3 Top Auto Stocks to Buy for the Long Haul
It's fair to say the auto parts sector hasn't been in favor for a while. Global passenger car production hasn't grown year over year since 2017, and the semiconductor shortage ensured that light global vehicle production (LVP) will only increase by around 1.2% in 2021. That said, leading industry observer IHSMarkit expects LVP to increase by 9% in 2022.
With the industry set for a multi-year recovery beginning in 2022, it's time to look at auto parts manufacturers Autoliv (NYSE: ALV) and Magna International (NYSE: MGA), and automotive coatings company Axalta Coating Systems (NYSE: AXTA).
With AutoNation, America's largest automotive retailer, reporting a whopping 18% increase in same-store sales in its most recent third quarter, it's clear that demand for automobiles is there. The problem is supply and the ability of automakers to ramp production in the face of semiconductor shortage. That said, most industry observers expect that problem to ease in 2022, resulting in the production increase discussed earlier.
Source Fool.com
