GCG’s Q3 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:
- The broader U.S. equity market saw sustained decreases in Q3 2022 as consistent Federal Reserve rate increases create additional caution and uncertainty in the market. Inflationary pressures continue to pose a challenge across the entire Automotive sector, with companies battling rising input and material costs coupled with supply chain disruptions.
- Based on a selected group of Automotive companies across various sub-sectors, the industry experienced an average decrease of 9.7% in share price over the latest 3-month period. Automotive Manufacturers continue to fight for market share in the growing electrical vehicle market, which should provide substantial tailwinds for the industry in coming years.
- In Q3 2022, middle-market M&A activity within the Automotive sector saw a further decline in transaction volume compared to Q2 2022. Q3 2022 deal volume saw a slight decrease compared to Q3 2021, forecasting a weaker year in the middle-market M&A space.
- Automotive Retail continued to remain the most active sector, accounting for 63.0% of total Automotive transaction volume. Auto Parts & Equipment showed increased sector strength as well, recording 18.1% of Automotive transaction volume in Q3.
Click here for the full update.