In this article: 15 The world’s most profitable car company. Skip to the next page for a detailed analysis of the statistics and economic impact of the auto manufacturing sector, the impact of the COVID-19 pandemic, the impact of the global semiconductor chip shortage on auto manufacturing, and the future outlook for the sector You can access it directly. Top 5 most profitable car companies in the world.
The automobile manufacturing sector is one of the largest industries in the world. A country’s automotive sector is often a reflection of the country’s broader economic situation.according to ACEAIn 2022, 85.4 million cars will be produced worldwide, an increase of 5.7% from 2021.
The automotive industry contributes around 3% to global GDP, and this share is even higher in emerging markets such as India and China, where the automotive sector accounts for 7% of GDP. The industry directly employs over 4 million people worldwide, and many more indirectly through the businesses and industries it supports.of Automotive Research Center Approximately 4.5% of all jobs in the United States are supported by the auto industry, and the people who work in these jobs collectively earn more than $500 billion annually and contribute more than $70 billion in tax revenue. revealed.
World’s largest car manufacturing country
China is World’s largest automobile producing country. The China Automobile Manufacturers Association revealed that the country’s automakers will produce 27 million vehicles in 2022, an increase of 3% compared to 2021, and sales will increase by 2.1% to 26.86 million vehicles. In second place is the United States, where in 2022 it will produce 14.9 million cars.
The car company that sells the most cars in the world
Toyota Motor Corporation (NYSE:TM) retained its title. The world’s best-selling car manufacturer The company reported that it will sell more than 10 million cars worldwide in 2022. The Japanese manufacturer, which is also one of the world’s most profitable car companies, said the increase was due to strong demand in Asia and increased production capacity due to optimization. Global production in 2022 increased by 5% due to sales promotions in Asia and North America. Volkswagen Group ranked second, selling his 8.3 million units in 2022.
When it comes to the electric vehicle market, Chinese automaker BYD Auto led the way, selling more than 1.8 million EVs in 2022. Tesla Inc. (NASDAQ:TSLA) ranks second with 1.3 million EVs sold worldwide.
The coronavirus disease (Covid-19) pandemic has had a devastating impact on the global automotive manufacturing sector, disrupting supply chains and operational activities. When Chinese cities went into lockdown, global automakers suffered from a lack of parts to keep the industry’s engines running. Eventually, as the virus spread to other countries, production in Japan, the United States, and several other large markets stopped completely due to social distancing measures. An example of this is Ford Motor Company (NYSE:F) reported an 18.4% year-over-year decline in 2020 sales.
Another major issue facing the auto industry is the global semiconductor chip shortage. In traditional cars, chips process information from various vehicle subsystems to make the vehicle more efficient and safer to drive. According to a study by United States International Trade Commission, conventional vehicles were equipped with approximately $330 worth of chips in 2019, and this number is currently increasing. Additionally, the adoption of electric vehicles with more complex systems is further increasing the demand for semiconductor chips.
The global semiconductor industry is struggling to meet this increased demand, primarily due to the disruption caused by COVID-19, uncertain trade measures, and accelerating digital transformation.Report by Techwire Asia It was revealed that due to the semiconductor shortage, automobile manufacturing lead times increased from an average of 3 to 4 months to an average of 10 to 12 months. Automakers around the world lost an estimated $210 billion in revenue in 2021 due to the chip shortage.
However, the impact of the semiconductor shortage was more than offset by an increase in car sales globally due to the easing of coronavirus restrictions, and consumers who had postponed purchases during lockdowns finally started buying again. according to The future of market researchthe global automotive industry is projected to reach $6 billion by 2030, with an average annual growth rate of 6.9%.
Photo by Igor Stepanov on Unsplash
methodology
To collect data for our index, we selected some of the world’s largest automakers that are publicly traded and report sales of at least 500,000 vehicles worldwide. We then ranked the companies based on their 2022 return on sales. These 15 companies are largest and most profitable world car companies In 2022, total reported profits amounted to approximately $128.4 billion.
15. Isuzu
2022 net income: $900 million
2022 revenue: $18 billion
Sales profit margin: 5%
The Japanese company announced that it sold more than 771,000 units worldwide in 2022, an increase of 7% from the previous year. Isuzu aims to produce 300,000 EVs at its factories by 2030, from zero electric vehicle production. This automaker has more than 44,000 employees worldwide.
14. Hyundai Motors
2022 net income: $7.36 billion
2022 revenue: $142.53 billion
Profit margin on sales: 5.2%
Founded in 1967, Hyundai Motors has more than 121,000 employees worldwide and sold more than 3.94 million vehicles worldwide in 2022, an increase of 1.4% year-on-year. Hyundai was also able to accelerate its transition to electrification last year due to strong sales of the IONIQ 5 and successful launch of the IONIQ 6. Hyundai is aiming for global sales of 4.32 million units in 2023.
13. Subaru
2022 net income: $1.43 billion
2022 revenue: $27.08 billion
Profit margin on sales: 5.3%
The Tokyo-based automaker reported selling more than 850,000 vehicles in 2022, of which more than 100,000 were sold in Japan alone. Subaru aims to manufacture and sell electric vehicles, aiming to sell more than 200,000 EVs worldwide by 2026 and 400,000 by 2028. The company is known for its dependence on the North American market.
12. Volkswagen Group
2022 net income: $16.61 billion
2022 revenue: $300 billion
Profit margin on sales: 5.4%
Volkswagen is currently the world’s largest automaker, with reported sales of approximately $300 billion in 2022. The German automaker has set an ambitious goal of overtaking Tesla Inc. (NASDAQ: TSLA) in the global EV market and doubling its sales by 2025. EV production in 2021 will be 452,000 units. In order to achieve that goal, richest car company in the world has secured $100 billion in EV production costs by 2026.
Under the Volkswagen Group, Porsche is the most profitable car company It has grown in the luxury mass market, with operating income reaching $7.2 billion in 2022.
11. Great Wall Motors
2022 net income: $1.16 billion
2022 revenue: $19.2 billion
Profit margin on sales: 6%
China’s private automakers reported sales of just over 1.06 million units in 2022, marking the seventh consecutive year with sales exceeding 1 million units. In markets outside China, 173,180 units were sold, an increase of 21.3% from the previous year. GWM Haval will enter the new energy market, with total sales exceeding 610,000 units in 2022.
10.Kia
2022 net income: $4.2 billion
2022 revenue: $67.2 billion
Profit margin on sales: 6.3%
Mr. Kia is South Korea’s second largest car manufacturer, shortly after parent company Hyundai Motors.Car manufacturers are one of them. Top most profitable car companies in the world. Kia Motors announced that its car sales in 2022 were 2.9 million units, an increase of 4.6% from the previous year. The Sportage SUV topped the global sales ranking in 2022 with sales of 452,068 units.
The company reported a 13.5% increase in profits from 2021. This can be attributed to an efficient supply chain management strategy and successful launch of the new Niro and 2024 Seltos.
9. General Motors Company (NYSE:GM)
2022 net income: $9.93 billion
2022 revenue: $156.73 billion
Profit margin on sales: 6.3%
General Motors Company (NYSE:GM) operates manufacturing plants in eight countries. world’s largest car companyUntil 2008, when Toyota Motor Corporation (NYSE:TM) took over the top spot.
General Motors Company (NYSE:GM) also recently announced plans to invest more than $1 billion in two plants in Michigan to build the next generation of heavy-duty trucks. General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA) also recently paid civil penalties totaling $363 million for failing to meet U.S. fuel economy requirements for previous models.
8. Changan Automobile
2022 net income: $1.09 billion
2022 revenue: $17 billion
Profit margin on sales: 6.4%
Chang’an is a Chinese city founded in 1862. oldest car manufacturer. The state-owned automaker is headquartered in Chongqing. The company sold more than 2 million vehicles in 2022, ranking fifth among Chinese automakers. Chairman Zhu Hua Rong announced plans to achieve group sales of 5 million units by 2030, accounting for more than 60% of NEV sales and 30% of overseas sales.
7. Toyota Motor Corporation (NYSE:TM)
2022 net income: $17.59 billion
2022 revenue: $266.6 billion
Profit margin on sales: 6.6%
Toyota Motor Corporation (NYSE:TM) also has $266.6 billion in revenue. Largest Japanese car company by sales. Sales of the company’s industrial equipment, particularly forklifts, also jumped 25% to $12.9 billion. In 2022, Toyota Motor Corporation (NYSE:TM) will best selling car in usaGeneral Motor Company (NYSE:GM) lost the number one spot for the first time since 1931.
6.GAC motor
2022 net income: $1.13 billion
2022 revenue: $15.4 billion
Sales profit margin: 7.3%
Guangzhou Automobile Group said it sold more than 2.4 million vehicles in 2022 despite pressure from the pandemic, a prolonged chip shortage and rising raw material prices. GAC plans to sell more than 4.75 million vehicles and achieve revenue of 1 trillion yuan by 2030.
Click to continue reading and find out: 5 most profitable car companies in the world.
Recommended articles:
Disclosure: None. The 15 most profitable car companies in the world Originally published on Insider Monkey.