The 10 Largest Car Companies in the World
Since the introduction of the first automobile to the public in 1886, we have been moving along on four wheels contributing to car companies’ market capitalization. Almost no other invention is as important in the market as the majority of consumers view it as essential.
Given how crucial the automobile industry which ranges from all-terrain vehicles, motor vehicles, and off-road vehicles, to insight hybrid, chevy volt, financial and insurance services, commercial vehicles, and hybrid electric sedan is to contemporary society.
For one, it should not come as a surprise that it contributes close to $500 billion annually to economic growth in the US. Some of the biggest car companies in the world contribute to this annual total revenue.
The 10 World’s Largest Companies
1. Volkswagen AG
2021 Sales Revenue: $263.6 Billion
Volkswagens are frequently seen on the road in a variety of shapes and colors, even in the United States. However, few of these car owners are aware that the firm was initially state-owned by the Nazi Socialist Party in Germany in 1937.
“The people’s car” was how Adolf Hitler and his government marketed it. It was advertised as being a much more affordable alternative that still possessed the desirable features of the more expensive cars being made in Germany at the time, like BMW and Audi.
World War II broke out in 1939, stopping production just as the car was becoming more and more popular among Germans. Volkswagen was viewed as Germany’s post-World War II opportunity to revive its economy and auto industry.
Volkswagen struggled to establish itself abroad because of its connection to Nazi Germany. In order to dispel this myth, Volkswagen sold the majority of its stock to the general public in 1960. It succeeded. With 15 million vehicles produced by 1972, their distinctive, bulbous car, known as the Beetle, broke the previous production record.
Volkswagen transformed its initial bad reputation and grew to be the biggest automaker in the world in the 50 years since its re-entry into the market as a publicly owned largest car company.
2. Toyota Motor Manufacturing
2022 Sales Revenue: $279.278 Billion
Although the Toyota Motor Corporation has been around since the late 1930s, it took 25 years for these vehicles to reach the United States. Kiichiro Toyoda founded the business, which was backed by its native Japan.
By allowing passenger cars from other major automakers at the time, like Honda and General Motors, to be imported, Toyota even eliminated competition within Japanese borders. They received a bailout from the government in 1949 as well.
In 1980, Toyota started constructing factories and a national headquarters in the United States after surpassing Volkswagen in sales at the million-unit milestone. They became the leading import car brand in the US at the time thanks to this achievement.
By releasing the first hybrid car that ran on both gas and electricity, called the Prius, in the early 2000s, they had completely changed the automotive industry. More businesses that make eco-friendly electric vehicles eventually followed suit. The business continues to uphold this standard today.
3. Key Chrysler Jeep & Dodge
2022 Sales Revenue: $172.4 Billion
Jeep is technically a Fiat Chrysler Automobiles brand, but it has a significant enough market share to rank among the top automakers globally.
In 1941, a business known as “Willy’s MB Jeep” established the first Jeep brand relics. To be used in World War II, it produced military vehicles. Many other brands, including Land Rover, were influenced by this design, which is comparable to the current Jeep Wrangler.
After the war, Jeep changed ownership for a while and started developing new vehicle models. When Chrysler Corporation took control of AMC in 1987, they bought Jeep, which had just produced one of their most recognizable models, the XJ Cherokee.
This purchase turned out to be one of Chrysler’s best choices. Jeep now generates almost half of the company’s annual revenue, making it by far the most profitable brand.
4. Daimler
2020 Sales Revenue: $154.3 Billion
Although the name “Daimler AG” may not be immediately familiar to you, you undoubtedly are aware of some of the auto brands they own. Mercedes-Benz and Smart cars are examples of these. They also manufacture a large number of the commercial transport trucks you see on the highway, including Freightliner, Sterling, and others.
Daimler AG was founded in 1926 as “Daimler-Benz,” combining the names of two German automakers, Karl Benz and Gottlieb Daimler. After both claimed to have developed the first gasoline car engine 30 years earlier, the two teamed up.
The business was responsible for many firsts in the auto sector, including the first diesel engine used in everyday passenger vehicles. It wasn’t until 1998 that the business merged with Chrysler Corporation, another well-known name at the time, to form DaimlerChrysler. Until 2007, when the business was desperately attempting to counteract the effects of the 2008 recession, it went by the name Mercedes Benz AG.
5. Ford Motor Company
2022 Sales Revenue: $136.341 Billion
Ford Motor Company is among the first names that come to mind when considering the most significant automakers in human history. The history of the Ford Motor Company, which was established in 1903 by Henry Ford and a group of investors, set the bar for the automobile sector.
They introduced the Model T five years after it was created. Ford had to find a way to produce the cars more quickly because they were so well-liked by customers. They built the nation’s first automobile assembly plant as a result.
Ford Motor Company was able to easily float as the leading automaker for the majority of the 20th century thanks to their early success, producing some of the best-selling cars in America. Jaguar, Volvo, and Land Rover were among the luxury car brands that the company purchased in the 1990s to further establish its brand. All of which the brand has now sold during the turbulent business times of the early 2000s.
In 2008, Ford Motor Company was one of the major American automobile makers that received bailout funding. Similar to Honda, this act gave the manufacturer enough of a boost to enable it to keep turning a huge profit as of 2019.
6. General Motors
2022 Sales Revenue: $130.50 Billion
“Durant-Dort Carriage Company” was the original name of the company that would eventually become General Motors. In their era, they were the leading manufacturer of horse-drawn carriages.
Throughout the 1900s, the largest automakers continued to expand their lineup of vehicles. The Oldsmobile, Cadillac, and Elmore were a few of these. The business was the biggest automaker in the world after all of its acquisitions.
In 1962, General Motors overtook Ford Motor Company as the most popular automaker in the country, capturing 50% of the market.
In the twenty-first century, car manufacturers’ dominance of the automotive sector slowed. President George W. Bush provided a bailout to them and two other struggling American automakers in 2008 as a result of the company’s precipitous revenue decline.
This helped General Motors get the boost it needed to survive. It continues to be one of the top-producing and world’s largest car companies in the world.
7. BMW
2022 Sales Revenue: $113.2 Billion
BMW is yet another significant automaker to originate from Germany. As a union of three significant car companies at the time, it was established in 1916. BMW’s history dates back to the production of aircraft engines during World War I.
Following the war, the company began creating cars in 1928 and soon produced high-end models that were coveted by every citizen. BMW was once more drawn in when World War II broke out by helping the Socialist party develop aircraft engines. Nearly all of the company’s facilities were destroyed by the war’s end in 1945, and BMW was prohibited from producing automobiles.
BMW didn’t resume making cars until the 1950s, and even then, for the following 20 years, the company was on the verge of bankruptcy on numerous occasions. The brand produced more high-end models to keep up with its successful competitors in an effort to shift consumers’ perceptions. This adjustment was sufficient to revive the BMW that made in to one of the largest car companies.
8. SAIC Motor
2021 Sales Revenue: $107.6 Billion
The majority of SAIC Motor’s fame came in the last 20 years, despite the fact that it is a younger company than the majority of other well-known automakers. Originally known as Shanghai Automotive Industry Corporation, this small automaker’s fortunes changed in the 1990s when it entered into a partnership with General Motors.
Through this merger, they were able to take part in some significant acquisitions in the early 2000s, including the Daewoo car company in Korea.
With 3.58 million vehicles sold by 2010, SAIC surpassed all other Chinese automakers as the largest exporter. In the years that followed, this tendency became more pronounced.
9. Fiat Chrysler Automobiles (FCA US)
2020 Sales Revenue: $104.893 Billion
These two significant automakers were independent until 2009 when Chrysler filed for bankruptcy and was absorbed by Fiat. Fiat initially only bought 20% of the company’s stock to keep it operating, but by 2014 they had fully taken control. The two names were combined to form Fiat Chrysler Automobiles with the controlling share (FCA).
In order to compete with bigger brands like Honda and Toyota, Fiat Chrysler introduced numerous new car models over the course of the following two years. Jeep was the company’s most lucrative vehicle, so that’s where their manufacturers concentrated most of their efforts.
Fiat Chrysler Automobiles had intended to invest $4.5 billion in the construction of Jeep manufacturing facilities in Michigan before their legal snafus. A project that would reportedly lead to the creation of 6,500 jobs. Unfortunately, Covid-19 forced the plans to be postponed.
10. Kia Motors America
2022 Sales Revenue: $52 Billion
Several well-known automakers hail from South Korea, but Kia Motors is the oldest. Kia was first established in 1944 as a producer of metal bicycle components. Exactly 30 years after it was founded, the car company eventually shifted its emphasis to motorcycles, trucks, and finally cars.
Ford and Kia partnered to create a line of light commercial vehicles with features resembling those of a Mazda starting in 1986. In 1992, this helped Kia break into the American market.
Today, Kia has also benefited from the growth of electric cars by announcing plans for a plug-in hybrid model for 2017. The business is renowned for its excellent vehicle safety ratings and low recall frequency.
Conclusion
In conclusion, the global auto industry has been shaped by continual innovation and resilience. The world’s largest car companies have played a significant role in this evolution, paving the way from the first automobiles to today’s electric and hybrid vehicles. Despite unique histories and challenges, they continue to be at the forefront of enhancing mobility worldwide. As they steer the future of transportation, their influence is set to grow even further.
