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Highlights:
- Recent data has shown that as many as 80,091 cars were manufactured in November, 5.7% higher than in November 2021.
- More than one out of three cars produced during the month were electric vehicles.
The global semiconductor shortage has affected several industries. In particular, the automobile industry has been hit with challenges due to the shortage, impacting supply. However, recent data from the Society of Motor Manufacturers and Traders (SMMT) looks promising.
According to the trade body, as many as 80,091 cars were manufactured in November, 5.7% higher than in November 2021. This is the sixth consecutive month of growth in the past seven months, even as the production levels remain below the pre-pandemic levels.
More than one out of three cars produced during the month were electric vehicles (EVs), including battery electric, plug-in hybrid and hybrid. SMMT further revealed that compared to the same period a year ago, their volume jumped 18.3% to 29,318 units.
Image source: OlegRi, Shutterstock
In the 11 months till November this year, UK carmakers have rolled out 209,930 EVs combined, which is 2.9% higher over the same period last year.
For the overall numbers, 723,846 cars have left showrooms in 2022, 9.2% lower than the 797,265 in the same period in 2021. It may be recalled that 2021 was said to be a "dismal" year, as the output tumbled to the lowest-ever levels in more than 60 years.
Let's look at some auto-related stocks in the wake of the latest data.
Auto Trader Group Plc (LON: AUTO)
Auto Trader Group is a British, classified business. It deals in both new and used cars. The Manchester-headquartered firm holds a market capitalisation of £4,833.91 million and belongs to the blue-chip index FTSE 100. The earnings per share (EPS) stand in the positive territory at 0.26, but the 12-month and year-to-date returns are in the red at -28.22% and 3.03%, respectively. As of 11:10 am GMT on Wednesday, the stock traded at GBX 531.40, up 2.11%.
Vertu Motors Plc (LON: VTU)
Vertu Motors is among the UK's largest motor retailers. Its shares traded at GBX 53.20, up 1.33% as of 11:11 am GMT on Wednesday. At the time of writing, VTU's one-year return stood at -22.28%. The YTD was at -1.04%. The FTSE AIM All-Share listed VTU holds a market cap of £183.20 million as of 4 January 2023.
Pendragon Plc (LON: PDG)
Pendragon is a leading automotive retailer in the UK. It belongs to the FTSE All-Share index and has a market capitalisation of £266.12 million as of 4 January 2022. The EPS stands at 0.04, and the 12-month return is -18.91% at the time of writing. PDG shares were trading at GBX 18.70, down 1.84% as of 11:13 am GMT on Wednesday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
