Auto Parts Manufacturers

The 3,616 auto parts manufacturers in the US produce components, modules, and systems for auto manufacturers (also known as original equipment manufacturers or OEMs), other parts suppliers, and the aftermarket. About 70% of automotive parts are for OEMs, while 30% are destined for the repair/modification market (aftermarket).

Dependence on Auto Industry

The auto manufacturing industry is global and dominated by a few large companies.

Vulnerability to Commodity Prices

Auto parts manufacturers are vulnerable to variability in costs of raw materials, particularly steel, oil, copper, resins, and rubber.

Sep 23, 2026 - Parts Makers Face a New Cost Squeeze

• Auto parts manufacturers face another squeeze on margins as automakers demand lower component prices even as suppliers contend with elevated production costs. Honda has reportedly asked major suppliers to cut costs as part of a broader effort to save about $9.4 billion by 2030. The automaker is looking for savings through greater parts standardization and changes in sourcing, putting additional pressure on manufacturers that may have limited room to absorb price reductions. The demands come as US parts makers are still navigating higher costs for materials and imported goods caused mostly by trade disputes. Suppliers may have to lean more heavily on automation and other productivity improvements to meet automaker price targets. Honda is also considering greater use of lower-cost Chinese suppliers, raising the competitive pressure on US manufacturers seeking to hold onto OEM business.
• The White House's escalating trade fight with Canada is putting the highly integrated North American auto parts supply chain in the crosshairs. Trump said tariffs on Canadian cars, trucks, auto parts, and steel will rise to 50% on January 1, 2027, just days after saying a broader trade deal was close. Canadian officials say last-minute US demands helped derail those negotiations, adding to a pattern of tariffs being threatened, delayed, changed, and revived. For parts manufacturers, that unpredictability may be nearly as damaging as the tariffs themselves. Components routinely cross the border multiple times during production, making long-term pricing, sourcing, and investment decisions difficult when trade rules can shift with little warning. Canada is responding with counter tariffs on US goods beginning September 8. The result is a negotiating environment manufacturers may struggle to treat as stable enough for long-term planning.
• Auto parts manufacturers are increasingly building for fewer, more standardized vehicle platforms as automakers race to cut costs and compete with lower-cost rivals. Volkswagen recently said it plans to reduce its model lineup by as much as 50% and slash product variants by 75% by 2030, while Ford, Stellantis, Nissan, and others are expanding modular vehicle architectures that share more components across models. Business Insider reports that the shift is designed to reduce engineering, manufacturing, and inventory complexity while lowering costs. It's a strategy with a proven track record: Volkswagen says more than 32 million vehicles have already been built on its MQB platform, demonstrating how common architectures can support dozens of models across multiple brands. For suppliers, that means demand is increasingly shifting toward high-volume, standardized components that can serve entire vehicle families, giving larger manufacturers an edge while putting greater pressure on companies that rely on model-specific parts.
• The automotive right-to-repair debate has gained momentum as lawmakers and industry groups push to expand independent access to vehicle data needed to repair increasingly connected vehicles. In 2026, the federal government began reviewing policies that could make it easier for consumers and independent shops to access repair information and aftermarket parts. Congress advanced legislation that would codify key elements of existing voluntary repair agreements between automakers and the indie repair industry. Meanwhile, Massachusetts remains the focal point of a legal battle over access to vehicle telematics data after a federal court upheld the state's landmark right-to-repair law. Automakers argue that limits on access are necessary to protect cybersecurity, privacy, and vehicle safety, while independent repairers contend that broader access is essential to preserve competition and consumer choice. As software, over-the-air updates, and advanced driver-assistance systems become standard, the outcome of these legal and regulatory efforts will reshape the automotive aftermarket.

Industry size & Structure

The average auto parts manufacturer employs 145 workers and generates $80 million in annual revenue.

• The auto parts manufacturing industry consists of about 3,616 companies that employ 524,700 workers and generate $290.7 billion annually.
• The five major component systems in an average internal combustion engine car include the body exterior (25% of total costs), interior (24%), electronics and electrical (18%), powertrain (18%), and chassis (15%), according to Munro & Associates.
• Large companies include Adient, BorgWarner, and Lear.