Auto Parts Wholesaling in Canada
The Auto Parts Wholesaling industry in Canada is positioned for sluggish performance over the five years to 2019 despite favourable economic conditions and growing downstream industries. As disposable income levels rise, consumers are anticipated to increasingly purchase new vehicles. Strong growth in vehicle demand stimulates automakers to increase production levels, driving demand for upstream supplies, such as auto parts. However, the industry has struggled with cementing its place within the automotive supply chain. Industry operators rely on distribution contracts with the largest retailers, auto service providers and automakers. Over the five years to 2019, the total number of motor vehicle registrations in Canada increased, which bolstered the potential customer base for industry operators. However, automotive manufacturers are increasingly favouring operations in the United States and Mexico due to subsidies and lower wages, respectively. Over the five years to 2024, the industry is forecast to grow. Disposable income levels are anticipated to continue growing, stimulating demand for new vehicles.
This industry is primarily engaged in wholesaling new and rebuilt automotive parts and accessories, auto body and upholsterers’ suppliers and automotive chemicals. Sales of new tires and tubes are not included.
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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