5 Reasons To Invest In Auto Parts Stocks

From a global perspective also, the auto industry is significant for economic growth. Outside of the U.S., all the other major economies of the world including Canada, India, China, Brazil, Germany, Japan have big auto industries. In fact, of the G-20 countries, only Saudi Arabia does not have automobile production according to industry data.

Five reasons to invest in stocks of Auto Parts Makers are listed below: 1. Auto sales has been rising globally since the dark days of the financial crisis. 2. Lending for auto loans by banks and finance companies have increased in recent years. 3. The majority of Americans depend on autos for transportation. While public transportation is good in bigger cities such as New York, DC, Chicago, etc. in other cities and towns across the land public transportation is virtually non-existent. 4. The transportation infrastructure in the country is simply built for autos. 5. Unlike the auto makers, auto parts makers do not have worry about many issues such as giving heavy discounts to push their products, having to deal with legacy costs such as healthcare and pension costs for retirees, constantly having to invest in research and development, the need to introduce new models every year, etc.

Source: Seeking Alpha

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