This year, intensifying supply chain disruptions and a global semiconductor chip shortage caused production cuts and tight inventory for auto manufacturers. Furthermore, rising prices kept less affluent buyers away from new cars. As a result, U.S. light-vehicle sales declined 17% year-over-year last month.
While investors’ worries over the continuing chip shortage, production disruptions, and rising prices have driven manufacturing stocks to a correction of late, growing investments and interest in autonomous and electric vehicles make the industry’s prospects bright. The North American automotive market is expected to grow at a 6.6% CAGR to $970.23 billion by 2027.
