Car sales players have done better than expected during COVID-19
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Many ASX stocks involved in car sales are reporting they’ve done better out of COVID-19 than expected.
Carsales.com (ASX:CAR) told shareholders earlier this month the crisis had its upsides and downsides for the industry.
The company reported its inventory had decreased since the beginning of May due to a reduction in time to sell as well as people buying cars to avoid public transport.
On the other hand, many of the COVID-19 restrictions including business lockdowns and social distancing have proven challenging.
Carsales.com noted in particular the escalation of the crisis in Brazil was impacting its local investee Webmotors. Additionally, car imports are at nine-year lows.
But the majority of ASX stocks in vehicle sales (including market places, parts makers and manufacturers) are in the green in the last quarter.
While some of this has been a recovery since the market bottomed out on March 24, they are also in positive territory on a 12-month basis, by an average of 21 per cent.
Here’s a summary of ASX stocks involved in vehicle sales (excludes battery and traffic technology stocks):
Scroll or swipe to reveal table. Click headings to sort.
While many stocks have not provided updates for some weeks now, those that have reported good news.
Ttyre brand owner National Tyre & Wheel (ASX:NTD) today informed shareholders trading results in May and June exceeded expectations.
It expects operating earnings to be between $10.5m and $11m.
Shares climbed 20 per cent this morning.
Aftermarket parts and servicing outlet Bapcor (ASX:BAP) likewise told shareholders last week it had seen a recovery in May and June, again quicker than it expected.
But it did warn future demand may moderate as stimulus reduces and economic uncertainty lingers.
It hasn’t only been stocks serving the four-wheel vehicle market doing well.
Speaking with Stockhead, Vmoto finance director Ivan Teo credited changing consumption patterns in light of COVID-19 which benefited the company.
These included the rise of delivery platforms and two-wheeled personal transport vehicles being cheaper and more flexible.
Motorcycle Holdings (ASX:MTO) has performed solidly in the last three months, both from a stock price and earnings perspective.
While it saw a dip in sales in March, trading improved in May to above ordinary levels and it anticipates full year earnings between $24m and $27m.