The stock market has always been a challenge for even the best minds on the planet. Caution prevails in many of the decisions that are made but the risk morbidity never disappears during decision making. Investing in shares of the automotive sector is a challenge. The brands of automobiles suffer a great segmentation in all the continents and, as is logical, each country has its particularities.
In Germany, for example, car brands have a low PER (price-earnings ratio) when compared to their international competitors. Therefore, if you want to invest in this field, you need to invest in a more global way.
Do you want to invest in the automotive sector? Are you interested?
We summarize three important aspects to take into account to invest in the automotive sector:
1 / The exciting range of cars
The sales are increased when a new range of products appears, and of course, the lack of them and of novelties, harms them. The vehicles with good aesthetics and good quality-price will surely attract more buyers than a car that does not transmit anything, for very good price.
2 / Cyclical sensitivity
The automotive industry is extremely sensitive to the economic cycle. This means that, during periods of prosperity, many vehicles are sold. It also means that during periods of recession, manufacturing stagnates, demand decreases and supply is barely noticeable.
3 / Green cars – Hybrid and Electric Cars
Brands and large companies are trying to adapt to the market as fast as they can, making a great effort to manufacture cars that respect the environment, driving electric cars or hybrids, but these efforts are not cheap.
The Renault Zoe repeated as the most sold pure electric in Europe last month, while the Toyota RAV4 led in the category of hybrids with 10,410 registered units. The in-depth research and development of these cars will probably cost billions of dollars, so it's worth imagining how the companies will fund these initiatives and how they will affect future profits.
More information at www.hersamotor.es
Tlf: 91 845 41 27
Carretera de Colmenar Viejo KM 28.400 28770 Colmenar Viejo – Madrid
Email: email@example.com (tagsToTranslate) publi (t) toyota (t) hersamotor