In this article, we will take a look at the 15 Fastest Growing Automotive Brands in the World. You can also check out 15 Biggest Asian Car Companies by Sales for more discussion on the automotive industry.
Global Automotive Market Trends
The global automobile manufacturing sector is one of the largest industries worldwide and has been growing over the past many years. The global automobile market was valued at $2.73 trillion in the year 2021. Among automobiles, passenger cars are the most popular in most countries. In 2022, the global passenger car market was valued at a whopping $1.66 trillion, with an expected compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. At this growth rate, the market is projected to reach an impressive valuation of $2.67 trillion by 2030.
The automobile industry has a close link to the economy and even acts as one of the barometers for a country’s economic health. The rising per capita income and growing population are some of the factors that have led to increased demand for cars around the world, especially in developed countries. However, the expected growth in sales is not very promising given the poor economic conditions globally, especially in the US and China.
Fitch Ratings has predicted a 4% increase in global sales and production in 2024. As discussed earlier, the main reasons for a low growth rate are slower economic growth and higher interest rates that are expected to impact overall vehicle demand in 2024. However, pent-up consumer demand is going to drive the demand for the next year. S&P Global Mobility has predicted that 88.3 million new vehicles will be sold globally in 2024. With these sale units, a 2.8% year-over-year increase in global new light vehicle sales is expected.
Against the global landscape, the United States stands as one of the largest automotive markets in the world. Almost 15.5 million new light vehicles were sold in the US in the year 2023 while the number of used vehicles sold stood at approximately 40 million. With 278,870,463 vehicles registered in the country as of 2022, almost 92% of households in the US owned at least one vehicle with vehicles per household averaging at 1.9.
The global automobile manufacturing sector is one of the largest industries worldwide and has been growing over the past many years. The global automobile market was valued at $2.73 trillion in the year 2021. Among automobiles, passenger cars are the most popular in most countries. In 2022, the global passenger car market was valued at a whopping $1.66 trillion, with an expected compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. At this growth rate, the market is projected to reach an impressive valuation of $2.67 trillion by 2030.
The automobile industry has a close link to the economy and even acts as one of the barometers for a country’s economic health. The rising per capita income and growing population are some of the factors that have led to increased demand for cars around the world, especially in developed countries. However, the expected growth in sales is not very promising given the poor economic conditions globally, especially in the US and China.
Fitch Ratings has predicted a 4% increase in global sales and production in 2024. As discussed earlier, the main reasons for a low growth rate are slower economic growth and higher interest rates that are expected to impact overall vehicle demand in 2024. However, pent-up consumer demand is going to drive the demand for the next year. S&P Global Mobility has predicted that 88.3 million new vehicles will be sold globally in 2024. With these sale units, a 2.8% year-over-year increase in global new light vehicle sales is expected.
Against the global landscape, the United States stands as one of the largest automotive markets in the world. Almost 15.5 million new light vehicles were sold in the US in the year 2023 while the number of used vehicles sold stood at approximately 40 million. With 278,870,463 vehicles registered in the country as of 2022, almost 92% of households in the US owned at least one vehicle with vehicles per household averaging at 1.9.
Some of the biggest names in the automobile industry are Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F).
Tesla, Inc. (NASDAQ:TSLA)
Tesla, Inc. (NASDAQ:TSLA) is the best-selling electric vehicle manufacturer in the United States capturing over 50% of the U.S. EV market in 2023. Its popularity can be gauged from the number of units it sold in the US. In 2022, Tesla, Inc. (NASDAQ:TSLA) sold a total of 354,822 vehicles in America, up from 234,000 in 2021 showing a growth of 53%. However, the current year has not been the best for the company in terms of its sales and financial performance. In Q1 2024, the company’s revenue was $21.3 billion, a 9% decrease year-over-year, missing estimates of $22.34 billion, according to Yahoo Finance.
Ford Motor Company (NYSE:F)
Ford Motor Company (NYSE:F) is one of the largest auto manufacturers in the world. Ford Motor Company (NYSE:F) manufactures cars, trucks, and SUVs as part of its diverse lineup. Ford’s sales of electric vehicles hit a new record at 61,575 units in 2022 which was an increase of 126% compared to the prior year. These unit sales made the company the second-largest automaker of electric vehicles in America.
Also see: 20 Cities with the Most Expensive Car Insurance in the US and 15 Best Selling Car Brands in the World.
A focus on an anti-whiplash system inside a car, showcasing the detail and precision of the companies automotive parts.
Methodology
For the purpose of this ranking, we scoured multiple sources, including U.S. News, Forbes India, Automotive Technology, CarLogos, etc, that had listed top automobile companies. We then compiled a list of 25 automotive brands that appeared the most frequently across these sources. After this, we proceeded to go through the financial statements of these companies to collect data on each company’s revenue for the years 2018 and 2023. With this data, we calculated the compound annual growth rate (CAGR) for 5 years and ranked them in ascending order. Through this approach, we picked companies that had the highest CAGR for the five years and listed them.
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15. Volvo Car AB
Compound Annual Growth Rate from 2018 to 2023: 0.43%
Volvo Car AB (publ.) is a subsidiary of Geely Sweden Holdings AB and specializes in the design, development, manufacture, assembly, and sale of passenger vehicles. Between 2018 and 2023, Volvo Car AB’s revenue grew from $37.26 billion to $38.07 billion, marking a total increase of $0.81 billion, or approximately 2.17%. This modest growth translates to a compound annual growth rate (CAGR) of around 0.43%.
14. Nissan Motor Co., Ltd.
Compound Annual Growth Rate from 2018 to 2023: 1.86%
Nissan Motor Co Ltd, commonly known as Nissan, is a Japanese multinational automobile manufacturer that designs, produces, and sells cars to customers all over the world. In 2023, Nissan’s revenue reached $79.53 billion, up from $72.53 billion in 2018.
13. Ford Motor Company (NYSE:F)
Compound Annual Growth Rate from 2018 to 2023: 1.89%
Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. In 2023, Ford’s revenue grew to $176 billion, marking a significant increase from the $160.3 billion reported in 2018. The company plans to manufacture and sell hundreds of thousands of gasoline-electric hybrid vehicles in the US over the next five years, amounting to 24% of the new vehicles in the US in 2028, according to Reuters.
12. Tata Motors Limited
Compound Annual Growth Rate from 2018 to 2023: 2.86%
The India-based company offers passenger cars, sports utility vehicles, and intermediate and light commercial vehicles. The company’s revenue growth from $44.23 billion in 2018 to $50.92 billion in 2023 underscores its successful expansion and market presence in the automotive industry. In Q1 2024, their consolidated revenue was $12.25 billion, up 42.1% year-over-year.
11. General Motors Company (NYSE:GM)
Compound Annual Growth Rate from 2018 to 2023: 3.17%
General Motors Company (NYSE: GM) owns and manufactures several iconic brands, including Chevrolet, GMC, Cadillac, and Buick. The company had initially planned to commence production of electric Chevrolet Silverado and GMC Sierra models in late 2024 but has since adjusted the timeline to late 2025. In 2024, General Motors is focusing on ramping up electric vehicle (EV) production, including the addition of a new shift at its Detroit-Hamtramck factory, which currently produces EV SUVs and pickup trucks.
10. Honda Motor Co., Ltd. (NYSE:HMC)
Compound Annual Growth Rate from 2018 to 2023: 5.87%
Honda Motor Co Ltd (NYSE: HMC) is a prominent Japanese multinational conglomerate known for manufacturing automobiles, motorcycles, and power equipment. One of the brand’s best-selling vehicles over several decades is the Honda Civic. In the United States, Honda achieved notable success with Civic sales totaling 53,500 units in Q3 FY2024, reflecting a substantial 42% increase from the previous year. Honda also reported a record operating profit of $8.67 billion in Q1 2024, marking a significant 77% year-over-year growth.
9. Volkswagen AG
Compound Annual Growth Rate from 2018 to 2023: 6.45%
Volkswagen AG is a leading manufacturer and seller of automobiles, operating across Germany, various European countries, North America, South America, the Asia-Pacific region, and globally. The company leads in electric vehicles and delivered 394,000 fully electric vehicles worldwide in 2023, marking a significant 21.1% increase compared to 2022. The company’s revenue also saw substantial growth, reaching $345.68 billion in 2023, up from $252.9 billion in 2018.
8. Toyota Motor Corp (NYSE:TM)
Compound Annual Growth Rate from 2018 to 2023: 7.08%
Toyota is the biggest brand in Asia and also one of the most sold car brands in the continent. Toyota’s most popular vehicles include the Toyota Camry, Toyota Corolla, Toyota RAV4, and Toyota RAV4 which is Toyota’s best-selling model globally. Toyota Motor Corporation (NYSE:TM) has announced ambitious plans to introduce up to 30 battery electric vehicle (BEV) models under its Toyota and Lexus brands. By 2030, the company aims to ramp up production to potentially manufacture as many as 3.5 million BEVs annually.
7. Dr Ing hc F Porsche AG
Compound Annual Growth Rate from 2018 to 2023: 9.45%
Porsche Automobil Holding SE, operating globally as an automobile manufacturer through its subsidiaries, reported significant achievements in 2023. The company delivered 40,629 units of its all-electric Taycan, marking a notable 17% increase in sales compared to 2022. This growth contributed to Porsche’s robust financial performance, with revenue reaching $43.42 billion in 2023, up from $27.65 billion in 2018.
6. Stellantis N.V. (NYSE:STLA)
Compound Annual Growth Rate from 2018 to 2023: 10.43%
Headquartered in Amsterdam, the multinational automotive corporation was established through the merger of Italian Fiat Chrysler Automobiles and the French PSA Group. This strategic alliance created a formidable entity in the global automotive industry. In 2023, the company achieved substantial financial success with revenue totaling $203.21 billion, reflecting a significant increase from the $132.71 billion reported in 2018.
5. Hyundai Motor Company
Compound Annual Growth Rate from 2018 to 2023: 10.94%
Hyundai Motor stands as one of the leading Asian automotive companies. The company sold 4,216,898 vehicles worldwide in 2023, marking a 7% increase from the previous year. Among Hyundai’s standout models in 2023 were the Tucson SUV, with 209,624 units sold, and the Santa Fe SUV, which achieved sales of 131,574 units. In Q1 2024, Hyundai Motor America achieved record-breaking March sales totaling 76,920 units, reflecting a 2% increase compared to March 2023. These achievements underscore Hyundai’s strong market presence and consumer appeal across its diverse lineup of popular vehicles.
