The auto parts industry witnessed a significant downtrend amid the pandemic. Moreover, automakers had to cut production due to supply chain disruptions. However, according to IHS Markit, U.S. new-car sales in 2022 are expected to rise significantly from the last year. With improving supply lines and production, auto parts manufacturing companies should benefit.
On the other hand, the new vehicle shortage drove the demand for used vehicles higher, increasing the need for auto parts for repairs. Analysts expect the auto parts and accessories market to grow at a CAGR of 2.8% from 2022 to 2027. In addition, according to Statista, motor vehicle parts stores and dealers garnered revenue of almost $1.53 trillion from retail trade in 2021. Therefore, both O'Reilly Automotive and Advance Auto Parts (AAP) should benefit.
