The automative aftermarket parts sector is a big part of the auto industry. While the big auto markets focus on making and selling new vehicles, there are thousands of companies that manufacture and sell parts for cars that cover everything from spark plus to tires to engine oils. These companies generate billions of revenues each year and many have operations in countries other than where they are based.
In some ways, the parts makers are better for investment than the auto makers. This is because during recessions auto parts markers thrive as consumers maintain their existing vehicles as opposed to buying new ones. During normal times, auto parts are still needed to keep vehicles running smooth. For instance, tires wear out and have to be replaced. Same goes for changing engine oil.
One way to identify the aftermarket auto parts suppliers for potential investment is to start with the largest firms. The following infographic shows the top 10 aftermarket auto suppliers in North America:
Click to enlarge
Source: Market Research Reports
The companies shown above are listed below with their stock tickers on the US market, if available:
- Magna International Inc. (MGA)
- ZF North America Inc.
- Denso International America Inc. (DNZOY)
- Continental Automotive Systems U.S. Inc. (CTTAY)
- Lear Corp. (LEA)
- Robert Bosch
- Flex-N-Gate Corp.
- Aisin World Corp. of America
- Adient (ADNT)
- American Axle & Manufacturing Holdings Inc.(AXL)
Disclosure: Long MGA, CTTAY
