Higher demand for quality spare parts drives the growth of the automotive after-market rapidly in Canada. The increasing number of vehicles on the road translates into demand for spare parts and offsets the intense competition and market maturity in the automotive after-market. Research also suggests that owners of used vehicles turn to the aftermarket for parts and the prevalent aggressive driving style also leads to faster wearing out of tires and other parts of the vehicles.

The automotive industry is Canada’s largest manufacturing sector, accounting for 12 per cent of manufacturing GDP and 24 per cent of manufacturing trade. The recent world economic downturn have impacted on every level of the Canadian automotive value chain, from dealers and extending to every major player in the industry including the Small and medium-sized OEM suppliers. The long term outlook of the Canadian automotive industry is mixed with some good prospects, although recovery of the overall North American automotive market will take time.

There are exports opportunities for foreign parts manufacturers to supply OEM suppliers in Canada with cost effective and higher value-added auto parts attributed to growing demand for safe, environmentally friendly and fuel efficient vehicles. As the supplier base for the OEMs and their tiers is constantly changing and evolving, driven by price and engineering design changes, it is a prerequisite for Malaysian auto parts exporters not only to improve their productivity and competitiveness but also to adapt and operate in a capital intensive business environment and be financially able to purchase new equipment and technology for future production and tooling upgrading. Furthermore, ability to maintain a technically competent work-force and to adapt technological changes and advances in the industry are also very crucial. Malaysian companies are also suggested to provide own technical solutions in the vehicle design and development for advanced engineering and product design.