AML, CWR, AFC: Stocks under lens as car production dips in April

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AML, CWR, AFC: Stocks under lens as car production dips in April

 AML, CWR, AFC: Stocks under lens as car production dips in April
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Highlights

  • British car production in April fell by 11.3% because of the geopolitical tension between Russia and Ukraine and the ongoing global shortage of semiconductors.
  • As per data from SMMT, a total of 60,554 cars were built last month, compared with 68,306 in April 2021.

British car production fell by 11.3% in April, on the back of geopolitical tensions and the ongoing global shortage of semiconductors. Some experts have also blamed broader industry structural and model changes.

British car production in April fell by 11.3%

©2022 Kalkine Media®

According to data published by the Society of Motor Manufacturers and Traders (SMMT), a total of 60,554 cars were built last month, compared to 68,306 cars in April 2021. The total number of cars produced in the UK for the first four months of 2022 was around 267,901, down from 374,864 units a year before.

Around 12,768 cars produced in April were for the home market, which has increased from 7,975 units in April 2021. However, the production for the overseas market fell by 20.8% from 60,331 in April 2021 to 47,786 in April 2022. It was driven by a 68% decline in exports to the US and a 10.4% drop in Asia.

Exports to the European Union (EU) were around 60%, a rise of 5%, while car manufacturing for the UK grew for the second month in a row, up by a massive 60.1%, mainly because of new models in the market.  

Despite tough economic conditions, the shift towards plug-in hybrids, battery, electric and hybrid vehicles is going strong. Around 26.4% of cars, or around 16,010 units manufactured in April, were electric, up by 2.1% in the same month in 2021.

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Let us look at three related stocks that investors might choose to invest in. 

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

The current market cap of the world’s leading luxury car company, Aston Martin Lagonda Global Holdings Plc, was £715.06 million. The shares of the company were up by 3.52% to GBX 635.60 around 10:50 AM (GMT+1) on 26 May 2022.

The company reported a 4% increase in its revenue in Q1 2022 to £232.7 million, from 224.2 million in Q1 2021. Its operating loss rose by 212% from £15.3 million in Q1 2021 to £47.7 million in Q1 2022. 

The FTSE 250 index constituent has provided its shareholders with a negative return of 67.93% over the last one year as of 26 May 2022, while its YTD return stood at 52.32%.   

 A total of 60,554 cars were built last month, compared with 68,306 in April 2021.

©2022 Kalkine Media®

  1. Ceres Power Holdings Plc (LON: CWR)

The current market cap of the fuel cell technology and engineering company, Ceres Power Holdings Plc stood at £1,253.39 million. The shares of the company were up by 2.28% to GBX 671.60 around 10:50 AM (GMT+1) on 26 May 2022.

The FTSE AIM UK 50 index constituent has provided its shareholders with a negative return of -33.31% over the last one year as of 26 May 2022, while its YTD return stood at 32.60%.  

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  1. AFC Energy Plc (LON: AFC)

The current market cap of AFC Energy Plc stood at £183.64 million. The shares of the company were down by 1.44% to GBX 24.64 around 10:50 AM (GMT+1) on 26 May 2022. The company announced that one of its hydrogen fuel cells will be showcased at Air One, which will be used to charge Air One’s fleet of EV service vehicles.

The FTSE AIM 100 index constituent has provided its shareholders with a negative return of 59.40% over the last one year as of 26 May 2022, while its YTD return stood at 49.60%.   

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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