The automotive component suppliers in the organised sector also cater to the demands from the replacement market apart from the original equipment one. Additionally, for automotive component suppliers, the prices in the replacement market are relatively higher than the prices in the original equipment market. These higher prices in the replacement market stem from the higher margins charged by the component suppliers, the impact of a longer supply chain and the tax structure. Typically, the replacement market provides higher margins but lower volumes vis-a-vis the OEM market