Vehicle sales are important for a bunch of ASX stocks from car dealers to novated leasing providers and even further up the chain to monitor the sales of electric vehicles (EV’s) as a proportion of the pie which will show trends across local adoption and the like. For October there were 95k new cars sold, an increase of 18% from this time last year and +12% vs 2019. Of those sales, 4,886 or 5% were EV sales, increasing from 3% share the prior month. Vehicle supply remains tight and monthly deliveries remain choppy – my Uber driver on the weekend saying he was guided to a 24-month wait on the Rav 4 hybrid! While this undersupply underpins new car dealer margins now, we are starting to see used car prices roll over and it’s only a matter of time before this starts to impact new car prices (and thus margins) – i.e. the car market will likely have a tougher period ahead (ASG & APE), including the novated leasing and salary packing companies (SIQ & MMS).
MM has turned more neutral on SIQ
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