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Thursday 20 March 2025
Automotive Stocks: A Guide to Trading and Investing in Car Companies
The creation of automobiles has undoubtedly revolutionised civilisation, facilitating transport and opening opportunities for exploration.
However, the impact of the automotive industry extends far beyond just transportation; it has also influenced global trade and financial markets.
In this guide, we’ll dive into what automotive companies are, what automotive stocks involve, and how you can start trading these stocks.
Here’s what you need to know:
TL;DR
Automotive stocks refer to the shares of companies involved in the automotive industry.
The automotive industry has roots going back to the 1860s.
Major players include Tesla, Stellantis, BYD, and others.
The top companies by market value in 2024 are Tesla, Toyota, and Porsche.
You can trade automotive stocks through share CFDs on platforms like Plus500.
Automotive Industry Overview
What Are Automotive Companies?
Automotive companies are those involved in the entire lifecycle of motor vehicles, from design and manufacturing to sales and development.
Automotive vs. Automobile: What’s the Difference?
While often used interchangeably, "automotive" and "automobile" aren't quite the same. "Automotive" covers all types of vehicles, including passenger cars, motorcycles, and commercial trucks. On the other hand, "automobile" refers explicitly to vehicles designed for personal use.
The History of the Automotive Industry: A Brief Timeline
1860s: Before cars, as we know them, people used horseless carriages. Early vehicles were manually assembled.
1886: Carl Benz, the founder of Mercedes-Benz, created the Benz Patent Motor Car, which was considered the first modern automobile.
1960s: The automotive industry saw the introduction of conveyor belts and robotics in production.
Biggest Car-Producing Countries
In 1980, Japan took over as the leading producer.
From the 1990s to the mid-2000s, The US was the dominant car producer, making about 90% of the world's cars.
In 2009, China became the new leader in car production.
By 2023, China produced over 30 million cars annually, with the number of US car models rising from 140 in 1970 to 684 in 2012.
Types of Automotive Companies
The automotive industry includes a variety of companies:
Parts manufacturers are companies that produce car parts or supply them to automakers.
Materials companies provide essential materials like steel, glass, and plastic used in car production.
Rental agencies buy cars at a discount, rent them out, and sell them after use.
Dealerships are the companies that sell new and used cars, offer financing, and provide maintenance services.
Electric Vehicles (EVs) are companies that produce electricity-powered cars (EVs).
Automotive Stocks Trading
Automotive Share CFDs Examples
Automotive stocks refer to the shares of companies in the automotive industry. Famous examples include General Motors (GM), Volkswagen (VOW.DE), Nissan (7201. TY), and Ford (F).
Top Automotive Stocks in 2024 (By Market Cap)
Plus500 offers share CFDs on some of the biggest automotive companies in 2024 (by market capitalisation):
(Source: Finance in Bold)
How to Trade Automotive Share CFDs
You can trade automotive stocks directly or through share CFDs with platforms like Plus500. This method allows you to trade rising and falling prices without owning the actual shares. Note that CFD trading involves leverage, which can amplify both potential gains and losses.
To learn more about CFD trading, you can read the following:
Conclusion
Automotive stocks offer diverse opportunities for investors looking to gain exposure to one of the world's most dynamic and crucial industries.
Whether investing in traditional automakers or the latest EVs innovators, understanding the landscape and trading strategies is crucial.
From industry giants like Tesla and Toyota to up-and-coming EV players like BYD and Tesla, the automotive sector continues to drive economic growth and technological advancements.
FAQs:
What is an automotive company?
An automotive company is a business that designs, manufactures, distributes, or sells vehicles.
What are the biggest automotive companies?
As of 2024, major automotive companies include Tesla, Toyota, Porsche, Stellantis, Ferrari, BYD, BMW, Volkswagen, Mercedes-Benz, and Honda.
How can I trade automotive stocks?
You can gain exposure to automotive stocks using share CFDs on platforms like Plus500.
What was the first automobile?
The first automobile is considered to be the Benz Patent Motor Car, a three-wheeled vehicle created by Mercedes-Benz.
