China’s car market offers amazing investment opportunities. The economy of China is growing, and the middle class seems to be getting wealthier every year. Investing in a car company or buying a car directly is another way investors can get involved in these stocks.
There are a few solid investments that you can make if you want to invest in a Chinese car. By investing in this way, you get access to a company’s potential profits, which helps reduce risk.
Why invest in the Chinese market?
Before we talk about specific car producers, we need to understand the potential of the Chinese automotive market. This market, the Chinese automotive market, is worth more than the combined value of all other markets.
Furthermore, China and the USA, Tesla manufacturer, are considered to be the largest manufacturers of EVs (Electric Vehicles).
A wider look at the mobility market
China has about a quarter of the world’s population and its demand for cars is growing rapidly. The Chinese mobility market is large and diverse, especially when it comes to the Chinese provinces. This presents an interesting opportunity for automotive companies, as you can hire some pretty talented people from most of these companies to build up your team.
China has 1/3 of all motor vehicles in developing countries. However, the industry is growing very fast.
3 Chinese car manufacturers’ shares you should look at:
Li Auto (NASDAQ: LI)
Auto stocks are hot right now, and one of the hottest stocks in the auto sector is Li Auto. The company announced a new model of its flagship smart SUV, the Li L9. Li stock has been riding on strong bullish momentum, rising over 30% over the past month
BYD (NASDAQ: BYDDF)
BYD stock is currently trading at $25 up more than 14% this year. Shares have increased steadily throughout the year and 127% from the start of 2018 to their most recent price. The stock also has emerged as a darling of China’s Green energy movement.
XPeng (NASDAQ: XPEV)
XPeng is one of the most successful Chinese EV startups right now. Its goal is to make affordable electric vehicles available to many people. The company makes key components and systems for other automakers as well as building its own EVs. Last month, XPeng announced that it has reached a milestone of 200,000 cumulative smart EV deliveries.