In this article, we will be taking a look at the 20 most valuable car companies by market cap heading into 2024. To skip our detailed analysis, you can go directly to see the 5 most valuable car companies by market cap heading into 2024.
The car industry is one of the most valuable industries in the world, and is worth more than $2.7 trillion currently, expected to land at $3.6 trillion by 2031. Despite being one of the most important industries in the world, the automotive sector had a year to forget in 2022, mainly because of supply chain disruptions. Already reeling from the impact of the pandemic, higher interest rates and fears of a recession led to the industry slowing down as consumer spending fell, and the most valuable car companies by market cap heading into 2024 were significantly impacted too. “There is active demand destruction in the industry, given inflation, interest rates, and energy costs − but so far, this has mostly impacted the backlog,” Bernstein analyst Daniel Roeska wrote in an investor note.
An aerial view of a busy highway, cars and trucks passing underneath.
According to Kroll, auto sales are expected to grow in 2023 as compared to 2022, even though the overall car industry is still well below pre-pandemic levels. Due to supply chain issues, car prices increased significantly over the past couple of years, both in the new car department as well as used car sales, with used car prices being 30% above pre-pandemic levels. Currently improving supply chain levels are expected to drive down prices as U.S. sales, which is home to many of the most valuable car companies in the world heading into 2024, reached over 1.3 million units in August, an increase of more than 15% compared to the previous year. Consumers are expected to spend around $48 billion in the same month, a record for August. This is in line with global expectations too, as around 86.8 million units are expected to be sold, exceeding the previous estimates of 86.4 million units. Of course, the U.S. has been dealing with strikes and many of the the most profitable car companies in the world are losing tens of millions of dollars as workers strike for better pay, with the number of people striking continuing to increase by the thousands.
While the U.S. is home to many of the richest car companies in the world, which we’ll discuss later in our list, the car companies expected to dominate the future of the industry are those which are able to successfully pivot to electric vehicle (EV) manufacturing. Tesla, Inc. (NASDAQ:TSLA), one of the most valuable car companies in the world heading into 2024, is credited with ushering in the EV revolution and EV sales are continuing to increase as a percentage of total car sales, and 2023 is looking to be the most spectacular year in this respect. Currently, China is the largest manufacturer of EVs in the world by a country mile and is continuing to gain more dominance. More than half of the EVs produced in the world are produced by China, which is home to some of the biggest car manufacturers by revenue in 2023, and in 2022, around 14% of all cars sold globally were EVs. This percentage is expected to increase even more in 2023, as evidenced by Q1 sales, where 2.3 million EVs were sold, an increase of 25% compared to the previous year. In total, around 14 million EVs are expected to be sold in 2023, which will contribute to more than 16% of total cars sold.
Another exciting development in the automotive industry pertains to advances made in the self-driving industry. Many companies, including some of the most valuable car companies by market cap heading into 2024, have started to make headway in self-driving cars, and the industry, if all goes to plan, could be worth $400 billion by 2035. The Chief Executive Officer of the electric vehicle company Li Auto Inc. (NASDAQ:LI), Xiang Li, said in the company’s Q2 2023 earnings call:
“We made rapid progress in autonomous driving this year. In June 2023, we started test drives for China’s first NOA and commute NOA, which do not rely on high-definition maps in [Wangjing] (ph), known as one of the most complicated traffic zones in Beijing. We also rolled out our city NOA to early bird users in Beijing and Shanghai. On the perception front, we use BEV models enhanced by innovative NPN features and TIN network to perceive complex road structures in real time and comprehend traffic rules. While utilizing occupancy network to identify common obstacles, we also utilized imitation learning and control algorithms to make judgments more akin to human drivers. Test drivers and media have spoken highly of driving safety, efficiency and comfort demonstrated by Li Auto AD Max.”
Methodology
To determine the most valuable car companies in the world heading into 2024, we checked the market cap of the top automotive stocks through Yahoo Finance and ranked them each based on their market cap. Where the market cap of a company is in a foreign currency, it has been converted to USD based on the latest exchange rates. We also determined the valuation of some private companies, and just one private company made our list.
20. Kia Corporation
Total market cap as at 30th October 2023 (in $ billions): 23.08
One of the biggest car companies in Korea, and the world, Kia has seen its share price climb by 27% YTD 2023, and in Q3 2023, saw its revenue exceed the previous year by 3.5%. Additionally, Kia also agreed, along with Hyundai, a partnership with Infineon for the supply of semiconductors.
19. SAIC Motor Corporation Limited
Total market cap as at 30th October 2023 (in $ billions): 23.63
One of the biggest car companies in China, SAIC Motor Corporation saw its brand, MG Motors, earn more than £1 billion in the UK alone in 2022.
18. Tata Motors
Total market cap as at 30th October 2023 (in $ billions): 27.61
India’s most valuable car company, Tata Motors has had a stellar year which has helped it become one of the most valuable car companies in the world by market cap heading into 2024, with its share price increasing by nearly 60% YTD 2023.
17. Great Wall Motor Company Limited
Total market cap as at 30th October 2023 (in $ billions): 30.38
China’s Great Wall Motor Company Limited rose by more than 16% in just the past one month after surpassing profit expectations and reporting profit growth of 42%. The company also has plans on expanding to Europe, and called for fair trade between Europe and China.
16. Hyundai Motor Company
Total market cap as at 30th October 2023 (in $ billions): 30.76
Hyundai is the largest car company in Korea is looking to build a $7.6 billion EV assembly plan in America to boost its transition and enable it to remain among the most valuable car companies in the world in 2023.
15. Li Auto Inc. (NASDAQ:LI)
Total market cap as at 30th October 2023 (in $ billions): 35.96
We’ve already discussed the recent achievements and expectations of Li Auto Inc. (NASDAQ:LI), one of the most valuable car companies by market cap heading into 2024. These advancements made by Li Auto Inc. (NASDAQ:LI), have seen its share price rise by over 63% YTD, with a 10% in just the last 5 days.
14. General Motors Company (NYSE:GM)
Total market cap as at 30th October 2023 (in $ billions): 36.7
General Motors Company (NYSE:GM), in its Q3 2023 earnings report, landed at a Non-GAAP EPS of $2.28, beating expectations by $0.44.
Patient Capital Management mentioned General Motors Company (NYSE:GM) in its second quarter 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
13. Maruti Suzuki India
Total market cap as at 30th October 2023 (in $ billions): 37.7
The chairman of Maruti Suzuki India recently stated that small car sales will likely take around 2 – 3 years to rebound, based on expectations regarding increase in consumer spending.
12. Ford Motor Company (NYSE:F)
Total market cap as at 30th October 2023 (in $ billions): 39.7
Ford Motor Company (NYSE:F) is one of the pioneers of car manufacturing. Recently, Ford Motor Company (NYSE:F) became one of several car companies which have postponed investment in EV, after delaying a $12 billion investment because of buyers became more conscious with respect to spending.
11. Honda Motor Co., Ltd. (NYSE:HMC)
Total market cap as at 30th October 2023 (in $ billions): 49.9
The second biggest car company in Japan, Honda Motor Co., Ltd. (NYSE:HMC), along with General Motors decided to scrap a $5 billion plan to work together to develop cheaper EVs. YTD 2023, Honda Motor Co., Ltd. (NYSE:HMC) has seen its share price rise by 31%.
10. Ferrari N.V. (NYSE:RACE)
Total market cap as at 30th October 2023 (in $ billions): 54.6
Ferrari N.V. (NYSE:RACE) is one of the most well-known luxury car brands in history, and its stock price has jumped nearly 40% YTD 2023, being counted among one of the best performers in the automotive industry in 2023.
Ferrari N.V. (NYSE:RACE) was mentioned in Ensemble Capital Management’s first quarter 2023 investor letter. Here is what it said:
“Ferrari N.V. (NYSE:RACE) (+26.48%): The luxury automaker’s long awaited Purosangue, their first four door, four seater vehicle, has proven so popular that the company announced that they have ceased accepting new orders as they are sold out through all of this year and into 2024. The Purosangue is designed not as copycat sports utility vehicle that many other luxury automakers sell, but as a true Ferrari car that their devoted fan base can use for more practical transportation needs. Since the average Ferrari is only driven a few thousand miles a year or less, they are best understood as mechanical works of art rather than a means of transportation. But with the introduction of the Purosangue, Ferrari enthusiasts will have a vehicle that meets transportation needs, while still delivering the extremely high end experience that you would expect from a car that costs about $500,000.”
9. Volkswagen AG
Total market cap as at 30th October 2023 (in $ billions): 55.2
Volkswagen is the largest car manufacturer in the world by number of vehicles produced, but recently decided to cut 2,000 jobs at Cariad after facing issues regarding future EVs.
8. Stellantis N.V. (NYSE:STLA)
Total market cap as at 30th October 2023 (in $ billions): 55.8
Stellantis N.V. (NYSE:STLA) became the second U.S. car giant, and one of the most valuable companies in the world by market cap heading into 2024, which finally agreed a deal with the United Auto Workers Association to increase the pay of workers and bring an end to a major strike which has had a major impact on the U.S. automotive industry.
Miller Value Partners Income Strategy made the following comment about Stellantis N.V. (NYSE:STLA) in its second quarter 2023 investor letter:
“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”
7. BMW
Total market cap as at 30th October 2023 (in $ billions): 61.8
BMW has seen its share price rise only by 2% YTD 2023, with its numbers in 2023 being impacted by a decline in sales in China in Q3 2023, as Chinese companies have made significant gains.
6. Mercedes-Benz Group
Total market cap as at 30th October 2023 (in $ billions): 63.26
The most valuable car company in Germany, Mercedes-Benz Group is well-known for its luxury vehicles. Recently, the company mentioned that a “brutal” EV market is continuing to put pressure on operating margins as its operating profits declined by 6.8% to 4.8 billion euros in Q3 2023. Heavy price cuts in the EV market and supply chain issues will impact its full year targets too.
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Disclosure: None. 20 most valuable car companies by market cap heading into 2024 is originally published on Insider Monkey.
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