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Cramer: Autos may be the next big play

CNBC's Jim Cramer said Tuesday investors should look to the auto sector as monthly sales come in higher than expected.

"I saw an 18 million [annualized] unit number yesterday. … If we're doing 18 million units, you have to buy everything autos," Cramer said on "Squawk on the Street."

On Tuesday, General Motors reported a 3 percent rise in sales for May from April, beating Edmunds.com estimate of 1 percent.

Ford Motor also beat expectations despite seeing a monthly sales decline of 1.3 percent. Edmunds.com estimated the company's sales would drop 3.4 percent.

Read More Ford to make 40K more vehicles by cutting downtime

"This is the strength right here. We're seeing all these Fed numbers, and so many of them aren't good, but then you get that auto line [and see that] autos are pretty fabulous.

DISCLOSURE: Cramer's trust owned GM stock when this article was published