Speak Izy : Cars , Tech & Lifestyle
It is not so simple to determine who the largest automakers in the world are,
as there are so many different factors to consider. The success of automobile
Corporations are influenced by a company’s overall revenue, brand value,
number of cars manufactured, and market capitalisation.
Everyone experienced an unprecedented year in 2020, and it had a
huge effect on many industries. Some industries saw sales go
through the roof as people were stuck at home through COVID-19
lockdowns, while other industries were hit hard and businesses
were forced to close. With so many people at home and not out
driving on the roads, how did the automobile industry fare during
this time? And which car companies were more successful than
others?
Generally speaking, a customer will make a purchase based on a company’s
brand value, which refers to the consumers’ perception of and experiences
with the brand. The best example of a company with a high brand value is
Apple, or, regarding automobiles, Tesla or Porsche. Opinions aside, however,
here are the most valued car companies based on each company’s financial
figures.
Volkswagen and Toyota have always risen above the rest in terms
of sales, and every year, they battle to be the top car manufacturer.
Volkswagen was the only other car company to come close to
Toyota in terms of profits, landing in second place with $15.54 billion
in profit in 2020. Their revenue for the year was close to Toyota’s as
well, at $282.76 billion.
Toyota’s top car model, the Corolla, is officially the best selling car
in the world, with more than 49 million sold worldwide since it made
its debut in 1966. The Toyota Corolla isn’t the car manufacturer’s
only impressive model though.Toyota reached more than 9.5 million
vehicles in 2020. While worldwide car sales were down by 10.5%,
Toyota’s car sales increased, which helped the company reclaim its
title from Volkswagen as the world’s largest car maker.
Here is a look at the top 10 most profitable car companies:
1. Toyota Motor: $19.1 billion
2. Volkswagen: $15.54 billion
3. General Motors: $6.73 billion
4. BMW: $5.5 billion
5. Honda Motor: $4.19 billion
6. Volvo: $3.79 billion
7. SAIC Motor: $3.71 billion
8. Peugeot: $3.58 billion
9. China FAW Group: $2.85 billion
10. Daimler: $2.66 billion
Hyundai’s giant jump in profits can be attributed to the car brand’s
lower price range, which many car buyers may be looking for during
this time of financial uncertainty. But don’t think that lower prices
mean that they skimp on style; Hyundai has been releasing some
fresh new redesigns of some of their most coveted models.
Tata Motors also had a better year in 2020, though “better” doesn’t
mean “good.” While they lost more than $1.7 billion in 2020, they
actually lost more than $4 billion in 2019, meaning that their profits
increased (or rather, their losses decreased) more than 58% from
2019 to 2020.
In addition to the staffing shortages and a reduced number of cars
being built, the auto industry’s profits were hit by supply issues.
Demand for electronics surged as many people needed to buy
laptops and servers to work or attend school from home. This
increased demand led to a global chip shortage and ultimately had
a huge effect on the auto industry, as the chips that are needed for
a new car’s high-tech features weren’t available.
While these factors have had a negative effect on the new car
market, the used car industry has been booming: People want to be
in their own personal bubble while commuting instead of using
public transit, and they’re paying top dollar for a used car to get that piece of mind.It is quite imperative to realise that the pandemic played a large part
in how well major auto manufacturers fared in 2020, especially
when compared to the prior year. One major reason the auto
industry was so badly affected by the pandemic is that the
beginning of the pandemic caused a lot of businesses, car
manufacturers included, to shut down to slow the spread of
COVID-19. With automakers shut down for weeks or months, new
car production came to a screeching halt. When auto manufacturers
were able to start producing cars again, it was with a much smaller
workforce due to new pandemic safety regulations, which also
affected the rate at which new cars would start to hit the market again
