Canadian Auto Parts Industry Keeps Gaining Market Share, Study Finds

The Canadian auto parts industry is gaining market share in North America despite a soaring Canadian dollar, Scotia Economics says in its latest auto report. Canadian parts shipments rose seven per cent, year-over-year, through September, about double the increase posted by U.S. suppliers. Large Tier 1 parts makers are leading the advance, with sales at Canada's two biggest publicly traded parts companies advancing by 28 per cent so far this year.

From Canadian Press

TORONTO — The Canadian auto parts industry is gaining market share in North America despite a soaring Canadian dollar, Scotia Economics says in its latest auto report.

Canadian parts shipments rose seven per cent, year-over-year, through September, about double the increase posted by U.S. suppliers. Large Tier 1 parts makers are leading the advance, with sales at Canada’s two biggest publicly traded parts companies advancing by 28 per cent so far this year.

The gains have been concentrated in the domestic market, with sales to Canadian assembly plants surging by 14 per cent this year, says Carlos Gomes, Scotiabank’s auto industry specialist.

Exports have also advanced, despite headwinds from this year’s double-digit appreciation of the Canadian dollar.

Data from the U.S. Commerce Department (news – web sites) indicate that Canadian auto parts exports to the United States increased nine per cent, from a year earlier, through September, even with a marginal decline in U.S. vehicle production so far this year.

But with much of the Canadian dollar appreciation occurring since late September, export gains will likely soften over the next 12 months, the report says.

Meanwhile, several countries are outpacing Canada’s gains in the U.S. auto market. In particular, auto parts exports from Mexico to the United States have climbed 11 per cent – boosted by a 22 per cent depreciation of the Mexican peso against the U.S. dollar since early 2002

Mexico is the largest auto parts exporter to the United States and accounts for 26.7 per cent of overall U.S. parts imports. Mexico’s import share is 2.3 percentage points higher than Canada’s.

North American vehicle sales picked up in Canada in October, and remained robust in the United States.

Canadian passenger vehicle sales picked up to an annualized 1.55 million units in October, from an average of 1.53 million during the previous three months. However, volumes remained below a year earlier for the eighth month this year.

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