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Summary
- UK’s auto industry body, the Society of Motor Manufacturers and Traders (SMMT), said July 2021’snew car sales have dropped by 30 per cent from July 2020 -- lowest since 1998
- The drop was due to a semi-conductor shortage being faced by the industry due to the UK’s ‘pingdemic’
- SMMT marginally downgraded its 2021 projections to 1.82 million cars, and is expected to announce final July data later today
The UK’s July 2021’s new car sales fell by about 30 per cent on an annual basis, due to a semi-conductor shortage. With many of the British citizens were forced to self-isolate due to Covid-19 or due to coming in contact with someone who already had Covid. The drop is even more astonishing considering it had dropped to its lowest level, seen in a month since 1998.
While July 2020 was a fruitful month for car dealership across Britain following the initial lockdown, this year’s numbers have been complete opposite.
The surge in Covid-19 isolation alerts by the NHS’ test and trace app has been dubbed as the ‘pingdemic’ in the UK. This year, about 1.73 million people in the country were in self-isolation as of 20 July from a total population of roughly 67 million, which comes to 2.6 per cent of entire UK population being forced to go under self-isolation due to Covid-19.
According to industry body the Society of Motor Manufacturers and Traders (SMMT), about 122,000 cars were registered in July. However, SMMT downgraded its 2021 projections to 1.82 million cars. The industry body is expected to announce July’s final data later today.
In view of this news, let us take a look at 3 FTSE listed automobile stocks and how they reacted to the news:
- Aston Martin Lagonda Global Holdings PLC (LON: AML)
FTSE 250 index constituent and luxury carmaker Aston Martin recently announced its interim H1 2021 results. AML’s total wholesale volumes rose by 224 per cent to £2,901 million from £895 million in H1 2020.
Aston Martin’s H1 2021 revenues rose by 242 per cent to £499 million due to the strong growth in wholesales and due to having strong pricing dynamics from £146 million.
AML’s shares ended at GBX 1,985.00, down by 0.18 per cent on 4 August. While the FTSE 250 closed at 23,347.73, up by 0.25 per cent.
AML’s market cap stood at £2,306.76 million and its one year return was at 74.12 per cent.
Also Read: Why Aston Martin (LON:AML) and Hurricane Energy (LON:HUR) shares are trending?
- TOYOTA MOTOR CORPORATION (LON: TYT)
Main market listed company Toyota Motors is a leading car manufacturer. The company announced its Q1 2022 results on Wednesday, reporting sale revenues rose by 72.5 per cent to JPY 7,935,558 million, from Q1 2021’s revenues of JPY 4,600,796 million, and its net income rose by 520 per cent to JPY 926,540 million in Q1 2021.
The company’s posted record profits as sales rebounded but didn’t provide FY 2022 estimates due to ongoing Covid-19 headwinds and semiconductor shortages.
Toyota’s shares ended at JPY 10,056.53, up by 0.26 per cent on 4 August. While the automotive sectoral index closed at 4,957.23, up by 0.15 per cent.
Toyota’s market cap stood at £216,205.86 million and its one year return was at 59.24 per cent.
- HYUNDAI MOTOR COMPANY (LON:HYUO)
HYUNDAI Motors, the Korean automaker recently announced its July sales results on Tuesday. It reported total sales units sold in July was down by 13.1 per cent on a monthly basis, at 309,901 units from 356,628 units in June.
It’s total year to date sales in July were up by 21.6 per cent to 2,341,094 units, compared to 1,924,743 units in July 2020.
Hyundai’s shares ended flat at USD$ 110 on 4 August. Hyundai’s market cap stood at £31,724.28 million and its one year return was at 101.83 per cent.
Also Read: All about Hyundai new EV: Ioniq 5
