Volkswagen, BMW and Daimler, all against TESLA to snatch the high-end electric market

The report shows that Tesla It is currently the best selling brand in the premium segment of electric cars, although he advances that German car manufacturers "will represent a great challenge" for this by having the reputation of their brand, the ability to produce high-quality cars at scale and consumer loyalty.

However, the text highlights that the major investments necessary for the development of these types of vehicles will have a negative effect on the profitability of the firms in the sector in the coming years.

Thus, Vittoria Ferraris, an S&P analyst, said the disruptive trends of the industry and the deterioration of global market conditions "could threaten" its profitability for a prolonged period.

The report prepared by the rating agency values ​​the offensive that BMW, Volkswagen and Daimler are carrying out when launching new electrified models to the market and highlights that until the end of the year these firms will offer 38 electrified models and the year Next 23 other vehicles will be incorporated.

"There are signs that high-performance 'green' cars are an increasingly important element in the brand reputation for customers of German manufacturers 'premium'.

Tobias Mock pointed out that the German 'premium' manufacturers will benefit from strengths such as higher profitability or lower sensitivity to stoppages in demand compared to volume brands.

The higher price of 'premium' electric cars is a lower obstacle in the luxury segment than in the general market, "the text highlights.

In this sense, Ferraris pointed out that electrification will rely heavily on the activity of renting, since, in their opinion, drivers will prefer a contract of this type rather than the purchase, in order to reduce the risk on the residual value.

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