Best European automotive stocks to invest in 2026

The European automotive sector continues to evolve as electrification, digital retail, and aftermarket services reshape vehicle demand. Are you looking for European automotive companies with exposure to chips, spare parts, and online car sales?

Infineon Technologies supplies power semiconductors and microcontrollers for automotive, industrial, and IoT applications worldwide. Relais Group distributes spare parts, accessories, and services for passenger cars, commercial vehicles, and industrial equipment across Nordic markets. Auto1 Group operates online marketplaces for buying and selling used cars across more than 30 European countries.

European automotive stocks offer targeted exposure to electrification, aftermarket resilience, and used-car digitalization across the region. These are among the best European automotive stocks for 2026.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

The chart below shows how a basket of one share in each company would have performed if bought on the first day shown on the chart.

Now, let`s take a closer look at each of the companies:

  • Infineon (DE:IFX)

    Infineon Technologies is a leading global supplier of power semiconductors and microcontrollers for automotive, industrial, and IoT applications worldwide today. Founded in 1999 and headquartered in Neubiberg, Germany, the company has established itself as a major semiconductor manufacturer with global operations and extensive research capabilities. Infineon serves customers across automotive, industrial, power, and security sectors with its comprehensive semiconductor product portfolio and advanced system solutions globally.

    The company generates revenue from sales of power semiconductors, microcontrollers, and sensor products across automotive and industrial segments with diversified end markets. Infineon benefits from its clear leadership in automotive semiconductors and growing demand for electric vehicle chip content across global automotive and industrial markets. The company faces semiconductor industry cycles, competition from other chip makers, and rapid technology changes across global markets and business segments with cyclical demand patterns.

    Infineon financial statements

    Financial Health

    • Market Cap: $85.87B
    • Dividend Yield: 0.62%
    • Return on assets (ROA): N/A
    • Return on equity (ROE): N/A
    • Debt-to-Equity: 40.183
    • Current Ratio: 1.728

    Profitability

    • Gross margin: N/A
    • Operating margin: N/A
    • Net profit margin: N/A
    • P/E Ratio: 20.286495
    • Price-to-Book: 4.255351
    • Quick Ratio: 0.74

    Growth & Estimates

    • Analysts recommendation: 1.6
    • EPS (current): N/A
    • EPS growth (this year): N/A
    • EPS growth (QoQ): 38.7%
    • Sales growth (QoQ): N/A
    • Beta: 1.933

    💡 Why invest in Infineon?

    Infineon Technologies is a leading German semiconductor company with automotive chips, power solutions, and industrial focus:

    • Automotive Chip Leadership: Infineon is a leading supplier of automotive semiconductors benefiting from vehicle electrification demand across its various business segments and markets for many years going forward in the future period future.
    • Power Semiconductor Strength: The company has strong position in power semiconductors for industrial and automotive applications across its various business segments and markets for many years going forward in the future period conditions.
    • EV Market Participation: Infineon benefits from increasing semiconductor content per vehicle in electric vehicles across its various business segments and markets for many years going forward in the future period through various horizon.
    • Industrial IoT Solutions: The company provides microcontrollers and sensors for industrial and IoT applications across its various business segments and markets for many years going forward in the future period through various economic value.

    🐌 Key considerations before investing in Infineon

    Infineon faces semiconductor industry cycles, competition from other chip makers, and technology changes across its markets:

    • Semiconductor Cycle Risk: Infineon faces cyclical demand in semiconductor markets affecting revenue and profitability across its various business segments and markets for many years going forward in the future period through various future.
    • Competitive Industry Dynamics: The company competes with other European US and Asian semiconductor manufacturers across its various business segments and markets for many years going forward in the future period through various economic.
    • Technology Change Pace: Infineon must keep pace with rapid technology changes in semiconductor industry across its various business segments and markets for many years going forward in the future period through various economic and basis.
    • Manufacturing Investment Needs: The company requires significant capital investment for semiconductor fabrication facilities across its various business segments and markets for many years going forward in the future period through value.

    Final thoughts on Infineon

    Infineon Technologies is a leading German semiconductor company with automotive and power chip focus across global markets across its various business segments. The company faces semiconductor cycles and competitive pressures while benefiting from chip demand through 2026 and beyond across its various business segments. Infineon offers investors exposure to European semiconductor industry with automotive technology leadership and consistent performance over many years ahead across its various business segments.

  • Relais Group (HE:RELAIS)

    Relais Group is a leading Nordic automotive aftermarket company distributing spare parts, accessories, and services for passenger cars, commercial vehicles, and industrial equipment. Founded in 1932 and headquartered in Helsinki, Finland, the company dominates the Nordic automotive aftermarket through distribution centers, retail outlets, and service facilities. Relais Group serves professional workshops and retail customers across Finland, Sweden, Norway, Denmark, and the Baltic countries through multiple business segments.

    Relais Group operates through several segments including Wholesale, Retail, and Logistics, providing comprehensive automotive aftermarket solutions across the Nordic region. The company distributes automotive spare parts and accessories while operating retail chains and offering logistics and warehousing services for professional customers. Through strategic acquisitions and digital initiatives, Relais Group strengthens its market leadership while expanding geographic reach in the Nordic aftermarket.

    Relais Group financial statements

    Financial Health

    • Market Cap: $0.31B
    • Dividend Yield: 2.09%
    • Return on assets (ROA): 4.48%
    • Return on equity (ROE): 10.53%
    • Debt-to-Equity: 132.977
    • Current Ratio: 1.883

    Profitability

    • Gross margin: 48.72%
    • Operating margin: 6.89%
    • Net profit margin: 4.04%
    • P/E Ratio: 10.272232
    • Price-to-Book: 2.212666
    • Quick Ratio: 0.849

    Growth & Estimates

    • Analysts recommendation: 1.5
    • EPS (current): 0.78
    • EPS growth (this year): -41.7%
    • EPS growth (QoQ): N/A
    • Sales growth (QoQ): 28.6%
    • Beta: 1.015

    💡 Why invest in Relais Group?

    Relais Group combines Nordic aftermarket leadership, diversified operations, and strategic acquisitions for long-term investors:

    • Nordic Market Leadership: Relais Group holds leading market positions across the Nordic automotive aftermarket with strong brand recognition, extensive distribution networks, and established long-term customer relationships across multiple countries.
    • Diversified Business Model: The company operates across multiple business segments including wholesale distribution, retail operations, and logistics services, providing revenue diversification and reducing single market dependence.
    • Essential Service Provider: Relais Group operates in the defensive automotive aftermarket sector, providing essential spare parts and services that maintain demand stability regardless of new car sales cycles or economic conditions.
    • Strategic Acquisition Platform: The company`s proven acquisition strategy enables geographic expansion, market consolidation, and service portfolio enhancement through strategic purchases of regional automotive aftermarket businesses.

    🐌 Key considerations before investing in Relais Group

    Relais Group faces economic cycle sensitivity, geographic concentration, and supply chain dependencies affecting results:

    • Economic Cycle Sensitivity: The automotive aftermarket can be affected by economic downturns, consumer spending patterns, and vehicle utilization rates that impact demand for spare parts and maintenance services across Nordic markets.
    • Geographic Concentration Risk: Relais Group focus on Nordic markets creates geographic concentration risk and limits diversification opportunities in other regions with different economic cycles and automotive market dynamics across Europe.
    • Supply Chain Dependencies: The company relies on complex global supply chains for automotive parts and accessories, creating potential risks related to supply disruptions, cost inflation, and inventory management across multiple product categories.
    • Digital Transformation Pressure: The automotive aftermarket faces increasing digitalization requirements, e-commerce competition, and changing customer expectations that require continuous investment in technology and digital capabilities.

    Final thoughts on Relais Group

    Relais Group Nordic market leadership, diversified business model, and strategic acquisition platform create compelling opportunities for investors seeking defensive automotive aftermarket exposure. However, investors must consider economic cycle sensitivity, geographic concentration, and supply chain dependencies that characterize the regional European automotive aftermarket. Like a reliable service network keeping Nordic vehicles running, Relais Group offers stability and growth for investors who understand this specialized automotive sector.

  • Auto1 Group (DE:AG1)

    Auto1 Group SE is Europes leading digital automotive platform, operating online marketplaces for buying and selling used cars across multiple European markets and regions. Founded in 2012 and headquartered in Berlin, Germany, the company transformed the traditional used car market through technology, data analytics, and advanced logistics capabilities. Auto1 Group established itself as the dominant player in European online automotive commerce through wholesale trading, retail sales, and automotive services.

    Auto1 Group operates three core business segments including a wholesale dealer platform, a direct-to-consumer retail platform, and automotive services including financing and reconditioning. The company serves more than 30 European countries using proprietary algorithms for vehicle valuation and automated purchasing processes across its networks. The company focuses on capitalizing on automotive digitalization by building scalable platforms that connect buyers, sellers, and dealers across fragmented markets.

    Auto1 Group financial statements

    Financial Health

    • Market Cap: $4.93B
    • Dividend Yield: 0%
    • Return on assets (ROA): 3.12%
    • Return on equity (ROE): 12.4%
    • Debt-to-Equity: 209.561
    • Current Ratio: 2.448

    Profitability

    • Gross margin: 11.97%
    • Operating margin: 1.48%
    • Net profit margin: 1.03%
    • P/E Ratio: 19.415617
    • Price-to-Book: 5.5262403
    • Quick Ratio: 1.422

    Growth & Estimates

    • Analysts recommendation: 1.7
    • EPS (current): 0.36
    • EPS growth (this year): 1027.3%
    • EPS growth (QoQ): 49.5%
    • Sales growth (QoQ): 32.8%
    • Beta: 1.825

    💡 Why invest in Auto1 Group?

    Auto1 Group offers European market leadership, technology platforms, and digital commerce advantages in the automotive sector:

    • European Leadership Dominance: Auto1 Group leads the European online used car market with established platforms, extensive dealer networks, and strong brand recognition that create durable competitive advantages across many markets.
    • Technology Driven Operations: The company leverages advanced algorithms, data analytics, and automated processes for vehicle valuation, inventory management, and transaction processing that deliver significant operational efficiency gains.
    • Pan-European Geographic Reach: Auto1 Group operates across 30+ European countries with localized platforms and services, providing strong geographic diversification and broad access to Europes large and highly fragmented used car market.
    • Integrated Business Model: The company offers comprehensive automotive solutions including wholesale trading, retail sales, financing, logistics, and reconditioning services that create multiple revenue streams and customer touchpoints.

    🐌 Key considerations before investing in Auto1 Group

    Auto1 Group faces profitability challenges, competitive pressure, and macroeconomic sensitivity that affect financial performance:

    • Profitability Margin Challenges: The company continues to face losses and negative margins as it invests heavily in growth, technology development, and market expansion while competing in low-margin automotive trading businesses across Europe.
    • Competitive Market Pressure: The digital automotive market attracts competition from traditional dealers, other online platforms, and technology companies, creating pricing pressure and requiring continuous customer acquisition investment.
    • Macroeconomic Sensitivity Exposure: Used car demand is highly sensitive to economic conditions, consumer confidence, and financing availability, making the business vulnerable to economic downturns and changes in automotive market dynamics.
    • Operational Complexity Risk: Managing inventory, logistics, reconditioning, and quality control across many countries requires sophisticated operations that can face execution challenges and impact customer satisfaction and profit margins.

    Final thoughts on Auto1 Group

    Auto1 Group European leadership, technology-driven operations, and integrated business model create compelling opportunities for investors seeking broad automotive digitalization exposure. However, profitability challenges, competitive pressures, economic sensitivity, and operational complexity require careful evaluation of execution risks for all potential investors. Auto1 Group offers meaningful growth potential for investors who understand both the transformative opportunities and structural challenges of European automotive technology.

For broader context, you may also like best International automotive stocks, or if region does not matter, best automotive stocks.

For other European sectors and themes, see best basic materials, beauty, brokers, communication services, construction, defense, energy, or financial stocks.

For income-focused variants, see best automotive dividend or dividend stocks.