Prof. Procyon Mukherjee’s Post

🌍 𝗚𝗲𝗿𝗺𝗮𝗻 𝗔𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗖𝗿𝗶𝘀𝗶𝘀: 𝗔 𝗧𝗵𝗿𝗲𝗮𝘁 𝘁𝗼 𝗜𝘁𝗮𝗹𝗶𝗮𝗻 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻? The German automotive sector, a cornerstone of the European industry, is facing severe challenges. Rising energy costs, growing competition from Chinese electric vehicles, and the ecological transition are reshaping the landscape. These disruptions are having a direct impact on Italy, whose automotive production heavily relies on German exports. 🚗⚡ 🔍 Key insights: ❌ Closure of several factories in Germany. ❌ Volkswagen's drastic cost-cutting measures. ❌ Delays in Europe’s adoption of electric vehicles. This situation raises pressing questions about the resilience of Europe’s industrial supply chains in times of global crises. What adjustments are needed to safeguard production and ensure long-term sustainability? 👉 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗮𝗿𝘁𝗶𝗰𝗹𝗲: https://lnkd.in/e65t5Qmg 💬 𝗝𝗼𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻: How can Europe strengthen its industries to tackle these global challenges? #Automotive #EuropeanIndustry #Sustainability #Innovation #Restructuring #Collaboration

Shares of #Chinese automakers climbed Tuesday, shrugging off a U.S. government proposal to ban certain types of vehicles equipped with car parts from #China and #Russia, amid a broad rally after Beijing announced policy easing.  Hong Kong listed Li Auto rose over 8%, while NIO surged 9%. Shares of BYD climbed 2.7%, while GEELY added 3.3%. Leapmotor jumped 4.35%.

The less full electric-vehicle (EV) exposure the better Looking at the automobile sector, over the last few months, the focus has clearly been on further price cuts and lower growth ex-China for EVs, Chinese EVs piling up at European ports, discussions around potential tariffs and retaliation measures, new EV brands struggling, and an impressive comeback for plug-in hybrids.   Beyond that, when we look at the European automobile sector's just finished 1Q24 results season, there is one key takeaway: it was a tough one! Pricing held reasonably up. But sales volumes were weakish, with overall revenues disappointing. Consequently, margins either met or missed consensus expectations; there were no earnings beats in this earnings season. Hence, there was no additional impulse for automotive stocks. Interestingly, all auto company management teams are confident about 2H and believe they are on the winning side. However, experience shows that not all can be winners at the same time. Challenges include peaking pricing in Europe, high inventories in the US, tough competition in China (not only in EVs), as well as the risk of politically driven tariffs and retaliation between Europe and the US and China. So how should investors manage this situation? We recommend exposure mainly to high-end companies with pricing power and strong brand positioning, including tire suppliers, and would limit exposure to the European brands that depend heavily on the Chinese auto market.

💨 Despite Policy Friction, China's Auto Industry Thrives in First Quarter Recent data reveals a notable expansion in China's automobile sales and production, particularly in the electric vehicle (EV) sector, during the first quarter of 2024 amidst escalating tensions with Western nations regarding industry support policies. According to the China Association of Automobile Manufacturers, auto sales in China surged by 10.6% to reach 6.72 million vehicles in the initial quarter of the year. State-run Xinhua News Agency, citing association figures, reported a 6.4% year-on-year increase in the country's auto output to 6.6 million units during the same period. The production of new-energy vehicles (NEVs) demonstrated significant growth, soaring by 28% compared to the previous year to reach 2.1 million units. NEV sales also experienced a substantial increase of nearly 32%, totaling 2.09 million units. China, already the largest auto exporter globally, witnessed a 33% rise in overseas shipments to 1.32 million units in the first quarter. In response to criticism from the U.S. and Europe alleging excess EV capacity due to China's industrial policies, Xinhua defended China's position, stating that such accusations were unfounded. The commentary emphasized that claims of overcapacity in China's EV industry were baseless, despite remarks from U.S. Treasury Secretary Janet Yellen during her recent visit to the country regarding artificially low-priced Chinese goods. While China's economy, the world's second-largest, has faced challenges in returning to pre-pandemic growth levels, concerns have arisen over government support favoring supply chains over consumer spending. This has led to apprehensions about potential export subsidies in the automotive and green energy sectors. #GTEC #automotive #china_auto

💥 Despite Policy Friction, China's Auto Industry Thrives in First Quarter Recent data reveals a notable expansion in China's automobile sales and production, particularly in the electric vehicle (EV) sector, during the first quarter of 2024 amidst escalating tensions with Western nations regarding industry support policies. According to the China Association of Automobile Manufacturers, auto sales in China surged by 10.6% to reach 6.72 million vehicles in the initial quarter of the year. State-run Xinhua News Agency, citing association figures, reported a 6.4% year-on-year increase in the country's auto output to 6.6 million units during the same period. The production of new-energy vehicles (NEVs) demonstrated significant growth, soaring by 28% compared to the previous year to reach 2.1 million units. NEV sales also experienced a substantial increase of nearly 32%, totaling 2.09 million units. China, already the largest auto exporter globally, witnessed a 33% rise in overseas shipments to 1.32 million units in the first quarter. In response to criticism from the U.S. and Europe alleging excess EV capacity due to China's industrial policies, Xinhua defended China's position, stating that such accusations were unfounded. The commentary emphasized that claims of overcapacity in China's EV industry were baseless, despite remarks from U.S. Treasury Secretary Janet Yellen during her recent visit to the country regarding artificially low-priced Chinese goods. While China's economy, the world's second-largest, has faced challenges in returning to pre-pandemic growth levels, concerns have arisen over government support favoring supply chains over consumer spending. This has led to apprehensions about potential export subsidies in the automotive and green energy sectors. #GTEC #automotive #china_auto

💥 Despite Policy Friction, China's Auto Industry Thrives in First Quarter Recent data reveals a notable expansion in China's automobile sales and production, particularly in the electric vehicle (EV) sector, during the first quarter of 2024 amidst escalating tensions with Western nations regarding industry support policies. According to the China Association of Automobile Manufacturers, auto sales in China surged by 10.6% to reach 6.72 million vehicles in the initial quarter of the year. State-run Xinhua News Agency, citing association figures, reported a 6.4% year-on-year increase in the country's auto output to 6.6 million units during the same period. The production of new-energy vehicles (NEVs) demonstrated significant growth, soaring by 28% compared to the previous year to reach 2.1 million units. NEV sales also experienced a substantial increase of nearly 32%, totaling 2.09 million units. China, already the largest auto exporter globally, witnessed a 33% rise in overseas shipments to 1.32 million units in the first quarter. In response to criticism from the U.S. and Europe alleging excess EV capacity due to China's industrial policies, Xinhua defended China's position, stating that such accusations were unfounded. The commentary emphasized that claims of overcapacity in China's EV industry were baseless, despite remarks from U.S. Treasury Secretary Janet Yellen during her recent visit to the country regarding artificially low-priced Chinese goods. While China's economy, the world's second-largest, has faced challenges in returning to pre-pandemic growth levels, concerns have arisen over government support favoring supply chains over consumer spending. This has led to apprehensions about potential export subsidies in the automotive and green energy sectors. #GTEC #automotive #china_auto

Chinese automakers are on a trajectory to achieve global dominance in the automotive market by 2030, with an expected market share of 33% worldwide. Despite efforts by the U.S. to protect its domestic market through trade policies and tariffs, Chinese brands are rapidly expanding their presence in international markets, particularly through aggressive electric vehicle (EV) production and strategic investments in regions like Europe, Mexico, and South America. This expansion is bolstered by significant government subsidies, competitive pricing, and advanced technological capabilities. The rise of Chinese automakers poses a substantial challenge to Western manufacturers, who face a shrinking market share both globally and within China. #chineseautomakers #globaldominance #electricvehicles #evmarket #automotiveindustry #breakthroughenergy #marketshare #globalexpansion #china #europe #southamerica #digitaltransformation #automotiveinnovation