UBS survey finds current conditions 'solid' for Aussie auto sector

Autosports

20/09/2022 01:27

** Analysts at UBS say current market conditions are largely
positive for Aussie auto-part dealers Eagers Automotive  APE.AX 
and Autosports Group  ASG.AX , and automotive aftermarket
businesses Bapcor  BAP.AX  and GUD Holdings  GUD.AX  
    ** Brokerage says survey conducted by UBS Evidence Labs
suggests vehicle purchase intentions remained relatively steady
in 3Q despite declining house prices and higher interest rates 
    ** Says survey shows high income earners are showing
increasingly positive spend intentions for new vehicles - more
positive for ASG given its greater inclination to luxury
segments
    ** UBS survey found that consumer spend on motor vehicle
servicing has significantly reaccelerated following the COVID-19
pandemic, indicating strong aftermarket parts demand for GUD and
BAP
    ** UBS also notes that demand for Electric Vehicles (EVs)
continues to rise 
    ** Brokerage views increased EV demand as broadly negative
across the dealer and aftermarket automotive coverage, but notes
 supply still remains a significant headwind to greater
penetrations of EVs
    

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))