** Auto parts retailers Bapcor BAP.AX, Amotiv AOV.AX and ARB ARB.AX rise between 1.3% and 2.7%; car retailer Eagers Automotive APE.AX gains 1.1%

** Last month, Federal Chamber of Automotive Industries reported YTD new car volumes in Australia falling ~5% year-on-year

** Morningstar expects new car sales to improve in H2, ending roughly flat vs 2024

** Says real incomes per capita finally rising again; a potential rate cut could further boost consumer confidence and discretionary spending

** Flags demand for automotive parts tied to growing and ageing pool of cars, not directly to new car sales

** YTD, BAP and APE jump 7.1% and 48.8%, respectively, while AOV and ARB lose 22.5% and 18.5%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))