In now days the auto industry has been going string for more than 100
years. And there are so many companies to manufacture and producing their car.
Here is the list of top 10 richest car company of the world.
10.
Hyundai Motor Co.: $25 billion
This South Korean
car manufacturer Hyundai overtook Fiat Chrysler to become the 10th most
valuable and richest auto company in the world. Hyundai’s 1967 founding date
makes it a relative newcomer to the industry, many other top names were founded
in the early 20th or late 19th century. As the first-ever company to make a car
in South Korea, Hyundai built up a reputation for quality cars at an affordable
price for all humans to VIP’s, revenue didn’t fall in a single fiscal year
between 2011 and 2018, and last year Hyundai posted more than $87 billion in
worldwide sales. Deploying 5% of revenue toward research and development,
current research projects include electric vehicles, solar-powered cars and
hydrogen-powered fuel cell vehicles. This car company always design a unique
car. There are so many car companies in the world but Hyundai Motor will always
lead the market.
9.
Ferrari N.V.: $29 billion:
Luxury Italian car company Ferrari is overtaking well-known company like
Nissan motors and Fiat Chrysler and become the 9th richest company
of the world. The company is
the only one on this list relying strictly on the low-volume, high-price
business model. While Tesla certainly qualifies as low volume, it not only far
surpasses Ferrari in terms of vehicle production numbers but also has a
business model that relies on the Model 3 becoming an affordable, mass market
product. Ferrari delivered just 9,251 cars in 2018, showing that scarcity and
the high margins that come with it can also produce a global auto industry
powerhouse.
8. Ford Motor Co.: $36 billion
Ford motor is stand at 8th position of
our list. Ford motor designing car that always makes a huge difference with
other company. Ford posted revenue of $148 billion in 2018, compared to a
top line figure of about $4 billion for Ferrari in the same year. Well,
Ferrari’s profit margins are downright elite at 23% – a reflection of its
premium brand and limited production, which routinely causes antique Ferraris
to set and re-set the record for the most expensive cars sold at auction.
Collectors pay tens of millions for rare models. Ford, on the other hand, has a
net profit margin of just 1.4%. At high volume, that’s still not peanuts.
The Electric car manufacturer Tesla has lost $9
billion in market value since May 2018, it didn’t move up or down in the
rankings of the world’s biggest car companies, maintaining its position as the
seventh most valuable automaker worldwide. CEO Elon musk, though brilliant
and bold, has also proven erratic and unreliable, with ill-advised tweets and
podcast appearances causing trouble with regulators and investors alike. Still
trading largely on hope, shares trade for 56 times expected forward earnings.
The U.S.-China trade war could disproportionately affect Tesla, which was
forced to raise the price of imported Model 3 cars in China to over $50,000
ahead of a tariff hike in December on U.S.-made cars from 15% to 40%.
6. BMW Cars: $42 billion:
The BMW car was Founded in Munich in 1916, BMW has
slipped a few spots on the list of the world’s top automakers in the last
year-plus. That makes sense, since it was worth a full $29 billion more in May
2018 than it is today. That dramatic fall still only docked it two slots, and
it’s possible the luxury automaker is currently undervalued; annual revenue was
$107 billion last year, making the price-sales ratio just 0.4. As with others
on this list, the U.S.-China trade spat has caused spiraling investor
confidence. Beijing’s upcoming 25% tariff hike on U.S.-made cars will hurt BMW,
which, like Tesla, exports a lot of vehicles from U.S. plants to the Chinese
end market.
5. Honda Motor Co. $42 billion:
About 16 months ago, Honda’s market cap stood at $61
billion. Since then, the company has shed more than $1 billion a month in
market value on average, and yet still remains the fifth most valuable auto
company in the world. That should help illustrate the rising levels of concern
with the global auto industry. This falling market cap came despite unit sales
in fiscal 2019 that grew 1.6% to 3.75 million vehicles. A few factors beside
the trade war that may have contributed to market pessimism: negative currency
pressures (Honda is based in Japan) and the far more ubiquitous worries that as
a stereotypical cyclical industry, automakers will soon suffer if the best
times are indeed in the rearview mirror.
4. Daimler AG : $49 billion:
Daimler shares have been steadily slumping for over
four years. Over that time, the stock has lost more than 50% of its value. Even
as of May 2018, however, the parent company of Mercedes-Benz and the
Mercedes-Maybach brands was worth a full $35 billion more than it is in late
2019. As one might imagine, this caused Daimler AG to slip a spot in the
rankings, even as 2018 shaped up to be its eighth straight record year. Its
strength in the Asia-Pacific region, where Daimler posted its best full-year
unit sales ever last year, is a double-edged sword: Six of the top 10 vehicles
exported from the U.S. to China are made by BMW or Daimler, making additional
duties on U.S. exports especially harmful to the German luxury car company.
3. General Motors Co. : $52 billion:
Although Tesla was briefly the most valuable U.S.
auto company – despite selling disproportionately fewer units than 111-year-old
GM – it looks like markets have regained a scintilla of sanity. Once more
America’s most valuable car company, GM owns brands like Buick, Cadillac,
Chevrolet and GMC, in addition to several Asian brands. Its 2016 acquisition of
Cruise Automation, a leading self-driving car startup, made GM an instant
player in the high-growth driverless car market. The all-electric Chevrolet Bolt
EV is a mass-produced, long-range direct competitor to Tesla’s Model 3, further
proof that Tesla doesn’t have such an insurmountable head start after all.
Despite GM stock’s conservative valuation – the stock trades at just 6 times
earnings and pays a 4.1% dividend – GM jumped from the sixth- to third-largest auto company
on earth in the last 16 months.
2. Volkswagen AG : $80 billion
When you hear the word “Volkswagen,” odds are you
don’t think “arguably the world’s most dominant auto company.” Perhaps that’s
because consumers associate Volkswagen with the brand itself, not the eponymous
company that boasts brands like Porsche, Audi, Bentley, Bugatti, Lamborghini
and Ducati under its corporate umbrella. Volkswagen retains its title as the
second most valuable car company in the world in 2019, after selling 10.83
million vehicles last year – more than any other company. This looks like a
consummation of Volkswagen’s turnaround; the 2015 emissions cheating scandal
damaged its reputation and made investors uncertain whether consumers would
forgive the company
1. Toyota Motor Corp. : $211 billion
Japan’s Toyota Motor Corp. is still easily the
largest auto company in the world, even as its share price has essentially has
been treading water since 2013. In an industry hobbled by the U.S.-China trade
war, the fact TM stock has gone sideways over the last year-plus has only
increased its lead on rivals: worth four times Tesla just 16 months ago, now TM
is worth five times Musk’s brainchild. Toyota was way ahead of the pack in the
hybrid market with the Prius, but its all-electric vehicles currently leave
something to be desired. Investors should expect mid-to-low single-digit
revenue growth from the owner of other brands like Lexus, Avalon and Crown.
Considering TM and GM both enjoy elite profit margins – just above 6% – for
their size, what makes Toyota more than twice as valuable? Answer: twice GM’s
revenue.
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