In key news on German stocks, Volkswagen AG (DE:VOW) announced plans to launch budget-friendly electric cars, aiming to efficiently compete against its Chinese rivals. The company plans to introduce the cars to the market in 2027, with an expected price tag of around $21,800 (€20,000). Volkswagen shares gained 1.35% in trading yesterday.
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Volkswagen (VW) is a car manufacturing company that owns well-known brands such as Volkswagen, Skoda, Audi, Bentley, Ducati, Lamborghini, and many more.
Volkswagen Takes on Chinese Rivals
In December 2023, German newspaper Handelsblatt reported that Volkswagen was exploring partnership options with Renault (FR:RNO) to develop affordable EV models. The discussions between the two companies ended earlier this month, with Volkswagen now proceeding independently towards this goal.
The company aims to set new standards in the entry-level segment for technology, design, quality, and customer experience, despite the affordable price range. Volkswagen also announced that it will localize the project in Europe, which will minimize transportation for parts and lower emissions.
Volkswagen, like many of its European counterparts, is currently facing challenges due to the influx of affordable EVs from Chinese brands. These brands have a cost advantage and are aggressively capturing a higher market share in Europe. Interestingly, China-based BYD Co. Limited (HK:1211) is considering building its second assembly plant in Europe by 2025, aiming to become a leading EV player in the region by 2030.
Is VW a Good Stock to Buy Now?
According to TipRanks’ consensus, VOW stock has received a Moderate Buy rating based on recommendations from eight analysts. This includes four Buys, three Holds, and one Sell rating. The Volkswagen share price forecast is €128.86, which is 8.67% lower than the current price level.
