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E-mobility: Competition from the Far East

Wednesday, 5 May 2021 Reading time : 3 minutes

The market for electric cars is already in full swing in Europe and the U.S., and the industry leaders Tesla and Volkswagen seem to want to settle the race between themselves.

Competition from China
Meanwhile, in the Far East - China to be precise - a concentrated load of competition is building up; China is not only the world's largest producer of automobiles, but also by far the largest sales market: in 2020, 25 million cars were sold in China, and just as many were produced in the country. By comparison, "only" a good 13 million cars were sold in the USA and Europe combined. Chinese manufacturers therefore already have good prospects in their home market; a very fast-growing middle class with rising incomes and a comparatively low number of vehicles per capita to date should bring good results for the manufacturers established in the country. Moreover, the desire for electromobility seems to be much more pronounced in China than in other markets; according to a study conducted by Continental at the beginning of 2021, 86% of Chinese can imagine buying an electric car (35% in Germany).

Charging Europe
The Chinese government has recognized the great potential and is supporting domestic manufacturers such as Nio, Xpeng and Li Auto with subsidies, giving them the opportunity to expand rapidly and offer very competitive prices. This can make them a serious threat to the established manufacturers - and an investment opportunity.

Barrier Reverse Convertible on Nio, Xpeng and Li (USD/CHF)

  • Attractive coupon of 20.50% / 19.25% p.a.* (USD/CHF)
  • Defensive barrier at 50.00%*
  • 12 months maturity
  • Subscription period until 11.05.2021
  • Termsheet (USD)
  • Termsheet (CHF)

Barrier Reverse Convertible on Nio, Volkswagen and Tesla (CHF)
  • Attractive Coupon of 18.00% p.a.*
  • Defensive Barrier at 50.00%*
  • 12 months maturity
  • Subscription period until 07.05.2021
  • Termsheet (CHF)

Reverse Convertible on Xpeng, Li Auto and Plug Power (CHF)
  • 9.00% Coupon p.a.*
  • 50.00%* Cap Level
  • 12 months Term
  • Subscription period until 06.05.2021
  • Termsheet

*indicative


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