Latest news with #EVdemand
Forbes
2 days ago
- Automotive
- Forbes
What's Happening With VW Stock?
Volkswagen stock (OTCMKTS: VWAGY) has seen a decline, with the stock dropping roughly 20% over the last twelve months. In contrast, competitor GM's shares have largely remained stable during the same timeframe. Several factors have influenced the stock performance in recent quarters, including a weak macroeconomic climate, high domestic costs, sluggish EV demand, and increasing competition from lower-cost Chinese manufacturers. Volkswagen's U.S. operations are also experiencing significant challenges due to the extensive tariffs enacted by President Donald Trump. Approximately one-third of Volkswagen-branded vehicles sold in the U.S. are imported, with 100% of Audi and Porsche vehicles sold domestically being imported. The company has revealed intentions for considerable investments in the U.S., although these are expected to unfold over an extended period. China, the company's largest single market, continues to be challenging amidst an intense price competition and the emergence of local EV brands. Group sales in China decreased by 9.5% to 2.9 million units last year. In response, Volkswagen is intensifying its localization efforts, planning to introduce over 30 new models in China within the next three years, consisting of both ICE vehicles and new energy vehicles specifically designed for local buyers. VW is also aiming to significantly streamline its German operations through a comprehensive restructuring. The company intends to reduce production capacity in Germany by more than 700,000 units and decrease its workforce by 35,000, primarily through voluntary departures, by the end of this decade. These initiatives are intended to restore profitability in Europe, where demand has declined and costs remain high. VW is also shifting its Wolfsburg plant to become a center for its EV future. The production of a new entry-level EV, priced around Euro 20,000 ($21,000), is slated to begin there in 2027. The auto giant anticipates that affordable EVs will be crucial in helping it regain market share, especially as pricing becomes more competitive. Separately, if you're seeking growth with a smoother experience than an individual stock, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception. We believe that VW stock appears to be a reasonable value at current levels of approximately $10 per share. VW stock is trading at around 5x trailing earnings, which is even lower than U.S. automaker Ford, which trades at about 6x. The stock also boasts a substantial dividend yield nearing 7%. Although VW's transition to EVs may be progressing slowly, the company could possess certain advantages in the long term. VW has a broad range of brands that can provide consumers with significant options while offering the company economies of scale as it standardizes its platforms, potentially enhancing margins. VW is also concentrating on backward integrating its EV operations by investing in the development of its battery facilities. The company has also taken steps to unlock value from its brand portfolio. VW made its sports car brand Porsche public in 2022, and we believe it might consider doing the same with its Lamborghini supercar brand, particularly in light of the premium investors are willing to pay for luxury and performance brands. For instance, Ferrari has a market cap exceeding $80 billion, surpassing VW's current market valuation. We estimate VW stock is worth around $12 per share, which is approximately 20% above the current market price. Check out our interactive analysis on Volkswagen Valuation: Expensive Or Cheap? for further insights. View our dashboard on Volkswagen Revenue for an overview of Volkswagen's business model and the expected trends in its revenues.
Auto Car
23-05-2025
- Automotive
- Auto Car
Cost and complexity of EVs puts independent rental firms at risk of closure
Electric vehicles could spell the end of independent vehicle rental companies, a leading family-owned UK firm has warned, amid a wider backdrop of waning demand for EVs generally among hire companies. Kendall Cars, a rental group with 14 branches in the south-east and a fleet of 1500 vehicles, says businesses like it are closing partly because of the high insurance costs associated with electric cars. Group managing director Mark Kendall said: 'Like a lot of smaller hire companies we self-insure our cars to keep our rates low, but EVs are high risk, and a lot of hire companies are giving up because they calculate that as their proportion of EVs increases, they won't be able to afford to cover them. 'The national rental firms are stepping in by ignoring the retail market and renting the vehicles to business customers, who put them on their company insurance. But rental firms like ours can't survive by ignoring retail customers.' Underlying Kendall's comments is a lack of enthusiasm in general for EVs among rental firms, which are also worried about the high cost of installing chargers and limited rental demand. His prediction that firms will close won't please car makers, which sell thousands of cars to the rental sector and regard it as a convenient safety net when other areas of the market are depressed. For example, in 2024 there were 228,000 rental vehicles on the road, an increase of 21% since 2020. 'Rental has always been a release valve for car makers wishing to sell cars, and although there is some [demand] for EVs, it remains low,' said Adam Forshaw of UK rental and leasing trade body BVRLA. The main issue for his members is installing chargers. 'This is expensive for rental firms and there are no financial or tax incentives for their customers to choose an EV over a petrol or diesel car,' he said. Kendall agrees that charging his EVs is a costly headache. He said: 'We've just installed four expensive charge points at our Wimbledon branch but, elsewhere, when customers return our EVs with very little charge – as many do – we have to drive to a charge point, which costs us time and money.' He added: 'To encourage customers to recharge their cars, we've had to impose a £50 surcharge when the battery's return level is below 50%.'
News.com.au
08-05-2025
- Automotive
- News.com.au
Big sign Australia's EV dream is dying
Electric cars are losing their shine for Australian drivers as cost of living pressures put the brakes on demand for green vehicles. Earlier this year, launched The Great Aussie Debate, a wide-ranging, 50 question survey that has uncovered what Australians really think about all the hot topics of 2025. Over two weeks, more than 54,000 Australians took part in the survey, revealing their thoughts on everything from the cost of living and homeownership, to electric vehicles and going shoeless in supermarkets. The results show the number of people considering an electric vehicle for their next car has dropped. When asked 'Are you considering an EV for your next car?', only 14.9 per cent of people said yes in this year's quiz. That represents a notable fall from the 18.9 per cent of people who were considering an electric car in 2023. The number of people who answered 'Maybe' fell from 27 per cent to 23 per cent, suggesting people have a better understanding of whether an EV is right for them. Of the three possible answers, 'No' was the only one to record an increase, jumping from 53.8 to 62.1 per cent. People aged 30-39 were the most likely to consider an EV, while folks over 70 were least likely according to survey data. Women were less likely to consider an EV than men, and non-binary people or folks who preferred not to state their gender were much more open to EV ownership. Readers in the Australian Capital Territory were the most likely to say yes to an electric car, which adds up considering the territory's green incentives, strong charging network and progressive policies including a regional ban on new petrol and diesel vehicle sales from 2035. Unsurprisingly given limited infrastructure and vast distances between cities, readers in the Northern Territory were the least likely to consider an EV. Australia's biggest argument finally settled Competition in the electric car sector is heating up, with new brands such as XPeng, Zeekr and Geely bringing EVs to rival established players such as Tesla, Kia and Hyundai. Falling demand has triggered price wars that pushed costs below $30,000 for the first time this year. Australia's resistance to make the switch to electric vehicles in greater numbers will not be welcomed by an automotive industry that has staked much of its future on battery powered vehicles. But it should not come as a surprise. Data from The Great Debate lines up automotive surveys published in Australia this year. Automotive classifieds giant Carsales surveyed more than 2000 people and reported in January that the percentage of its audience who had ever considered an EV dropped from 56 per cent in 2022 to 30 per cent in 2025, in what it attributed to 'a reflection of the cost of living crisis and a decrease in disposable income for the average person'. Carsales' data services director, Ross Booth, said at the time that 'price remains a key barrier to EV adoption'. 'The good news is that we've already seen a drop in new EV prices. 'Since 2021, the RRP of petrol vehicles has risen by 20 per cent, while EV prices have decreased by 9 per cent, a drop of over $3000 on average. 'Competition in the EV market is also increasing and with up to 12 new Chinese car brands set to enter the country, many of which will focus on EVs, prices will likely drop further in the upcoming years.' Data published by the Australian Automotive Dealer Association following surveys in 2022 and 2024 found 'intention to purchase an EV has plateaued', AADA chief executive James Voortman said.
