While numerous new suppliers and OEMs are trying to gain a foothold, the established OEMs are fighting for their position and strug- gling with their strategic realignment.

A high interest rate environment and low consumer spending due to the high inflation period suggest that 2024 will be another subdued year. Geopolitical tensions and disruptions in supply chains continue to prevent a sigh of relief.

To reflect this, we have developed the WisdomTree Berylls LeanVal Global Automotive Innovators Index – the WTCAR. It tracks the performance of the 100 most relevant publicly listed automobility players worldwide.

By design, the WTCAR covers the industry’s entire value chain – from vehicle manufacturers and suppliers, to dealer groups, and providers of mobility services or infrastructure.

Rebalancing updates

The automotive industry experienced a severe blow from the capital markets in 2022, and the recent decline in stock prices has wiped out most of the gains that the sector had made from the pandemic lows.

Now, there are still several major effects impacting the global capital markets. First, central banks remain committed to fighting inflationary pressures and have incrementally raised interest rates as a strategic countermeasure over the past months, slowing down the recovery of the economy. Second, supply shortages caused by the Covid-19 crisis is continuously moving into the rear-view mirror, allowing for a more opti- mized production utilization. Third, political influences like the Inflation Reduction Act in the US, the war in the Ukraine, and the pressures bet- ween China and Taiwan are continuing to influence the developments at the global capital markets.