Autos & parts (Q+A) | Has diversification beyond automotive become a real selling point for European Autos?

Research evidence excerpt

Autos & parts (Q+A) | Has diversification beyond automotive become a real selling point for European Autos?

Autos & parts 22 June 2026

Europe

Has diversification beyond automotive become a

real selling point for European Autos?

The increasingly visible structural challenges facing European automotive

companies have led to significant sector underperformance over the past three

years and continued multiple compression across the SXAP, despite the presence of Thomas Besson

Head of Autos Research

high-quality names. Diversification into anything but automotive activities and the +33 1 70 81 57 53

separation of high-quality assets appear to be two of the few avenues available to tbesson@keplercheuvreux.com

management teams to rekindle investor interest and support valuation metrics. Alexandre Raverdy, CFA

Expanding into adjacent products or industries with stronger growth prospects and Equity Research Analyst

higher valuation multiples, while leveraging existing technologies for different +33 1 70 98 85 46

araverdy@keplercheuvreux.com

usages has become a clear differentiating factor within the sector. As well as

Michael Raab, CFAenhancing perception and valuation, such strategies may also improve revenue and Head of Thematic Automobile Research

earnings prospects. Tesla, Hyundai, and Ford are among the most prominent global +49 69 7569 6157

examples of this approach, while in Europe companies such as Schaeffler and, more mraab@keplercheuvreux.com

recently, Valeo and Renault, have pursued similar strategies. Could diversification Autos & parts research team

become a real selling point for European automotive companies? Biographies at the end of this document

IMPORTANT. Please refer to the back of the report for important keplercheuvreux.com

information and disclosures.