Looking for an overlooked stock sector? Try auto parts

Industry Overview - The auto aftermarket sector is projected to grow by 5.1% in 2025, reaching $413.7 billion, following a 5.7% growth in 2024 according to S&P Global Mobility [1][2] Vehicle Ownership Trends - U.S. vehicle owners are retaining their vehicles longer, with the average age of vehicles on the road now at a record high of 12.6 years, up from 9.6 years in 2002 [3] - The high cost of new vehicles, with the average price exceeding $45,000, and elevated interest rates are leading consumers to prioritize repairs and maintenance over purchasing new cars [3] Maintenance Costs - The average annual cost to repair and maintain a vehicle is approximately $419.42, a 43.6% increase since 2019, while the average annual cost of owning a new car is around $7,612 [3][4] Market Dynamics - Increased vehicle ownership duration results in higher demand for maintenance services, such as oil changes and brake jobs, which has become a stable revenue stream for auto parts companies [4] - Companies in the auto parts sector have demonstrated consistent growth, even during economic downturns, making them attractive for long-term investment [4]