1、Q1 2026Q1 2026M&A INDUSTRY UPDATEM&A INDUSTRY UPDATEAutomotive Automotive AftermarketAftermarketCopyright 2026 Greenwich Capital Group LLC.All rights reserved.PAGE 2|GCG AUTOMOTIVE AFTERMARKET INDUSTRY UPDATE|Q1 2026Industry TrendsThe North American automotive aftermarket entered Q1 2026 with stable

2、 demand,supported by normalized vehicle miles traveled and an aging vehicle fleet.While labor and input cost pressures persist,a more stable pricing environment has helped ease margin pressure across the value chain.At the same time,the sector is navigating meaningful disruption,with the wind-down o

3、f First Brands reshaping the supplier landscape and emerging tariff clarity beginning to unlock deal activity that had been on hold.In parallel,participants continue to invest in digital tools and operational improvements to enhance efficiency and service levels.Overall,resilient fundamentals and a

4、clearing transaction environment are supporting a steady operating backdrop despite broader macro uncertainty.These dynamics are expected to sustain consistent performance across both parts and service segments in the near term.4 Channel Evolution and Operational ModernizationThe aftermarket ecosyst

5、em continues to evolve as distributors and service providers invest in digital tools,data analytics,and workflow optimization to enhance efficiency and customer experience.Participants are increasingly leveraging inventory management systems,predictive maintenance tools,and integrated procurement pl

6、atforms to improve parts availability and reduce turnaround times.At the same time,service providers are adopting more standardized processes and technician enablement initiatives to address labor constraints and rising vehicle complexity,contributing to a more efficient and service-oriented value c