Cars have been considered a luxury asset for any individual ever since their creation in the 19th century. Automotive industries first came into the scene in the early 1900s and have been dictating the economies of every country that they are based in. Yet, the gigantic car industry remains an unfamiliar environment for any new startups.
Many have come and faded into the limelight, while there were a select few who stood the test of time and are now bossing the automotive industry in the modern age. CarIndigo.com lists the 10 biggest automotive giants who are taking the world of car making by storm.
Toyota Motor Corp
The Japanese giant Toyota has been a consistent name at the top of the revenue charts for quite a long time now. Shares have been fluctuating up and down 3 ever since the onset of the US-China trade war. But this constant rollercoaster ride that the Toyota stock has gone through since 2013 has only made it more valuable.
The Toyota Prius established its credentials in the hybrid market as a deserving bestseller. However, Toyota still has work left up its sleeves in the all-electric department. So what makes Toyota more valuable than any other competitor? The answer is right before your eyes. A healthy 6% profit margin and almost $30 billion more than the net worth of its nearest competitor.
Net worth- $236 billion
Tesla’s rise to stardom has been nothing short of phenomenal. Tesla stocks reached sky-high levels in 2023, at a time where most manufacturers were reeling under the adverse impacts of the pandemic.
Tesla’s value now far surpasses the net worth of any of its rivals combined. Tesla’s value saw a phenomenal spike of 110% in the second quarter of 2023, making Elon Musk the richest man on earth in the process. The EV giant has Toyota in its sights, with more and more investors joining in the EV revolution.
Net worth- $208 billion
Volkswagen AG (VOW.DE)
Not many car buyers are aware of the influence of Volkswagen in the automotive industry. They almost immediately associate it with the regular consumer brand under the same name itself. Only true car geeks know the company behind super-fancy names like Porsche, Audi, Bugatti, Bentley, Lamborghini, and Ducati.
Yes, you are in for a surprise when you find out that it’s Volkswagen itself. The giant German conglomerate is still going strong, selling 9.305 million vehicles in 2023. The German seems to have licked its wounds from the 2015 Dieselgate scandal. Investors were in a state of denial regarding Volkswagen shares during that dark period. Thankfully, customers placed their trust in Volkswagen again.
Net worth- $70.4 billion
Daimler AG’s resurgence in the Asia-Pacific region was remarkable, as 2018 saw a record number of full-year sales. The German consistently racked in 3 million sales of units for both 2018 and 2019. Still, the US-China trade spat has impacted the revenue of the German conglomerate.
The additional duties imposed on every US-made vehicle in the Chinese market were indeed hard to digest. Tesla too faced the brunt of the excess tariff hike but enjoyed a fruitful year otherwise. High-end Mercedes and Maybach models are a huge hit in China. But success is often a double-edged sword.
Net worth- $37 billion
General Motors Corporation
The 112-year old automotive giant is home to several American brands like Buick, Cadillac, Chevrolet, GMC as well as a bunch of Asian brands. Tesla overtook General Motors to emerge as the most valuable American auto company.
GM came up with its trump card eventually. GM acquired the leading self-driving technology startup, Cruise Automation in 2016. The Chevrolet Bolt EV took birth through this alliance, posing as a direct rival to the pragmatic Tesla Model 3. Holding the title as the world’s largest vehicle producer for more than 75 years, GM eventually had to lose out to its more ambitious prodigies.
Net worth- $36 billion
Honda Motor Corporation
The Japanese giant remains as the world’s 5th most valuable car company despite its setbacks. At a time when Honda’s value was estimated at $61 billion, the company saw a huge dip in its value. This highlights the current trend of pessimism that is going on in the automotive industry. The negative impacts of the trade war have been substantial in the automotive market. Investors are diverting their attention towards greener pastures.
Net worth- $42.6 billion
Like Honda, BMW has also seen its shares plummet because of the US-China trade war. Worth more than $60 billion in 2018, BMW’s fortune has dwindled because of investor reluctance. The China-imposed 25% tariff hike on all US-produced cars has significantly taken a toll on BMW. China is one of its main export destinations. The automaker still stands as the 7th-most valuable car company, despite bearing a huge hit on its revenue.
Net worth- $38.9 billion
The Ferrari business model dictates a low-volume and high selling price approach. This move has worked dividends for the Italian giant in recent years. It overtook its own parent company Fiat Chrysler and the Japanese giant Nissan in the global rankings.
Sales have seen a dip of 15% because of the Coronavirus outbreak though. Still, Ferrari’s cautious methodology of selling high-value propositions year after year has shaped it into the powerhouse that it is today.
Net worth- $27.7 billion
Ford Motor Corporation
Ford’s gross sales were projected to be almost 37 times that of Ferrari. So what makes the high-end Italian automaker stand out compared to the American giant? The very fact that Ferrari’s profit margins stood out at a sensational 23% is an understatement.
With limited Ferraris dominating every car auction, millions of bucks are exchanged in the process. Ford’s profit margin of 1.4% is nothing to be sneezed at either, considering millions of cars sold every year.
Net worth- $24 billion
Hyundai Motor Corporation
Founded way back in 1967, Hyundai’s relatively young age proves that newcomers have a shot of making it big in the automotive industry. Overtaking Fiat Chrysler to grab the 10th most valuable car company title, Hyundai’s journey to the top is a tale of inspiration. The first-ever South Korean entrant in the automotive industry, Hyundai’s splendid affordable cars drew the admiration of car purists.
The 2023 Hyundai Kona SEL is one such example, offering you a host of safety features and an excellent feature list at an attractive price. Hyundai spends 5% of its revenue every year towards building ambitious ventures like electric cars, solar-powered cars, and fuel-cell cars powered by hydrogen. It isn’t hard to rule out the possibility of Hyundai competing with Toyota and Tesla within a few years’ spans.
Net worth- $20.1 billio