Automotive investments


Staff member
Deal, Kent UK
A3 1.4 TFSI 150 COD
From an investment point of view I think most in the auto industry are significantly undervalued at the moment.

Brexit uncertainty has led people to be ultra cautious about buying cars and upgrading.

Rising fuel and running costs and taxation of older cars in city and urban areas is pushing people into new purchases.

The thing is that most people have held off major purchases in the last year, until we see a resolution to Brexit.

We have to remember that car sales are cyclical and people and fleet managers will upgrade their cars to newer models, every few years or so. The period of dithering and delaying is coming to an end, and these sales will still happen in our opinion.

Therefore I see great investment potential in the following companies, on the basis that the next 12 months will be a bumper year, and pick up on all those delayed purchases people were putting off.

Aston martin - A luxury car maker. It recently launched on the markets and the price has sunk like a stone ever since. The typical buyer is not going to be affected too much by Brexit and I anticipate a strong uptick in sales over the next few months.
Aston Martin Lagonda Global Holdings PLC

I tip this one to rise 20% over the next 6 months.

Autotrader - as car sale volumes increase so will the revenue at autotrader.
Auto Trader Group PLC

I'm expecting to see 15% towards the end of the winter season.

Inchcape group - they have been consolidating and reducing costs to weather the low sales period, and will be very well placed to pick up on the recovery and boom periods in due course.
Inchcape plc

This has been relatively stable but I see a 20% upside on this over the next 12 month period.

By way of disclosure I do not currently hold any positions in these companies, but will be adding them to my portfolio in due course.