Auto Parts Distributors NAICS 423120

        Auto Parts Distributors

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Purchase Report

Industry Summary

The 7,440 Auto parts distributors in the US generate revenue by selling automotive parts, supplies, equipment, tools, and accessories to retailers and auto service providers. In general, auto parts distribution involves warehouse distributors (WD), jobbers, and retailers. Large WDs purchase and stock large quantities of parts and supplies from manufacturers and distribute them to jobbers. Jobbers purchase smaller quantities from WDs and sell them to retailers/dealers, repair shops, body shops, and dealership parts departments.

Complex, Long-Lasting Parts

Advances in technology have increased the quality, complexity, and average useful life of automotive parts.

Significant Investment in Inventory

As a result of new product proliferation in the auto industry, warehouse distributors (WD) stock hundreds of thousands of parts, components, and accessories to service the ever growing number of different brands and models.


Recent Developments

Aug 11, 2025 - Auto Parts Industry Showing Signs of Slowing
  • Both sales and the inventory to sales ratio for auto parts wholesalers showed signs of weakening in early 2025, per the US Census Bureau, as Trump’s automotive tariffs began to bleed into results. Industry revenue fell 4.8% year over year in February 2025, while the sales to inventory ratio rose 3.2% from the previous month, indicating wholesalers have too much inventory after stockpiling parts to get ahead of tariffs. The industry faces headwinds going into the latter half of 2025 now that 25% tariffs on Mexican and Canadian auto parts imports are in full effect. There is no such thing as an automobile fully made in the US. Virtually all cars contain parts from Mexico and Canada, and billions of dollars worth of auto merchandise crosses North American borders every year. Industry analysts expect tariffs to increase a car’s price by an average of $3,000.
  • A US trade war with China is affecting car manufacturers in numerous ways, with one of the most challenging being China’s near total control over rare-earth magnets necessary for electric vehicle (EV) manufacturing and certain traditional car systems (and virtually all other electronics). China controls 90% of rare earth metals such as dysprosium and terbium, elements used in magnets so they operate at high temperatures. Exports of rare-earth magnets from China have all but halted since April amidst the tariff squabble with the Trump administration. Auto manufacturers worry they can’t keep production lines moving without the magnets and might have to shut down production. Some are considering outside-the-box solutions including shifting all engine production to China, or shipping American-made EV engines to China so the magnets can be installed. Any of those options will run afoul of Trump’s trade goals and would significantly increase costs already high due to tariffs.
  • The Trump administration slapped 25% tariffs on all imported automobiles on April 2, claiming the levies will spur auto factory building in the US. The tariffs will apply to all imported passenger cars and light trucks. Certain auto parts will also be subjected to the levies such as engines, electrical components, and powertrain parts. This is in addition to reciprocal tariffs Trump also levied against specific countries that are key US partners in auto manufacturing. According to Cox Automotive, the tariffs will increase the price of imported passenger vehicles by an average of $6,000. In 2023, the US imported about $120 billion worth of automotive products from Mexico and Canada - roughly half of all US vehicle and parts imports. The move will likely spur retaliatory tariffs from other countries against the US, potentially driving auto prices even higher.
  • Struggling retailer Advanced Auto Parts is aggressively moving on a corporate restructuring in early 2025 to turn around years of floundering sales and ranking fourth among its competitors. Its closing of 700 corporate-owned and independent stores represents 10% of corporate locations and 20% of indies. It is also closing four distribution centers and simplifying its supply chain from big distribution hubs to smaller regional hubs in order to get the vast amount of parts the company must carry to customers as quickly as possible. With recession worries looming, auto parts retailers typically benefit from consumers putting off new car purchases in favor of repairing a current vehicle. But the trade war between the US and its North American neighbors is a wild card that could increase costs and blunt any gain to be had in the auto parts industry.

Industry Revenue

Auto Parts Distributors


Industry Structure

Industry size & Structure

The average auto parts distributor operates out of a single location, employs 24 workers, and generates about $30.3 million annually.

    • The auto parts distribution industry consists of about 7,440 companies that employ about 181,800 workers and generate about $226 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for 61% of sales. Many companies are small independent operators.
    • Large companies include Hahn Automotive Warehouse and Keystone Automotive.
    • Some large auto parts distributors have extensive retail operations.

                                  Industry Forecast

                                  Industry Forecast
                                  Auto Parts Distributors Industry Growth
                                  Source: Vertical IQ and Inforum

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