The automotive sector closes 2021 expected profit - sthe main groups will end 2021 with joint profits of 93,000 million euros.
The automotive sector pulverizes estimates and makes profits well above expectations, thus recovering from the coronavirus crisis in a strong way.
The large groups in the sector have finished the first half of the year above the expected gains. In addition, they will end 2021 with a joint profit of 93,237 million euros, an increase of 46% taking into account the consensus estimates of last year, which expected profits of 63,723 million euros, according to data from FactSet that El Economista collects.
Automotive sector closes 2021 expected profits
Of course, it should be noted that the sector has benefited from the interannual comparison, since in the same period last year the figures were especially marked by the harsher restrictions of the pandemic.
In any case, the progressive return to normality that the vaccination campaign is allowing has favored an increase in demand, which causes the forecasts that the large automobile companies had to be exceeded.
Automotive sector closes 2021 expected profits
The group that records the best data in this regard is Stellantis, the merger of the consortia PSA and FCA, since its net profits pro forma in the first months of the year have been 5,936 million euros. This allows consensus estimates to set a profit of 10,126. 4 million euros for the whole of 2021, which means tripling the 3,693 million expected at the beginning of this year.
And Stellantis isn't the only one presenting hopeful data. Daimler, BMW and Ford have also recorded gains that raise initial estimates.
Automotive sector closes 2021 expected profits
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The recovery of consumption gains strength in Summer: it grows by 20% in July compared to 2019 driven by domestic tourism
Consumers are supporting economic recovery from the coronavirus crisis. After a year marked by restrictions on activity and mobility, in which the budgets of many households have focused on basic expenses such as housing or needs arising from the pandemic, especially masks, consumption is rebounding strongly during the first half of the summer with the reactivation of tourism.
In fact, consumption has increased by 20% in July compared to the same month of 2019, with spending with a bank card standing 28% above its records of 2 years ago and cash withdrawal regaining ground but remaining 3% below the level of the year before the outbreak of the pandemic, according to a study by BBVA Research collected by El País.
The report of the bank's research service attributes this strong growth in consumption to the arrival of the summer holidays and the boost in national demand, with domestic tourism taking advantage of the savings accumulated during the months of confinement, while tourism from abroad is slowly rising and its card spending is still 21% behind that recorded in July 2019.
This behavior is in line with the forecasts of the tourism sector, which expected the national consumer to carry the weight of a summer holiday in domestic key, which will be essential for the sector to recover at least part of the 106,000 million euros accumulated losses during 2020, which caused tourism to lose 8 points in its contribution to the State GDP, according to Exceltur.
BBVA Research, for its part, provides that the summer season will meet the expectations, while saying that their numbers will not overcome of 2019 due to the impact of a start to the year in which the arrival of foreign tourists ended the quarter with fewer international travelers since 2000, at the beginning of the historical series, according to The Country, which highlights that the figures summer will improve long 2020, which was the worst year in the history of the world tourism.
The report claims that consumers are spending more than before the pandemic, stressing that this consumption is heading to products and services that have not been accessed in the past months due to restrictions linked to the coronavirus, such as leisure, catering and entertainment, further highlighting that in the last week of July, the spending with the card was gaining strength and repuntaba a 33% compared to the same month of 2019.
BBVA Research points to a change in trend towards greater digitalization and an upturn in consumption in high season, which could be anticipating an even more marked recovery in August, highlighting the link between consumption and tourism in the most requested weeks of the summer and the importance of the security that consumers perceive to spend and travel, although specifying that this impulse could be temporary and fade after the holidays.