The automobile industry, which has been around for more than a century and is regarded as a barometer of an economy’s health, is one of the oldest sectors in the world. Due to its massive employment, the automotive industry significantly affects the state of the economy. According to McKinsey, the sector’s value will increase from $3.5 trillion in 2015 to $6.7 trillion in 2030. Future new vehicle sales will be dominated by shared vehicles, with new car sales only increasing by 2%. By 2030, sales of new cars will increase to 122.83 million units. Asia Pacific will account for the majority of this growth. According to Market Research Future, the industry will increase at a compound annual growth rate (CAGR) of 6.55% by 2027.
Insider Monkey highlighted the 10 best auto stocks to invest in. One of the most well-known automakers in the world is Volkswagen AG. By 2030, the business wants to have six enormous gigafactories built. Analysts predict that the impending Porsche IPO will increase the value of Volkswagen stock. The luxury car margins of Mercedes-Benz Group AG are expected to be aggressively improved while shipments of these vehicles decline. The company wants to sell 510,000 fewer entry-level vehicles by 2026 while upping the average selling price by up to 20%. A Chinese automaker called BYD Company Limited sells a variety of automobiles, including hybrid and battery-electric models as well as cars with internal combustion engines. The company also offers for sale construction, sanitation, buses, and coaches. Toyota Motor Corporation is well recognized for its middle-class sedans and coupes. One of China’s leading producers of electric vehicles is XPeng Inc. In July 2022, the company sold 11,524 electric automobiles to China, a 43% yearly growth. For more details, click 10 Best Auto Stocks To Invest In.