OEM (Dutch phrase, “onder eigen merk”, which means “under own brand)

An Original Equipment Manufacturer, or OEM is typically a company that uses a component made by a second company in its own product, or sells the product of the second company under its own brand.

While these meet the industry definition of OEM, they are frequently called OEM Suppliers within the industry to prevent confusion with the automobile brand names. The same product may be supplied through general Auto Retail Outlets in the manufacturer’s original branded packaging.

Using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory being of economical advantage to car manufactures.

Aftermarket

Aftermarket simply means that the product being installed onto or into one’s car is made by a company other than the original manufacturer of the car. Any part made by the original manufacturer is considered OEM, or original equipment manufacturer.

The automotive aftermarket is the secondary market of the automotive industry, concerned with the manufacturing, remanufacturing, distribution, retailing and installation of all vehicles, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer.

Most performance parts are manufactured by aftermarket companies due to their ability to specialize in a particular field.

The aftermarket industry provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models on the road.

Additionally, many after market auto parts are specifically designed to fit only certain model cars and certain years of that model.