The forecasted gross margin for motor vehicle and motor vehicle parts and accessories merchant wholesalers in Canada is projected to decline from 13% in 2024, to 12.4% in 2028. This gradual decrease indicates a downward trend with a compound annual growth rate (CAGR) of approximately -1.2% over the five-year forecast period. In 2023, the actual gross margin stood at around 13.2%, highlighting a continuing squeeze in profitability.

Future trends to watch for include:

Potential cost increases due to supply chain disruptions and regulatory changes.
Impact of technological advancements and increased adoption of electric vehicles on demand for traditional vehicle parts.
Shifts in consumer preferences affecting sales dynamics at the wholesale level.