Despite the macroeconomic challenges, the auto industry has been performing well due to robust demand and the easing of supply chain constraints. Despite not relying entirely on new vehicle sales, the auto parts industry is expected to perform well due to a rise in demand for new vehicles, robust aftermarket sales, rising vehicle prices, and the increasing usage of advanced automobile components.
Given this backdrop, it could be prudent to add fundamentally strong auto parts stocks Magna International Inc. (MGA), Genuine Parts Company (GPC), and Modine Manufacturing Company (MOD) to one’s watchlist.
