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While new car prices have declined after the past five years after all, 2024 may see increased demand from car buyers. For consumers, the average value of a new vehicle in the U. S. isU. S. inflation fell 1. 2% in January from a year earlier. The value of used cars is also cooling, with the average value falling 3% from a year earlier and 12% from its peak in April 2022.
At first glance, while this trend might seem worrisome to car investors, it is beneficial. As new cars become more available and inventories are replenished, consumers are likely to see falling costs after years of inflation as a sign to buy.
In addition, many automakers retain significant revenue from the source of auto parts that are already on the road. Therefore, the resurgence of the used car market may increase demand and revenue. As such, here are 3 auto stocks placed to take advantage of an auto market recovery.
By investing resources in hybrid engine technology, Toyota offers new car buyers significant benefits in terms of fuel power and engine longevity. This strategy has made Toyota a champion, as its reputation makes it one of the most attractive automakers on the market. .
For investors, Toyota’s monetary functionality over the past year has been particularly impressive. With cash in the fourth quarter of 2023 reaching JPY 12. 04 trillion and quarterly profit margins of up to 51. 21%, Toyota’s sales expansion cannot be ignored. Car stocks for investment cannot be approved with TM.
As the world’s leading automotive conglomerate, Stellantis (NYSE: STLA) shares appear undervalued relative to market trends. Although young, STLA is a difficult merger of two long-standing giants: Fiat Chrysler Automobiles and the PSA Group. By 2023, the company ranked fourth among global automakers in terms of sales volume.
Covering markets across multiple continents, Stellantis leverages economies of scale to influence the industry and offer competitive pricing across all its brands. In addition, with an impressive number of 14 brands, from Chrysler and Jeep to Alfa Romeo and Maserati, the company has a wealth of technological and design credentials for the cars of the future.
German luxury giant Mercedes-Benz (OTCMKTS:MBGYY) has adopted a cutting-edge strategy to grow, which has led it to stabilize in the industry. Its name conjures up photographs of sleek sedans and opulent SUVs, but Mercedes dominates in a product category that is highly unforeseen among automakers: vans. And more specifically, the push for all-electric vans.
In 2023 alone, Mercedes-Benz sold more than 23,000 all-electric eSprinter vans, a 51% increase in sales through 2022. These vans, applicable to various sectors, from delivery to transport, constitute the long-term origin operations of several European companies. In addition, the EV niche is well suited for vans due to its application for urban deliveries and overnight garages in depots.
The expertise and business strategy that Mercedes-Benz is developing around its electric vans will eventually be at the heart of the company’s future. In fact, by 2030, Mercedes-Benz aims to offer an all-electric edition of each and every vehicle in its range. . Quite an impressive target among automotive stocks.
At the time of publication, Viktor Zarev had no position (either directly or indirectly) in the stocks analyzed in this article. The perspectives expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace. com.
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