Buy the weakness on global car makers

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Global auto manufacturers are getting crushed on the view that higher gas prices will stifle their sales. This is not necessarily going to happen. In fact, global demand for cars is not going to be squelched by this. If anything, the fact that the big names like General Motors ( GM , quote ) and Toyota ( TM , quote ) are investing to add hybrid models to their main product line means that the industry can still adapt to anything the oil market can dish out. In fact, the big banks are even upgrading the major Japanese names in particular -- TM along with Nissan ( NSANY , quote ) -- because these companies continue to give emerging markets consumers in particular exactly what they need. Even an upturn in steel prices can barely dent this story. This, in turn, is good news for low-margin operators like Tata Motors ( TTM , quote ), which needs to keep its sticker price as low as possible to tempt India's burgeoning new middle class into its cars. Buy the weakness here. These companies are not going away, and pent-up demand for cars among billions of people is not going away any time soon either -- no matter where gas prices go.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks: GM , TM , TTM

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