The Canadian Automotive Parts Market: An Overview The Canadian automotive parts market is a dynamic industry with significant growth potential. This presentation provides an overview of the key trends, players, and opportunities shaping the market. https://goldenauto.ca/ Key Players in the Canadian Market OEM Suppliers Major OEM suppliers include Magna International, Linamar Corporation, and Martinrea International. Magna International is the largest auto parts manufacturer in Canada. These companies produce a wide range of parts for domestic and international automakers. Aftermarket Leaders Leading aftermarket companies include Canadian Tire, NAPA Auto Parts, Auto Value, and Lordco Auto Parts. These retailers offer a vast selection of parts and accessories for all types of vehicles. E-commerce Disruptors Amazon, PartsAvatar.ca, and RockAuto are major online players, providing convenience and competitive pricing. They are rapidly expanding their reach and gaining market share. Aftermarket Trends: What's Driving Growth 1 Increased vehicle age: The average vehicle age in Canada is 10.7 years, leading to higher demand for replacement parts. 2 Growing DIY culture: 35% of Canadians perform their own vehicle maintenance, driving growth in the aftermarket. 3 Rising demand for performance parts: Car enthusiasts and younger drivers are fueling the demand for high- performance parts and modifications. 4 Focus on sustainable options: Consumers are increasingly choosing recycled parts, eco-friendly lubricants, and electric vehicle components. E-commerce and the Digital Transformation 1 Online auto parts sales grew by 18% in Canada in 2023, indicating a strong shift towards digital purchasing. 2 Mobile shopping is becoming increasingly popular, with 45% of online purchases made via mobile devices. 3 Online marketplaces like Amazon and eBay are capturing a significant share of the market, offering a wide selection and convenient shopping experiences. 4 Customer reviews and ratings are becoming increasingly important, influencing purchasing decisions and building trust with customers. The Impact of Electric Vehicles (EVs) The EV market is growing rapidly in Canada. EV sales accounted for 12.1% of new vehicle registrations in Q3 2023. This growing demand for EVs is creating new opportunities for aftermarket parts, including batteries, charging equipment, and specialized tools. The EV market also offers opportunities for customization and performance upgrades, as well as specialized maintenance services. EVs have reduced maintenance needs compared to internal combustion engine (ICE) vehicles, leading to a shift in service requirements. Challenges and Supply chain disruptions are a major challenge, impacting availability and pricing of parts. A skilled labor shortage in mechanics and technicians is a significant issue for the automotive industry. Counterfeit parts are a growing concern for consumers and businesses, threatening safety and performance. There's an opportunity to focus on local manufacturing and distribution to mitigate supply chain risks and support domestic jobs. Regulatory Landscape and Compliance Canadian Motor Vehicle Safety Standards (CMVSS) ensure the safety and quality of automotive parts. Provincial regulations vary for vehicle inspections and emissions testing, creating complexities for parts manufacturers and retailers. Environmental regulations govern the disposal of used parts and fluids, emphasizing sustainable practices and responsible waste management. Industry certifications, such as ISO 9001, are essential for meeting quality standards and demonstrating compliance.