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2025 Laws and Regulation Changes That Affect the Automotive Aftermarket

Preparing for 2025: Actionable Takeaways

  • Monitor regulatory updates and ensure your business is compliant.
  • Invest in training, tools, and technologies that align with new standards.
  • Leverage opportunities to grow in emerging markets like EVs, ADAS, and outdoor accessories.
  • Engage with industry organizations like SEMA to protect your interests and stay informed.

The automotive aftermarket faces a pivotal year in 2025, with sweeping regulatory changes set to redefine how businesses operate. From California’s environmental mandates to federal efficiency standards, each development brings unique challenges—and opportunities. A detailed understanding of these changes will empower businesses to adapt, innovate, and thrive.

Here’s a closer look at the key laws, their implications, and actionable steps for navigating the evolving landscape.

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California’s Proposition 65 Updates

California’s Proposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986, continues to expand its list of regulated chemicals. This law requires businesses to disclose the presence of chemicals known to cause cancer, birth defects, or reproductive harm. In 2025, new chemicals are being added, some of which are commonly found in automotive products like adhesives, cleaners, and coatings.

What’s Changing in 2025?

  • Expanded Chemical List: Additions include industrial solvents and substances used in automotive paints and sealants.
  • Stronger Enforcement: Increased penalties for non-compliance, with a focus on manufacturers and distributors supplying California.
  • Consumer Awareness: Consumers are becoming more aware of Proposition 65 warnings, demanding safer alternatives.

Implications for the Aftermarket

  1. Product Reformulation Costs:
    Manufacturers must reformulate products to eliminate newly regulated chemicals, a process that may involve significant R&D investment.
  2. Labeling Requirements:
    Packaging and product descriptions must include updated warnings, increasing operational and design expenses.
  3. Market Opportunities:
    Companies offering eco-friendly alternatives can use compliance as a competitive advantage to appeal to environmentally conscious buyers.

Actionable Steps

  • Audit your product inventory to identify items affected by new regulations.
  • Invest in reformulation to meet compliance standards while maintaining product performance.
  • Educate customers about Proposition 65 compliance and the benefits of safer products.

For detailed updates, visit the California Office of Environmental Health Hazard Assessment (OEHHA).

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Outdoor Act Implications for Automotive Accessories

The Outdoor Recreation Jobs and Economic Impact Act, commonly referred to as the Outdoor Act, aims to promote investment in outdoor recreation infrastructure. It also encourages the production of goods catering to outdoor enthusiasts—a category where the automotive aftermarket thrives.

How the Outdoor Act Impacts the Industry

  • Infrastructure Investments: Expansion of national parks and recreation areas increases demand for off-road and adventure vehicles.
  • Sustainability Focus: Consumers gravitate toward companies adopting eco-friendly practices in line with the act’s goals.
  • Emerging Markets: Growth in overlanding, camping, and outdoor activities boosts demand for specialized accessories.

Opportunities for Aftermarket Businesses

  1. Increased Demand for Accessories:
    Roof racks, lift kits, winches, and other off-road gear are becoming essentials for adventure seekers.
  2. New Product Lines:
    Businesses can diversify offerings with innovative products like portable solar panels and all-weather storage solutions.
  3. Marketing Alignment:
    Highlighting eco-conscious manufacturing processes can resonate with environmentally aware consumers.

Next Steps

  • Expand inventory to include outdoor-focused products like overlanding gear.
  • Collaborate with outdoor organizations to tap into niche markets.
  • Align marketing strategies with sustainability themes to attract eco-conscious buyers.

Learn more at the Outdoor Industry Association.

California’s Vehicle Safety Systems Inspection Program (VSSI)

California is implementing the Vehicle Safety Systems Inspection Program (VSSI) in 2025. This program mandates inspections for advanced driver-assistance systems (ADAS), such as automatic braking and lane-keeping assist.

What is VSSI?

VSSI ensures that ADAS features function as intended, addressing safety concerns related to poorly calibrated systems. These inspections will apply to vehicles during routine smog checks or annual maintenance reviews.

Impacts on the Aftermarket

  1. Demand for Calibration Services:
    Shops must invest in ADAS calibration equipment to meet inspection standards.
  2. Aftermarket ADAS Standards:
    Manufacturers of aftermarket ADAS products must ensure compatibility with inspection criteria, increasing design complexity.
  3. Specialization Opportunities:
    Repair shops offering ADAS diagnostics and calibration will gain a competitive edge in this growing segment.

How to Prepare

  • Train technicians to handle ADAS calibration and diagnostics.
  • Upgrade shop equipment to meet VSSI requirements.
  • Partner with ADAS component manufacturers to ensure compliance with inspection standards.

For more details, visit the California Bureau of Automotive Repair.

Corporate Average Fuel Economy (CAFE) Standards

The 2025 update to Corporate Average Fuel Economy (CAFE) standards mandates higher fuel efficiency across automotive fleets. These changes impact the aftermarket by shifting consumer preferences toward lighter, more efficient vehicles and eco-friendly accessories.

Key Changes in CAFE Standards

  • Higher MPG Targets: Automakers must achieve greater efficiency across their vehicle lineups.
  • EV Integration: Increasing reliance on hybrids and electric vehicles (EVs) to meet efficiency goals.
  • Supply Chain Shifts: Greater demand for lightweight materials and advanced drivetrain technologies.

Aftermarket Opportunities

  1. Lightweight Components:
    Body kits, low-rolling-resistance tires, and aerodynamic accessories are poised for growth.
  2. EV-Specific Products:
    The rising popularity of EVs creates demand for charging stations, adapters, and battery upgrades.
  3. Performance Optimization:
    Fuel-saving performance tuners will attract eco-conscious buyers looking to improve efficiency without sacrificing power.

Next Steps for Businesses

  • Diversify inventory to include products for hybrid and EV models.
  • Market lightweight and fuel-efficient accessories as solutions for meeting CAFE-inspired consumer needs.
  • Stay informed about updates from the National Highway Traffic Safety Administration (NHTSA).
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Proposed Trump Tariffs and Trade Impacts

The reintroduction of tariffs on imported automotive parts in 2025 could disrupt supply chains and increase costs for aftermarket businesses.

Potential Effects of Tariffs

  • Cost Increases: Higher prices for imported parts may lead to tighter margins or higher retail prices.
  • Supply Chain Realignments: Businesses must explore domestic manufacturing or alternative suppliers.
  • Branding Opportunities: Companies producing locally can market their products as “Made in the USA.”

Mitigating Risks

  1. Diversify Supply Chains:
    Build relationships with multiple suppliers to reduce dependency on imports.
  2. Focus on Domestic Production:
    Invest in local manufacturing capabilities to appeal to consumers and avoid tariffs.
  3. Optimize Pricing Models:
    Evaluate pricing strategies to balance cost increases without alienating customers.

Follow updates from the Office of the United States Trade Representative (USTR).

SEMA and PRI PAC Advocacy

The Specialty Equipment Market Association (SEMA) and Performance Racing Industry (PRI) PACs are key allies for the aftermarket, protecting the right to modify vehicles and ensuring access to affordable parts.

Advocacy Highlights

  • Defending Customization Rights: Protecting the ability to modify and upgrade vehicles.
  • Opposing Restrictive Laws: Fighting legislation that could limit aftermarket product availability.
  • Industry Representation: Advocating for policies that support innovation and market growth.

How Businesses Benefit

  • Stay informed about regulatory changes and compliance requirements.
  • Gain access to resources and industry connections through SEMA membership.
  • Influence policy by participating in advocacy efforts.

Get involved with the SEMA Action Network.

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