Cookies

We use cookies in order to provide you with an optimal website experience. These include cookies that are technically or legally necessary for operating our site and controlling our commercial business objectives as well as cookies that are used for anonymous statistical purposes, monitoring comfort settings or displaying personalized content. The decision as to which types of cookies to allow is up to you. Please note that, based on your settings, some features of our website might not be accessible for you. For more information, see Details and Settings.

 

These cookies are absolutely vital for operating our site. They are required for security reasons or are necessary from a legal point of view.
*They cannot be deactivated.

In order to improve our website for you further, we collect anonymous data for statistical and analytical purposes.

These cookies are intended to facilitate use of our website for you. Your settings can be saved for 30 days.

26.8.2020

Recovery is in sight for the German auto industry – thanks to a trend towards e-mobility

According to Jürgen Pieper, Director of Research and Senior Advisor at Metzler Capital Markets, "The German auto industry suffered an unprecedented slump in the second quarter of 2020 because of Covid-19." In some key regions of the world, such as southern Europe, new car sales more than halved compared to the same quarter last year. Nearly all car manufacturers and suppliers suffered losses. However, the industry is recovering, albeit at different speeds depending on the region. In China, sales figures are already higher than they were in January, i.e. before the corona economic slump. In Europe and the USA, however, recovery is slower, but Pieper estimates the year-on-year decline in sales to have been only around 5% in July. Although government incentives may have contributed to recovery, they have not been the decisive factor, especially in Germany where the purchasing incentive is neither high enough nor sufficiently far-reaching.

Interestingly, there has been a clear trend towards electromobility during the pandemic. "Government subsidies have contributed to this, but the real key has been a shift in consumer behavior," says Pieper. "Apparently, car buyers have become more sensitive during the corona crisis to ‘soft’ issues like health and environmental protection.” In Germany, the shift towards electromobility has been particularly striking. In July, the market share of electric and hybrid vehicles in new car purchases in Germany was 22%. This represents an increase of well over 100% compared to the same month last year. For the future success of German OEMs and suppliers, one crucial factor is likely to be the extent to which the company is positioned for future technologies.

More articles

This document constitutes promotional material published by B. Metzler seel. Sohn & Co. KGaA (Metzler).

It is based on information which is generally available and which Metzler believes to be fundamentally reliable. Metzler has not verified the accuracy or completeness of the information and provides no warranty or representation in respect of the accuracy or completeness of the information, opinions, estimates, recommendations and forecasts contained in this document. Neither Metzler nor any of its shareholders or employees may be held liable for damages or any other disadvantage suffered due to inaccurate or incomplete information, opinions, estimates, recommendations or forecasts resulting from the distribution or use of this document or in connection with this document in any way.      

This document is provided for advertising purposes only and does not constitute or form part of any offer or solicitation of any offer to buy securities, other financial instruments or other investment instruments. This document does not meet the legal requirements for ensuring impartiality of investment recommendations pursuant to Section 85 of the German Securities Trading Act (WpHG) in conjunction with Section 20 (1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of April 16, 2014 regarding market abuse (Market Abuse Directive) to which Articles 4 and 6 of the Delegated Regulation (EU) 2016/958 of the Commission of March 9, 2016 apply in addition to the Market Abuse Directive. Metzler does not act as investment advisor or portfolio manager in preparing this document. This document does not constitute personal investment advice.

The information, opinions, estimates, recommendations and forecasts contained in this document reflect the personal views of the author at the time of publication on the financial instruments or issuers that form the subject of this document and do not necessarily reflect the opinions of Metzler, the issuer or third parties. They may also be subject to change on account of future events and developments. Metzler has no obligation to amend, supplement or update this document or to otherwise notify recipients in the event that any information, opinions, estimates, recommendations or forecasts stated herein should change or subsequently become inaccurate, incomplete or misleading. The model calculations contained in this document, if any, are examples showing the possible performance and are based on various assumptions (e.g. regarding earnings and volatility). The actual performance cannot be guaranteed, warranted or assured.

This document may not be copied, duplicated, forwarded to third parties or otherwise published, in whole or in part, without Metzler’s prior written consent. Metzler reserves all copyrights and rights of use, including those relating to electronic media. Insofar as Metzler provides hyperlinks to websites of the companies cited in research publications, this does not mean that Metzler confirms, recommends or warrants any data contained on the linked sites or data which can be accessed from such sites. Metzler accepts no liability for links or data, nor for any consequences which may arise as a result of following the links and/or using the data.

This document is subject to the laws of the Federal Republic of Germany. Venue of jurisdiction for any disputes shall be Frankfurt am Main, Germany.