Analysts forecast a nearly 14% decline in revenue by 2024. This is influenced by slowing demand and Chinese competition.
European auto shares fell nearly 4% on September 30 after warnings from Stellantis, Volkswagen and Aston raised concerns about the prospects for the sector’s profitability this year, weighed down by slowing demand and aggressive Chinese competition. It was reported by Reuters.
The collapse wiped nearly $10 billion in market value from the Paris-listed STOXX Auto&Parts index and Milan-listed Stellantis shares fell 14% after the company cut its forecasts and said it would lose more money than as expected.
Stellantis, the No. Europe’s top 5 automaker by market value and owner of the Chrysler, Jeep, Fiat, Citroën and Peugeot brands, has reportedly cited worsening industry trends, increased costs to overhaul its business in US and Chinese competition in the electric vehicle market.
Analysts forecast that profits will fall by nearly 14% in 2024, marking a reversal from the post-pandemic years when supply chain disruptions allowed automakers to raise prices.
Earlier it was reported that the German automobile and aircraft concern BMW has become the most profitable in the world.
As a reminder, the Italian sports car manufacturer Ferrari NV recorded record results in 2023, increasing net income by 34% and profit by 17% compared to the previous year.
Source: korrespondent
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