BofA says 'fuel shock' charges up Chinese EV push in Europe

Volkswagen AG

11/05/2026 11:17

** BofA Global Research says rising fuel costs are accelerating Chinese automakers' push into Europe, as cheaper-to-run EVs help them gain share in mass-market segments and intensify margin pressure on the region's players

** "The fuel shock has put running costs back at the centre of buying decisions, especially in Europe where pump prices are structurally high," BofA analysts say

** Chinese OEMs have doubled their European share to about 8%, with Q1 sales up around 100% as they expand into the compact, SUV and family-car segments dominated by Renault, Stellantis and Volkswagen, BofA says

** "The pricing message is clear: Chinese EVs offer good value for money and also the design has improved a lot." where is the best position," it adds

** BofA adds Chinese automakers are increasingly looking to localise European production via new plants and partnerships, helping them "reduce tariff leakage, protect pricing and gain political acceptance" and adding to pressure on incumbents

** BofA cuts Renault to "Neutral" from "buy" saying the stock is still cheap, but catalysts are fading

** It cuts Stellantis to "Underperform" from "Neutral" saying too much recovery has already been priced in

** It affirms "buy" for Volkswagen VOWG.DE with a valuation still attractive despite lower estimates

COMPANY
RATING
OLD RATING
PT
OLD PT
Renault
Neutral
Buy
EUR 33
EUR 36
Stellantis
Underperform
Neutral
EUR 5.5
EUR 7.5
Volkswagen (ordinary shares)
Buy
Buy
EUR 105
EUR 122
Volkswagen (preference shares)
Buy
Buy
EUR 99
EUR 115

 (Reporting by Mathias de Rozario in Gdansk)

 ((mathias.derozario@thomsonreuters.com))