Original-Research: ELARIS AG (von GBC AG)

Original-Research: ELARIS AG - from GBC AG

Classification of GBC AG to ELARIS AG

Company Name: ELARIS AG
ISIN: DE000A37FT17

Reason for the research: GBC Management Interview
Recommendation: GBC Management Interview
Last rating change:
Analyst: Marcel Goldmann

25/03/2024 - GBC management interview with Lars Stevenson, CEO of ELARIS AG
'We expect a strong financial year in 2024, as driven by the continued
strong growth in the e-mobility market.'
ELARIS AG (ELARIS) is a German company and a provider of fully electric
e-vehicles in the fast-growing e-mobility sector. As an automotive
manufacturer, ELARIS sources its electric cars from well-known Chinese
e-vehicle manufacturers (contract manufacturing) and sells them itself
(online sales) and via sales partners under its own ELARIS brand in Germany
and a number of other European countries (e.g. Austria). The company has
extensive technology, development and manufacturing partnerships with these
manufacturing companies (OEMs). In Germany, ELARIS has currently entered
into a cooperation with 82 car dealers and 86 Euromaster locations for the
sale (including servicing) of ELARIS electric cars and charging stations.
After ELARIS recently announced that the company was planning its initial
listing on the m:access of the Munich Stock Exchange on 14 March 2024, we
took the opportunity to conduct a management interview with Mr Lars
Stevenson, CEO of ELARIS AG. The interview focused in particular on the
IPO, the company's current growth strategy, the targets for the current
financial year and the company's prospects.
GBC: What were your motives for the IPO?
Mr Stevenson: The IPO will increase our visibility and awareness. It will
enable us to significantly expand our market position as an innovative
electromobility company and make a contribution to the global energy
transition. Needs-based and affordable electric cars are an important
factor in the global energy transition. In addition, visibility on the
capital market and future financing options will help us with our further
growth strategy.
GBC: Could you please briefly explain your business model and what sets you
apart from other e-mobility providers (USP) to our investors?
Mr Stevenson: We want to be a driver in making electric mobility suitable
for the masses, so that everyone can afford a good electric car. That's why
we currently offer a range of six electric car models in German-speaking
countries, from subcompact cars to SUVs and saloons to vans. We are
focusing on affordable and needs-based electric mobility and are working
together with large electric vehicle manufacturers in China. They produce
vehicles on our behalf that are customised to the requirements of European
customers and the local market. In some cases, we also customise the
vehicles ourselves, particularly in the software area. The models are
therefore unique. It is important to us to offer electric cars at fair
prices. The cheapest electric car is available for less than 21,000 euros
(excluding VAT).
One of our great strengths is our flexibility and speed. We quickly adapt
model specifications and ranges to changes in the market and demand.
Customers are assured of vehicle repair and maintenance as well as the sale
of accessories via ELARIS partner car dealerships. It goes without saying
that our electric cars can also be serviced by other garages. Our vehicles
are currently sold primarily in Germany, Austria and Switzerland. In
addition to our own direct sales, we rely on a partner network of car
dealerships, which will be continuously expanded.
In the charging infrastructure division, we also offer charging stations
and wallboxes. Consultancy and services in the planning of charging
infrastructure solutions are also part of our business model. Our aim is to
increasingly leverage cross-selling potential between the areas of electric
vehicles and charging infrastructure. We are therefore very diversified in
the field of e-mobility.
GBC: How do you see the current market development in the e-mobility
sector? What market trends do you see and what future developments do you
anticipate?
Mr Stevenson: E-mobility is a strong growth market. This is also confirmed
by various studies. For example, since the COVID pandemic, the share of
electric vehicles in total vehicle sales in Germany has increased tenfold.
Depending on the forecast and study, it is assumed that between 240 million
and 250 million electric vehicles will be on the road worldwide by 2030,
thus achieving a global share of 10.0% to 30.0%.
According to the International Energy Agency (IEA), manufacturers outside
China will need to offer affordable, competitive options in the future to
enable mass adoption of electric vehicles. Through our collaboration with
Chinese OEMs, we therefore believe we are well positioned.
GBC: You are a fast-growing company: What specific growth strategy are you
pursuing with ELARIS?
Mr Stevenson: Among other things, we want to further expand our sales and
service channels in order to increase sales, improve customer service and
strengthen the brand on the market. In particular, we are focusing on
expanding the network of affiliated car dealerships, which are to become
sales and service partners for our products. We also want to extend our
partnership with service providers for the ELARIS electric car to other
European countries so that local distributors of the ELARIS brand abroad
can also benefit from this partnership and guarantee their customers a
nationwide maintenance network.
We want to continue to raise our profile through targeted marketing
activities, e.g. via social media. We also want to open up further European
countries as part of our internationalisation strategy. In 2024, we plan to
enter the French, Polish and Spanish markets via local distributors. We
want to facilitate access to our vehicles through special subscription
models.
With the ELARIS mobile phone app, for example, every market participant
could become a 'car hire company'. Our ELARIS World platform takes care of
the entire process. The first ELARIS taxi is also on the road in Hamburg.
GBC: What can investors expect from ELARIS in the current financial year?
What sales volumes and sales figures are you aiming for in the current
financial year? Will 2024 already be a profitable year?
Mr Stevenson: We expect a strong financial year in 2024, driven by the
continued strong growth in the e-mobility market. We will launch new
attractive models with high availability, a long range and favourable
prices on the market in the short term. There will also be an e-scooter
from ELARIS in 2024, for example. Overall, we see 2024 as the first year in
which we will be able to reap the rewards of the strategic course which we
have set in recent years in terms of sales and move into completely new
dimensions.
GBC: Will ELARIS continue to strive for the designation or status of a
classic (domestic) automobile manufacturer (so-called OEM) in the future?
Mr Stevenson: The ELARIS BEO with the ELARIS VIN number will be available
as early as April. We are in the process of switching from OEM to German
manufacturer. By the third quarter, we plan to place all vehicles on the
market as a German manufacturer.
GBC: What is your general corporate vision? Where do you see ELARIS in
three to five years in terms of sales region, turnover level and product
portfolio?
Mr Stevenson: ELARIS wants to play a meaningful role in shaping
electromobility as a family of values through innovation, customer-oriented
models, prices and structures. We combine access to efficient production
facilities with an understanding of customer requirements in a wide range
of regional markets. Our lean structures and willingness to break new
ground make us flexible and fast. ELARIS clearly addresses Europe and the
Middle East. Our licence model in particular enables rapid growth. Our
products can be flexibly adapted to local markets.
A German brand still has great appeal. The fact that production takes place
in China is not really anything new for the market - many established
manufacturers produce in China.
In five years' time, our key financial figures should be in line with our
claim to be a successful global electromobility company. As a profitable
company with very dynamic sales growth, we want our shareholders to
participate in the next successful chapters of the ELARIS story.
GBC: Mr Stevenson, thank you very much for talking to us.

You can download the research here:
http://www.more-ir.de/d/29235.pdf

Contact for questions
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion of the study: 25/03/2024(8:46 am)
Date and time of first distribution: 25/03/2024(10:30 am)

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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.