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Glossary

OEM

OEM stands for Original Equipment Manufacturer. It refers to a company that designs and produces parts, components, or products that are used in another company’s final product—often without being sold directly to end users under the OEM's own brand.

In automotive and industrial contexts:

- OEM parts are the components originally installed on a vehicle or machine when it was built.

- They are manufactured to the original specifications, typically by the same company (or a contracted supplier) that supplied the parts during production.

OEM is often contrasted with aftermarket parts, which are produced by third-party manufacturers not involved in building the original product.

Short example:

If Toyota installs a Denso-made sensor in a factory-built car, Denso is the OEM for that part, even though Toyota is the vehicle manufacturer. If someone later buys a cheaper replacement made by another company, that's an aftermarket part.

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