The effects of consolidation, technology on the aftermarket

The automotive parts industry is racing towards a future that looks nothing like its past, and a NAPA executive gave a glimpse into what the industry needs to prepare for.

For one, as electric vehicles slowly transform the automotive market, traditional parts distributors are adapting to a rapidly changing technological landscape. Randy Breaux, former group president of GPC North America, said he saw the shift as an evolutionary process, not a sudden revolution.

“I think you’ll see more hybrids in the future than pure EVs,” Breaux explained during an interview at the NAPA Now event in Las Vegas this spring.

The industry is facing significant consolidation. Breaux, who is staying on in an advisory capacity as his role transitions to former UAP head Alain Masse, pointed out that the top handful of players currently control almost half of the overall market — and that will only grow.

“I think you’re going to see more consolidation within the industry,” he predicted, as independent distributors are likely to be absorbed by larger companies looking to expand their market share.

Technological changes are driving much of this transformation. Parts are becoming more complex, with Breaux observing that consumers are increasingly buying assembly kits instead of individual components.

Take headlights, for example. “You don’t buy a light bulb anymore. You buy a lighting assembly to replace on a car,” Breaux said during the event that celebrated 100 years of the NAPA brand.

Supply chain challenges remain a critical concern. Global manufacturing and geopolitical tensions continue to test the industry’s resilience. Breaux explained NAPA’s strategy as one that involves sourcing high-quality parts from around the world while maintaining its reputation for excellence.

“We buy parts from all over the world today,” he said. “We try to look at what countries are the most advantageous for us that produce high-quality parts that fit our needs.”

What excites Breaux most is the industry’s potential for growth.

“While it’s a mature industry, there’s still so much opportunity to grow,” he noted. “It’s a very fragmented industry … you’re not going to be constrained to grow if you do the right things.”