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Highlights
- The UK car production declined by 27% year-on-year in August 2021 to 37,200 compared to 51,000 in August 2020.
- It is estimated that the shortage in the supply of chips will cut down the country’s total car production for 2021 by 100,000.
The UK car industry production fell for the second consecutive month in August 2021, as the computer chips shortage impacted the recovery of the sector. The UK car production declined by 27% year-on-year in August 2021 to 37,200, according to the Society of Motor Manufacturers and Traders (SMMT). In August 2020, car production in the UK stood at 51,000 when manufacturers stepped up production to make up for the losses during the lockdowns.
Demand recuperated as economies opened, but car manufacturers across the globe are struggling to keep up with the demand due to the shortage of computer chips used in the car entertainment systems, electric car batteries and windscreen wipers controls, among others.
According to the SMMT, the shortage in the supply of chips will lower the country’s total car production for 2021 by 100,000. However, the rising share of battery-powered cars and hybrids may offer some respite to manufacturers as the UK plans to ban sales of all new diesel and petrol cars by 2030, followed by hybrids in 2035.
(Data source: EODHD/Others)
Let us review in detail the performance of two leading car manufacturers in the UK – Aston Martin and Rolls-Royce.
Aston Martin Lagonda Global Holdings Plc (LON: AML)
Aston Martin Lagonda is a luxury vehicle manufacturer based in the UK. For H1 2021 ended 30 June 2021, the company’s revenue was up by 242% year-on-year to £498.8 million compared to £146 million in H1 2020. Total whole volume sales of the company rose by 224% year-on-year to 2,901 in H1 2021 from 895 in H1 2020.
At the close of trade on Wednesday, 29 September 2021, the shares of Aston Martin Lagonda traded at GBX 1,918.50, up by 0.29%. The market cap of the company stands at £2,223.09 million.
Aston Martin’s adjusted EBITDA grew by £138 million year-on-year to £48.8 million in H1 2021. Its loss before tax reduced from £227.4 million in H1 2020 to £90.7 million in H1 2021. Its cash position as of 30 June 2021 was £506 million compared to £489 million as of 31 December 2020.
The shares of Aston Martin Lagonda gave a return of 84.83% to shareholders in the last one year.
Rolls-Royce Holdings Plc (LON: RR.)
Rolls-Royce is a UK based luxury automobile manufacturer. Recently, the company inked a definitive agreement for the sale of ITP Aero for €1.7 billion to Bain Capital Private Equity-led consortium. It also agreed to sell its 23.1% stake in AirTanker to Equitix Investment Management Limited for £189 million.
At the close of trade on Wednesday, 29 September 2021, the shares of Rolls-Royce Holdings traded at GBX 144.60, up by 1.36%. The market cap of the company stands at £11,937.21 million.
For H1 2021, Rolls-Royce revenues recorded were £5,159 million compared to £5,673 million in H1 2021. Its pre-tax profit rose to £114 million from a loss of £5,213 million in H1 2020.
The shares of Rolls-Royce Holdings gave a return of 200.12% to shareholders in the last one year.
