Investing in Automobile Manufacturers Stocks
If you’re considering investing in the car industry, then there are a few things that you are going to need to consider first. There are a few car manufacturers that have dominated the market, so it is always safe to go with them, however there are a few underdogs that you may want to consider investing in long-term in order to capitalize on your investment, as their popularity is beginning to grow. We’re taking a look at some of the best car manufacturers to have shares in, to help give you guidance on where to put your money in the market.
Ford, Vauxhall, Volkswagen
When it comes to looking at the big players in the game, particularly in the UK market, then you have to take into account the huge popularity of Ford, Vauxhall and Volkswagen who, between March 2013 and June 2016, dominated the market, with the remaining seven of the top 10 leading companies holding less than seven percent of the market share. In addition to this, based on the best-selling car brands of October 2016, in EU-28, statistics based on new-car registrations have also shown Volkswagen topping the table, with Ford and Vauxhall only being narrowly beaten by Renault (the French brand). Due to the affordable cars that these brands produce, along with more availability of car insurance for a short term, when compared to some of the faster, lesser known brands, it is no surprise to see these three brands being some of the best car manufacturers to invest in.
If you’re searching for a reliable player in the market to have shares in, then Toyota Motor Corp is certain to be one to watch in the coming year. In America, there has been a 0.2% increase in 2016 in the group, with some of their cars such as the Highlander and the RAV4 remaining in high demand throughout America. Although Toyota won’t quite be at the level of Ford for a while, they are beginning to grow in popularity, due to the reliability and performance that the Japanese brand provides with all of its cars. Other intriguing factors are that stock trading is at just 9 times earnings, and the company sports a healthy debt-to-equity ratio of 1.09 and 2.65% yield, in America. This may begin to spread across other countries throughout the world, and because of this you can be certain that they will be a strong long-term investment, however may not provide you with a lot of return in the short-term.
This is going to be a phenomenon that we will be seeing more and more of throughout the years, with Apple recently revealing plans for self-driving cars, as well as Google. While this is not going to necessarily be a steady investment, there are a number of companies out there that are offering stocks involved with Driverless Vehicles. On top of this, far more economical cars are going to begin to be reproduced, so it may be worth looking to see if there are small brands entering the market, or larger brands that are likely to make a great opportunity about the new technological trends in the automobile industry.