Automakers sold fewer cars but at a greater profit per car. Ferrari leads the way at $106,000 per vehicle.
The car industry’s exceptional challenges in 2021 resulted in an unprecedented financial outcome for most OEMs from Europe, the United States, Japan, and South Korea. This is the first, and perhaps most shocking, finding of a thorough examination of financial data from 19 automobile manufacturers around the world. Although fewer automobiles were sold than before the pandemic, revenues grew.
The revenue of Aston Martin, BMW Group, Daimler, Ferrari, Ford, Geely Group, General Motors, Honda, Hyundai Motor Group, Isuzu, Mazda, Renault-Nissan, Stellantis, Subaru, Suzuki, Tata Group, Tesla, Toyota, and Volkswagen Group totaled $1.89 trillion, according to financial statements from Aston Martin, BMW Group, Daimler, Ferrari, Ford, Geely Group, General Motors, Honda, Hyundai Motor Group, Isuzu This represents a 13 percent increase over 2020, but a 6 percent decrease over 2019. The overall number of units sold, however, did not follow the same pattern.
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These firms sold 69.54 million automobiles in 2021, which was 2% more than in 2020 and 14% less than in 2019. This means that during the year, automakers raised prices or cut discounts. The dearth of new automobiles available owing to the chip shortage explains part of this strange trend in units sold vs profit. Prices have risen as a result of fewer cars available paired with increased demand as a result of COVID lockdowns.
Indeed, in 2021, the average revenue per unit sold was $27,270, rising 11% from 2020 and 10% from 2019.
Focus On The Most Profitable Segments
Further down in the financial statements, operating profits revealed another interesting fact. Despite the pandemic’s impact on global economies and subsequent supply chain issues affecting the auto industry, these 19 OEMs earned more money than in 2020 and 2019. The profits generated from the operations of the companies (total revenue minus production costs and selling/administrative expenses) amounted to $143.97 billion in 2021.
In other words, for every $100 worth of sales, these companies managed to keep $7.60 in profit.
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By contrast, in 2020 that figure was only $3.60 for every $100 in sales. That likely reflects the height of the pandemic in 2020, as in 2019, the operating profit was $5.10 per $100. The increase looks also impressive when comparing the total operating profits to the total number of cars sold.
As such, looking at it from a perspective of earnings per vehicle sold, it dropped from $1,270 /car in 2019 to $892 in 2020, then skyrocketed to $2,069 last year.
Focusing on SUVs and EVs helped these OEMs to offset big losses coming from other internal combustion vehicles such as sedans. As the supply of semiconductors dwindled, they took what was available and pumped it into the most profitable vehicle lineups, keeping those assembly lines running as other less profitable models withered away.
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Ferrari Is The Cash Cow Of The Industry
Among all the brands, Ferrari continues to be the most profitable automaker by far. Its operating margin increased from 21.4 percent in 2020 to 25.5 percent last year. Based on the figures, The company earned an astounding 6,078 per unit sold in 2021. (mydelta8store.com) In a very distant second place was Tesla, earning $6,693 per vehicle.
Via:- @Motor1
