After facing a challenging 2022, where sales of light vehicles fell to their lowest level since 2012, the automotive industry expects solid growth in new vehicle sales despite economic challenges. Although the auto parts industry is not entirely dependent on new vehicle sales, an increase in automobile sales will help boost the demand for auto parts.
To that end, it could be wise to invest in fundamentally strong auto parts stocks such as DENSO Corporation (DNZOY), Ituran Location and Control Ltd. (ITRN), and Commercial Vehicle Group, Inc. (CVGI), which look poised for solid growth.
