There's been a lot of talk about the rise of electric vehicle makers like Tesla, but are some traditional car brands worth investing in?
At a time when electric vehicle (EV) stocks are attracting market attention, auto brands provide an interesting counterpoint for those looking to diversify their portfolio.
How to buy shares of automobile brands?
As the automotive industry moves toward electrification, legacy brands are adapting, merging their heritage of luxury and performance with innovative technologies. This move not only signifies a new chapter in automotive design and engineering, but also offers a unique investment proposition, potentially providing a window to acquire shares in companies known for their exclusivity and prestige.
Investors interested in this segment have two main options:
- Independent sports car manufacturers
Or - Subsidiaries of large automobile groups.
Independent companies like Ferrari and Porsche provide a direct link to their iconic status and market performance. It is therefore a direct route to investing in the luxury and performance car markets.
Investing in subsidiaries such as Jaguar (under the Tata Motors umbrella) represents a less direct route. In this case, the investment is not only in the luxury sports car brand, but also in the parent company's broader vehicle portfolio, diluting the direct impact of the luxury sports car brand's performance. sport.
Sports Car Stock Performance Chart (2023-24)
|
Car brand |
Ticker |
Vehicle sales in 2023 |
Stock performance over 1 year (March 20, 2024) |
|
Ferrari |
BREED |
13,663 (+3.3%) |
63.43% |
|
Corvette |
GM (General Motors) |
25,945 (-30%) |
21.91% |
|
Jaguar |
TATAMOTORS.NS (Tata Motors *India) |
64,241 (+4.2%) |
11.66% |
|
Rolls Royce |
BMW.DE (BMW) |
6,032 (+0.2%) |
9.08% |
|
Porsche |
POAHY |
320,221 (+3%) |
-7.46% |
|
Lotus |
GEELYY (Geely Motors ADR) |
2,200 (N/A) |
-8.57% |
|
Lamborghini |
VOW.DE (Volkswagen) |
10,112 (+10%) |
-11.83% |
|
Bentley |
VOW.DE (Volkswagen) |
13,560 (-10%) |
-11.83% |
|
Aston Martin |
AML.L |
6,700 (+4.7%) |
-24.83% |
Independent sports cars
Ferrari (RACE)
Ferrari embraces electrification with a focus on maintaining its legendary performance and exclusivity. Ferrari is aiming for carbon neutrality by 2030 and, despite its focus on internal combustion engines, the brand is moving significantly towards electrification. By 2026, according to the company, around 60% of Ferrari sales will be made up of fully electric and hybrid vehicles. In a record year, hybrids accounted for 44% of Ferrari's deliveries, while vehicles powered solely by internal combustion engines accounted for 56% of sales. Ferrari's Purosangue SUV being one of the main drivers of sales growth.
Aston Martin (AML)
The DBX, an SUV that combines luxury and performance, is currently Aston Martin's best-selling vehicle, attracting a wider audience to the brand. Aston Martin has recently faced financial difficulties, but it has ambitious plans for the future, including a significant shift towards electrification. The company intends to offer an electrified option for each model in its range by 2030.
Porsche Automobil Holding SE (POAHY)
Porsche's current bestsellers are the Macan and the 911, which appeal to both luxury SUV enthusiasts and sports car aficionados. Porsche reported strong sales, thanks in part to a significant increase in its electric vehicle range, highlighted by the growing popularity of the Taycan. Going forward, Porsche is committed to electrifying its vehicles, with plans for 80% of its new vehicles to be electric by 2030.
Car manufacturers with subsidiaries specializing in sports cars
Lotus (owned by Geely Motors)
Lotus' current best-selling car is the Emira, an all-new sports car that combines traditional Lotus driving dynamics with comfort as well as technology. Lotus is experiencing a resurgence, marked by the positive reception given to the Emira and driven by its membership of Geely Motors. The company began shipping the Evija in 2023, an all-electric hypercar, which demonstrates Lotus' commitment to innovation and sustainability.
Rolls Royce (owned by BMW)
Rolls-Royce's current best sellers are the Cullinan SUV and Ghost sedan, aimed at ultra-luxury markets worldwide. Despite global economic fluctuations, Rolls-Royce has maintained strong sales to its elite clientele, recently recording its highest annual sales. The company is moving toward electrification and plans to launch its first fully electric model, the Spectre.
Lamborghini (owned by the Volkswagen group)
In 2023, Lamborghini saw a significant increase in its commercial performance, marking a record year. This growth is largely due to sales of its internal combustion engine models, the Urus and Huracan, both of which are expected to continue selling until they end production at the end of 2024 Other popular Lamborghini models are the Aventador and Huracan sports cars. The company is moving towards electrification and sustainability, with plans to hybridize its entire range by 2024 and introduce its first fully electric model later in the decade.
Bentley (also owned by the Volkswagen Group)
Bentley's most popular models are the Bentayga SUV and the Continental GT. The brand saw strong sales, reflecting its appeal for luxury, even amid economic uncertainty. Looking ahead, Bentley has embarked on an ambitious electrification strategy, planning to offer only plug-in hybrid or electric vehicles by 2026 and aiming for an all-electric range by 2030.
Corvette (produced by General Motors)
The Chevrolet Corvette, especially the latest C8 model, remains a favorite among sports car enthusiasts, thanks to its impressive performance and innovative design. In recent years, sales have been sustained, confirming its iconic status. However, like many automakers, Corvette faces challenges such as adapting to electrification and supply chain issues that have hampered deliveries in 2023. Future plans for the Corvette brand include versions potential hybrid and electric vehicles, which are part of the general industry trend towards sustainable development.
Jaguar (owned by Tata Motors)
Jaguar's current popularity revolves around models such as the F-PACE SUV, which appeals to luxury crossover markets, and the fully electric I-PACE. The brand has flourished under Tata Motors' ownership, but it faces challenges such as maintaining sales momentum amid intense competition and changing automotive trends. Future plans include deepening its commitment to electrification, as part of Jaguar Land Rover's strategy to become a zero carbon company by 2039.
In summary
Luxury and sports car companies, which combine heritage with electrification, represent a potential new avenue for diversifying investment portfolios away from direct investment in electric vehicle companies.
These companies, including Ferrari and Porsche through their own shares or Jaguar and Lamborghini through major car brands, are moving towards a sustainable future with plans for electrification and new model launches. This therefore represents potential growth areas for investors.