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Highlights
- UK Government is planning to launch self-driving cars on UK roads by 2025.
- The new industry may possibly grow into a sector worth £42 billion, while employing a workforce of about 38,000.
- Under the new legislation, the widespread roll out of the vehicles could take place by 2025 and funds worth £34m would be channelized towards safety developments.
Self-driving cars would soon be seen on UK roads. An announcement was made on Friday that by 2025, the UK Government is planning to introduce fully self-driving cars on the roads.
Meanwhile, some of the vehicles having self-driving features may potentially be given clearance for use as soon as next year. Under the government’s plan worth £100 million, the new industry may grow into a sector worth £42 billion, while employing a workforce of about 38,000.
Under the new legislation, the widespread rollout of the vehicles could take place by 2025 and funds worth £34m would be channelized towards safety developments. Additional funds worth £20m would be channelised towards supporting the introduction of commercialized self-driving services, which may include passenger shuttle pods and delivery of grocery deliveries.
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Reportedly, Transport Secretary Grant Shapps has said that self-driving vehicles could prove to be quite beneficial and have a great potential. In addition to enhancing the accessibility of educational and other essential services, the self-driving vehicles industry has the potential of creating hundreds of thousands of job opportunities across the nation.
The most significant contribution of self-driving vehicles would be towards the reduction of threats of driver error in road collisions while making the roads safer for people.
With the automobile revolution coming up soon, UK investors can keep an eye on automotive retail stocks listed on the London Stock Exchange.
Amid this, here are 3 stocks which the investors may explore.
Pendragon plc (LON: PDG)
The shares of the UK’s second biggest motor retail company, Pendragon plc, were up by 1.65% while trading at GBX 24.60 at around 8:15 AM (GMT+1) on Friday. With a market cap of £338.06 million, the Pendragon plc enjoys a low P/E ratio of 5.23 but its EPS (earnings per share) was in the negative zone at -0.02. The company’s one-year and YTD returns have been decent at 32.61% and 6.18%, respectively.
Lookers plc (LON: LOOK)
The shares of the leading car dealership chain based in the UK, Lookers plc, were trading at GBX 77.00 at 8:23 AM (GMT+1) on Friday. The company holds a market cap of £302.10 million at the time. Lookers offers its investors an annual dividend yield of 3.2%. The company has offered its stockholders decent returns on one-year and YTD basis as of 19 August, at 12.34% and 15.89%, respectively.
Motorpoint Group Plc (LON: MOTR)
The shares of the British independent e-commerce led retailer of omnichannel vehicles, Motorpoint Group Plc, were trading at GBX 199.50 at around 8:30 AM (GMT+1) on Friday. The company holds a market capitalization of £179.93m at the time. However, the returns of the company on both one-year and YTD basis are in the negative territory as of 19 August, standing at -37.66% and -43.00%, respectively.
