How a U.S. Automotive Parts OEM Protected Margins Against Tariffs with Hypersonix AI

The Background

This U.S.-based automotive parts OEM manages tens of thousands of SKUs across categories like filters, brake pads, and accessories.

When tariffs raised import costs on critical raw materials and finished parts, the pricing team faced two challenges:

• How to recover margin without overpricing and losing share
• How to maintain consistency across its nationwide dealer and distributor network

Legacy cost-plus models and manual competitor checks weren’t fast enough to keep pace with tariff volatility and aggressive aftermarket competition.

• Tariff-related cost volatility created sudden margin risks
• Inconsistent dealer pricing and overrides led to channel conflict
• Manual competitor checks slowed responsiveness
• SKU complexity (OE vs. aftermarket equivalents) made benchmarking difficult

☑️ Competitor AI

• Automated, daily competitive tracking across U.S. distributors and marketplaces
• AI-powered product matching across OE and aftermarket equivalents
• Regional insights to identify where tariff pass-throughs were feasible

☑️ Pricing AI

• Elasticity modeling to balance price sensitivity with cost recovery
• Predictive simulations to test tariff-driven price adjustments before rollout
• Guardrails to ensure tariff-related increases protected margin without overshooting

Together, these tools enabled proactive, tariff-aware pricing decisions that aligned cost recovery with market realities.

• 39% fewer mismatched competitive comparisons, improving price accuracy
• 2.9% average margin lift, even during tariff cost surges
• 20 hours/week saved by eliminating manual data collection
• 30% faster price adjustments, turning tariff volatility into an advantage
• Improved dealer trust through consistent, transparent price updates

The Hypersonix Impact

• Tariff-Aware Pricing: Adjusted quickly when import costs spiked, without margin erosion
• Elasticity Modeling: Identified where increases would stick and where to hold
• Competitive Benchmarking: Ensured recovery moves aligned with the U.S. market
• Operational Efficiency: Gave pricing teams time to focus on strategy, not manual tasks