Car manufacturers in Germany advancing at a rapid pace?
In the rapidly evolving world of e-mobility, Chinese manufacturers are proving they should not be underestimated. As many new players enter the market, some using Special Purpose Acquisition Companies (SPACs) to do so, the procedural transition towards e-mobility is a monumental task for many companies.
According to Jan Burgard, CEO of the Berylls Group, traditional automakers like Volkswagen have faced challenges in the software arena, a crucial component for e-mobility to take off. This high degree of dependence on traditional suppliers is a challenge that many manufacturers face.
On the domestic Chinese market, companies like BYD, SGMW, Nio, and Xiaopeng Motors are experiencing significant success. Notably, Nio and BYD have achieved success on the US stock market and are actively pursuing expansion into the European market. Nio, in particular, set a new record by delivering 31,305 vehicles in August 2025, and is investing heavily in core technologies and battery swapping infrastructure to address technological leadership and range anxiety for customers.
However, investing in the Chinese stock market comes with potential risks. The government can make significant interventions, and there is a risk associated with investing in the Chinese electric vehicle manufacturers due to their rapid growth and changing corporate landscape.
In Europe, the energy storage sector holds the greatest potential, according to Peter Schoemig, with a need for development in terms of capacity, charging cycles, and charging time. Smaller innovative suppliers in this sector are currently in demand, but this also comes with risks.
Meanwhile, on the German market, the early-cycle industry started to recover as the crisis began to ease. Jürgen Pieper, auto analyst at Metzler Capital Markets, believes that German automakers are gradually catching up, with Volkswagen being a prime example. Pieper also suggests that investing in the stocks of German automakers could be lucrative.
Investors must accept a higher risk when considering investments in the Chinese stock market due to recent developments, and should exercise caution when considering portfolio diversification in the auto stocks market due to the influx of new players. Three ETFs that focus on auto stocks are available, but it is important to note that investing in the capital market involves risks, and past performance is not indicative of future results.
In conclusion, the global rush towards e-mobility is a complex and exciting landscape. While challenges remain, it is clear that Chinese manufacturers, such as Nio and BYD, are making significant strides in the industry, and traditional automakers like Volkswagen are gradually catching up. As always, investors should approach the market with caution and a clear understanding of the risks involved.
