Auto Parts Manufacturers NAICS 3363

Feb 18, 2026 - Auto Parts Giant Splitting Into Two Companies

• Genuine Parts Company, the Atlanta‑based parent of the NAPA auto parts network, said it will split into two independent, publicly traded companies to give its automotive and industrial parts businesses more focus and tailored strategies. For repair shops and auto parts distributors, the split signals potential for more responsive service tailored specifically to automotive aftermarket needs. One entity, Global Automotive, will house the NAPA aftermarket parts operations that support more than 20,000 NAPA Auto Care repair centers and over 10,000 global locations, aimed at sharpening customer alignment and investment in supply‑chain and technology initiatives. The other, Global Industrial, will center on industrial distribution under the Motion brand. The separation is expected to be completed in Q1 2027 with dedicated management teams and capital structures for each business and allowing more strategic investments aligned with their distinct markets.
• 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.

• Major US and global automakers - including General Motors, Ford, Toyota, Volkswagen, Hyundai, and Stellantis - warned lawmakers that expanding Chinese auto and battery producers pose a “clear and present threat” to the US auto industry. They collectively urged restrictions on Chinese plants and maintaining bans on certain technology imports. Tariffs on Chinese vehicles and components have also added supply-chain pressures, raising costs for US manufacturers and suppliers. For the auto parts industry, this intensifying competition and political pressure could accelerate supply‑chain shifts. Chinese vehicles are increasingly competitive globally, driven by subsidies and integrated supply networks that include parts and batteries. American suppliers may face reduced demand if Chinese EVs and vehicles enter US markets at lower costs, potentially squeezing margins for domestic parts makers. Automakers are pushing hard to “de-risk” reliance on Chinese components, encouraging suppliers to relocate production, reshuffling supply chains, raising short-term costs, and prompting more regional sourcing strategies.
• Auto collision trends in 2025 are reshaping demand, product mix, and pricing dynamics for auto parts makers, according to CCC Intelligent Solutions. As high vehicle prices and interest rates keep consumers in older vehicles longer, the US car parc is becoming more diverse, sustaining demand for replacement parts across a wider range of makes, models, and model years. At the same time, growing penetration of advanced driver-assistance programs, electrified powertrains, and embedded electronics is increasing the technical complexity and value of parts required in collision repairs. Diagnostics, scans, and calibrations (now present in nearly 70% of appraisals, per CCC) underscore the expanding role of sensor-dependent components. Tariffs, logistics disruptions, and supply chain instability continue to drive parts price volatility, creating both margin pressure and pricing opportunity. For manufacturers, these trends favor investments in advanced components, data integration, and resilient supply chains to meet evolving repair requirements.