STANDARD MOTOR PRODUCTS, INC.

1 STANDARD MOTOR PRODUCTS, INC. ANNUAL REPORT 2016 ANNUAL REPORT AND TRANSFER AGENT Computershare Shareholder Services 211 Quality Circle, Suite 210 College Station, TX 77842 INDEPENDENT AUDITORS KPMG LLP 345 Park Avenue New York, NY 10154 COMMON STOCK STANDARD MOTOR Products, Inc. s Common Stock is listed on the New York Stock Exchangeunder the symbol SMP EXECUTIVE OFFICES STANDARD MOTOR Products, Inc. 37-18 Northern Boulevard Long Island City, NY 11101 ENGINE MANAGEMENT DIVISION Offices: Long Island City, NY Manufacturing and Distribution Centers: Fort Lauderdale, FL Orlando, FL Mishawaka, IN Edwardsville, KS Independence, KS Greenville, SC Disputanta, VA Nogales, Mexico Reynosa, Mexico Bialystok, PolandTEMPERATURE CONTROL DIVISION Offices: Lewisville, TX Manufacturing and Distribution Centers: Grapevine, TX Lewisville, TX St.

2 Thomas, Canada Reynosa, MexicoCANADA SUBSIDIARY SMP MOTOR Products Ltd. Mississauga, Ontario, CanadaHONG KONG SUBSIDIARY STANDARD MOTOR Products (Hong Kong) Limited Hong Kong, ChinaMEXICO SUBSIDIARIES STANDARD MOTOR Products de Mexico, S. de de Reynosa, Mexico SMP Engine Management de Mexico, S. de de Reynosa, Mexico SMP Four Seasons de Mexico, S. de de Reynosa, Mexico SMP Automotive de Mexico, de Cuernavaca, MexicoPOLAND SUBSIDIARY SMP Poland sp. z Bialystok, PolandCHINA JOINT VENTURE Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. Foshan, ChinaABOUT THE COMPANYS tandard MOTOR Products, Inc. is a leading independent manufacturer and distributor of replacement parts for MOTOR vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market.

3 We are organized into two major operating segments, each of which focuses on specific lines of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories, and windshield washer system parts. Our products are sold throughout the United States, Canada, Europe, Latin America and in many other countries around the world. We employ approximately 4,100 people in North America, Europe and Asia.$1,058,48298,06762,412$ 60,430 $ $ 23,082,578$ 768,697$ 441,02 $ 980,39285,33852,899$ 43,029 $ $ 3 8.

4 1223,239,925$ 673,551$ 374 ,15 $ 971,97575,8604 8 ,120$ 46,018$ $ 3 ,14 2, 3 9 4$ 681,064$ 391, SalesOperating IncomeEarnings From Continuing Operations Net Earnings PER SHARE: Earnings From Continuing Operations - DilutedNet Earnings - Diluted DividendsStock Price at Year EndAverage Number of Common and Dilutive SharesAssets Stockholders EquityTotal Debt to CapitalizationYEAR ENDED DECEMBER 31,(Dollars in thousands, except per share amounts)TO OUR STOCKHOLDERS,2016 WAS AN EXCELLENT YEAR FOR OUR COMPANY, AS WE SET RECORDS FOR BOTH SALES AND net sales increased over 2015, allowing us to reach the billion dollar milestone for the first time in our company s history. This was helped by the mid-year acquisition of General Cable s North American automotive ignition wire business.

5 Excluding the acquisition, our net sales increased , in line with our long-term forecasts. Our net profits increased 31% over 2015. However, this is slightly misleading, as our 2015 results included roughly $10 million of one-time expenses, and thus 2015 was not a typical year. Excluding these historical one-time expenses, our net profits would have increased approximately 16%. As shown on the EPS graph on the opposite page, we can see a slow and steady upwards trend over a five year period. We anticipate that this trend will continue, for the following , industry demographics are favorable. Shown on the graphs below we see continuing positive trends both in vehicle population and average age of vehicles. A larger car parc with older vehicles tends to increase the demand for replacement parts.

6 Second, vehicles have become increasingly complex. Vehicle diagnostics have become more challenging and repairs more difficult to perform. This is leading both professional installers and do-it-yourselfers to look for higher quality parts and brand names they can trust. These are areas in which we excel, and where our reputation is very more significant are the steps we are taking to build a better and stronger company for the future. Our strategic initiatives include the , we continue to make substantial investments in engineering resources and capital equipment to expand our in-house manufacturing. We produce today millions of dollars worth of product that we used to purchase. In addition to significant cost savings, this enables us to have far better control over quality and , we continue to rationalize our manufacturing operations, enabling us to achieve improvements in cost and BURKS Executive Vice President and Chief Commercial OfficerJAMES J.

7 BURKE Executive Vice President Finance and Chief Financial OfficerERIC P. SILLS Director, Chief Executive Officer and PresidentLAWRENCE I. SILLS Executive Chairman of the Board of TOTAL LIGHT VEHICLES (MILLIONS)120 160 200 240 280 20162015201420132012249249253 258 264 AVERAGE AGE OF CARS AND LIGHT 2016201520142013201211. 011. 211. 4 11. 5 11. 6We are currently in the process of closing two factories one in Texas and one in Florida and relocating their operations to existing SMP locations in the and Mexico. These are, of course, the most difficult decisions we ever have to make, as they affect our people, and as such we do not take them lightly. But we feel these moves are necessary for us to compete successfully in this challenging environment, where much of our competition is low-priced product from Asia.

8 However, in every one of these cases, an important priority for us is to make sure that all affected employees are treated as fairly and generously as third leg of our strategy is acquisitions. We have consummated nine in the last few years, and, as a group, they have been quite successful. One of the keys to our success is that we are disciplined in the type of acquisitions we seek. We pursue only two types of targets bolt-on , where we look to acquire a competitor or a related line, and then merge it with our own operations; and vertical integration , where we acquire a major supplier of ours, and thus become a basic manufacturer of this product. By adhering to these guidelines, we believe we minimize the risk, achieve real and rapid synergies, and avoid the pitfalls often experienced in acquisitions.

9 Our most recent acquisition, General Cable s North American automotive ignition wire business, fits this profile exactly. They were a highly regarded competitor with many prestigious customers. We are pleased to have retained all of these accounts, and have begun integrating the two businesses with positive results. We expect the integration to be complete by the end of the first quarter of 2018, and look forward to additional savings once completed. Turning to more recent news, we previously announced a dividend increase, from 17 cents per quarter to 19 cents per quarter. This marks the eighth consecutive year of a dividend increase, as we continue with our goal of returning cash to our , we are pleased to announce that Patrick McClymont has agreed to join our Board of Directors. Patrick comes to us with a wealth of experience.

10 He has been a Partner and Managing Director at Goldman Sachs, an Executive Vice President and Chief Financial Officer at Sotheby s, and is currently an Executive Vice President and Chief Financial Officer at IMAX. We are excited to have him join summarize, we are very pleased with our 2016 results. We thank our group of over 4,000 employees who are the main reason for our success, and look forward to continued success in the future.*See the Reconciliation of GAAP and Non-GAAP Measures on the page facingthe inside back cover of this Annual I. SILLSE xecutive Chairman of the Board of DirectorsERIC P. SILLSD irector, Chief Executive Officer and PresidentDALE BURKSE xecutive Vice President and Chief Commercial OfficerJAMES J. BURKEE xecutive Vice President Finance and Chief Financial OfficerCONSOLIDATED NET SALESFull Year (Millions)$ $ $ $ $1 , $1 , $1, 20162015201420132012$ $ $ $ $1, GROSS MARGINFull 7.