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Summary
- According to SMMT data, car production in the UK increased significantly in April.
- 68,306 cars were manufactured in April compared to 197 in the same period a year ago.
- The figures also reflect an increasing shift in preference to electric vehicles.
Car production in UK increased significantly in April, though technically only. According to the Society of Motor Manufacturers and Traders’ (SMMT’s) data, The UK made 68,306 cars in April compared to 197 in the same period a year ago, as pandemic restrictions had completely halted manufacturing.
However, April 2021 figures were 3.8 per cent below the output level of April 2019. In 2021 till now, UK produced 374,864 cars. April’s performance offset earlier falls to clock a 17.3 per cent increase overall. But the level was down by 15 per cent compared to the four-month period since January in 2019.
The figures also reflect an increasing shift in preference for electric vehicles. In April, almost 23 per cent of car manufacturing was for plug-in hybrid, hybrid cars, and battery electric. Production of the alternatively fuelled model was up 33.1 per cent compared to the 2019 levels. This is reflective of UK’s commitment towards shifting to zero-emission vehicles.
CEO of SMMT Mike Hawes said that though the figures reflected that the UK was on track to normality, but strong domestic demand and better overseas markets could drive the recovery of both the sector as well as the larger economy.
Here we will look at how two FTSE 250 automobiles and parts stocks reacted to the data:
Aston Martin Lagonda Global Holdings PLC (LON:AML)
The shares of the luxury carmaker were up 1.84 per cent and were trading at GBX 2,050 on 27 May at 10:34 GMT+1. The company has a market capitalisation of £2,313.61 million. Meanwhile, the FTSE 250 index was up 0.08 per cent at 22,657.51.
Also read: How Aston Martin’s EV Push Can Boost Its Stock Performance
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The company’s total wholesale volumes were up 134 per cent for the first quarter ended 31 March 2021 at £1,353 million from £578 million in the same period a year ago. Its operating loss fell to £15.3 million from £67.9 million. The revenues increased 153 per cent to £224.4 million from £88.8 million a year ago.
TI Fluid Systems Plc (LON:TIFS)
The shares of the automotive fluid storage company were up 0.17 per cent and were trading at GBX 298 on 27 May at 10:45 GMT+1. The company has a market capitalisation of £1,547.80 million.
Also read: Hyundai And Shell Ink New Deal for Clean Mobility Solutions
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For the first quarter ended 31 March 2021, the company’s group revenue was up 9.7 per cent to €787 million from €717.3 million in the same period a year ago. The group has kept its outlook guidance for 2021 unchanged, and despite uncertainties, it expressed its confidence that the full year revenue goal would be able to meet the volumes for global light vehicle production.
