotive industry and market systems research.

Keywords: Auto parts market; System approach; Market segmentation; Supply chain; Distribution; Integration; Eurointegration; Innovation; Market dynamics; Competitive advantage; Consumer demand; Value transfer; Original parts; Non-original parts; Technical maintenance (search for similar items in EconPapers)
JEL-codes: D40 L10 O31 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2024:i:3:p:135-148

DOI: 10.53920/ES-2024-3-9

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