Markets

Insider Trading

Hedge Funds

Retirement

Opinion

15 Most Profitable Car Companies in the World

In this article, we are going to discuss the 15 most profitable car companies in the world. You can skip our detailed analysis of the statistics and economic impact of the automobile manufacturing sector, effects of the Covid-19 pandemic, impact of the global semiconductor chip shortage on vehicle manufacturing and the future outlook of the sector and go directly to 5 Most Profitable Car Companies in the World

The automobile manufacturing sector is one of the largest industries worldwide. Often, a country’s automotive sector is a reflection of its broader economic condition. According to ACEA, 85.4 million motor vehicles were produced around the world in 2022, an increase of 5.7% from 2021. 

The automotive industry contributes around 3% to the global GDP and this share is even higher in emerging markets like India and China, where the auto sector accounts for 7% of GDP. The industry employs over 4 million people worldwide directly and even more indirectly through the businesses and industries that it supports. The Center for Automotive Research has revealed that around 4.5% of all U.S. jobs are supported by the country’s auto industry and people working in these jobs collectively earn over $500 billion annually in compensation and contribute over $70 billion in tax revenues. 

Largest Automobile Manufacturer Country in the World

China is the largest automobile manufacturing country in the world. The Chinese Association of Automobile Manufacturers has revealed that the country’s carmakers produced 27 million vehicles in 2022, up by 3% from 2021, while sales increased by 2.1% to 26.86 million units. The U.S. comes in at second, with 14.9 million vehicles produced in 2022.

Car Company that Sells the Most Cars in the World

Toyota Motor Corporation (NYSE:TM) retained its title as the world’s top-selling  automaker in 2022. The company reported sales of over 10 million vehicles worldwide in 2022. The Japanese manufacturer, which is also one of the most profitable car companies in the world, said that strong demand in Asia and an increase in production capacity, along with optimisation in Asia and North America helped it boost global production by 5% in 2022. The Volkswagen Group ranked second, with 8.3 million vehicles sold in 2022.

When it comes to the electric vehicles market, the Chinese auto manufacturer BYD Auto led the pack with over 1.8 million EV units sold in 2022. Tesla, Inc. (NASDAQ:TSLA) came in at second with 1.3 million EVs sold worldwide. 

The Covid-19 pandemic had a devastating impact on the global auto manufacturing sector, disrupting its supply chains and operation activities. When the Chinese cities were put into lockdown, global car manufacturers struggled with the shortage of parts to keep their industry engines running. Eventually, as the virus spread to other countries, production in Japan, the U.S. and several other large markets came to a complete halt due to social-distancing practices. An example of this is Ford Motor Company (NYSE:F), which reported an 18.4% decline in its sales in 2020, compared to the previous year. 

Another major problem that the automotive sector has been faced with is the global semiconductor chip shortage. In conventional automobiles, chips process information in various vehicle subsystems that improve a vehicle’s efficiency and make driving safer. According to a study by the United States International Trade Commission, conventional vehicles had approximately $330 worth of chips in 2019 and this number has risen even further now. Additionally, the adoption of electric vehicles, with their more complicated systems, has raised the demand for semiconductor chips even higher. 

The global semiconductor industry has struggled to keep up with this rising demand, mainly due to Covid-19 disruptions, trade action uncertainty and accelerated digital transformation. A report by Techwire Asia has revealed that the shortage of semiconductors had caused vehicle manufacturing lead times to increase from an average 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 easing of Covid-19 restrictions globally boosted automobile sales, as consumers who had put off purchases during lockdowns finally started buying again, which has helped outweigh the effects of the semiconductor shortage. According to Market Research Future, the global automotive industry is projected to reach $6 tillion by 2030, with a Compound Annual Growth Rate of 6.9%.

Methodology

To gather data for our index, we have selected some of the largest auto manufacturers in the world, that are publicly listed and reported sales of at least 500,000 units worldwide. Then we ranked them according to their profit to revenue ratios for the year 2022. These 15 companies are some of the largest and most profitable car companies in the world and earned total reported profits of around $128.4 billion in 2022.  

15. Isuzu

Net Profit in 2022: $0.9 billion

Revenue in 2022: $18 billion 

Profit to Revenue Ratio: 5%

The Japanese company announced that it sold over 771,000 units worldwide in 2022, a 7% increase from the previous year. Isuzu aims to go from making zero electric vehicles to 300,000 EVs in its own plants by 2030. The auto manufacturer boasts over 44,000 employees worldwide. 

14. Hyundai Motor

Net Profit in 2022: $7.36 billion

Revenue in 2022: $142.53 billion 

Profit to Revenue Ratio: 5.2%

Founded in 1967, Hyundai Motor employs over 121,000 worldwide and sold over 3.94 million units globally in 2022, a YoY increase of 1.4%. Hyundai was also able to accelerate its transition to electrification last year, thanks to the strong sales of IONIQ 5 and the successful launch of IONIQ 6. In 2023, Hyundai is aiming for global sales of 4.32 million units. 

13. Subaru 

Net profit in 2022: $1.43 billion

Revenue in 2022: $27.08 billion

Profit to Revenue Ratio: 5.3%

The Tokyo-based automaker reported sales of over 850,000 vehicles in 2022, with over 100,000 units sold in Japan only. Subaru is targeting to make and sell electric vehicles, aiming for global sales of over 200,000 EVs by 2026 and 400,000 by 2028. The company is known for its dependence on the North American market. 

12. Volkswagen Group

Net Profit in 2022: $16.61 billion

Revenue in 2022: $300 billion 

Profit to Revenue Ratio: 5.4%

Volkswagen is currently the largest automaker in the world, with a reported revenue of approximately $300 billion in 2022. The German car maker has set an ambitious target to overtake Tesla, Inc. (NASDAQ:TSLA) in the global EV market by 2025 and doubled its EV production in 2021 to 452,000. To meet its targets, the richest car company in the world has set aside $100 billion for EV production expenditures to be used by 2026. 

Under the umbrella of the Volkswagen group, Porsche is the most profitable car company in the luxury mass-market, with an operating profit of $7.2 billion in 2022. 

11. Great Wall Motors

Net Profit in 2022: $1.16 billion

Revenue in 2022: $19.2 billion

Profit to Revenue Ratio: 6%

The privately-owned Chinese automobile manufacturer reported sales of just over 1.06 million vehicles in 2022, exceeding 1 million sales for seven years in a row. A total of 173,180 vehicles were sold in markets outside of China, up 21.3% from the previous year. GWM Haval has expanded into the new energy market, with total sales of over 610,000 vehicles in 2022.

10. Kia

Net Profit in 2022: $4.2 billion

Revenue in 2022: $67.2 billion

Profit to Revenue Ratio: 6.3%

Kia is the second-largest auto manufacturer in South Korea, right after its parent company Hyundai Motor. The auto manufacturer is one of the top most profitable car companies in the world. Kia announced that it sold 2.9 million vehicles in 2022, a 4.6% increase from the previous year. The Sportage SUV topped its global sales ranking with 452,068 units sold in 2022. 

The company reported a 13.5% increase in profits from 2021, which can be attributed to its efficient supply chain management strategies and the successful launches of the all new Niro and the 2024 Seltos. 

9. General Motors Company (NYSE:GM)

Net Profit in 2022: $9.93 billion

Revenue in 2022: $156.73 billion

Profit to Revenue Ratio: 6.3%

Operating manufacturing plants in 8 countries, General Motors Company (NYSE:GM) was the largest car company globally, before losing the top spot to Toyota Motor Corporation (NYSE:TM) in 2008. 

General Motors Company (NYSE:GM) has also recently announced plans to invest over $1 billion in two Michigan plants to manufacture its next-generation heavy-duty trucks. General Motors Company (NYSE:GM), along with Stellantis N.V. (NYSE:STLA), has also recently paid a total of $363 million in civil penalties for failing to meet U.S. fuel economy requirements for prior model years. 

8. Changan Automobile

Net Profit in 2022: $1.09 billion

Revenue in 2022: $17 billion

Profit to Revenue Ratio: 6.4%

Founded in 1862, Changan is China’s oldest automobile maker. The state-owned car manufacturer is headquartered in Chongqing. The company sold over 2 million vehicles in 2022, ranking 5th among Chinese auto manufacturers. Chairman Zhu Huarong has revealed the company’s plans to achieve group sales of 5 million vehicles by 2030, with over 60% of NEVs sales and 30% of overseas sales. 

7. Toyota Motor Corporation (NYSE:TM) 

Net Profit in 2022: $17.59 billion

Revenue in 2022: $266.6 billion

Profit to Revenue Ratio: 6.6%

With a revenue of $266.6 billion, Toyota Motor Corporation (NYSE:TM) is also the largest Japanese car company by revenue. The company’s sales of industrial equipment, particularly forklifts, also boomed 25% to $12.9 billion. In 2022, Toyota Motor Corporation (NYSE:TM) became the top seller of cars in the U.S., marking the first time that the General Motor Company (NYSE:GM) missed out on the No. 1 spot since 1931.

6. GAC Motor

Net Profit in 2022: $1.13 billion

Revenue in 2022: $15.4 billion

Profit to Revenue Ratio: 7.3%

The Guangzhou Automobile Group revealed that it sold over 2.4 million vehicles in 2022, despite pressure from the pandemic, the extended chip shortage and increase in raw material prices. GAC is planning sales in excess of 4.75 million vehicles and achieve a revenue of RMB 1 trillion by 2030. 

Click to continue reading and see the 5 Most Profitable Car Companies in the World.

Suggested Articles:

Disclosure: None. 15 Most Profitable Car Companies in the World is originally published on Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…