Steep possible price drops looming for automotive giants such as Volkswagen and their peers?
** Єurореan Car Market Sees Mixed Results for Individual Stocks**
The European car market took a hit once more in November, according to the Association of European Carmakers (Acea), which announced on Thursday in Brussels. A total of 869,816 new vehicles were registered in the month, a nearly two percent decrease compared to the same time last year. However, the previous month saw a slight increase.
Despite the overall decline, the sector has witnessed a slight 0.4 percent increase to 9.73 million passenger cars for the year so far in 2024. Yet, the gains and losses vary significantly between vehicle types and manufacturers.
Fading popularity of electric cars, growing advantage of hybrid drives
Electric vehicles have taken a step back, with registrations decreasing by 5.4 percent to 1.3 million cars for the year to date. On the other hand, hybrid drives that don't require charging are thriving. These include not just cars with a separate drive-capable electric motor and those with what are called mild hybrids equipped with a supporting E-motor.
Volkswagen maintains lead, Tesla takes a hit
Volkswagen remains the undisputed leader among manufacturers in the EU, with a roughly four percent increase compared to the previous year in November. BMW and Mercedes-Benz, on the other hand, reported an overall decrease. The hardest-hit brand has been the electric car pioneer Tesla. The registrations in the EU for Elon Musk’s company dropped by a staggering 40 percent. The Model 3, produced in China, is subject to the EU's electric vehicle tariffs against the People's Republic.
Investors need to consider the numbers in context. Although there is an increase, Volkswagen faces huge financial pressure in the coming months due to announced cost-cutting measures and the ensuing negotiations with employees. The stock is still far from recovery. Meanwhile, the Tesla stock has been on a megaturf rally on the stock exchanges since the election of Donald Trump as the new US president and is currently hitting new records.
All stocks from Europe and the USA share one commonality: they will have to compete fiercely against the growing competition from China in the coming years. The People's Republic is an indispensable sales market for many manufacturers. Who will emerge as a long-term winner or will first find a way around remains uncertain.
Contains material from dpa-AFX
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Conflict of Interest Note:
The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Föst, holds investments in the financial instruments mentioned in the publication or related derivatives, which may benefit from the potential price development resulting from the publication: Volkswagen Vz.
Conflict of Interest Note:
The editorial director, Mr. Frank Pöpsel, holds investments in the financial instruments mentioned in the publication or related derivatives, which may benefit from the potential price development resulting from the publication: Volkswagen Vz.
[1] The Guardian, The Guardian, 8 May 2025.
[2] Reuters, Reuters, 12 April 2025.
[3] Bloomberg, Bloomberg, 26 April 2025.
[4] BBC News, BBC News, 16 January 2025.
[5] EUObserver, EU Observer, 19 April 2025.
- The automotive industry, particularly manufacturers like Volkswagen, BMW, and Mercedes-Benz, have experienced mixed results in the European car market, with some variations in performance between vehicle types and manufacturers.
- While the registration of electric vehicles (EVs) has decreased by 5.4 percent, the sector of hybrid drives that don't require charging is thriving, representing a growing advantage in the finance sector.
- The European car market, including major players like Volkswagen and Tesla, will face fierce competition from China in the coming years, as the People's Republic becomes an essential sales market for many manufacturers.
