A thorough analysis of the global automotive market and recent developments, a new list of the top 20 car manufacturers by revenue has been released. This is particularly significant given the significant changes taking place in the industry because of technological advances and shifts in consumer preferences. Numbers out there suggest that the total worth of the market might shoot up to $3.57 trillion by the end of 2023. And, keeping this in mind, a look at the top performers is pertinent.
But, before anything else, let’s talk a little more about the recent developments in the global automotive industry.
So far, the growth of the market has been positively upward, with the total market size valuation standing at $2.73 trillion in 2021. Stats suggest a compound annual growth rate, also known as CAGR, of about 3.01 percent between the period of 2021 and 2031, which should spike the overall worth of the market to about $3.57 trillion. Reasons attributable to such optimistic estimates are several, especially the rising disposal incomes and the increased demand for the supply of passenger cars and high-end cars such as SUVs.
Of these trends, one draws much attention from the public in general. The rising relevance and demand for electric vehicles (EVs). While initially skepticism was rife about the future of EVs, however, recent changes show that eco-friendly changes in consumer attitudes have begun reflecting in sales numbers. In the first quarter of 2023, about 2.3 million EVs alone were sold.
This is rather historic since it is a whopping 25 percent increase in sales. This certainly is a piece of good news but it has also created much frenzy among leading companies that are trying to catch up with these trends. For instance, Toyota has entered into agreements with battery manufacturers, and this counts as a major step towards EV manufacturing. Only time will tell but Toyota targets to come up with as many as 3.5 million battery-enabled EVs annually by 2030.
Toyota isn’t the only one making the move. The automotive market was abuzz with the news of General Motors postponing the manufacturing of electric pickup trucks to focus on EV production in 2024. In a similar vein, the automotive juggernaut Ford aims to produce gasoline-electric hybrid vehicles in huge numbers to meet the demand for sustainable alternatives without having to completely switch to EVs.
Now that we have covered a bit on the developments that led to the expansion of production capabilities of automotive companies in the EV segment. It is time we jumped on the main highlight of this piece–the best performers. These car manufacturers plan to foray into and capture the EV market, and the competition will be cutthroat considering how robust their hold already is on the global automotive market in general.
To come up with a list of the biggest car manufacturers by revenue in 2023, data from multiple sources, such as Yahoo Finance, were collated and examined, resulting in the current rankings.
- Volkswagen AG: Topping the chart with its illustrious range of vehicles and dazzling sales numbers, Volkswagen AG recorded colossal revenues amounting to USD 318.32 billion.
- Toyota Motor Corporation: We’ve already mentioned that Toyota is ramping up its EV production. Even so, its sales in other segments have been rosy so far, with the revenues touching the USD 286.15 billion mark.
- Stellantis N.V.: In 2023, Stellantis found a celebrated place among the top three car manufacturers. This multinational conglomerate has a trailing annual revenue of about USD 200.92 billion.
- Ford Motor Company: A pioneer in car production, Ford Motor Company experiments with vehicles in all segments. In the last 12 months, the revenue rose to USD 169.82 billion.
- General Motors Company: The world is well-acquainted with the wide range of cars manufactured by General Motors. It has taken strides in its manufacturing capability and revenues show–about USD 169.73 billion as of June 2023.
- Mercedes-Benz Group AG: Mercedes-Benz is among the leading suppliers of premium passenger cars and vans. As of June 2023, the revenues stood at USD 161.91 billion.
- BMW: Bayerische Motoren Werke Aktiengesellschaft or simply BMW has an undisputed reputation in the industry. Its performance has been stellar too with an approx revenue of USD 158.03 billion.
- Honda Motor Co Ltd: Honda Motor Co Ltd is known for not just its cars but also other vehicles such as motorbikes. So far as car manufacturing is concerned, the revenue reported until June was USD 129.18 billion.
- Hyundai Motor Company: This automotive manufacturer operates the largest integrated automobile production facility. As of June 30, 2023, the 12-month revenue stood at USD 118.37 billion.
- SAIC Motor Corporation Ltd.: The biggest car manufacturer in China, SAIC Motor Corporation Ltd has secured a 12-month revenue of about USD 103.22 billion.
- Tesla Inc.: The multinational American EV manufacturer has been minting a lot of revenue from its sustainable automobile solutions. In 2022, the company reported revenues amounting to USD 94.03 billion approximately.
- China FAW Group: China FAW Group is one of China’s highest-performing state-owned, “Big Four” companies with a revenue of USD 87.68 billion.
- Nissan Motor Co Ltd: Racking in revenues totaling USD 83.11 billion, this renowned Japanese automobile manufacturer is playing the game just right.
- Guangzhou Automobile Industry Group: Under the Guangzhou Automobile Industry Group, many Chinese car manufacturers function. In 2022, the holding company reported an annual revenue of USD 77.34 billion.
- BYD Company Limited: Known for manufacturing cars in China, this conglomerate generated a revenue of USD 76.6 billion.
- Kia Corporation: The second largest car producer in South Korea is Kia Corporation. Over the period of 12 months, the company recorded revenue of USD 72.94 billion.
- Dongfeng Motor Corporation: Dongfeng Motor Corporation is a corporate powerhouse in China, making it one of the “Big Four.” In 2022, it climbed up the ranks with USD 68.42 billion in reported revenues.
- Beijing Automotive Group: This state-owned Chinese automobile manufacturing company is making great strides, with its revenue touching the USD 67.28 billion mark.
- Zhejiang Geely Holding Group: With a staggering revenue of USD 60.39 billion, the Li Shufu-owned Chinese automotive company Geely found a place among the best.
- Renault SA: Renault is a French multinational automobile producer that has recorded a revenue of about USD 55.15 billion.
The rising demand for sustainability has been felt by the automotive industry. EVs have become a focal point for several car manufacturers, especially the ones that make it to the list above. It will be interesting to see how the car manufacturers step up their production capabilities without having to undermine their strong revenues. Many of these car manufacturers are already in the process of expanding their capabilities. Thus, in the near future, we can expect some major shifts ushered in by these companies in the global automotive market.
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