Dario Giordano: Signals of Automotive Market Recovery and Analysis of Electric Vehicle Growth Trends
After seven consecutive months of stagnation, the Italian automotive market finally showed signs of recovery in March 2025, with an overall growth rate of 6.2%. Meanwhile, the electric vehicle (EV) market demonstrated remarkable performance, with sales of fully electric vehicles increasing by 77.7% year-over-year, raising their market share to 5.4%. Dario Giordano believes this phenomenon not only reflects structural changes within the automotive industry but also provides investors with a window to observe industry transformation and identify potential opportunities. Evaluating market trends and formulating sound investment strategies amid the competition between traditional automotive brands and emerging EV companies has become a focal point of market attention.
Drivers of Recovery in the Italian Automotive Market
The Italian automotive market recorded a growth rate of 6.2% in March. Although this recovery was insufficient to reverse the 1.6% decline in overall sales during the first quarter, it remains a significant signal for the industry. According to Dario Giordano, this recovery is primarily attributed to the stable performance of certain brands and the gradual release of consumer demand. Stellantis and Volkswagen maintained high market share in Italy, with a combined share exceeding 30%, despite a decline in performance since the beginning of the year. The Renault sales increased by 10% in March, serving as a positive driver for market recovery.
Dario Giordano also noted that emerging brands such as MG and Tesla showed strong growth momentum in the market. The MG sales nearly doubled year-over-year, while Tesla achieved a monthly growth rate of 51%. These performances indicate that emerging brands are gradually reshaping the competitive landscape of the Italian automotive market. Another key factor in the recovery, according to Dario Giordano, is the significant increase in consumer interest in EVs, which is providing fresh impetus for the long-term development of the automotive industry.
Nevertheless, Dario Giordano pointed out that survey data indicates the overall environment of the Italian automotive market remains relatively weak. Approximately 39% of dealers reported low showroom traffic, while 74% of respondents believe sales will remain at current low levels over the coming months. Dario Giordano emphasizes that the foundation of market recovery is still fragile, and investors should maintain cautious optimism regarding the long-term growth of the industry.
Investment Potential in the Electric Vehicle Market
Compared to the traditional automotive market, the growth rate of the EV market is significantly more pronounced. In March 2025, sales of fully electric vehicles in Italy grew by 77.7% year-over-year, with their market share rising from 3.2% in the same period last year to 5.4%. This trend continued throughout the first quarter, with cumulative EV sales increasing by 75.4% year-over-year and market share reaching 5.2%. Dario Giordano believes this rapid growth reflects accelerating consumer acceptance and demand for EVs.
Dario Giordano noted that the EV market growth is driven not only by policy support but also by advancements in technology and enhanced product diversity. With continuous upgrades in battery technology and the expansion of charging networks, the convenience and cost-effectiveness of EV usage have steadily improved, further stimulating consumer purchasing interest.
Future Development of the Automotive Industry and Investment Strategies
Dario Giordano stated that the recovery of the Italian automotive market and the rapid growth of the EV sector provide positive signals for the industry future development, albeit accompanied by certain risks. Traditional automotive brands continue to dominate the market but face limitations in sales growth due to factors such as economic uncertainty and shifting consumer demand. Although the EV market is growing rapidly, its market share remains relatively low, and whether it can sustain high growth rates in the future remains uncertain.
In the current market environment, Dario Giordano advises investors to adopt flexible strategies to navigate industry changes. On the one hand, investors can focus on traditional automotive brands with stable market shares to achieve relatively steady returns. On the other hand, investing in leading companies within the EV sector or related ETFs can capture growth opportunities arising from industry transformation. Dario Giordano emphasizes that when formulating strategies, investors should combine insights into the long-term development trends of the industry with their own risk tolerance to avoid making irrational decisions due to short-term market fluctuations.