Used Motor Vehicle Parts Wholesalers NAICS 423140

Mar 25, 2026 - Auto Imports From Mexico Hit Record High

• The US sources more than four out of every ten auto part imports from Mexico, which hit a record 43.7% market share in 2025 - a dependency that persisted even as the Trump administration imposed tariffs on automotive goods, steel, and aluminum. This integration supports the more than 10 million vehicles assembled annually in the US, helping automakers keep costs competitive. However, the relationship carries real domestic risks: the US runs a trade deficit in the sector, with Mexico posting a $35.4 billion surplus. While nearshoring trends and USMCA trade rules have helped shift some supply away from China and Germany, critics question whether the US is meaningfully building domestic parts manufacturing capacity or simply trading one foreign dependency for a closer one. With 87% of Mexico's auto parts exports flowing directly to the US, any disruption south of the border would have immediate consequences for American production lines.
• Bosch, the world’s largest auto parts supplier, said it expects most vehicles sold in the US by 2035 will still rely on internal combustion engines, primarily through hybrid and range-extended powertrains rather than fully electric vehicles. Pure EVs are projected to account for only about 30% of sales, Bosch told the annual CES conference. For the auto parts manufacturing industry, this outlook signals continued demand for traditional engine, fuel system, transmission, and emissions components, alongside growing (but not dominant) EV and battery-related parts. Suppliers heavily invested in combustion engines and hybrid technologies may see a longer runway for existing product lines, while EV-only suppliers face a more gradual ramp-up. Distribution networks are also likely to remain complex, as warehouses, dealers, and service channels must support both legacy combustion parts and newer electrified components. The slower EV transition reflects regulatory uncertainty, shifting incentives, and cautious consumer adoption.

• AI is reshaping the landscape of aftermarket auto parts retail by improving inventory management and simplifying the sourcing of components. AI systems can analyze sales trends, part usage patterns, and supplier lead times to accurately predict demand, automatically reordering stock to prevent shortages while minimizing excess inventory and tied-up capital. AI also assists in locating rare or hard-to-find parts by searching online marketplaces, forums, and supplier databases, significantly reducing the time and effort required to track down components. When integrated with POS and shop management systems, AI handles repetitive and time-consuming tasks, freeing staff to focus on core operations, customer service, and more complex problem-solving. By enhancing efficiency, accuracy, and responsiveness, AI not only helps shops maintain optimal stock levels but also strengthens overall profitability and competitiveness in the highly dynamic auto parts retail market.
• First Brands Group, a major US auto parts supplier known for Fram and Raybestos brands, has filed for Chapter 11 bankruptcy, citing $10 to 50 billion in liabilities mainly from years of aggressive expansion. While primarily serving the aftermarket sector, its collapse could ripple through the industry, potentially causing supply disruptions, higher retail prices, and increased pressure on other suppliers with similar debt levels. US tariff policies have added to the complexity, which was already causing significant financial strain throughout the automotive industry. Other ramifications include retailers facing possible inventory gaps, and consumers could see higher prices as companies steer through the ups and downs of a constantly moving trade policy. The First Brands bankruptcy underscores the vulnerability of the US auto parts sector to both financial missteps and an ongoing American trade war.