AutoSutra
Glossary · Dealer Operations

OEM

Also called: Original equipment manufacturer

In the vehicle industry, an OEM (original equipment manufacturer) is the company that designs and builds the vehicles, such as a car or two-wheeler brand, which sells to the public through a network of franchised dealerships.

OEM in dealership marketing

The OEM sets brand standards, pricing frameworks, and national marketing, while the dealer owns the local relationship, the showroom, and the sale. Most dealer marketing sits in the space the OEM's national campaigns do not reach: a specific outlet's stock, offers, reviews, and catchment.

OEMs also run programmes across their dealer networks, from co-op advertising to standardised lead-management systems, which is why network-wide marketing and data consistency are a distinct discipline from single-dealer marketing.

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