- The SMMT report points outs the UK car industry is undergoing a forgettable June for new car sales.
- Sales have dipped by 24% compared to June 2021, thereby making it the lowest figure since 1996.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), the UK car industry is undergoing a forgettable June when it comes to new car sales. When compared to last year, the registrations have dropped by 24% thereby making it the worst June for new car sales since 1996. A major reason could be that new owners are choosing to buy electric vehicles.
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This drastic drop has largely been associated with the global shortage of components, such as semiconductors, and rising energy prices, which has put pressure on manufacturing costs, thereby affecting its ability to fulfill demand.
Not just that, even the early 2022 figures indicated a dip of 12% compared with the same period in 2021. This represents the second weakest first half of a year since 1992. Not just that, as per reports, the drivers are still struggling to get their delivery of some of the models, with the waiting period being extended to over 12 months.
A separate report from green motoring consultancy New AutoMotive shows the new electric cars registrations were up by 5% to 16% in June 2022 as compared to June 2021. The UK has already made its intentions clear to reach net-zero emissions by 2050, and for this, they had earlier announced that the sales of new petrol and diesel vehicles will be banned from 2030.
We have shortlisted three FTSE stocks that investors may consider.
- Aston Martin Lagonda Global Holdings Plc (LON: AML)
Luxury Sports maker Aston Martin Lagonda Global Holdings Plc’s market cap stood at £467.24 million as of 5 July with both one-year and YTD returns in the negative territory on Tuesday, at -77.65% and -68.45%, respectively. Its Earnings Per Share (EPS) too followed the same script with negative returns at -5.43. The car markers’ shares on Tuesday were trading at GBX 410.00 and were up by 2.19% at 8:10 AM (GMT+1).
- Saietta Group Plc (LON: SED)
The FTSE AIM All-Share listed multinational engineering company’s market cap stood at £125.57 million as of 5 July 2022 and its YTD return stands at -42.56%. The company’s shares were trading at GBX 147.50, at 8:10 AM (GMT+1) on Tuesday.
- TI Fluid Systems Plc (LON: TIFS)
TI Fluid Systems’, which is primarily a manufacturer of fluid storage systems, shares were trading at GBX 154.00, up by 0.92%, at 8:10 AM (GMT+1) on 5 July. Its market cap stood at £793.93 million on Tuesday. However, its performance has taken a hit over the past year with both one-year and YTD returns in the negative territory as of 5 July, at -51.95% and -39.37%, respectively. Its Earnings Per Share (EPS) also lies in the negative territory, at -0.49. The company’s shares were trading at GBX 154.00, up by 0.92%, at 8:10 AM (GMT+1) on 5 July.
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