Should you buy these 2 EV-related stocks?

Highlights 

  • The demand for new cars increased by 1.7 per cent in November on a year-on-year basis, to 115,706 units.
  • Battery electric vehicles (BEVs) market share more than doubled to 18.8 per cent, to 21,726 units and plug-in hybrids’ market share rose to 9.3 per cent.
  • The SMMT called on setting charging infrastructure rollout targets after it found the on-street public charging infrastructure were lagging.

The demand for new cars increased by 1.7 per cent in November on a year-on-year basis, to 115,706 registered units, thus ending a four-month consecutive decline, according to data published today by the UK trade body, the Society of Motor Manufacturers and Traders (SMMT).

However, the new car demand last month was down by 31.3 per cent from the pre-pandemic November five-year average due to the ongoing chip shortage being faced by the industry.

According to SMMT data, demand for plug-in cars accounted for 28.1 per cent of the market last month. Wherein battery electric vehicles (BEVs) had a market share of 18.8 per cent, with 21,726 units. BEVs market share more than doubled, rising from its 2020 market share of 9.1 per cent.

And the market share of plug-in hybrids (PHEVs) rose to 9.3 per cent, with 10,796 units, from a 2020 market share of 6.8 per cent.

Despite this uptake in plug-in vehicles’ demand, the SMMT found on-street public charging infrastructure was facing some difficulty in keeping up the required pace. Thus, SMMT called on setting charging infrastructure rollout targets.

Given this background, let us take a closer look at 2 FTSE listed EV related stocks in the auto and automotive parts sector and their investment prospects:

  1. Aston Martin Lagonda Global Holdings PLC (LON: AML)

The shares of British luxury car company, Aston Martin Lagonda Global Holdings are showing a downtrend after the group stated last week that its CFO would be stepping down next year by 30 June 2022.

 AML share price and volume

Image source: Refinitiv

Aston Martin’s shares were trading at GBX 1,322.50, down by 3.33 per cent on 6 December at 12:37 hrs BST, while the FTSE 250 index, which it is a part of, was at 22,714.01, up by 0.30 per cent.

The company had a market cap of £1,589.75 million as of Monday.

Related Read: Aston Martin (AML) & Glencore (GLEN): 2 EV focused stocks to buy

Should you buy these 2 EV-related stocks?

  1. Autins Group PLC (LON: ATG)

Autins Group specialises in the design and manufacture of thermal insulations for the auto industry and other specialist applications. The group recently raised about £3.0 million in gross proceeds from a share placement. It issued 15,000,000 new ordinary shares and had a price of 20 pence per share.

The net proceeds from the placing will be used for boosting its EV product development, which can be used as a buffer while the sector recovers from chip supply issues and other factors.

 ATG share price and volume

Image source: Refinitiv

Autins Group’s shares were trading flat at GBX 22.00, on 6 December at 13:00 hrs BST. While the FTSE AIM All-Share index, which it is a part of, was at 1,178.15, down by 0.35 per cent.

The company had a market cap of £ 8.71 million and a one-year return of 25.35 per cent as of Monday.

Comment


Disclaimer