Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The impact of the semiconductor chip shortage and high raw material costs is likely to be felt on the earnings of most carmakers in the second half of the year. 


German carmaker BMW and French auto manufacturer Stellantis noted in their H1 and Q2 2021 earnings report that the effects of the chip shortage, as well as increasing prices of raw material, would likely affect the company’s H2 2021 bottom line. In fact, the companies noted that the latter would prove to be a bigger challenge in the second half of the year as it would result in longer lead times.


Still, BMW reported higher-than-forecasted earnings for H1 2021, with Oliver Zipse, Chairman of the Board of Management at BMW attributing the rise to strong consumer demand.


In H1 2021, BMW reported that the sales of its electrified vehicles more than doubled to 153,243 units compared to the same period last year. The company’s overall deliveries increased during the first half of the year. BMW car deliveries increased by 39.9pc to 1.18 million units, BMW Motorrad, its motorcycle brand’s deliveries grew by 40.3pc to 107,610 units, Mini deliveries rose by 32.8pc to 157,848 units and Rolls Royce deliveries almost doubled to 2,989 units against H1 2020.


The company’s gross profit in H1 2021 grew to €9.73bn ($11.54bn) against €498mn in the same period last year and increased in Q2 2021 to €5.98bn compared to a loss of €300mn in the same period last year.


In H1 2021 Stellantis reported a 25pc growth in its North America shipments to 873,000 units from 697,000 vehicles in the January-June period last year, while its South America shipments more than doubled to 424,000 units from 186,000 units in the same period.


Europe’s shipments increased by 41pc to 1.66 million units in H1 2021 from 1.18 million in H1 2020, shipments to the Middle East and Africa grew by 48pc to 200,000 vehicles from 130,000 units in the same period. Stellantis shipped 102,000 vehicles to China and India & Pacific region in H1 2021, up from 75,000 units.


The company’s net revenue stood at €72.6bn in H1 2021 compared to €19.6bn in the same period last year while its net profit increased to €5.8bn from €797mn in the same timeframe.



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