Since last year, the auto industry has faced the headwinds of high inflation, supply chain disruptions, shortage of raw materials, and high borrowing rates. However, auto sales are expected to return to pre-pandemic levels with a growth of 9%. The auto parts industry is closely linked to the automobile industry as it provides crucial parts for manufacturing new vehicles.
However, its prospects do not depend entirely on new vehicle sales. As the demand for auto parts is expected to remain steady, it could be wise to buy auto parts stocks Valeo SE (VLEEY), Gates Industrial Corporation plc (GTES), Garrett Motion Inc. (GTX), and Superior Industries International, Inc. (SUP).
