Auto Parts Manufacturers NAICS 3363

Mar 25, 2026 - Auto Parts 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.
• 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.