Cie Automotive Sa Ord (CUOTF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone. Welcome to the first quarter results for CI Automotive. My name is Lorre. I'm the Director for Corporate Development. At the end of the presentation, there will be a Q&A. I'd like to remind you that questions can only be asked in writing via the tool provided on the webcast. And now I'll hand over to Lorre. Go ahead, please. Good afternoon. Welcome to this conference call. with the results for this first quarter, 2026, a quarter that somehow confirms the disparity between markets, with markets evolving at very different speeds, and with increasingly divergent dynamics in an environment where, apart from all the above, demand and production don't always evolve in a synchronized way, as we'll see when we review what happens in each market. Starting with China, the Chinese market situation can be summarized under two concepts, normalization and competitive pressure. On the one hand, normalization. China has already shown a clear adjustment in demand, with sales falling by around 20% in this first quarter, compared to a more limited output fall of 10%, a demand adjustment that reflects some normalization after the post-COVID years have had very strong growth and adjustment in demand that reflects a mature market with electrification levels close to 50% of those sales and production and demand adjustment to which, without a doubt, the reduction of incentives for electric vehicles has had an effect, which was implemented at the end of 2025. in the context of reorientation of the Chinese government's industrial policy, and in 2026 it has stopped considering the automotive sector as one of its strategic priority sectors in terms of investment. We also mentioned the competitive pressure. That competitive pressure and the price wars between manufactur...