The auto parts industry is booming thanks to escalating vehicle sales, government incentives helping the auto industry, and the integration of advanced technologies. Therefore, investors could add fundamentally robust auto parts stocks Allison Transmission Holdings, Inc. (ALSN), Compagnie Générale des Établissements Michelin Société en commandite par actions (MGDDY), Garrett Motion Inc. (GTX), and Ituran Location and Control Ltd. (ITRN) to the portfolio now.
In the fiscal first quarter of 2024, U.S. new vehicle sales grew 5.1% despite the interest rate hike, which represents rising consumer interest in the auto industry. Automakers sold around 3.80 million vehicles from the year-ago quarter. The global automotive industry is projected to grow at a 6.8% CAGR, reaching $6.86 trillion by 2033.
