The automotive industry has faced several challenges since the onset of the pandemic due to supply chain bottlenecks, production shutdowns, and intensifying semiconductor and labor shortages. Moreover, aggressive policy tightening by the Fed has increased car loan rates to 11-year highs, dampening demand. This has led to a slowdown in the auto parts manufacturing industry.
However, increasing consumer interest in electric vehicles amid rising environmental concerns and inflating fuel prices should bolster the industry’s growth prospects. Growing competitiveness in the auto industry and investments in technological advancements should support the auto part makers. The motor vehicle parts market is expected to grow at a 7.9% CAGR from 2021-2026.
