MPAA | Market Cap: $271.8M (07/13/26)
Industry:
Automotive Manufacturing

DESCRIPTION

Motorcar Parts of America manufactures and sells non-discretionary automotive aftermarket replacement parts, specifically rotating electrical components like alternators and starters, and brake-related products. The company primarily remanufactures used parts by collecting worn cores, replacing internal components, and reassembling units to original equipment standards. MPAA sells these products to both individual consumers and professional installers through major retail chains, including Advance Auto Parts, AutoZone, Genuine Parts, and O'Reilly. Customer concentration is high, with the three largest customers representing 85% of net sales. The company maintains a primary manufacturing hub in Mexico, which provides a cost and tariff advantage over competitors sourcing from China. MPAA operates through three segments: Hard Parts, Heavy Duty, and Test Solutions and Diagnostic Equipment. The company's growth strategy emphasizes expansion in the brake-related market and capturing share from distressed competitors. MPAA also aims to increase penetration in the professional installer channel and expand geographically into Mexico and Latin America. Management is currently exploring strategic alternatives for its non-core electric vehicle testing and diagnostic equipment business.

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