May 2025 has ushered in a unique set of market conditions for the aftermarket auto parts industry—some expected, others surprising. For sellers navigating this space, adaptability and insight are key to maintaining profitability and staying ahead of the competition.
Steady Demand Amidst Shifting Supply Chains
The demand for aftermarket car parts remains strong in 2025, driven by several converging factors:
- Aging Vehicle Fleet: With the average age of vehicles on U.S. roads now exceeding 12.6 years, maintenance and repair work continues to be a necessity for millions of drivers. This is sustaining robust demand for replacement parts.
- EV Conversion Growth: While EV adoption continues to grow, many consumers are opting for conversions of existing ICE vehicles rather than purchasing new EVs. This trend is driving niche demand for retrofit kits and compatible performance parts.
- DIY and E-Commerce Growth: Online platforms have made it easier than ever for consumers to access parts and attempt repairs themselves. YouTube tutorials, TikTok hacks, and easy-to-navigate parts catalogs continue to empower a new generation of DIY mechanics.
Impact of New Tariffs on Aftermarket Parts
In March 2025, President Trump announced a 25% tariff on imported automobiles and certain auto parts, citing national security concerns under Section 232 of the Trade Expansion Act of 1962 . This decision has led to increased costs for both OEM and aftermarket parts, affecting businesses and consumers alike.
The tariffs apply to a wide range of components, including engines, transmissions, powertrain parts, and electrical components. While some relief is available under the United States-Mexico-Canada Agreement (USMCA), it requires precise documentation of U.S.-made content, and any inaccuracies can result in the full 25% tariff being applied retroactively
Inventory & Supply Chain: Still Not Back to “Normal”
Though major pandemic-era disruptions are largely behind us, global logistics still face instability:
- Shipping Delays from Asia: Ongoing port congestion in parts of Southeast Asia, coupled with increased scrutiny on China-based suppliers, is impacting lead times—especially for lower-cost imported components.
- Domestic Manufacturing Rising: In response, many sellers are turning to North American manufacturers for critical components. While this reduces shipping time, it often comes at a higher cost, impacting margins unless offset by strategic pricing.
Pricing and Competition: A Balancing Act
Inflationary pressures have cooled slightly in early 2025, but parts pricing remains elevated compared to pre-2020 norms:
- Smart Pricing Strategies: Successful sellers are leaning into value-added services—like warranties, installation support, or loyalty programs—to justify premium pricing.
- Brand Differentiation: With major players like AutoZone and Amazon continuing to dominate on volume and price, smaller sellers are finding success by specializing in hard-to-find parts, performance upgrades, and premium customer service.
Hot Segments in 2025
Some segments are outperforming the broader market:
- Suspension and Steering Components: High mileage wear-and-tear is driving consistent demand.
- EV-Compatible Accessories: Think tires, brake pads, and infotainment upgrades tailored for electric vehicles.
- Performance Parts for Pickups and SUVs: Off-roading remains popular, and the aftermarket is cashing in.
Final Takeaway
May 2025 is proving to be a dynamic time in the aftermarket car parts world. While challenges remain—from fluctuating shipping costs to competitive pressure—the opportunities are just as strong. Sellers who can adapt quickly, invest in sourcing reliability, and tailor their offerings to emerging customer needs will stay ahead of the curve.
