European automotive sector poised for stock market high since February 2022. The sector index Stoxx 600 Automobiles & Parts continued its rally that started at the end of October and rose 1.7 percent to 653 points on Friday. With a value above 661.36 points, the sub-index would have reached its highest level since February 2022.

This upswing is not without reason, as emphasized by analyst Jose Asumendi from the renowned bank JPMorgan in a strategic study. He identifies future drivers of growth for manufacturers and suppliers that will continue to boost the sector. While in previous years, growth was seen as the sole driving force behind stock prices, in the future, another factor will become increasingly important: the generation of cash flow. This factor will play a crucial role in the success of companies.

Regarding individual values, the expert particularly highlights the stocks of Stellantis and BMW. Stellantis, which is now the largest automotive group in Europe, stands out for its outstanding profitability in electric vehicles. This positioning makes the company the best in class in this still relatively young industry.

However, BMW, one of the largest German car manufacturers, also has a promising strategy to defend its profits and market share. This focus on a balanced approach pays off and is reflected in the stock prices. Stellantis shares increased by 2.75 percent to 21.835 euros in EURONEXT trading, reaching a high since February 2022. BMW shares also rose by 1.99 percent on XETRA, reaching a price of 104.58 euros.

Investors can therefore look forward to a positive development in the European automotive sector and expect further price increases in the near future. The strategic study by JPMorgan supports this assumption and confirms the confidence of many investors. Thus, the automotive sector presents itself as a promising investment with promising prospects.