European automakers confront tariffs, Chinese rivalry at Munich car show By Nick Carey, Christoph Steitz and Christina Amann MUNICH (Reuters) -Major automakers will showcase their latest models at Munich’s car show on Monday as Europe’s automotive sector faces crises ranging from U.S. tariff hikes to costly electrification and the expansion of Chinese automakers on their home turf. Aside from a product blitz to counter Chinese models being pushed to European consumers, including by BYD, Changan and GAC, domestic firms will focus on lobbying to persuade the European Union to reconsider its 2035 ban on combustion-engine cars. Attention will also be on U.S. President Donald Trump’s tariffs on European-made cars. Even if a U.S.-EU trade deal agreed in July goes ahead, European automakers would face a 15% tariff that could force them not to sell less profitable models in the U.S. European automakers at the IAA Mobility show in Munich, running from September 9-12, also face sinking sales in China, the biggest single market for Volkswagen, BMW and Mercedes-Benz. Meanwhile, auto executives and lobby groups are pushing hard for the EU’s fossil-fuel car ban, which is up for review by the end of 2025, to be scrapped or changed. BMW CEO Oliver Zipse called the ban a "big mistake" on Friday, seeking emissions regulations instead, that capture a vehicle’s entire supply chain. Danijel Visevic, managing partner at climate tech-focused venture capital firm World Fund, said such lobbying by European automakers was "stupid" and that "they should put their energy into building the best, cheapest cars to out-compete the Chinese." 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. China remains the biggest challenge for Europe’s auto industry. According to consultancy AlixPartners, as recently as 2020, global automakers had a 62% market share in China, which shrank to 46% in 2023 and could drop to 28% by 2030. Porsche has felt that pain acutely after seeing its Chinese sales fall 28% in the first half, and will suffer the ignominy of dropping out of Germany’s benchmark blue-chip index on September 22 - almost three years to the day since its landmark initial public offering. That will further raise pressure on Oliver Blume, CEO of Porsche parent Volkswagen, to drop his unpopular dual role as Porsche’s CEO. Chinese automakers also pose a problem for the likes of Volkswagen in Europe. According to JATO Dynamics, Chinese brands almost doubled their European market share to 4.8% through July this year versus the same period in 2024. And consultants McKinsey estimate that within a decade, Chinese automakers could command a share equal to what Japanese and Korean automakers enjoy now, of 14% and 9%, respectively. Phil Dunne, a managing director at consultancy Stax, said Europe’s automakers have moved too late to counter this threat after years of complacency, and now, "the Chinese are here to stay." ProPicks AI evaluates VOWG alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if VOWG is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?

Click Subscribe #EuropeanAutomakers #CarShow #MunichAutoShow #Tariffs #ChineseRivalry

’It’s Europe vs China’ as Chinese brands crowd Munich car show By Nick Carey, Christoph Steitz and Christina Amann LONDON/FRANKFURT/BERLIN (Reuters) -Chinese and European carmakers are set to face off at next week’s Munich car show, reflecting intensifying competition on the continent that has pitted incumbents such as Volkswagen against EV giant BYD and newcomers GAC and Changan. This year’s IAA Mobility, the continent’s biggest biennial car show, comes as European automakers lose ground in China - the world’s biggest market - in what some executives have described as a "Darwinian" price war. At the same time, to escape pressure at home Chinese automakers are expanding into Europe in search of profits, above all electric vehicle maker BYD, whose global sales soared to 4.2 million cars in 2024, up ten-fold from 2019. "It’s Europe versus China," said Pedro Pacheco, vice president of research at Gartner. "The Chinese are trying to grow in Europe while the Europeans are trying to push back on EVs and software." BYD will be joined in Munich by fellow Chinese brands Changan, GAC and FAW’s Hongqi brand, among others. "China is not only back, but more present than ever," said Jan Heckman, divisional head at German auto lobby VDA, adding this year’s IAA will have 40% more Chinese exhibitors compared to 2023. According to JATO Dynamics, Chinese brands almost doubled their European market share to 4.8% between January and July 2025 year-on-year. McKinsey estimates they could eventually match the share currently held by Japanese and Korean automakers, which stood at 14% and 9%, respectively. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. TRADE WAR PUTS FOCUS ON EUROPE Growth has come despite recently imposed EU tariffs on Chinese-made EVs. "Tariffs will not stop the Chinese," said Xing Zhou, partner at consultancy AlixPartners. "As the USA is not accessible for political reasons, Europe is all that’s left." Hongqi, once favoured by Chairman Mao Zedong, will unveil its EHS5, EHS7 and EHS9 models and outline a European strategy. Chery, China’s top car exporter, will launch its Omoda and Jaecoo brands in Germany, while BYD will showcase its premium Denza brand and the Seal 6 DM-i Touring plug-in hybrid sedan. Through July, BYD’s European sales jumped 290% to more than 84,000 cars. Recent weak sales in China and production declines add additional pressure to grow faster in Europe. Europe’s automakers, including Mercedes-Benz, BMW and Renault, are preparing a robust response. "From a product perspective, this year’s IAA is much more important for European and German automakers than it was two or four years ago," said Harald Deubener, senior partner at McKinsey. BMW will debut its iX3 SUV, the first in its Neue Klasse EV lineup. Renault will launch the Clio 6 and Mercedes-Benz will present the GLC, the first in a new generation of EVs. Volkswagen will launch its compact hatchback ID.Polo EV, which should start below 25,000 euros ($29,267) in 2026. "What is particularly important is that it is not just niche models that are being presented, but genuine volume drivers," Deubener said. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Phil Dunne, a managing director at consultancy Stax, said European automakers have been slow to respond to the Chinese challenge. ($1 = 0.8542 euros) Get an up-to-the-minute summary from WarrenAI, our powerful AI financial researcher. It's just like ChatGPT for investors, but with access to 1,200+ premium metrics spanning 10 years of data to instantly screen fundamentals, summarize breaking news, and reveal what Wall Street analysts are really saying about VOWG. Ask questions in your own language and get insider answers in seconds. Think of it as your experienced investment partner—always ready to help you think through every angle of VOWG.

Click Subscribe #MunichCarShow #EuropeanAutomakers #ChineseBrands #ElectricVehicles #BYD

European automakers surge after U.S. announces trade pact with Japan Investing.com - Shares in European automotive stocks climbed on Wednesday, mirroring a jump in their peers in Asia, as a trade pact between the U.S. and Japan underpinned hopes for a similar deal with the European Union. Milan-listed shares of Jeep-maker Stellantis (NYSE:STLA) rose, along with Germany’s Volkswagen (ETR:VOWG_p), Mercedes Benz (ETR:MBGn), BMW (ETR:BMWG) and Porsche. Renault (EPA:RENA) was also higher, despite posting no growth in second-quarter sales volume. The increases came after steep advances in many Japanese car groups. Toyota (NYSE:TM) Motor (TYO:7203) led the rally with a 14% surge, while Honda (NYSE:HMC) Motor (TYO:7267) jumped over 11%. Nissan (TYO:7201) rallied roughly 8%, while Mazda (TYO:7261) surged nearly 17%. South Korean peers strengthened too, with Hyundai (OTC:HYMTF) Motor (KS:005380) up 7.5% and Kia Corp (KS:000270) rising 8.5%, as investors speculated that Seoul may secure trade terms near to those made with Japan. The stock moves came after President Donald Trump announced his administration had completed a “massive deal” with Japan, which will see the Asian country face a 15% tariff. Crucially, Japan’s all-important auto industry, which accounts for over a quarter of the country’s exports to the U.S., will see its levies set the same rate. Trump added that Japan will invest $550 billion into the U.S., of which the U.S. will “receive 90% of the Profits.” “Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” he said in a social media post. The deal -- one of the most significant of a series of preliminary trade pacts since Trump first unveiled his heightened global levies in April -- comes after reports said Japan’s top trade negotiator, Ryosei Akazawa, met Trump in the White House on Tuesday. While the 15% tariff is lower than the 25% initially outlined by Trump, it still goes against Tokyo’s earlier demands that Japan be exempt from all U.S. tariffs. "The trade deal with the U.S. announced today removes a key downside risk to Japan’s economy," analsyts at Capital Economics said in a note to clients. "We estimate that the net effect of today’s announcement will be a reduction in the average tariff rate faced by Japanese exporters in the US of around one percentage point." Beyond Japan, the direction of negotiations with other major U.S. trading partners, such as the European Union and India, remains unclear with an August 1 deadline for Trump’s elevated "reciprocal" tariffs to take effect fast approaching. Still, "success in obtaining some agreement at this time hence should have a substantial effect in mitigating concerns about future uncertainty," analysts at Jefferies said in a note.

Click Subscribe #EuropeanAutomakers #TradePact #USJapanRelations #StockMarket #Investing

Click Subscribe #EuropeanAutomakers #USTariffs #MorganStanley #StockMarket #AutomotiveIndustry