Q1 2022 Automotive Industry Update

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GCG’s Q1 2022 Automotive Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

    • While short-term public market trends have recently been negative, the market has clearly been making specific bets in the automotive sector over the past 3 years. The market value of auto OE manufacturers has been the best performing sub-sector of Automotive and has outpaced the S&P 500.
    • The poorest performing sub-sector has been automotive suppliers, whose market value has barely changed over the past 3 years.
    • The key factors influencing the outsized returns in automotive manufacturers include the prospects of capturing a bigger share of the disruptive electric vehicle market, the potential for autonomous vehicles which will drive significant value, as well as pricing power caused by the pandemic and supply chain disruptions.
    • During Q1 2022, middle-market M&A activity within the Automotive sector saw a slight decrease in transaction volume compared to Q4 2021. However, Q1 2022 deal volume rose by 25% compared to Q1 of 2021.
    • Automotive Retail was the most active sector, accounting for 70.2% of total Automotive transaction volume.

Click here for the full update.

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