HSBC analysts highlight that the German election could heighten the uncertainty confronting European automakers, particularly given the ambiguity surrounding the election results. German automakers are grappling with an array of challenges, including waning demand within the EU, price normalization, low electric vehicle (EV) penetration rates, and demands for supplier compensation. Additionally, they must navigate the EU's stringent carbon emission targets for 2025 and the looming threat of tariff hikes. This policy uncertainty has the potential to further complicate the industry's challenges.
