Most people are still wary of using mass transportation services due to public health concerns. This is driving the demand for personal cars. And because old cars are meeting the demand for private transportation, the auto-parts industry is benefiting. According to Grand View Research, the global automotive aftermarket is expected to reach $529.25 billion by 2028, growing at a 3.8% CAGR of 3.8%.
Consequently, we think it is wise to now buy the shares of auto parts companies Bridgestone Corporation (BRDCY), LKQ Corporation (LKQ), Gates Industrial Corporation plc (GTES), and Standard Motor Products, Inc. (NYSE:SMP). They are well-positioned to take advantage of industry tailwinds based on their solid financials.