The automobile industry endured several challenges last year due to supply chain disruptions, high inflation, and rising interest rates. The sales of light vehicles in 2022 fell to their lowest level since 2012. Over 13.75 million light vehicles were sold the previous year, representing a year-over-year decline of 8% to 9%.
Although closely linked to the automobile industry, the auto parts industry is not entirely dependent on new vehicle sales. This makes the sector attractive from an investment standpoint as it can remain insulated against the volatility caused by economic cycles. Therefore, quality auto parts stocks AutoZone, Inc. (AZO), Genuine Parts Company (GPC), and Magna International Inc. (MGA) could be wise additions to your portfolio now.
