Motorcar Parts of America, Inc

Motorcar Parts of America makes aftermarket replacement parts and test equipment used to keep vehicles and related systems operating after the original sale. Its portfolio spans light-duty hard parts such as alternators, starters, hubs, brakes and turbochargers, plus diagnostic and test solutions for automotive, EV and aerospace applications.

9,5 %

20,2 %

1,6 %

+4,3 %

1.46

0.51

— Motorcar Parts of America, Inc
%
Hard Parts75% Aftermarket replacement parts for light-duty vehicles, including rotating electrical, hubs, brakes and turbochargers.
Test Solutions and Diagnostic Equipment15% Bench-top testers, EV production equipment and software-based diagnostic tools for OEM and supplier customers.
Heavy Duty10% Replacement parts for heavy-duty truck, industrial, marine and agricultural applications.

The company sells mainly into the automotive aftermarket, serving both DIY consumers through retail chains and DIFM...

  • Large automotive retail chainsprimary

    Buy private-label and branded aftermarket parts for nationwide store networks and online channels.

  • Professional installers and warehouse distributorsprimary

    Purchase hard parts for DIFM repair and replacement demand, where availability and fitment matter.

  • OES and warranty replacement programsprimary

    Buy designated replacement parts under multi-year supply arrangements with pricing and service requirements.

  • OEMs and tier supplierssecondary

    Buy test solutions and diagnostic equipment for development and production of EV and electrified systems.

  • Heavy-duty and specialty channelssecondary

    Buy replacement parts for truck, industrial, marine and agricultural applications.

The business is overwhelmingly North America-focused, with management stating that about 98% of fiscal 2025 product...

  • About 98% of fiscal 2025 product sales were in North America
  • About 2% of fiscal 2025 product sales were in Asia and Europe
  • Major distribution and remanufacturing footprint in Mexico and the U.S.
  • Tijuana distribution center supports North American supply chain execution
  • Malaysia warehouse was added for future direct shipment programs

Management is focused on expanding its aftermarket hard parts business in North America while building a stronger...

01
Expand test solutions and diagnostic equipmentmedium-term

This is a higher-growth adjacency tied to EV development, charging systems and aerospace electrification.

02
Strengthen aftermarket hard parts leadershipshort-term

The core business depends on scale, catalog coverage and service levels in a competitive replacement market.

03
Expand operating infrastructuremedium-term

Additional warehousing and remanufacturing capacity supports growth, inventory realignment and direct shipment programs.

The company is highly exposed to customer concentration, with a few large accounts representing most sales, so pricing...

critical

Customer concentration

Sales are heavily dependent on a small number of large customers, so loss or repricing can materially reduce revenue and profitability.

Scope
Three largest customers represented 86% of net sales in fiscal 2025.
Materiality
high
high

Foreign sourcing and import disruption

A significant portion of parts and components are sourced outside the U.S., exposing the company to tariffs, shipping delays and geopolitical shocks.

Scope
Imports from China and other Asian countries are specifically cited.
Materiality
high
high

Pricing and allowance pressure

Large customers negotiate lower prices, marketing allowances and payment terms, which can compress gross margin and increase working capital needs.

Scope
Contract renegotiations and customer incentives are recurring.
Materiality
high
medium

Inventory and core supply risk

Remanufacturing relies on returned cores and inventory realignment, which can create write-downs and supply mismatches.

Scope
Core exchange programs and shelf-core revaluation are material to operations.
Materiality
medium
Variable consideration in revenue recognition
Affects reported revenue and gross margin
Core exchange and remanufacturing accounting
Affects inventory, contract assets and cost of sales
Lease and FX accounting
Affects operating expenses and other income/expense
Acquisition-related intangibles and goodwill
Affects balance sheet and potential impairment charges

: 28.4.2026