The global auto industry faces slower profit growth as the Covid-induced vehicle shortage, which gave US and EU automakers significant pricing power, is set to reverse. Average Ebit margins for US automakers could fall as much as 200 bps and EU peers will be stagnant at best, based on consensus. Japan’s automakers may get a 100-150-bp gain, due partly to a weaker yen, while the average profit margin in China is finally showing signs of a recovery after a seven-year decline, with our analysis indicating an expected increase of 100-200 bps.
Bloomberg
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