Earlier today, the Federal Chamber of Automotive Industries (FCAI), released new vehicle sales figures for February 2021.
Here are some details of the details released and the ASX automotive shares to keep an eye on.
Continued growth in new-car sales
Australian new-car sales have surged for the fourth month in a row.
The FCAI reported that a total of 83,977 vehicles were sold in February 2021. The positive result was 5.1% higher than the prior corresponding period when 79,940 vehicles were sold.
According to the FCAI, SUV sales dominated the result. This amounted to sales of 42,651 vehicles, representing 50.8% of the total market for February 2021.
The FCAI noted that growth in the market was driven by purchasers classified as private buyers. In addition, sales in February 2021 to private buyers were 15.8% higher in comparison to February 2020.
FCAI chief executive, Mr Tony Weber, noted that the result showed that confidence was continuing to grow in the market. Mr Weber stated that:
We remain confident that this trend of growth will continue in an environment where business operating conditions continue to normalise.
Prior to November 2020, the Australian car industry had reported 31 months in a row of sales decline. Here are 2 ASX200 automotive shares that could benefit from booming new car sales.
ASX Automotive shares that could benefit
Since new-car sales growth was fuelled by private buyers, Eagers Automotive Ltd (ASX: APE) and Carsales.Com Ltd (ASX: CAR) could benefit.
Eagers is Australia's oldest listed automotive retail group, operating dealerships across the country. Last week the company released its financial results for FY20 and also announced a CEO succession.
For FY20, Eagers reported an increase in statutory revenue to $8,749.7 million compared to $5,817 million in FY19. In addition, the company reported a 102% increase in underlying profit after tax of $140.4 million.
The Eagers share price has recovered strongly in the past year, surging more than 70% in the last 52-weeks.
Carsales also released its financial results for the first half of FY21 last month. The company reported strong earnings growth in both its domestic and international markets.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 18% to $126 million for the half-year. In addition, Carsales reported a 17% increase in adjusted net profit after tax (NPAT) of $74 million.
Like Eagers, the Carsales share price has recovered strongly from its lows in mid-March of 2020.
