Luxury Cars - comment

We have recently focused on Aston Martin and its wrestling with supply chain issues in the first half of the year. However, we noted that Aston’s order book has been strong. Further evidence that those that can afford supercars are not cutting back yet was in Ferrari’s results. Ferarri, one of Aston’s key competitors, saw shipments rise 28% in Q2 (and net revenues rise 25%). Most Ferrari models are now sold out for 2022. Ferrari’s EBITDA margins did fall from 37% to 35% on higher costs although the company had previously guided margins at 34.5% - 35.5% due to cost base pressures. Aston may not be able to resolve its supply chain problems on its own, but its target customer base is still keen.