First Hydrogen, BYD, Porsche - Two newcomers challenge the old guard

First Hydrogen: Hydrogen propulsion is gaining in importance globally – Saudi Arabia and Europe are setting signals

The Saudi Arabian Transport General Authority TGA has sent a clear signal for the future of mobility by introducing hydrogen-powered taxis. This initiative is part of a comprehensive strategy to accelerate the transition to sustainable transportation solutions. In parallel, BMW announced that it will launch its first hydrogen-powered vehicle, developed in collaboration with Toyota, from 2028.

First Hydrogen, a pioneer in the field of hydrogen-powered commercial vehicles, is expanding into Europe at just the right time. First Hydrogen vans are to be used, for example, in large cities to distribute deliveries such as Amazon packages. First Hydrogen's target market is the German market.

The Company's plans for a 9,700-kilometer hydrogen network in Germany and the establishment of 17 hydrogen centers offer the Company excellent conditions. The project is also receiving a boost from massive funding: the EU is providing EUR 43 billion for hydrogen projects, with Germany contributing EUR 4.6 billion.

First Hydrogen brings valuable experience from the UK, where the company has already successfully conducted practical tests with fleet operators. The commercial vehicles impress with ranges of over 630 km per tank filling – an important sales argument for potential customers. With this know-how and the strategically clever choice of Germany as a starting point for its European expansion, First Hydrogen could become a key player in the emerging hydrogen economy.

BYD is driving Hungary's transformation into a European e-car hub

Chinese automaker BYD and BMW are setting new standards in Hungary's automotive industry. According to Reuters, both companies will launch operations in the second half of 2025. BMW will produce in Debrecen, while BYD will set up its first European production facility for electric vehicles in Szeged. The BYD plant, which is being built with an investment volume of around EUR 500 million, will be constructed on a 300-hectare industrial site next to the ELI-ALPS Laser Institute. Innovation meets innovation. The Chinese automotive giant, which recently overtook Tesla as the world's largest electric vehicle manufacturer, plans to carry out complete vehicle production here – with the exception of battery manufacturing.

For Hungary, this development marks an important step in its "economic neutrality" strategy. The country is positioning itself as a hub for European e-mobility, which is underlined by further significant investments: The Chinese battery manufacturer CATL is simultaneously building a EUR 7.3 billion plant in Debrecen. The Hungarian government expects these investments to lead to a significant economic upturn and predicts economic growth of 3.4% by 2025.

Porsche struggles in a challenging market environment – Analysts lower target price

The mood at Audi in Brussels is tense. According to Reuters, negotiations over a social plan for the threatened closure of the Audi plant led to violent disruptions. Around 150 people, some of them masked, forced their way into the negotiating rooms and prevented participants from leaving. Police had to break up the protests, during which fireworks were also set off. Audi AG has been part of the Volkswagen Group since the 1960s.

The uncertainty in the VW Group is also affecting Porsche Automobil Holding SE. The analyst firm Warburg Research downgraded the stock from "Buy" to "Hold" and significantly lowered the target price from EUR 60 to EUR 36. Analyst Fabio Hölscher cites possible pressure on the net asset value (NAV) of the automobile holding company as the reason for this.

The net asset value (NAV) is the actual economic value of Porsche Automobil Holding SE, which consists mainly of the value of its holdings - in particular, the 31.9% stake in Volkswagen AG. This value could come under pressure as future dividend payments from VW are uncertain due to current developments in the group.

Porsche AG's performance itself has been mixed. In the first nine months of 2024, the group recorded a decline in sales of 5.2% to EUR 28.6 billion. This decline is partly due to the weaker performance of the entire VW Group, which also includes the troubled Audi plant in Brussels, set to cease operations at the end of February 2025. In particular, weak sales in Europe and China are weighing on VW and its subsidiaries. Operating income during this period dropped to 4 billion EUR, reflecting an operating profit margin of 14.1%.

First Hydrogen has chosen an optimal time to enter the German market, supported by massive EU funding and a planned hydrogen network. The successful tests in the UK and the impressive range of 630 km for commercial vehicles promise excellent market opportunities, especially in the delivery sector. With its EUR 500 million plant in Hungary, the Chinese company BYD is strategically expanding into Europe. As the world's largest electric vehicle manufacturer, BYD is taking advantage of the emerging infrastructure of the Hungarian electric vehicle hub, thereby creating a strong foothold in the European market. Luxury carmaker Porsche is currently going through a challenging market phase, with a 5.2% decline in revenue and falling profits. The downgrade to "Hold" and the reduced target price of EUR 36 reflect the Company's problems and weakening sales in its core markets. A short-term recovery seems unlikely. Two newcomers with distinct strategies are challenging the old guard. Streamlined structures appear to be paying off for investors.