Toronto, Ontario — Canadian auto parts stores see slight slowdown amid cost pressures, a new report from the U.S. business intelligence firm IBISWorld shows.
Canada’s auto parts retail sector is expected to edge lower this year after several years of modest growth. The report estimates total industry revenue at about $8.1 billion in 2025, down 0.5 percent from a year earlier. Analysts attribute the dip to weaker consumer spending, higher material costs and growing competition from online retailers.
IBISWorld says the number of auto parts stores continues to climb, with roughly 4,400 outlets now operating across Canada — an increase of 0.6 percent from 2024.
Employment has also expanded, with about 25,000 people working in the sector, up 1.6 percent on average each year since 2019.
Despite the slowdown, IBISWorld notes that steady demand from commercial customers such as repair shops and fleet operators has helped offset softer retail sales.
The firm expects the industry to stabilize in the coming years as supply chains improve and vehicle ownership remains strong.
