Motorcar Parts of America, Inc. operates as a supplier of automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment.
The company’s hard parts products include light-duty rotating electrical products, wheel hub products, brake-related products, and turbochargers. In addition, the company sells test solutions and diagnostic equipment, which were added with its acquisitions of D&V Electronics Ltd. in July 2017 and Mechanical Power Conversion, LLC in Dec...
Motorcar Parts of America, Inc. operates as a supplier of automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment.
The company’s hard parts products include light-duty rotating electrical products, wheel hub products, brake-related products, and turbochargers. In addition, the company sells test solutions and diagnostic equipment, which were added with its acquisitions of D&V Electronics Ltd. in July 2017 and Mechanical Power Conversion, LLC in December 2018 and heavy-duty rotating electrical products, which were added with its January 2019 acquisition of Dixie Electric, Ltd.
Segments
The company operates through three segments: Hard Parts; Test Solutions and Diagnostic Equipment; and Heavy Duty.
Hard Parts, including light duty rotating electric products, such as alternators and starters; wheel hub products; brake-related products, including brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders; and turbochargers;
Test Solutions and Diagnostic Equipment, including applications for combustion engine vehicles, including bench top testers for alternators and starters; equipment for the pre- and post-production of electric vehicles; software emulation of power systems applications for the electrification of all forms of transportation (including automobiles, trucks, the emerging electrification of systems within the aerospace industry, and electric vehicle charging stations); and
Heavy Duty, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications.
Growth Strategies and Key Initiatives
With a scalable infrastructure and abundant growth opportunities, the company focuses on growing its aftermarket business in the North American marketplace and growing its leadership position in the test solutions and diagnostic equipment market by providing innovative and intuitive solutions to its customers.
The key elements of the company’s strategy are to grow its product lines both with existing and potential new customer; continue to strive to expand its business by exploring new product lines, including working with its customers to identify potential new product opportunities; create value for its customers; continue to expand its research and development teams as it further develop in-house technologies and advanced testing methods; provide industry-leading test solutions and diagnostic equipment to both original equipment manufacturers and the aftermarket; market and grow its new product lines on a global basis; and market and grow its innovative design solutions and commitment to quality.
Products
The company carries approximately 42,000 stock keeping units (SKUs) to support automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment. The company’s products are sold under its customers’ widely recognized private label brand names and its own brand names including Quality-Built, Pure Energy, D&V Electronics, Dixie Electric, and DelStar.
The company’s products include rotating electrical products such as alternators and starters; wheel hub assemblies and bearings; brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders; turbochargers; test solutions and diagnostic equipment products; and heavy-duty products.
Sales, Marketing and Distribution
The company sells its hard parts products to the largest automotive chains, including Advance Auto Parts, AutoZone, Genuine Parts (NAPA), and O’Reilly Auto Parts with an aggregate of approximately 25,000 retail outlets. In addition, these products are sold to warranty replacement programs (OES) customers, professional installers, and a diverse group of automotive warehouse distributors. The company’s heavy-duty products, which have some overlap with the light-duty automotive aftermarket, are also sold via specialty distribution channels through OES, fleet, and auto electric outlets. The company also sells test solutions and diagnostic equipment to the automotive chains and via direct and indirect sales channels, technical conferences, and trade shows to some of the world’s leading automotive companies, and to the aerospace/aviation sector. The company offers testing services at its technical center located in Detroit, Michigan. During fiscal 2024, the company sold approximately 98% of its products in North America, with approximately 2% of its products sold in Asian and European countries.
The company publishes printed and electronic catalogs with part numbers and applications for its products along with a detailed technical glossary and informational database. In addition, the company publishes printed and electronic product and service brochures and data sheets for its test solutions and diagnostic equipment and service offerings. The company maintains one of the most extensive catalog and product identification systems available to the market.
The company primarily ships its products from its facilities and various third-party warehouse distribution centers in North America, including its 410,000 square foot distribution center in Tijuana, Mexico.
Customers
Sales to the company’s three largest customers in the aggregate represented 83%, and sales to its largest customer, represented 35% of its net sales during fiscal 2024 (year ended March 31, 2024).
Research and Development
The company’s research and development expenses were $9,995,000 during the year ended March 31, 2024.
Competition
The company competes with several large and medium-sized companies, including BBB Industries, First Brands, and DRIV for hard parts; and Burke Porter and Loccionni for test solutions and diagnostic equipment.
Governmental Regulation
The company’s operations are subject to various regulations governing, among other things, emissions to air, discharge to waters, and the generation, handling, storage, transportation, treatment, and disposal of waste and other materials.
History
Motorcar Parts of America, Inc. was founded in 1968. The company was incorporated in 1968.
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