Last year was challenging for automotive stocks as rising interest rates, supply chain disruptions, high inflation, and a slowing global economy hammered automobile shares. The Dow Jones U.S. Auto Manufacturers Index has plunged 60.8% over the past year.
However, carmakers are optimistic that sales will rebound in 2023. Vehicle inventories are showing signs of improvement, indicating that vehicle prices would reduce, positioning auto manufacturers better to meet pent-up demand.
