Auto Parts Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,600 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.
Industry size & Structure
The average auto parts distributor operates out of a single location, employs fewer than 20 workers, and generates about $25 million annually.
- The auto parts distribution industry consists of about 7,600 companies that employ about 183,600 workers and generate about $192 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
Auto Parts Distributors Industry Growth
Recent Developments
Sep 23, 2024 - Sales Fall, Inventories Grow
- Sales for motor vehicles and parts wholesalers fell 0.9% in June 2024 year over year and were down 2.9% month over month, according to the Census Bureau. Inventories for motor vehicles and parts wholesalers were up 10.9% in June 2024 compared to a year ago and up 0.9% compared to the previous month. Producer inflation for auto parts distributors grew 1.8% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Auto parts distributors industry employment was relatively flat in July 2024 compared to a year ago. Average wages for nonsupervisory employees in the industry grew almost 10% in July 2024, reaching $27.12 per hour, per the BLS.
- Consumers pre-ordering build-to-order (BTO) vehicles in North America direct from OEMs continued to grow in 2023, though slower than expected, according to new survey data by Cox Automotive in Wards Auto. According to the survey of 1,932 consumers in February, 221 consumers bought from legacy OEMs such as Ford, and 46 bought from start-ups such as Rivian and Tesla in the previous 12 months. That equated to 14% of new build-to-order vehicle buyers in 2023, compared to 17% in 2022 and 9% in 2021. According to Sean Tucker, a senior editor at Cox's Autotrader and Kelley Blue Book, "We'll see more 'build-to-order' over time, but I think it's taking a lot longer than most people thought, especially during the pandemic." The report also showed that nearly three-quarters of build-to-order and dealer buyers were happy with their purchase. US start-up Lucid Motors offers consumers choices online for color, appearance, and extras such as heated seats, sound systems, and driver-assistance systems with transparent pricing. Offering customers additional customization options may help automakers charge more for extra accessories.
- US light duty aftermarket sales grew by 8.6% in 2023, reaching $392 billion, according to the 2025 Auto Care Factbook released by the Auto Care Association. The sales surpassed the previous year’s projections of 8.1% despite challenges such as persistent inflation. Light vehicle growth is expected to be 5.9% higher in 2024. The industry is expected to continue to improve, with a sales forecast of $617.3 billion in 2027 for total light, medium, and heavy duty automotive aftermarket. Consumers seeking affordable options for service and repair to keep their cars running are driving stable growth in the industry. According to Bill Hanvey, president and CEO, Auto Care Association, “As credit card debt in the U.S. reaches an all-time high of more than $17 trillion in 2024, Americans are feeling the weight of inflation and choosing more cost-saving options when possible, including with the maintenance of their cars.”
- Auto parts suppliers will receive $100 million in new grants from the US Department of Energy (DOE) to help small and medium-sized manufacturers convert facilities to electric parts supply and improve the sustainability of facilities, according to the Detroit News. The grants aim to improve the flow of EV parts made by US companies into the supply chain. Of the new funds, $50 million from the DOE’s Automotive Conversion Grant program will support small and medium-sized suppliers retooling from manufacturing parts for internal combustion engine vehicles to manufacturing parts for the EV supply chain. The DOE’s Implementation Grants Program will apply $50 million to assist auto suppliers upgrade their facilities to improve “energy and material efficiency, cybersecurity, or productivity, or reduce the greenhouse gas emissions,” per the White House press release. Funding for the grants comes from the Inflation Reduction Act and the Bipartisan Infrastructure Law, respectively.
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