In this article, we are going to discuss the 5 most profitable car companies in the world. If you want 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, head to 15 Most Profitable Car Companies in the World.
5. Stellantis N.V. (NYSE:STLA)
Net Profit in 2022: $18.07 billion
Revenue in 2022: $193.2 billion
Profit to Revenue Ratio: 9.4%
Born out of the January 2021 merger between Fiat Chrysler Automobiles and PSA group, Stellantis N.V. (NYSE:STLA) has emerged as a strong competitor in the electric vehicle market.
Stellantis N.V. (NYSE:STLA) comprises 14 brand names, including Fiat and Jeep, many of which are venturing into the EV market. CEO Carlos Tavares has announced plans to build 5 battery plants as part of the company’s strategy to invest $30 billion in electric vehicles by 2025.
4. Mercedes-Benz Group
Net Profit in 2022: $15.6 billion
Revenue in 2022: $161.4 billion
Profit to Revenue Ratio: 9.7%
With 2.45 million vehicles sold in the year, the German automaker Mercedes-Benz Group was the 4th most profitable automaker in the world. CEO Ola Källenius has unveiled the group’s plans to increase its share of EVs to account for half of its auto sales by 2025. The company is preparing to go fully electric in the next decade. It has employed over 170,000 people worldwide.
3. Dongfeng Motor
Net Profit in 2022: $1.44 billion
Revenue in 2022: $13 billion
Profit to Revenue Ratio: 11%
Dongfeng Motor Corporation is a Chinese state-owned automaker based in Wuhan. The company reportedly sold around 2.46 million vehicles in 2022, including 358,361 New Energy Vehicles. The sales target for 2023 is 3 million units, representing an approximate growth of 22%. Dongfeng Motor boasts around 141,681 employees around the globe.
2. BMW Group
Net Profit in 2022: $19.3 billion
Revenue in 2022: $153.44 billion
Profit to Revenue Ratio: 12.6%
One of the most successful car companies of all time, The BMW Group reportedly sold over 2.4 million vehicles globally in 2022.. The German manufacturer employs over 118,000 people worldwide and was actually founded in 1916 as a manufacturer of car engines, which it produced from 1917 to 1918 and then again from 1933 to 1945.
BMW Group has highlighted its electric vehicles sales for Q1 of 2023, with fully electric vehicles sales up by 112.3% to 55,979 units and battery electric vehicles sales of 64,647 units, an increase of 83.2%. However, the car manufacturer reported a 0.4% YoY drop in its total sales during the period.
1. Tesla, Inc. (NASDAQ:TSLA)
Net Profit in 2022: $12.58 billion
Revenue in 2022: $81.46 billion
Profit to Revenue Ratio: 15.4%
Tesla, Inc. (NASDAQ:TSLA) is the most profitable car company and the auto manufacturer also reported a massive increase in its profits in 2022, a YoY increase of 227% from 2021. The American car maker is one of the market leaders in the EV industry, with over 1.3 million vehicles sold worldwide in 2022. The average net profit per car by the manufacturer was $9,574.
Tesla, Inc. (NASDAQ:TSLA) shares have risen 87% this year, bouncing back from a drop of 65% in 2018, driven by a rush for technology and growth stocks, with fears of recession easing. With the continuous rise in demand of EVs, the Texas-based car manufacturer is again set to be one of the most profitable car companies in 2023.
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