Revolution in the car market: BYD, 123fahrschule, Zoom

BYD is more than just cheap

Media outlets like Die Welt are calling the new low-cost electric vehicle, the BYD Dolphin Surf, a "challenge to Volkswagen." The model is considered a challenge because it offers quite a lot of vehicle for its low price – competitors like Dacia cannot keep up. This could help BYD's small vehicle achieve a breakthrough. Die Welt also writes that anyone who has been satisfied with the Polo and similar models will not miss anything with BYD's low-cost model. The chances are, therefore, good that BYD's business in Europe will pick up.

Gen Z has very different ideas about vehicles – China delivers

Another argument in favor of BYD vehicles is the changing user behavior. The McKinsey Mobility Consumer Pulse Survey shows that 50% of Gen Z customers plan to buy their next car as a pure electric vehicle. They are opting for smaller, more economical models. Design, safety systems, and digital features are particularly important when making a purchase decision: safety, modern driver assistance, multimedia, and the "digital car" are mentioned more frequently than average by Gen Z participants in the study. At the same time, this generation is very price-conscious: for about half of young buyers, the purchase price is the most important criterion. All these trends favor vehicles from China – they are digital, prioritize safety, sometimes to the point of paternalism, and, above all, are affordable.

In the case of electric vehicles, there is the additional factor that many customers want to use them differently than classic combustion engines. For example, bidirectional charging ensures that many models from China can feed the stored energy back into the home. Since modern mid-range and luxury electric vehicles often use batteries of around 100 kWh, this is a nice feature for many homeowners. Having power on the go is more of a selling point for today's customers than a stiff suspension. Taking the whole family and the refrigerator out to the countryside for a picnic seems more contemporary than speeding down the highway in a horsepower-fueled frenzy. However, German manufacturers, in particular, are still not focusing on features such as bidirectional charging or the connection of larger consumers. There have also been some changes in driver training in recent years – more and more young people have recently found that a driver's license is no longer so important. Price has played a decisive role in this.

123fahrschule makes driver's licenses affordable again

The young German company 123fahrschule is addressing this very issue and offering modern driver training: Digital learning and simulator driving are finally helping make driver's licenses affordable again. In addition, 123fahrschule is benefiting from demographic trends. Many driving schools are facing a succession problem. 123fahrschule is consolidating the market and offering succession solutions to existing driving schools. 123fahrschule currently has 60 branches in Germany, with plans to expand to up to 200 branches in the medium term.

The figures show that 123fahrschule's business model is striking a chord with customers and investors: in the first quarter of 2025, revenue rose by around 18% to EUR 6.6 million. Operating profit (EBITDA) jumped from a slight loss in the previous year to EUR 0.65 million. The number of driving school registrations climbed by 41% within a year, which points to higher market shares. Thanks to improved capacity utilization and savings, the driving school chain achieved a positive operating cash flow of EUR 1.3 million for the first time. This positive trend is likely to strengthen as **123fahrschule becomes known to more and more potential customers – as they are very price-conscious, the chances for further growth at 123fahrschule are good.

Digital learning is very popular with analysts – 123fahrschule offers an exciting niche

With its focus on digital learning, the Cologne-based company also occupies a niche that is very much in vogue. Above all, cost pressure and the desire for independence and flexibility make digital offerings attractive in addition to lower prices. This growth area has also been recognized by video conferencing pioneer Zoom, which is expanding with enhanced features in the enterprise and education market. Most recently, analysts at Needham and Benchmark praised the new direction and issued "Buy" recommendations. Those who, like 123fahrschule, use digital solutions to generate new growth in saturated markets are convincing analysts and attracting investors.

Shares in 123fahrschule have already risen by almost 27% in the past six months. If the Company succeeds in achieving its ambitious goals and attracting more customers with even more branches, this growth should also be reflected in the share price. The conditions for this expansion appear to be in place, given the price sensitivity of potential customers and the succession issues at existing driving schools. Compared to BYD (39% in six months) and Zoom (-13% in six months), 123fahrschule occupies a narrowly defined niche and should also benefit from growing awareness of its brand.