Published on 1 Aug 2023 on Insider Monkey via Yahoo Finance
10 Best Small Cap Automotive Stocks To Buy
In this article, we discuss 10 best small cap automotive stocks to buy. If you want to skip our detailed discussion on the automotive industry, head directly to 5 Best Small Cap Automotive Stocks To Buy.
In 2023, the automotive industry will remain susceptible to hindrances due to global headwinds. These challenges include the energy crisis, lower automotive demand worldwide, and continuing supply-chain problems. In 2023, new-vehicle sales are projected to remain flat, particularly in Europe and the US. According to the Economic Intelligence Unit (EIU), global new car sales are expected to increase by just 0.9%, hindered by reduced consumer spending, high commodity prices, and supply-chain disruptions causing production delays. Sales in western Europe are predicted to fall by about 3%, while in North America, they are expected to drop by 2.4%. Additionally, new commercial vehicle sales will also decline globally by 1.3% due to a forecasted recession in the Eurozone and slower GDP growth in the US and China. Overall, new-vehicle sales are anticipated to see marginal growth in 2023, mainly driven by growth in Asia, the Middle East, Africa, and Latin America. Despite this, the total global new-vehicle sales of 79 million units in 2023 are expected to lag behind the pre-pandemic levels of 88 million units.
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