New car registrations in the UK only increased 1% in 2021 as the industry continues to show a slow recovery from the Covid-19 pandemic. According to the initial estimate of the Society of Motor Manufacturers and Traders (SMMT), around 1.65 million new cars have been registered in the country, up from 1.63 million vehicles in 2020, indicating slow growth in l industry and the worst year since 1992.

However, industry experts still believe that the overall demand for new cars is high. However, supply remains the main obstacle, mainly due to the low production of cars. UK auto production has remained weak due to a shortage of semiconductors, leading to delays in deliveries to customers.

Sales of electric cars appear to be the industry’s only bright spot. The popularity of plug-in cars has increased dramatically during the year. Around 305,000 new electric vehicles were registered in 2021. More electric cars were sold last year compared to the total number of cars registered between 2016 and 2020.

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Let’s take a look at 3 FTSE listed stocks of the car dealership business:

The company operates in the automotive retail business, providing sales services for new and used cars, motorcycles and other vehicles. It also operates an online platform to sell cars and accessories.

The company’s business posted a strong performance in the first two months of the fourth quarter of 2021, driven by strong consumer demand for new and used cars. The insufficient supply of new vehicles continues to weigh on sales. However, the shortfall was smaller during the period compared to the previous period.

Pendragon Plc’s last close was at GBX 22.70 on January 5, 2022, with a market cap of £ 317.11million.

Caffyns Plc (LON: CFYN)

The vehicle retail company offers a line of new and used cars and accessories. It sells vehicles of various popular brands and has the main business in the South East of England.

For the six-month period ended September 30, 2021, the company announced a 30% increase in revenue to £ 110.8million, with pre-tax profit of £ 2.30million. The company relaunched its dividend distribution policy with an interim dividend of 7.5p per share following a good performance.

Caffyns Plc’s last close was at GBX 550 on January 5, 2022, with a market cap of £ 14.82million.

Motorpoint Group Plc (LON: MOTR)

The company sells new and used cars in the UK through a network of 14 outlets. The total group turnover of the company increased by 57% during the six-month period ended September 30, 2021.

Used car sales have increased significantly thanks to strong consumer demand and a reduced supply of new vehicles. Due to increased demand, the company expanded its product offering to include 3-4 year old cars.

Motorpoint Group Plc’s last close was at GBX 324 on January 5, 2022, with a market cap of £ 292.22million.

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