Investing with a 360-degree approach through the capital structure: Automotive Focus

In Short

The automotive sector is undergoing a phase of significant evolution and discontinuity.

While it is undeniable that the demand for automobiles is expected to persist - even if it may take different forms - the prospects for major players, particularly in Europe, appear uncertain in the face of the significant challenges they are facing:

1.Electric Transition
The transition to the exclusive production of electric cars is set for 2035 when the last petrol or diesel cars can be registered in EU countries, as determined by the European Union Energy Council last May.

This transition is destined to profoundly transform the automotive sector, creating new winners and losers.

2.Chinese Competition
In the electric car sector in China, a new national player, BYD, has quickly emerged. This is an emblematic case, more unique than rare, of a company capable of transforming and establishing itself in a capital-intensive industry with significant entry barriers, such as the automotive sector.


Download the full commentary below


© Generali Investments, all rights reserved. This website is provided by Generali Investments Holding S.p.A. as the holding company of the main asset management companies of the Generali Group having, directly or indirectly, the majority shareholding in the companies listed below (hereinafter jointly, “Generali Investments”). This website may contain information related to the activity of the following companies: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S.p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* and among its subsidiaries Global Evolution Asset Management A/S - including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC as well as Generali Investments CEE. *Includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”).