Auto Parts
This sector produces the specialized components—from tires and batteries to complex electronics—supplied to both original equipment manufacturers (OEMs) and the aftermarket repair industry.
Why it exists
Auto parts manufacturers supply components for OEM production and aftermarket repair.
Why it’s necessary
Vehicles require constant maintenance, replacement parts, and continuous component innovation.
Key components
OEM parts supply
Aftermarket distribution
Logistics and warehousing
Retail auto parts chains
How to evaluate businesses
Aftermarket vs OEM mix, inventory conformity, margin stability, SKU breadth, and vehicle age exposure drive earnings. Aftermarket businesses tend to be more defensive.
How the industry could be improved
Predictive failure modeling, automated parts replenishment, 3D-printed replacement parts, and tighter integration with EV diagnostics.