Auto Parts Manufacturing in Canada
The Auto Parts Manufacturing industry in Canada is expected to expand strongly amid high revenue volatility over the five years to 2019. The industry relies heavily on demand from downstream automakers. Therefore, fluctuating demand for automobiles leads to changes in demand for industry products. The greater demand there is for automobiles, the more automakers will need to order from upstream suppliers such as auto parts manufacturers. Industry operators rely on the United States as a trade partner due to the large market for new cars and the concentration of automakers. This trade is supported by the North American Free Trade Agreement, which enables domestic operators to trade freely with the United States and Mexico. Due to the industry's dependence on the US market, industry revenue tends to fluctuate with the value of the Canadian dollar, which is measured by the Canadian effective exchange rate index. Over the five years to 2024, revenue for domestic auto parts manufacturers is forecast to decline marginally. The strong growth in automotive sales is expected to subside although production is forecast to continue strong in the industry.
Operators in this industry manufacture and rebuild a wide variety of motor vehicle parts and accessories. These parts include air bags, air conditioners, catalytic converters, engine exhaust systems, mufflers and resonators, radiators, radiator cores and wheels.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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