Rapid technological advancements and introduction of electric vehicles is expected to drive the growth of the auto industry. So, I think it might be ideal to buy Advance Auto Parts, Inc. (AAP) and Allison Transmission Holdings, Inc. (ALSN), considering their strong fundamentals.
While the automotive industry as a whole has continued to struggle, the consumer Electric Vehicle (EV) market, including Plug-in Hybrid Electric Vehicles (PHEVs) has delivered a stellar performance. This year, electric vehicle sales is expected to reach a growth rate of 25.2% year-over-year. Furthermore, the consumer EV market in 2023 will be 3.5X the size of the market in 2020.
