Furthermore, the chip shortage, which has raised the prices of new cars, has led to increased demand for used cars. As a result, the average transaction price for a used car soared to $25,410 in the second quarter of 2021, up 21% year-over-year. Since the demand for vehicles is expected to remain high, with people avoiding mass transit to avoid encountering COVID-19, the auto manufacturing industry is expected to continue growing. According to Statista, 69.8 million cars are expected to be sold this year.
Given this backdrop, it could be wise to bet on the stocks of renowned auto manufacturers Subaru Corporation (FUJHY) and Mazda Motor Corporation (MZDAY), which are priced below $10 per share. They are expected to continue rallying in the near term based on their fundamental strength and growth prospects.