Industry
Surveys
Automobile
Manufacturers
MAY 2025
Garrett Nelson
Equity Analyst
Xiong Jun, Goon
Industry Analyst
CONTENTS
5
Industry Snapshot
6
Financial Metrics
7
Key Industry Drivers
8
Industry Trends
13
Porter’s Five Forces
23
How the Industry Operates
28
How to Analyze a Company in this Industry
33
Industry References
35
Comparative Company Analysis
Contacts
Sales Inquires & Client
Support
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Charlottesville, VA 22901
Contributors
Aaron Ho
Equity Analyst
Raymond Jarvis
Senior Editor
Amanda Eubanks,
Atifi Kuddus, Lynn-Lee Chen,
Shawn Ng
Associate Editors
Copyright © 2025
CFRA
977 Seminole Trail, PMB 230
Charlottesville, VA 22901
All rights reserved.
CHARTS & FIGURES
6
Median Revenue Growth
Median EBIT Margin
Global Automobile Sales
7
Global GDP Growth
Real GDP Growth
Consumer Confidence Index
9
Revenue Share Map of Global Automobile
Manufacturers
10
Major Automakers by Region
14
U.S. Automobile Imports/Exports
16
Quarterly Vehicle Export
17
EV Public Charging Stations in China
18
Total Vehicle Sales by Global Region
19
Vehicle Sales in China
20
Average Lithium Carbonate Prices and
Nickel (LME) Prices
22
M&A Activity in the Global Automotive
Manufacturing Industry
NEW THEMES
What’s Changed: Tariffs and
trade tensions present
uncertainties for the auto
industry. We examine their
potential impact on the
industry on page 14.
What’s Changed: Plans for a
U.S. federal regulatory
framework could expedite the
adoption of autonomous
vehicles. Get the details on
page 20.
What’s Changed: Possible
revisions to vehicle emission
regulations could be a boost
to gasoline vehicles. See
page 21.
EXECUTIVE SUMMARY
From China to Mexico and South Carolina to Italy, automobile manufacturers churn out passenger cars,
heavy-duty trucks, and everything in between to consumers around the world. Global supply chains help
distribute the workload, and while newer entrants attempt to gain a foothold, the more established names
are working feverishly to adapt. CFRA has a neutral outlook on the Automobile Manufacturers industry,
reflecting our view that prices will remain near record highs, but volumes and costs will be pressured by
weak consumer discretionary spending, tariffs, and cost inflation. We see global auto sales increasing by
approximately 3.3% in 2025 after a 2.6% increase in 2024. Here are the key themes and our outlook for
the remainder of 2025 and 2026.
All Eyes on Tariffs and Burgeoning Trade War
Soon after President Trump’s inauguration in January 2025, he followed through on one of his campaign
promises by initiating tariffs on China, Canada, and Mexico. While Trump then paused the tariffs on
Mexico and China, uncertainty regarding trade policy remains. Recent studies cited by Kelley Blue Book
have estimated that average U.S. new vehicle prices could increase by $3,000 if the 25% automotive
tariffs on Canada and Mexico remain in effect. For consumers, the silver lining is that the tariffs come at
a time of plentiful inventory levels. U.S. new vehicle inventories at auto dealerships stood at 70 days’
supply at the end of March 2025, well above the historical average of around 60 days. In our view, the
ultimate impact of the tariffs depends on how they take effect and how long they are in effect. The tariffs
present a major near-term logistical and earnings headwind for the industry, particularly auto
manufacturers and suppliers. We think the Detroit Three automakers are particularly exposed to the
tariffs (especially General Motors), while Tesla has significantly less exposure. We believe the longer
tariff uncertainties linger, the more likely companies are to throw their hands up in the air and choose to
produce more automobiles and source more parts from the U.S. to mitigate future trade-related risks.
This would represent a victory for President Trump in terms of his goals of domestic economic growth
and job creation. The tariffs could also be posturing ahead of next year, when the U.S.-Mexico-Canada
(USMCA) trade agreement that went into effect in July 2020 is eligible for review and adjustment.
Auto Demand Growth Finally Normalized in 2024
After an extremely tumultuous four year stretch - ever since Covid-19 was declared a pandemic in March
2020 - global and domestic auto demand growth rates finally normalized to historical levels in 2024.
Global light new vehicle sales rose by 2.6% year-over-year (Y/Y), and U.S. auto sales were up 2.2% in
2024 - more in line with historical growth rates. The bad news is that new vehicle sales remain below
pre-pandemic levels, as elevated interest and inflation rates continue to weigh on consumer budgets,
and many buyers are opting to either delay purchase or buy a used vehicle instead. This has resulted in
an inventory glut, as production has exceeded demand, and automakers and retailers alike have had to
increase incentives. For example, as of March 31, 2025, U.S. dealerships’ new vehicle inventory level of
70 days was more than double the level of around 30 days in late 2021, and incentives as a percentage
of the average transaction price of 6.7% were up from a low of only 2.1% in October 2022. We think the
industry faces some near-term pain from a combination of these factors, in addition to tariffs.
New U.S. Regulatory Framework Expected to Accelerate Autonomous Vehicle Adoption
One of the top priorities of President Trump’s U.S. Department of Transportation (USDOT) is expected
to be the development of a federal regulatory framework covering autonomous vehicles in conjunction
with the National Highway Traffic Safety Administration (NHTSA). While details have not yet been
announced, we expect the framework to help expedite the widespread adoption of autonomous vehicle
technology, bypassing a potentially lengthy state-by-state approval process. We think the new standards
will reset the NHTSA’s guidelines to levels that are more accommodating for the development and
operation of autonomous vehicles and benefit the companies that have dedicated significant resources
toward developing such technologies in recent years.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
4
AUTOMOBILE MANUFACTURERS
Outlook: Neutral
BY THE NUMBERS
MARKET SHARE BREAKDOWN
(vehicles sold by company in 2023*)
RANK
NO.
1
2
3
4
5
6
7
8
9
10
COMPANY
NAME
MARKET
SHARE
Toyota
Volkswagen
Hyundai-Kia
Stellantis
GM
Ford
Honda
Nissan
BMW
Changan
*Latest available
Source: Factorywarrantylist.com.
$48,699
15.4%
13.8%
10.9%
9.6%
9.3%
6.6%
6.3%
5.1%
3.8%
3.8%
Global X Autonomous
& Electric Vehicles
IDRV
iShares Self-Driving
EV and Tech
CARZ
First Trust S-Network
Future Vehicles &
Technology
FTXR
First Trust Nasdaq
Transportation
HAIL
SPDR S&P Kensho
Smart Mobility
AUM ($M)
303.5
AUM ($M)
151.5
AUM ($M)
29.8
AUM ($M)
23.1
AUM ($M)
19.4
Estimated increase
in U.S. new vehicle
prices if 25%
automotive tariff on
Mexico and Canada
remains in effect
70
6.7%
Days’ supply of
new vehicle
inventory at U.S.
dealerships in Mar.
2025 (vs. historical
avg. of ~60 days)
ETF FOCUS
DRIV
$3,000
Average U.S. new
vehicle transaction
price in Apr. 2025,
2.5% below the
record high reached
in Dec. 2022
Expense
Ratio
0.68
Expense
Ratio
Avg. incentives as
a percentage of
U.S. new vehicle
transaction price in
Apr. 2025 (up from
2.1% in Oct. 2022)
0.47
Expense
Ratio
0.70
12.6 years
Average age of
vehicles on the
road in the U.S. in
2024 (a record
high)
Expense
Ratio
0.60
Expense
Ratio
21%
Electric and hybrid
vehicle share of
global new vehicle
sales in 2024
(China 49%, Europe
21%, U.S. 20%)
0.45
10-YEAR INDEX PERFORMANCE
200%
150%
S&P Composite 1500 Automobile Manufacturers
S&P Europe 350 - Automobiles & Components
S&P Composite 1500
S&P Europe 350
100%
50%
0%
-50%
-100%
*Data through April 25, 2025.
Source: S&P Global Market Intelligence.
5
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
FINANCIAL METRICS
Median Revenue Growth
 We expect industry revenue growth to slow to
(percent change, Y/Y)
3.0% in 2025, primarily in line with the global
automotive sales forecast.
20
15
 Revenue growth in 2023 and 2024 was driven
10
predominantly by increased demand from the
North American and Chinese markets. We expect
vehicle sales to normalize in 2025, partly due to
economic uncertainties.
5
0
-5
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
(e)
e-Estimate.
Source: S&P Global Market Intelligence, S&P Capital IQ Consensus Estimates.
Median EBIT Margin
 Median operating margin for the automotive
(percent)
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
2016
industry is expected to deteriorate somewhat
despite ongoing cost-cutting efforts. This fall is
partially attributed to heightened costs linked with
the tariffs, which may elevate the prices of raw
materials and components.
 Aggregated EPS, conversely, is expected to
2017
2018
2019
2020
2021
2022
2023
2024
2025
(e)
e-Estimate.
Source: CFRA; S&P Global Market Intelligence, S&P Capital IQ Consensus
Estimates.
plunge 13.5% in 2025 amid weaker demand
brought on by economic uncertainties and higher
input costs due to tariff implementation.
Global Automobile Sales
 We lowered our growth projection for global
(units, in millions)
automobile sales to 3.3% in 2025 due to a
challenging economic landscape that may
undermine consumer confidence and diminish
their inclination to invest in high-value purchases.
140
120
100
80
60
40
 We expect sales growth to be partially driven by
20
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(e)
Global Auto Sales
e-Estimate.
Source: CFRA; OICA.
INDUSTRY SURVEYS
rising global sales of electric and hybrid vehicles.
United States
AUTOMOBILE MANUFACTURERS / MAY 2025
6
KEY INDUSTRY DRIVERS
Global GDP Growth
 Action Economics forecasts global GDP to grow
(percent change, Y/Y)
by 2.4% and 2.7% in 2025 and 2026, respectively.
This comes after 3.2% growth in 2024.
8.0
6.0
 Although we anticipate global GDP growth in
4.0
2025, the rate is projected to decelerate due to the
prevailing economic conditions and lingering
(albeit moderating) risk of trade war.
2.0
0.0
-2.0
-4.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
(f)
(f)
f-Forecast.
Source: World Bank, Action Economics
Real GDP Growth
 Looking at the world’s three largest auto markets,
(Y/Y change, in percent)
Action Economics currently projects the following
GDP growth:
10
8
6
4
•
•
•
2
0
-2
-4
China: 3.3% in 2025; 3.3% in 2026.
EU:
0.8% in 2025; 1.0% in 2026.
U.S.: 1.7% in 2025; 2.0% in 2026.
 As with the global GDP forecasts, we anticipate
-6
-8
U.S.
China
EU27†
†Excludes U.K.
*2025 data estimated by IMF.
Source: Federal Reserve Bank of St. Louis, Eurostat, and IMF.
diminished real GDP growth for the regions in
discussion as President Trump’s recent tariffs may
still evolve into a full-scale trade war if the parties
fail to reach a mutual trade resolution.
Consumer Confidence Index
 The Consumer Confidence Index for all three
(index, 2015=100)
economic regions fluctuated considerably since
2023 due to economic instability, initially caused
by persistent inflation and numerous geopolitical
events, and more recently by concerns arising
from the implementation of trade tariffs.
140
130
120
110
100
90
 Notably, despite being the focus of Trump’s tariffs,
80
70
2016
2017
2018
U.S.
2019
2020
2021
EU
2022
2023
2024 2025*
China
*Data for U.S. and EU through March 2025, China through February 2025.
Source: The Conference Board; European Commission, and National Bureau
of Statistics of China.
7
China’s confidence index experienced an increase
in 2025 as the nation implemented various
measures in compliance with WTO regulations to
protect and uphold its trading system and
economic order.
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
INDUSTRY TRENDS
Competitive Environment
INDUSTRY OUTLOOK
CFRA’s 12-month fundamental outlook for the Automobile Manufacturers industry is neutral, with
headwinds including stubbornly high interest rates, risks posed by tariffs, above-average inventory
levels, and the profitability of electric vehicles (EVs). These are balanced by positives, including
expectations of moderating interest rates, fewer supply chain issues and parts shortages, and stillelevated auto prices.
We estimate global vehicle sales will increase by 3.3% to 97.8 million units in 2025 versus 94.7 million in
2024. Global vehicle sales were up 2.6% in 2024, driven by increases in Europe (+5.1%) and North
America (+3.2%), partially offset by the Asia Pacific (+1.5%).
We estimate U.S. light vehicle sales will increase by approximately 2% to 16.2 million units in 2025. In
2024, U.S. new vehicle sales volume rose 2.2% to 15.9 million units, up from 15.5 million units in 2023.
Rising inventory levels and an increase in promotional activity should help boost sales. U.S. auto sales
still have not returned to pre-pandemic levels, when they exceeded 17 million units annually for an
unprecedented five consecutive years from 2015 to 2019. As of March 31, 2025, U.S. new vehicle
inventories stood at 70 days’ supply, above the historical average of 60 days.
On the positive side, wage growth and low unemployment rates should help support vehicle prices. We
think margins will benefit from a combination of still-elevated new vehicle price realizations ($48,699 in
the U.S. in April 2025) and moderating pressures on raw material costs. However, potential tariffs and
higher labor costs are concerns. Affordability has weighed on new vehicle sales over the past few years,
but has recently improved to its best level since August 2021 due to wage gains. According to Edmunds,
the average monthly payment on a new vehicle loan was $741 in Q1 2025 (+0.8% Y/Y), while the
average annual percentage rate (APR) of 7.1% was flat with a year earlier.
We expect higher electric and hybrid vehicle sales to be a growth driver as numerous new models come
to market. In 2024, EVs accounted for approximately 20% of all new vehicle sales worldwide and 8.1% in
the U.S., up from 15.8% and 7.8% respectively in 2023. EV sales rose by 25% globally and 7% in the
U.S. in 2024.
Another major secular trend has been the growing popularity of pickup trucks and SUVs relative to
passenger cars. Light duty vehicles accounted for 81.3% of new vehicles sold in the U.S. in 2024, up
from only 51.2% in 2010. The average age of vehicles on the road in the U.S. hit a record-high of 12.6
years in 2024, which should help support retail parts demand.
These are innovative times for the industry; increasing vehicle electrification and the rise of ridesharing
and ride-hailing services are dramatically changing how the industry and consumers operate, and how
they will perform in the future. Traditional and non-traditional automobile makers have announced plans
to bring fully autonomous vehicles to the market in the next decade.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
8
PROFIT SHARE MAP
Operating Margin (%)
REVENUE SHARE MAP OF THE GLOBAL AUTOMOBILE MANUFACTURING INDUSTRY*
20
18
16
14
12
10
8
6
4
2
0
(Share of Revenue)
Tesla
Toyota
BYD
Ferrari
Porsche
Mercedes-Benz
GM
Volkswagen
BMW
Honda
Others
*Last twelve months ended Q1 2025.
Source: CFRA, S&P Global Market Intelligence.
Despite having one of the lowest profit margins, automobile manufacturers contributed a reasonably
large amount of revenue – a combined $2.58 trillion in the last 12 months for the 58 largest automakers
covered in this survey – to their respective nation’s GDP.
9
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
MAJOR PLAYERS
The Automobile Manufacturers industry is a significant contributor to the world’s economy and is highly
dominated by companies in the U.S., EU, and various parts of Asia, such as Japan and China. The
following summarizes the world’s major original equipment manufacturers (OEMs).
MAJOR AUTOMAKERS BY REGION
COMPANY
European Union
1) Volkswagen
(Germany)
2024 SALES
(UNITS, IN
MILLIONS)
BUSINESS DESCRIPTION
9.0
Volkswagen AG (VW) was founded in 1937 and is headquartered in
Wolfsburg, Germany. It operates as a subsidiary of Porsche
Automobile Holding SE. VW’s passenger cars segment develops
vehicles and engines while producing and selling passenger cars and
related parts. Its commercial vehicles segment develops, produces,
and sells light commercial vehicles, trucks, and buses. VW offers parts
and associated services, while its power engineering segment
develops, produces, and sells large-bore diesel engines, turbo
compressors, industrial turbines, chemical reactor systems, gear units,
propulsion components, and testing systems. In addition to its
namesake brand, the Volkswagen Group oversees a diverse portfolio
of private and commercial vehicle brands, which includes Audi,
Bentley, Bugatti, Lamborghini, MAN, Porsche, Scania, SEAT, and
Škoda.
2)
Stellantis N.V.
(Netherlands)
5.7
The merger between Fiat Chrysler Automobiles (FCA) and Peugeot
S.A. (PSA) created the fourth-largest carmaker in the world. Upon
receiving approval from the European Commission and subsequently,
the shareholders of both FCA and PSA, the deal was completed on
January 16, 2021. The combined company, renamed Stellantis N.V., is
headquartered in Amsterdam. The 14 brands under the company’s
portfolio include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS,
Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks, and
Vauxhall.
3)
BMW
(Germany)
2.5
Headquartered in Munich, Germany, Bayerische Motoren Werke
Aktiengesellschaft (BMW) is the parent company of the BMW Group.
The group manufactures premium automobiles and motorcycles, and
provides related financial services. The company has three brands:
BMW, MINI, and Rolls-Royce. The company possesses three of the
strongest premium brands in the automobile market, from exclusive
smaller cars to top-of-the-range luxury limousines.
4)
Mercedes-Benz
(Germany)
2.4
Headquartered in Stuttgart, Germany, Mercedes’ predecessor
(Daimler AG) was founded in 1886. The company designs,
manufactures, sells, and distributes vehicles. With its divisions
Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz
Financial Services (Mobility), the Mercedes-Benz Group is one of the
biggest producers of premium cars.
Source: CFRA, S&P Global Market Intelligence, OICA, Factorywarrantylist.com.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
10
MAJOR AUTOMAKERS BY REGION (CONTINUED)
COMPANY
North America
1)
General Motors
2024 SALES
(UNITS, IN
MILLIONS)
BUSINESS DESCRIPTION
6.0
General Motors Company designs, builds, and sells cars, trucks,
crossovers, and automobile parts worldwide. The company also sells
trucks, crossovers, and cars to dealers for consumer retail sales and
fleet customers. Additionally, it offers safety and security services for
retail and fleet customers. Further, the company provides automotive
financing services. It also operates an online new vehicle store.
4.5
Ford Motor Company was founded in 1903 and is based in Dearborn,
Michigan. The company designs, manufactures, markets, and services a
range of Ford cars, trucks, sport utility vehicles, and electrified vehicles
worldwide. The automotive segment sells Ford and Lincoln vehicles,
service parts, and accessories. The mobility segment designs and builds
mobility services and provides self-driving systems development and
vehicle integration, autonomous vehicle research and engineering, and
autonomous vehicle transportation-as-a-service network development
services.
Asia (ex-China)
1)
Toyota
(Japan)
10.8
Toyota Motor Corporation was founded in 1933 and is headquartered in
Toyota, Japan. It designs, manufactures, assembles, and sells
passenger vehicles, minivans, commercial vehicles, and related parts
and accessories. The company offers hybrid cars, fuel cell vehicles, and
conventional engine vehicles. Further, the company engages in ITrelated businesses, including operating a web portal for automobile
information known as GAZOO.com.
2)
Hyundai-Kia
(South Korea)
7.2
Hyundai Motor Company was founded in 1967 and is headquartered in
Seoul, South Korea. It manufactures and distributes motor vehicles and
parts worldwide. In addition, the company offers trucks, buses, vans,
special-CVs, engines, vehicle financing, credit card processing,
marketing, engineering, and insurance services. It also manufactures
trains and operates a football club. Further, the company is involved in
real estate development, research & development, and investment
activities. Hyundai Motor Company has a strategic partnership with
Rimac Automobili to develop EVs.
3)
Honda
(Japan)
4.1
Honda Motor Co., Ltd. was founded in 1946 and is headquartered in
Tokyo, Japan. It develops, manufactures, and distributes motorcycles,
automobiles, power products, and other products worldwide. The
company’s automobile business segment offers passenger cars, light
trucks, mini vehicles, and vehicles powered by alternative fuel, such as
ethanol, battery electric, and fuel cell vehicles. Its power products and
other business segments manufacture and sell power products for
various purposes, including the HondaJet aircraft.
2)
Ford
Source: CFRA, S&P Global Market Intelligence, OICA, Factorywarrantylist.com.
11
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
MAJOR AUTOMAKERS BY REGION (CONTINUED)
COMPANY
China
1)
SAIC Motor
2024 SALES
(UNITS, IN
MILLIONS)
BUSINESS DESCRIPTION
4.6
SAIC Motor Corp., Ltd. is a state-owned automotive manufacturer in
Shanghai, China. Established in 1955, it is presently the largest stateowned automobile manufacturer in China, surpassing FAW Group,
Dongfeng Motor Corporation, and Changan Automobile, which are
collectively generally referred to as the “Big Four”. It has engaged in the
longest-standing Sino-foreign automotive joint venture (JV) with
Volkswagen (SAIC-Volkswagen) since 1984 and has operated a JV with
General Motors (SAIC-GM) since 1998. It manufactures and markets
passenger vehicles under its exclusive brands, including Roewe, MG,
Maxus/LDV, Rising Auto, and IM Motors.
2)
FAW Group
3.2
Established in 1953, FAW Group Corp., Ltd. is a state-owned automotive
company based in Changchun, Jilin. The company is presently the
second largest among the “Big Four.” It manufactures and markets
automobiles under its brands, including Hongqi and Bestune (Benteng),
and through foreign-branded JVs, including FAW-Toyota and FAWVolkswagen (Volkswagen, Audi, Jetta). FAW’s primary offerings include
autos, buses, light-, medium-, and heavy-duty vehicles, as well as
automotive components. The firm emerged as China’s inaugural
automotive manufacturer upon introducing the first domestically-built
passenger vehicle, the Hongqi, in 1958.
3)
Chang’an
Automobile
2.7
Chang’an Automobile Co., Ltd. is another Chinese state-owned
automotive manufacturer based in Chongqing. The company originated
in 1862 as a military supply firm, established by the Shanghai Foreign
Gun Bureau. It was not until 1959 that it was restructured to produce the
Changjiang Type 46 Jeep, establishing itself as an automotive
manufacturer. Chang’an manufactures and markets automobiles under
its brands, including Chang’an, Deepal, Avatr, and Kaicene, as well as
through foreign-branded JVs like Chang’an Ford and Chang’an Mazda.
The company’s primary business is manufacturing passenger vehicles,
microvans, commercial vans, and light trucks.
4)
Dongfeng
2.5
Formed in 1969, Dongfeng Motor Corporation Ltd. is a state-owned
automotive manufacturer based in Hubei, China. The company designs
and sells automobiles under its brands, including Fengdu, Voyah,
Aeolus, and Forthing, as well as through foreign-branded JVs, including
Dongfeng Honda, Dongfeng Nissan, and Dongfeng Peugeot-Citroën. All
JVs are managed by the company’s subsidiary, Dongfeng Motor Group.
It produces components alongside commercial and consumer
automobiles and collaborates with international firms.
Source: CFRA, S&P Global Market Intelligence, OICA, Factorywarrantylist.com.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
12
PORTER’S FIVE FORCES
Below, we used the Porter’s Five Forces framework as a tool to analyze the competitive environment of
the Automobile Manufacturers industry.
Threat of New Entrants
5
4
3
Competitive Rivalry
2
1
Threat of Substitutes
0
Power of Suppliers
Power of Buyers
Very High = 5
High = 4
Moderate = 3
Low = 2
Very Low = 1
1) Threat of new entrants (Low)
The high initial capital, high cost of doing business, and tremendous brand development costs may deter
most competitors from entering the industry. Large automakers had also long associated their brands
with patriotism, which would be hard for new entrants to replicate.
2) Threat of substitutes (Moderate)
The industry experiences increasing effects from substitutes that may include public transportation or
other modes of transportation. The proliferation of e-hailing services, rising environmental awareness,
and improving public transportation connectivity may also threaten car ownership. Switching costs,
however, may be high for most people as owning a car is still the easiest way to travel; buyers are also
less inclined to use other modes of transportation while still paying down their car loans.
3) Bargaining power of buyers (Moderate)
The moderate bargaining power of buyers stems mainly from a few factors. First, they face low switching
costs to another automaker. Next, the moderate size of individual purchases means that a small change
in purchasing trends would significantly affect revenue. Lastly, the wide range of substitutes means that
the rapid development of other modes of transportation and the proliferation of the Internet of Things
(IoT) could disrupt firms’ profitability.
4) Bargaining power of suppliers (Moderate)
Suppliers support this industry by ensuring the availability of raw materials and assembled parts needed
for business operations. Given the moderate overall supply and suppliers’ population, they have
considerable but limited bargaining power over big automakers. However, a low degree of vertical
integration means many suppliers do not have control of sales of their products to automakers.
5) Degree of rivalry/competition (Very High)
The degree of rivalry and competition has been known to be exceptionally high. Industry players tend to
offer very similar products. Furthermore, switching costs are low to none for buyers as they can easily
switch from one automaker to another. Players must continually innovate to ensure they have products
with the latest technologies. The industry’s high exit barriers mean firms would rather compete than shut
their businesses.
13
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
Operating Environment
Tariffs in the Spotlight
The Trump administration has picked up where it left off in its first term, making tariffs a key part of
its economic agenda. The administration’s first action was to impose a 25% tariff on all imports from
Canada and Mexico, and a 10% tariff on all imports from China. Since then, Canada and Mexico
were given 30-day exemptions on auto imports and imports covered by the U.S.-Mexico-Canada
Agreement (USMCA) until April 2, 2025. Meanwhile, China received an additional 10% tariff
increase on February 27, 2025, bringing total tariffs to 20% above the already in-place tariffs from
Trump’s first term. The administration has also announced plans to impose 25% tariffs on imports
from the European Union, but no date for implementation has been announced and these tariffs
remain in the planning stage.
These countries have all retaliated in response to the Trump administration; however, the retaliation
has so far been on a much smaller amount of goods. We note that the U.S. has a significant trade
deficit with its main trading partners (Mexico, China, and Canada). In Q4 2024, the U.S. trade
balance, seasonally adjusted, was -$76.6 billion with China, -$48.4 billion with Mexico, and -$18.3
billion with Canada.
We think the administration’s proposed tariffs are being driven by frustration that the U.S. imports
more than three times the value of automobiles that it exports. In 2023 (latest available), the U.S.
imported $208.0 billion of automobiles, while exports totaled only $65.3 billion. Mexico and Canada
ranked first and third in terms of countries of origin for imported vehicles into the U.S. in 2023, with
imports totaling $44.9 billion and $35.0 billion, respectively (Japan ranked second at $40.9 billion).
Mexico accounted for approximately 22% of U.S. auto imports, and Canada for 17%. Looking at
U.S. auto exports, Canada was the top destination at $15.8 billion (24% of total exports), while
Mexico ranked fourth at $4.5 billion (7%).
U.S. AUTOMOBILE IMPORTS/EXPORTS*
---------------------------IMPORTS---------------------------
---------------------------EXPORTS---------------------------
COUNTRY
VALUE
($ BILLION)
% OF TOTAL
COUNTRY
VALUE
($ BILLION)
% OF TOTAL
Mexico
$44.9
21.6%
Canada
$15.8
24.2%
Japan
$40.9
19.7%
Germany
$9.0
13.8%
Canada
$35.0
16.8%
China
$7.5
11.5%
South Korea
$31.3
15.0%
Mexico
$4.5
6.9%
Germany
$24.3
11.7%
UAE
$3.1
4.7%
All Others
$31.6
15.2%
All Others
$25.4
38.9%
TOTAL
$208.0
100.0%
TOTAL
*As of 2023 (Latest available).
Source: The Observatory of Economic Complexity (OEC).
$65.3
100.0%
In our view, the ultimate impact of the tariffs depends if they take effect, and how long they are in
effect. If the tariffs are only temporary and used primarily as a political bargaining chip to extract
concessions on other issues such as illegal immigration and drug trafficking, we think the impact on
auto prices and earnings would be limited. However, if the tariffs are part of a larger shift in U.S.
economic policy, i.e., a new source of tax revenue going forward, the impacts will be more material.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
14
Recent studies have estimated that average U.S. new vehicle prices could increase by $3,000 if the
25% automotive tariffs on Canada and Mexico remain in effect. For consumers, the silver lining is
that the tariffs come at a time of plentiful inventory levels. U.S. new vehicle inventories at auto
dealerships stood at 70 days’ supply at the end of March 2025 (above the historical average of 60
days). By comparison, in late 2021, inventories stood at around 30 days. In short, the auto market is
currently well-supplied. However, we have heard several reports of retailers citing the threat of
tariffs and uncertainty related to future production as a reason to offer less generous incentives to
prospective buyers.
The tariffs present a major near-term logistical and earnings headwind for the industry, particularly
to auto manufacturers and suppliers. We think it is important for investors to understand that the
industry has been burned by Washington D.C. before, most recently with policies related to electric
vehicles.
We think the longer tariff uncertainties linger, the more likely companies are to throw their hands up
and choose to produce more automobiles and source more parts from the U.S., in order to mitigate
future trade-related risks. This would represent a victory for President Trump in terms of his goals of
domestic economic growth and job creation.
Is the Race to Solid-State EV Batteries Overhyped?
Solid-state batteries have always been considered the be-all and end-all for sustainable driving. As its
name implies, these batteries utilize a solid electrolyte composed of materials like ceramics.
Theoretically, solid-state battery technology contains higher energy density per unit volume than lithiumion batteries. Advocates claim that it provides safer, more powerful, and therefore more cost-effective
batteries for EVs, along with quicker charging durations.
According to CNBC, Toyota, a proponent of solid-state batteries, indicated its plans to start mass
production by 2028. The automaker announced a significant advancement in its efforts to enhance the
reliability of this technology, suggesting that the battery is projected to provide a range of 1,000 km
(621 miles) on only a 10-minute charge. In April 2024, Nissan also announced its intention to introduce
solid-state batteries for EVs by early 2029. Meanwhile, Mercedes-Benz and U.S. battery startup Factorial
revealed their collaboration on a solid-state battery in September 2025 to start production by the end of
the decade. Factorial has established joint development agreements with automakers such as Hyundai,
Kia, and Stellantis.
As with most technologies, solid-state batteries are not perfect and have drawbacks. These batteries
tend to swell during charge, which would likely cause degradation of battery cells after prolonged
recharging. However, there may be an alternative: semi-solid-state batteries. Some researchers believe
these cells could be a bridge between the two types of batteries, as they employ a hybrid design that
combines solid and liquid electrolytes. Semi-solid-state batteries are being developed by Chinese
companies, including the world’s largest battery maker, Contemporary Amperex Technology Co., and
have been well-commercialized in China. According to CNBC, Chinese EV makers have long been
dabbling with this technology. Nio, for instance, has launched its thousand-kilometer range EVs that run
on a 150-kilowatt-hour semi-solid-state battery. On the other hand, Ganfeng LiEnergy (a subsidiary of
Ganfeng Lithium) produces semi-solid-state batteries for EVs with a range of 530 km.
The future of solid-state batteries remains uncertain, and their success will rely on economic feasibility
and ongoing advancements to address current challenges that may impede their reliability.
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AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
Diverging NEV Growth for China’s Domestic Sales and Exports
China’s New Energy Vehicle (NEV) automakers are expanding their export markets aggressively for new
growth. China’s export volume of motor vehicles surpassed Japan’s for the first time in Q1 2023, with
about 40% of the exports being NEVs. Given the extended robust growth of China’s motor vehicle export
volume, we are optimistic that the trend will continue.
QUARTERLY VEHICLE EXPORTS
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2020
2021
2022
China
2023
Japan
2024*
*Data for China through November 2024; data for Japan through December 2024.
Source: China Association of Automobile Manufacturers, Japan Automobile Manufacturers Assoc.
We also note that most of China’s top NEV export destinations are still lagging in public charging
infrastructure. South America has a comparatively small number of charging points, at less than 5,000 in
2023 (latest available). In contrast to Europe (around 630,000 public charging points in 2023) and the
U.S. (around 195,000 charging stations as of January 2025), major cities in Latin America had less than
4,000 public charging stations in 2023 (latest available), most of which were concentrated in major cities
(such as Sao Paulo and Buenos Aires). Despite their abundance, NEV charging stations are widely
dispersed in Europe and North America because of the large land area, varied growth stages and
demand, and expensive installation costs.
Chinese NEV brands like BYD and XPeng are relatively uncommon in their export destinations, with
Tesla dominating most of the export market for many parts of the world. However, BYD has recently
overtaken Tesla as the preeminent global EV seller, propelled by its economical electric and hybrid
offerings, vertical integration (including in-house battery manufacturing), and stronghold in China’s
extensive market. In contrast, Tesla faces challenges from its premium-oriented lineup, production
constraints, and dependence on a limited range of models – although its updated Model Y may provide a
strategic countermeasure.
The recent transition highlights China’s increasing dominance in the electric vehicle sector, indicating a
more competitive global market emphasizing cost-effectiveness and supply chain management. Tesla’s
capacity to innovate, grow, or reduce expenses will likely influence its potential to regain its leading
status amid rapid industry evolution. As such, we expect Chinese NEV brands to fare even better in
2025, driven by their lower prices, and we think higher brand awareness will be an essential enabler for
Chinese NEVs to grow their export market in 2025.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
16
Robust Charging Infrastructure May Drive China’s NEV Sales
Despite its swift expansion, the shortage of public charging infrastructure continues to pose a significant
obstacle to the growth of EV sales. In this aspect, China is at the forefront of the EV space and charging
station technology, with the most recent developments being fast-charge liquid-cooled charging stations
and battery swap services to address range anxiety and lengthy charging periods.
According to the China Energy Storage Network, China had 3.2 million public charging stations as of
mid-2024 (latest available), the world’s most significant EV charging infrastructure. The country
substantially boosted its EV charging infrastructure in 2024 to accommodate surging EV use.
Deployment of public and private charging stations has been expedited, especially in metropolitan areas
and along roads, to mitigate range anxiety and enhance electric vehicle adoption. This program
corresponds with national objectives to attain carbon neutrality and sustain leadership in the global
electric vehicle market. The expansion included investments in fast-charging technologies and smart grid
integration as officials strive to equilibrate supply with the increasing demand fueled by strong electric
vehicle sales. The initiative highlights China’s strategic emphasis on developing a holistic electric vehicle
ecosystem to maintain its dominance in the sector, helping domestic manufacturers such as BYD and
facilitating the larger shift towards clean energy.
EV PUBLIC CHARGING STATIONS IN CHINA
(units, in thousands)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
(e)
Source: China Electric Vehicle Charging Infrastructure Promotion Alliance.
In early 2025, China’s BYD introduced a megawatt charging system that can charge EVs as rapidly as
refueling a gasoline tank. The company intends to establish a network throughout China, igniting new
competition in deploying supercharge stations. Fast-charging EV technology is essential for drivers
anxious about battery depletion during long-distance travels, leading automakers to innovate in fastcharging solutions. Chinese automotive manufacturers are progressively utilizing these technologies as
key selling features to entice consumers. Smaller companies like Li Auto, Xpeng, and Zeekr have
also been intensifying their efforts to develop fast-charging networks. Analysts caution that
the widespread use of fast-charging technologies would exert increased strain on power grid capacity,
necessitating more efforts and expenditures to enhance infrastructure.
While battery swap services remain somewhat niche, Chinese electric car manufacturers have been
expanding their partnerships to secure a competitive advantage in the EV infrastructure, as a battery
swap can be completed in under 5 minutes. In 2023, Nio partnered with at least four major Chinese
automobile manufacturers – Changan, Geely, Chery, and JAC – to develop battery swap standards and
expand the network in China. In addition, Nio also announced an agreement in early 2024 to work with
17
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
two local companies on battery swap services. The primary limitation of this battery charging solution is
the necessity for battery compatibility, prompting Nio to establish battery swap standards.
China’s 14th five-year plan anticipates the establishment of an advanced charging infrastructure by the
end of 2025 to accommodate the demand for over 20 million NEVs. We expect the robust growth in
China’s NEV charging infrastructure to further boost NEV sales in the coming years.
Rebound in Global Auto Sales
In 2024, global auto sales experienced a modest increase following significant growth in the previous
year. The industry encountered several challenges due to high inflation and interest rates, which,
fortunately, were largely addressed by mid-2024. 2022 saw a global semiconductor shortage, which
aligned with a notable rise in oil prices attributed to the Russia-Ukraine conflict. Although the intensity of
this shortage has diminished, various factors continue to influence semiconductor supply.
TOTAL VEHICLE SALES BY REGION
(for the year ended, in millions of vehicles)
2019
17.49
20.82
4.57
2020
14.88
17.45
3.37
2021
15.41
18.16
3.84
2022
14.23
16.93
3.95
2023
16.01
19.19
4.03
2024
16.34
19.80
4.35
2025
16.70
20.41
4.51
20.93
25.80
5.20
16.71
25.31
4.60
16.88
26.31
4.45
15.08
26.86
4.20
17.94
30.09
4.78
18.70
31.44
4.42
19.15
32.51
4.55
44.55
1.20
92.07
41.21
0.93
79.67
43.62
1.13
83.64
45.95
1.08
82.99
50.64
1.05
92.85
51.41
1.05
95.31
53.31
1.08
98.46
1.6%
-14.9%
3.5%
-7.6%
12.5%
2.1%
2.2%
-1.8%
-4.0%
-16.2%
-26.1%
4.1%
14.0%
-6.8%
2.8%
13.4%
2.0%
3.2%
8.8%
3.1%
3.7%
Europe
0.6%
China
-8.1%
-1.5%
Japan
Asia, Oceania & Middle East -6.5%
-2.3%
Africa
Total
-3.7%
Global Market Share %
U.S.
19.0%
North America
22.6%
South America
5.0%
Europe
22.7%
China
28.0%
Japan
5.6%
Asia, Oceania & Middle East 48.4%
Africa
1.3%
Total
100.0%
-20.1%
-1.9%
-11.5%
1.0%
4.0%
-3.3%
-10.7%
2.1%
-5.6%
19.0%
12.0%
13.8%
5.1%
4.1%
-7.5%
2.4%
3.4%
2.8%
-7.5%
-22.9%
-13.5%
5.8%
22.4%
5.0%
5.4%
-5.1%
-0.8%
10.2%
-2.4%
11.9%
1.5%
-18.4%
2.7%
3.7%
2.9%
3.3%
U.S.
North America
Central & South America
Europe
China
Japan
Asia, Oceania & Middle East
Africa
Total
% Change
U.S.
North America
South America
18.7%
18.4%
17.1%
17.2%
17.1%
17.0%
21.9%
4.2%
21.0%
31.8%
5.8%
51.7%
21.7%
4.6%
20.2%
31.5%
5.3%
52.2%
20.4%
4.8%
18.2%
32.4%
5.1%
55.4%
20.7%
4.3%
19.3%
32.4%
5.1%
54.5%
20.8%
4.6%
19.6%
33.0%
4.6%
53.9%
20.7%
4.6%
19.4%
33.0%
4.6%
54.1%
1.2%
1.4%
1.3%
1.1%
1.1%
1.1%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: International Organization of Motor Vehicle Manufacturers; CFRA estimates for 2025.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
18
China holds the title of the world’s largest vehicle market by a wide margin, selling approximately 31.3
million units in 2024 (accounting for approximately 33% of global sales), an increase of 4.1% from the
year before. Despite the number one title, the pace of China’s sales growth lagged Europe’s.
VEHICLE SALES IN CHINA*
(units, in millions)
35
30
25
20
15
10
5
0
2010
2012
2014
2016
Commercial vehicle
2018
2020
2022
2024
Passenger vehicle
*2025 data through January 2025 (latest available).
Source: China Association of Automobile Manufacturers.
CFRA projects global vehicle sales will increase by 3.3% to 97.8 million units in 2025 versus 94.7 million
in 2024. Global vehicle sales were up 2.6% in 2024, driven by increases in Europe (+5.1%) and North
America (+3.2%), which were tempered by slower growth in Asia Pacific (+1.5%).
Oversupply and Economic Uncertainty Lowers Raw Materials Prices
A reduction in EV output coupled with various supply-side factors resulted in decreased prices for lithium
and nickel. The drop was partly due to car manufacturers and their suppliers taking lessons from the
recent global chip shortages, leading to a more cautious approach to managing raw materials.
One of the most essential raw materials for current batteries is lithium, and EVs accounted for about
87% of lithium usage in 2023 (latest available), from 80% in 2022 and 60% in 2021. Lithium carbonate
prices hit a high in December 2022, up 185% from the beginning of the year, eclipsing the 2016 to 2017
boom. However, the average price of lithium carbonate has trended downward since, plunging to a
current low of $9,780. The decline was attributable to an oversupply of EV batteries caused by higher
global production and reduced EV demand from major markets such as China following the termination
of its EV subsidy in 2022. In addition, concerns over the future of North America’s lithium supply chain,
exacerbated by the implementation of tariffs, contributed to pricing pressure.
19
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
AVERAGE LITHIUM CARBONATE PRICES AND NICKEL (LME) PRICES
($'000/metric ton)
($/metric ton)
80,000
35,000
70,000
30,000
60,000
25,000
50,000
20,000
40,000
15,000
30,000
10,000
20,000
5,000
10,000
0
2021
2022
2023
Lithium (left scale)
2024
2025*
0
Nickel (right scale)
*Data through April 20, 2025.
Source: S&P Global Market Intelligence.
On the other hand, nickel is used for several purposes, notably for making stainless steel and for its use
in many EV batteries. It is one of the most considerable costs in producing an EV. Nickel prices peaked
in March 2022, doubling in early 2022 before declining considerably to the current five-year low. We note
that the 2022 surge in nickel prices was much attributed to Russia’s invasion of Ukraine. Since then, the
increase in supply (particularly from Indonesia) surpassed demand by a huge gap, which resulted in the
overall decline in nickel prices. In addition, the strong U.S. dollar rendered nickel more costly for
overseas purchasers, while the resurgence of the U.S.-China trade war further depressed its price.
Regulatory Environment
AV Adoption Expected to Accelerate Under New Regulation
In April 2025, the U.S. Department of Transportation revealed comprehensive plans to establish a
regulatory framework for autonomous vehicles (AV) to create a unified federal standard for AV
manufacturers. This would undoubtedly expedite AV adoption as the country currently lacks a regulatory
framework at the federal level, meaning that AV producers such as Waymo and Tesla are required to
obtain regulatory permissions in every jurisdiction.
A white paper from the World Economic Forum indicates that the widespread implementation of
autonomous vehicles is anticipated to be delayed. By 2025, only 4% of personal vehicles are expected
to possess Level 4 (L4) capabilities, which enable complete automation exclusively inside designated
geofenced areas. The research also indicates that personal vehicles will gradually shift toward greater
automation, with increased adoption of L2 and L2+ technologies throughout the next decade. Safety
hazards, liability issues, and elevated expenses will constrain the implementation of L3 and L4 systems.
By 2030, L2 and L2+ systems will constitute the predominant technology in newly marketed automobiles.
L3 cars will continue to be a transitional option, representing just a minor percentage of sales by 2035.
The DOT’s announcement on the new AV regulation seeks to accelerate the deployment of self-driving
vehicles. The U.S. Transportation Secretary stated that the new framework would help U.S. automakers
compete with Chinese counterparts. The revised guidelines would exempt certain autonomous cars from
federal safety requirements, such as the requirement for rearview mirrors. It will also allow
manufacturers to report minor collisions only on a monthly basis and establish a property damage
reporting threshold for less serious incidents involving autonomous cars.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
20
Naturally, this ruling elicited severe criticism from safety advocacy organizations. Advocates for Highway
and Auto Safety expressed disappointment that the DOT had opted to weaken, rather than strengthen,
the reporting requirements. The group expressed apprehension over the safety exclusions, stating that
the successful deployment of AVs is jeopardized and may lead to fatal outcomes without safeguards,
safety regulations, transparency, and accountability.
Despite the potential backlash, CFRA thinks the framework would help expedite the widespread
adoption of AV technology, bypassing a potentially lengthy state-by-state approval process. We expect
the new standards to reset NHTSA’s guidelines to more accommodating levels for the development and
operation of AVs and benefit the companies that have dedicated significant resources toward developing
such technologies in recent years.
EPA under Trump Reconsiders Vehicle Emissions Requirements
The U.S. Environmental Protection Agency (EPA) is re-evaluating its regulations for Model Year 2027
and Later Light-Duty and Medium-Duty Vehicles, and the Greenhouse Gas Emissions Standards for
Heavy-Duty Vehicles. This corresponds with President Trump’s Day One executive orders and the
Power the Great American Comeback initiative, which focuses on revitalizing the auto industry and
reinstating the rule of law.
According to EPA Administrator Lee Zeldin, these regulations have resulted in over $700 billion in
regulatory costs while providing a bedrock to Biden’s EV mandate that limits consumer choice of safe
and affordable vehicles. In addition, the EPA will also reassess various aspects of the Biden initiatives,
particularly the 2022 Heavy-Duty Nitrous Oxide (NOx) rule under the “Clean Trucks Plan,” which entails
substantial costs that could potentially lead to increased prices for the products transported by trucks,
including food and other household goods.
Automotive associations commended the Trump administration’s initiative to rescind greenhouse gas
emissions regulations, asserting it will give producers of gasoline-powered engines an advantage and
maintain customer options. Advocates are hopeful that the relaxation would cultivate a competitive
international environment for domestic manufacturers and suppliers in the automotive sector. However,
not all companies benefit from the repeal. EV makers, in particular, stand to lose the most from this
deregulation. A spokesperson from the EV Association even called this decision ‘unfortunate.’
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INDUSTRY SURVEYS
M&A Environment
Global Auto Deals
High interest rates, political instability, and reduced customer demand, particularly in the EV sector,
impacted the number and value of global automotive M&As in 2024. The extended decline in EV
demand significantly impacted numerous EV companies’ cash flow and financial performance. However,
recapitalization via M&A proved difficult due to elevated interest rates and cooling demand, resulting in a
tepid M&A landscape. Despite a pessimistic M&A outlook for the EV industry, the demand recovery for
internal combustion engines in North America may spur an improvement in the transaction outlook for
conventional carmakers as they aim to consolidate and capitalize on opportunities for value realization in
the years ahead. In addition, another impetus for M&A is the synergies generated from R&D for EV
technology and broader innovation, such as safety systems and vehicle IoT.
GLOBAL M&A ACTIVITIES IN THE AUTOMOBILE MANUFACTURING INDUSTRY*
(arranged by transaction size, in $, millions)
COMPLETION
DATE
ACQUIRER
ACQUIRER
COUNTRY
TARGET
TARGET
COUNTRY
SIZE
($ MILLION)
Pending
Centricus AM; Quantum Group
U.K. and
Switzerland
Automobili Lamborghini
Italy
9,178
Pending
Luxshare Precision Industry
China
Various business units
of Chery Automobiles
-
1,582
Pending
Geely Automobile Holdings
Cayman Islands
ZEEKR
Cayman Islands
1,347
Pending
ESGL Holdings Limited
Cayman Islands
De Tomaso Automobili
Cayman Islands
1,100
China
Brilliance Auto Group
Holdings
China
12,918
2024
3/15/24
Shenyang Automobile Co., Ltd
5/31/23
Porsche Automobil Holding
Germany
Dr. Ing. h.c. F. Porsche
AG
Germany
8/24/23
Sime Darby Enterprise
Malaysia
UMW Holdings Berhad
Malaysia
1,483
9/5/22
General Motors
United States
GM Cruise Holdings
United States
2,100
3/18/22
Pavilion Private Equity; Cactus
Private Equity; KG Mobility
South Korea
KG Mobility Corp.
South Korea
6/25/21
-
Tesla
United States
3,611
4/12/21
Platinum Equity
Club Car
United States
1,680
2023
10,019
2022
1,063
2021
United States
*With transaction size of over $1 billion.
Source: CFRA, S&P Global Market Intelligence.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
22
HOW THE INDUSTRY OPERATES
The Automobile Manufacturers industry is engaged in the design, production, marketing, sale, provision
of spares, and service of motor vehicles. The largest market for these products is the individual
consumer. Success of the industry relies heavily on various macro- and micro-economic factors on a
global scale as well as regulations in areas where they operate. The industry is characterized by long
development and production cycles.
Replacement demand for automobiles is driven by product wear and tear, as well as changes in
consumer preferences, technological advancements, and changes to regulatory requirements related to
environmental factors and vehicle safety. Model lifecycles also affect sales: during the end of a model
lifecycle, sales tend to decline, prices are cut, and larger incentives are offered. Consumers often will
hold off on purchasing a model if they are aware that an updated version will soon become available.
Automaker Revenue
Automakers generate revenues from sales of vehicles to dealers and through financing operations.
Revenues from vehicle sales depend on the automakers’ market share, product mix, and pricing. In
addition to the general macro-situation and consumer confidence, which drives overall volume, this
volatile and cyclical business can be vulnerable to shifting consumer tastes and gyrating fuel prices.
Given the industry’s high fixed costs, volume is necessary to ensure profitability. This leaves the industry
prone to bouts of price competition, exacerbated by significant industry overcapacity. This, in CFRA’s
view, has been the case in Europe with external players, such as Japanese and Korean original
equipment manufacturers (OEMs), targeting rising sales in Europe at the same time as incumbents
sought to cut. Market share movements tend to follow country and segment exposures as well as new
model activity.
The growth of financial services businesses over the past decade and the age of cheap credit also
improved sales and mix in the industry. The possible longer-term reversal of the era of cheap credit
could be a risk to mature market volume and mix growth in the future, in CFRA’s view.
Automotive Pricing
Several factors can force retail auto prices to rise. Over time, consumers come to value, as standard
equipment, features once offered as optional. New safety or emissions-control items may be required to
comply with government regulations. Prices may increase with the introduction of new models deemed
to offer more value or enhanced quality, or if demand for a specific model increases.
Competitive pressures can result in lower prices. Lower automobile prices, however, can be supported
through higher unit production volume, cost savings on parts and labor, and manufacturing efficiencies.
When costs are reduced through innovation, savings can be shared between manufacturer, supplier,
and consumer; therefore, profits can still rise. However, when prices are reduced solely to stimulate
demand and there are no offsetting cost savings, profitability often declines.
Demand Factors
The economic environment naturally affects demand for automobiles. Principal end purchasers include
private individuals, corporations, and short-term rental companies. Cars are a major purchase for most
families, and consumers need to feel comfortable before they spend so much of their hard-earned
money. During periods of sustained economic growth and plentiful employment, sales typically rise as
customers feel flush and confident enough to buy new vehicles. Conversely, when the economy
weakens, and jobs are hard to come by, consumers are more likely to delay the purchase of new
vehicles.
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AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
Other factors affecting new-car sales include cost of ownership, changes in style, engineering, safety,
and quality (which hasten the obsolescence of existing models), and the cost and availability of fuel and
insurance. Safety has captured vehicle buyers’ attention in recent years and has become a pervasive
theme in automakers’ ad campaigns. In response to consumer demand for safer vehicles, automakers
have made wide use of components such as airbags and antilock brake systems (ABS). ABS has now
been superseded by electronic stability control (ESC) systems in many countries. Other new driving aids
include automated parking assistance and the current introduction of advanced driver assistance
systems, which may eventually lead to fully automated driving.
Automaker Costs
Auto parts, materials, and labor are the chief components of automaker operating costs. These costs are
determined by the location of automaker plants, fluctuations in the price of key materials, and the terms
of contracts between the automaker and parts/materials providers. Research & development (R&D) is
another significant expense.
Operating leverage is generally very high in the industry given generally low operating margins and high
fixed investment in plant, machinery, and capitalized development costs. Operating leverage remains
lower at the premium makers (given superior operating margins) than the mass makers, which are more
heavily geared into volume, with lower revenue per unit and already thin margins. Pricing and mix also
affect automaker profitability to a large extent.
 Auto parts. Auto parts and components, along with raw materials, constitute purchased materials, the
biggest cost category for automakers. Auto parts prices may include indirect costs, if suppliers are called
upon to subsidize the automaker through R&D expenditures and investment in capital equipment.
 Raw materials. The key raw materials used in automobiles are steel, plastics and composites, iron,
aluminum, and more recently lithium and cobalt, with metals comprising over 75% of a vehicle’s total
content. Spot prices for various metals are easily accessible, but automakers typically sign undisclosed
long-term contracts with steel suppliers to lock in prices, often on a volume-based level, which adds a
higher degree of fixed costs to their structure, in our view. In contrast, parts suppliers and tire makers
often buy on shorter contracts, and are thus more exposed to the risks of rapid price changes, with
typically a six-month delay between the changes in spot prices and the impact on the profit and loss
statement. CFRA thinks that mechanisms to pass on variations in raw materials have increasingly
become a feature in component supply contracts.
 Labor. Labor is one of automakers’ key operating costs. Factors weighing on labor expenses include
hourly wages; the skill and productivity levels of the workforce; flexibility to learn new production
techniques; and the presence of strong labor unions. Employee costs may be fixed or variable,
depending on labor contracts that affect the employer’s ability to adjust staffing levels and schedules
according to demand. In Europe, labor costs have become increasingly variable through the
implementation of time bank agreements, increased reliance on temporary labor, and governmentbacked, short-time working schemes.
 R&D. The R&D demands on the Automobiles industry are unrelenting given the highly competitive
structure and increased consumer and government-led demands for improved fuel efficiency, safety,
performance, and comfort. Increasingly stringent emissions controls and safety regulations have meant
that European companies have had to increase spending on R&D.
In the process of automotive manufacturing, fewer parts mean lower production costs and a reduced
likelihood of assembly errors. Manufacturers are also lowering costs by minimizing industrial waste and
pollution, as well as reducing the number of labor hours. The increase in sub-assemblies, units
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assembled separately but designed to fit with other units within a manufactured product, may also
reduce the number of individual parts.
Reducing the number of labor hours required for the final assembly stage has been a high priority for
automakers. Greater proportions of components are being made at parts facilities and delivered to the
assembly plants on a just-in-time basis. Automakers send daily or even hourly orders for specific seats,
which are then produced and delivered.
In recent years, there has been a trend toward the formation of alliances (e.g., Renault/Nissan/AvtoVAZ
or Peugeot/GM), which allow economies of scale through the joint development of new
platforms/models/engines and joint purchasing. This has the effect of spreading costs over a significantly
larger number of cars. It is not unusual to see one company assembling a vehicle that will be badged,
marketed, and sold under its partner’s brand. Contract manufacturers may be used to outsource capacity
for successful models or for smaller manufacturing runs.
Currency Risk/Reward Another Factor
With auto OEMs as one of the world’s largest exporters, foreign exchange (forex) can be a significant
challenge as European OEMs have relatively high naturally unhedged positions. U.S. dollar weakness
can seriously hurt profitability, most notably for the German OEMs.
Currency affects in three ways: translation, transaction, and competitiveness.
 Translation: The translation of revenue and profits into a reported currency.
 Transaction: Vehicles produced in Europe and sold in non-Euro countries suffer from revenue
deterioration, while the Euro-based cost structure remains intact, causing a structural margin impact.
 Competitiveness: Manufacturers from regions with relative currency weakness have increased
flexibility in terms of pricing in export regions. Historically, this has particularly supported the Japanese
OEMs in the U.S. and in Europe to a much lesser degree.
Currency risks can be mitigated by hedging strategies, mainly futures and options, which can essentially
lock in set exchange rates, but this remains a relatively short-term strategy. Going forward, OEMs are
seeking to increase their natural hedging through greater local production and local content. Given the
duration of the investment cycle, however, this will not be a quick solution to currency volatility impacts
on profitability.
Financial Services Operations: An Important Source of Earnings
Over the past decade, automakers’ financial services operations have offered growing support to volume
and earnings developments. Given the longer-term nature of financing contracts (typically three years),
these divisions have also offered a relatively stable source of earnings versus the more cyclical industrial
business.
Financial services profitability is basically derived from the interest rate spread on receivables, with other
influences being credit losses as well as general administrative costs. Leasing is predominantly U.S.based, as VAT issues make leasing in Europe a much more expensive option; the U.K. has the highest
leasing exposure in Europe. The prospects for a financial services division can be affected by the
following:
 Higher cost of capital: This squeezes interest rates and thus financial services margins, although it
depends on the ability to pass the higher cost on to the end consumer.
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 Higher delinquencies and defaults: Difficulty in meeting payments pushes up credit losses. Cyclical
highs of credit losses have historically been more than 2%.
 Lower residual values: For a vehicle coming off lease, a lower value versus expectations affects
profits. Write-downs may also be taken to adjust for overly optimistic assumptions on financial services
assets. In Europe, this affects the premium names – BMW and Mercedes-Benz – both of which took
substantial residual value charges through 2008 on lower U.S. and U.K. used-vehicle prices.
 Credit availability: Access to financing markets has been a concern for the automakers’ financial
services arms needing to roll over debt to fund their businesses during the credit crunch. However,
national and central bank schemes supported funding through 2008 and 2009, and conditions have
greatly improved, with the average return on equity (ROE) across the European OEMs back above 10%
again.
Suppliers
The automotive supply component comprises manufacturers of factory-installed automotive components,
replacement (aftermarket) parts manufacturers, rubber fabricators, and distributors. The aftermarket
segment of the industry includes manufacturers that sell replacement parts to repair facilities, individual
consumers, service providers, and distributors. The Automobiles industry is the primary source of
revenue for parts suppliers.
Mature, Capital-Intensive Business
The auto parts segment is a mature and capital-intensive business, with high operating leverage amid
volatility in end-market demand and raw material price inputs. Auto suppliers have a highly concentrated
OEM customer base. Price pressure is intense given the challenges facing the OEM themselves, and
real annual price deterioration is the norm, with flexibility, quality, and innovation expectations high. This
follows through the entire supply chain.
Added Value, Growth Product Segments Key
Growth rates generally follow automotive production levels, which in mature markets can mean only
1% to 2% annual growth. Above-average growth rates can result from market share gains, but more
often from increased content per vehicle. This is particularly the case in the specialized areas of safety,
comfort, electronics, fuel efficiency, and emissions-related technology. This can be prompted by tighter
government legislation or proactively by the OEMs themselves as a competitive advantage, which
increasingly becomes an industry standard. Parts suppliers with solid market shares in these growth
areas typically have greater pricing resilience versus the more commoditized companies within the
industry.
It is important to an OEM that its auto supplier base adds value to its product by investing heavily in
research to provide innovative products, while improving manufacturing flexibility and good reliability,
and allowing productivity improvement opportunities. The stronger European suppliers generally enjoy
premium operating margins, returns, and free cash flow versus U.S. suppliers and even versus the
OEMs themselves.
Focus on Emerging Markets Offers Revenue and Cost Benefits
As the OEMs increase their production footprint in new emerging markets, auto suppliers follow suit. This
shift to low-cost countries can generate higher revenue streams and accelerate growth, and can help
reduce suppliers’ production costs. Emerging economies tend to have lower levels of unionized plants
than Western markets do, and suppliers do not face the same type of political pressure as OEMs
regarding lowering labor costs.
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Auto suppliers may also gain access to markedly lower-priced component sources when using overseas
production bases, such as Russia. The rise in raw material prices can be a major challenge for the entire
supply chain as well as the OEMs, with little opportunity to pass on any price increases to end
customers. An obvious exception would be the tire segment, which has greater potential for price rises
given the high degree of replacement sales making up their total demand, the oligopoly structure of the
industry, and the increasingly disciplined nature of this segment. Some suppliers have agreements that
allow changes in raw material prices (up and down) to be passed on to OEMs, usually with a lag of three
to six months.
Other means for suppliers to reduce their cost structure include consolidation and attaining economies of
scale, although leading European players already enjoy relatively high market shares, in our view.
Consolidation in the industry is sometimes driven by OEMs reducing their number of suppliers by
awarding larger contracts in exchange for lower pricing. Improvement in efficiency gains remains an
ongoing target for the industry, and this includes the increased use of automation and simplification in
parts design. The outsourcing of non-critical activities and higher collaboration along the supply chain
can also reduce the capital intensity of the suppliers’ business profile.
Tough Pricing Environment, but Close OEM Relationship
Supplier contracts are frequently written for the life of a vehicle model (currently as few as three to five
years, from the previous norm of eight); contract terms typically include goals for cost, quality,
performance, timing, and product features. The relationship between an auto supplier and an OEM is
increasingly close. While price reductions remain part of the business, it makes no sense for OEMs to
threaten the financial viability of their supply base by demanding excessive pricing cuts, given the
greater disruption to production (and thus earnings) that a financial collapse could cause, and the
ongoing need for suppliers to invest heavily in R&D, innovation, and quality.
Some OEMs and Tier 1 suppliers were forced to absorb costs to prop up their supply base after the
sharp and pronounced nature of the production cuts from late 2008 (output fell by as much as 40% to
50% Y/Y in one quarter). This hurt suppliers, given the pressure on working capital.
In CFRA’s view, European automotive suppliers typically have a more stable risk profile than U.S.
suppliers. This relates to a more diversified customer base, platform and segment coverage, and
geographical spread. U.S. suppliers that historically had close relationships with the U.S. OEMs offering
significant North America-based volume had suffered disproportionately from the decline of the U.S. Big
Three’s volumes in the U.S. over an extended period, the rise of the Japanese transplants, and the
relatively limited geographic expansion of the U.S. players versus the European names.
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HOW TO ANALYZE A COMPANY IN THIS INDUSTRY
At CFRA, we recommend a top-down approach to valuation. An examination of the industry drivers
outlined on page 7 is a good starting point.
Industry Drivers
 Economic growth. The Automobiles industry is highly cyclical, so changes in volume tend to
correlate with economic conditions. Even if pricing is used to support volume, automakers’ earnings and
share prices will follow the macro picture. There is typically a close correlation between automotive
share-price performances and the key lead indicators such as the German IFO Business Climate Index,
the U.S. ISM Manufacturing Index, and consumer confidence data, giving an indication of the possible
future direction of the macro environment. In terms of the share-price performance, the industry tends to
be an early cycle.
 Currency exchange rates. The industry remains one of the most currency-sensitive industries.
Despite increasing local production outside Europe (in the U.S., China, and Brazil) and apparent rising
local content ratios, much of the value-added componentry may still be sourced in Europe and, as such,
the German automakers remain large net exporters from Europe, with large U.S. dollar and U.K. sterling
exposures.
 Commodity prices. Raw materials have a significant impact on automakers’ earnings, either directly
through input costs or by affecting volume and mix through cost of ownership. Manufacturers typically
cannot pass higher input costs on to consumers.
Qualitative Factors
A number of factors should be considered when evaluating an auto company. A plethora of statistics is
available to help track the state of the industry and its participants.
Seasons and Cycles
The Automobiles industry is a highly cyclical and seasonal one, with the second and fourth quarters
typically the strongest volume periods of the year. The industry’s profitability also typically follows
pronounced macro-related cycles.
Geographic Diversity
A company’s current geographic spread, as well as its plans for global expansion to emerging markets,
is important. On a short-term basis, each country typically produces monthly sales statistics (including
data down to the manufacturer level) that can help gauge country sales performance. In Europe, the
European Automobile Manufacturers Association (ACEA), a trade group, produces a monthly panEuropean summary. Data are also available on most other key global markets, including the U.S., Brazil,
and China.
Obviously, an OEM’s relative exposure to certain markets is an indication of overall sales prospects. The
relative contribution from emerging and mature markets is a key indication of longer-term future growth
prospects. However, pricing and thus margins tend to be better in-home markets, particularly at the early
stages of development.
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Market Share Evolution and Product Mix
Market share evolution is important when analyzing an automaker and can typically be highly correlated
with model cycles. However, pricing also remains key, as automakers can “buy” share in various ways –
by high sales to low-value rental fleets, for example, or by highly incentivized sales, both of which hurt
earnings. Model line data can also provide valuable insight when analyzing product mix developments.
Pricing and margins tend to be better in the larger segments, with content in general increasing across
all segments, but the ability to “price” that in is much more restricted in more compact segments.
A number of factors influence product mix, including changes in regulations, customer preferences,
commodity prices, and demographics. Product mix can also be influenced by government-backed
scrappage incentives, as was witnessed in 2009, when monetary incentives encouraged a temporary
sales shift to small cars, which favored the small carmakers.
Model Changeovers
There has typically been a tight inverse correlation between the average age of an automaker’s product
range and its earnings before interest and tax (EBIT) margin. This effectively means that when an
automaker has a young, fresh product range, it is often rewarded with higher production volume, with
obvious operating leverage benefits, as well as improving market share. New models also help improve
pricing, as older models increasingly need higher incentives, and increase showroom traffic in general.
Production costs also typically fall from one generation model to the next, with greater commonality,
lower complexity, and use of modular designs, all helping to reduce costs.
Pricing: New and Used
Pricing is a key earnings contributor for auto companies, but is much more difficult to track on an
ongoing monthly basis given the lack of consistent data, not least because of variations in the levels of
standard equipment. In North America, incentives per vehicle can be monitored using monthly estimates
from Autodata; in Europe, however, data are less consistent, so qualitative manufacturer offers/discounts
(which are often not specification-adjusted) can be viewed as a gauge. Pricing is highly linked to
branding and customer perceptions of quality; customer loyalty offers higher profitability. Typically,
higher specification vehicles fitted with more optional extras offer higher profitability than entry-level
vehicles.
Used-vehicle pricing is highly important, not just for the implications that it has on the general health of
the new-car market and pricing, but more directly for the impact it has on the leasing business and the
potential residual value impact. Typically, consumers may require higher discounts on cars that see their
value fall away the quickest. When an automaker offers a lease, it includes a value it believes the vehicle
will be worth at the end of that lease. Should used-vehicle pricing fall notably, the automaker will have to
take a provision for that change in asset value. Monthly data in the U.S. is provided by the Manheim
Index, which tracks used prices, and by ADESA – North America’s premier vehicle auction operator,
which provides segment detail.
Management
CFRA looks favorably on seasoned management teams that have performed well, compared with their
peers, in both good times and bad. However, some executives may be particularly good at containing
costs, while others are better at creating new products or managing expansion. In evaluating a company,
it is a good idea to look at top management’s track record – either at that company or at other firms –
and to assess whether the skills demonstrated in the past match up well with the company’s current
needs or goals. It is worth highlighting, however, that due to the ownership structure of European auto
companies – many have high family or government ownership – the ability to carry out what is believed
to be the necessary restructuring can often be limited, even for managers with strong track records.
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Quantitative Factors
When assessing any company, it is important to analyze income statement, cash flow, and balance
sheet data. The measures of particular importance to auto companies are described below.
Analyzing the Financial Statements
Looking at financial statements is important. Sources of information include quarterly and annual reports
to shareholders, filings with relevant bodies, and reports put out by advisory firms (such as CFRA and
ValueLine) and brokerage companies. Investors are increasingly able to hear corporate managements
talk about their businesses, via conference calls or company-provided webcasts, often around the time
that they release their quarterly earnings. Discussed later in this section are various significant financial
considerations one should be aware of when analyzing an automobile company.
Sustainability of Revenues and Earnings
When looking at both revenues and profits, one must determine whether contributions to the current
results are likely to recur in future periods. If one-time factors have either inflated or depressed results in
a prior period, these should be examined as well. Furthermore, some ongoing costs of doing business
can change significantly due to macroeconomic and industry factors, or world events.
Accounting Items to Review
There are various corporate accounting issues to consider. For example, an analyst should consider if
the company has significant pension or employee benefit plans, and if it is accounting for them in a
realistic and conservative manner.
The Income Statement
Among the major items to examine in an automaker’s income statement are revenues, gross margins,
and marketing costs. Automakers typically include them in two different statements. In accordance with
financial accounting standards, automakers separate and detail the income from, and expenses for,
automotive manufacturing and financial services. Automakers can present a second set of financial
statements, in which their finance subsidiaries’ results are reported on an equity basis. This means that
the company’s income statement gives only the net operating income for financial services, rather than a
detailed breakdown of income and expenses.
Revenues
Automakers derive the bulk of their revenues from the sale and financing of light vehicles, which are
defined as cars and light trucks weighing less than 10,000 pounds. The key revenue drivers for the
Automobiles industry are vehicle production and sales volume. For manufacturers, revenues are
recognized when vehicles are shipped to dealers. In the short term, they may not match sales; however,
over time, sales should act as a leading indicator of production needs. Revenue is based on volume,
mix, and pricing. The Automobiles industry is highly concentrated and global in nature.
 Sales revenues. Automobile companies listed on U.S. stock exchanges report their revenues on a
quarterly basis. Most revenues are derived from wholesale (or factory) vehicle shipments; these are
recorded when automakers ship vehicles to dealerships.
Monthly vehicle sales reports record the retail volume of motor vehicle sales by dealerships. These
numbers are disclosed to the public and followed closely by economists, analysts, and the media. In the
long term, factory shipments and retail sales should balance out. As a practical matter, however,
differences usually arise due to the timing of shipments and retail sales, and the impact of imports and
exports.
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Average revenue per vehicle sold can be tracked by dividing an automaker’s revenues from vehicle
sales by the number of vehicles shipped during the same period. Generally, the trend should be upward;
if an automaker has flat or declining revenues per vehicle, it may have discounted heavily to sustain unit
shipments, or it may be selling more of its cheaper models. A sharp rise in revenues per vehicle could
indicate that an automaker has seen a shift in production volume to models that are more expensive.
 Financing revenues. Automakers receive revenues from the dealer inventories and retail customer
sales that they finance. In addition to generating revenues, financing is an important sales tool:
automakers use their financing divisions to support various marketing initiatives. These include
encouraging dealers to keep larger inventories on hand (by offering a favorable interest rate on inventory
purchases) and subsidizing customers’ vehicle purchases (via rebates, below-market interest rates, and
the like). U.S. automakers also generate revenues by offering a variety of services, including insurance
and extended service contracts.
An automaker’s financing revenues may rise or fall with the general level of interest rates without
dramatically affecting income from financing operations. This is because the automaker earns a markup
on the interest it pays to borrow funds. Auto loans are usually made for a period of 24 to 60 months.
Automakers attempt to match their borrowings with loan maturities to minimize their exposure to interest
rate fluctuations.
Watch Out! Companies rely upon estimates to calculate the appropriate provision and allowance
related to potentially uncollectible receivables. The estimates are generally based on factors such as
an aging of receivables and the financial condition of customers. Because credit loss provisions for
financing and trade receivables are based on estimates and because there is not a quantifiable
"correct" level for the allowance, such provisions can easily be manipulated to benefit earnings.
Gross Margins
Gross margins in the Automobiles industry fluctuate greatly with production volume because many of the
costs related to vehicle production are fixed. Even labor costs had become largely fixed because of
union contracts, which restricted layoffs or required automakers to pay certain laid-off workers benefits
worth up to 95% of their take-home pay. This policy has changed, largely due to the industry’s latest
financial crisis and government intervention.
Therefore, automakers must sustain relatively high production levels to break even. Once the breakeven point has been passed and fixed costs are spread over more units, however, the automaker can
earn substantial profits. For each additional unit of production beyond the break-even point, variable
profit for high-end vehicles can exceed $10,000 per unit.
Even so, it is rare for an automaker’s gross margin to exceed 25% of its revenues. By the time the
company has deducted marketing, selling, general and administrative (SG&A) costs, its average return
on sales (i.e., net income from operations as a percentage of revenues) may be as little as 5% over the
automotive cycle, which may run more than four years. Over the past two decades, U.S. automakers’
return on sales has often been even lower due to strenuous competition.
Watch Out! Companies in the Automobiles industry are fixed asset intensive, making depreciation a
significant expense for most of these companies. Since depreciation is based on estimates of asset
lives, management can manipulate these estimates to manage earnings. Specifically, extending the
depreciable life of an asset will boost a company's earnings while shortening depreciable lives will
decrease earnings.
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Watch Out! Automobile companies generally incur substantial costs related to R&D. Under U.S.
GAAP, R&D costs must be expensed as incurred. A sharp decline in R&D costs relative to sales
raises concern that a company may be delaying or cutting back on R&D costs in the current period to
boost earnings.
Marketing Costs
Marketing costs tend to rise and fall with the underlying level of demand for motor vehicles. Normally,
automakers devote about 10% of sales revenue to marketing costs (which may include financial
incentives). When attempting to stimulate demand, however, they may spend 14% or more.
Nevertheless, when it is clear that demand is declining severely due to recession, automakers may have
to face reality and curtail advertising and marketing expenditures.
The Balance Sheets
As with their income statements, automakers produce two sets of balance sheets. One set uses the full
consolidation method, and one accounts for financial operations on an equity basis. An equity balance
sheet separates the automaker’s financial services operation (which customarily operates with high debt
leverage ratios) from its manufacturing operation. Auto investors usually focus on the equity-method
balance sheets because these make it easier to determine the financial strength of a company’s
manufacturing operations.
When studying an automaker’s balance sheets, it is easy to be impressed with the strong cash position
the company may have accumulated during a favorable economic period. However, when business
slows, an automaker’s cash position can quickly erode for several reasons. First, the company receives
less revenue. Second, the float created by timing differences between the purchase of supplies and
materials and payment of accounts payable diminishes, as fewer materials are purchased, and more
bills are paid. Third, the automaker must continue to pay its fixed costs even as its business volume
decreases. Thus, an automaker can see wide swings in liquidity in a short time.
Valuation Measures
Valuation measures are used to determine how much a company or its stock is worth. A common
measurement is a multiple of projected earnings. Keep in mind that valuations depend on various
factors, including overall investor sentiment, industry conditions, the level of interest rates, and the extent
to which future earnings seem predictable. As is the case with other measures, valuations of a particular
company should be compared with those of similar companies in the same industry.
 P/E ratio. When valuing a company’s stock, a good place to start is the basic investment ratio of stock
price-to-earnings (P/E) per share, or P/E ratio. This ratio (or multiple) is useful in judging a company’s
performance relative to firms in the same industry, as well as in other industries.
Historically, automotive P/E expanded during recessions or times of economic weakness that lead to
lower profits. During flusher times, P/E ratios will often contract. The reason for this counterintuitive
action reflects the cyclical nature of the industry: when profits rise, the multiple contracts in anticipation of
the inevitable decrease in profits; when profits fall, the multiple increases.
 P/S ratio. At times, companies may not have forward earnings to apply P/E multiples to. In such
cases, other metrics might come into play, such as price-to-cash flow or enterprise value-to-earnings
before interest, taxes, depreciation, and amortization (EV/EBITDA) ratios. However, in extreme
circumstances (as seen in 2009, for example), these numbers may not be meaningful, and the investor
has to rely on price-to-sales (P/S) ratios or discounting to future years’ expected profits.
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INDUSTRY REFERENCES
TRADE ASSOCIATIONS
China Association of Automobile Manufacturers
caam.org.cn
A non-profit social organization that represents firms
engaged in the production and management of
automobiles, auto parts, and vehicle-related industries
within China.
China Electric Vehicle Charging Infrastructure
Promotion Alliance (EVCIPA)
The EVCIPA is a non-profit organization established
under the guidance of China’s National Energy
Administration.
European Automobile Manufacturers Association
acea.be
Represents 13 of Europe’s biggest auto, bus, and truck
manufacturers; issues monthly and annual registration
figures for Western Europe.
International Organization of Motor Vehicle
Manufacturers
oica.net
An international trade association whose members are
39 national automotive industry trade associations.
Japan Automobile Manufacturers Association
jama.or.jp
JAMA is a trade association for Japanese automakers
to share technological developments and management
practices.
National Automobile Dealers Association
nada.org
Represents all franchised new-car dealers (domestic
and import) before Congress, federal agencies, the
media, and the general public, and provides education
and guidance on regulatory matters.
RESEARCH FIRMS
Brookings Institute
brookings.edu
Conducts research and education primarily in
economics, metropolitan policy, governance, foreign
policy, and global economy and development.
Center for Automotive Research
cargroup.org
Produces industry-driven automotive research and
fosters dialogue on issues facing the automotive
industry.
Edmunds
edmunds.com
Edmunds is an online resource for automotive
inventory and information, including expert car reviews
based on testing at the company's private facility.
PricewaterhouseCoopers
pwc.com
A consulting firm that provides industry information,
trends, and forecasts.
Observatory of Economic Complexity
oec.world
The OEC is an online data visualization and distribution
platform focused on the geography and dynamics of
economic activities.
The Conference Board, Inc.
conference-board.org
Publishes monthly consumer confidence surveys,
which measure consumer sentiment.
REGULATORY AND GOVERNMENT AGENCIES
Bureau of Economic Analysis
bea.gov
Produces and disseminates statistics that provide a
comprehensive, up-to-date picture of U.S. economic
activity.
Environmental Protection Agency
epa.gov
An independent agency, specifically an independent
executive agency, of the U.S. federal government for
environmental protection.
Eurostat
ec.europa.eu/eurostat
Eurostat is a department of the European Commission
that publishes official, harmonized statistics on the EU
and the euro area.
Federal Reserve Board
federalreserve.gov
The U.S. central bank promotes the effective operation
of the U.S. economy and, more generally, the public
interest.
International Energy Agency
iea.org
Works to ensure reliable, affordable, and clean energy
for its 30 member countries and beyond.
CEIC Data
ceicdata.com/en
Provides data and insights into both developed and
developing economies around the world.
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International Monetary Fund
imf.org
The IMF is a financial agency of the United Nations
that fosters international monetary cooperation by
encouraging trade and economic growth, and by
discouraging policies that would harm prosperity.
The National Bureau of Statistics of China
stats.gov.cn
The bureau is responsible for collecting, research and
publication of statistics concerning the nation's
economy, population and other aspects of society.
The World Bank
worldbank.org
A vital source of financial and technical assistance to
developing countries around the world, comprising five
institutions managed by their member countries.
ONLINE RESOURCES
China Energy Storage Alliance
cnesa.org
CNESA is a non-profit industry association in China
dedicated to promoting energy storage industry
development.
Factorywarrantylist.com
factorywarrantylist.com
An automotive resource for both dealers and
consumers, modified by suggestions from new car
customers and dealerships nationwide.
Financial Times
ft.com
A British daily news organization that focuses on
business and economic current affairs.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
34
COMPARATIVE COMPANY ANALYSIS
Operating Revenues
CAGR(%)
10-Yr. 5-Yr. 1-Yr.
40.8
31.8
0.9
5.8
8.3
21.4
29.6
43.5
29.0
9.2
12.1
11.8
1.1
(3.4) (4.5)
Index Basis (2011=100)
2024 2023 2022 2021 2020 2019
455 451 380 251 147 115
NA 109 102
95
90 102
563 449 325 180 127
97
177 169 139 124 108 108
79
88
84
79
78 101
DEC 336,117.6 356,233.0 298,225.9 284,544.5 272,641.0 283,505.8 270,035.5
DEC 147,406.6 171,878.0 152,410.0 126,508.6 121,088.7 116,945.3 116,945.3
DEC 41,498.1 44,799.4 40,223.4 37,686.8 35,100.9 32,003.1 29,521.4
DEC 187,442.0 171,842.0 156,735.0 127,004.0 122,485.0 137,237.0 147,049.0
MAR 17,895.7 17,026.0 14,419.0 11,639.2
9,618.9 10,047.8 12,422.4
4.8
5.9
8.8
1.9
12.5
5.1
6.4
7.0
6.4
10.5
0.7
(8.4)
(1.1)
9.1
19.8
124
126
141
127
144
132
147
152
117
137
110
130
136
107
116
105
108
128
86
94
101
104
119
83
77
105
100
108
93
81
HONDA MOTOR CO., LTD.
FORD MOTOR COMPANY
MAHINDRA & MAHINDRA LIMITED
HYUNDAI MOTOR COMPANY
SERES GROUP CO.,LTD
MAR
NA 135,062.0 127,188.9 119,840.4 119,083.5 138,761.5 143,386.1
DEC 184,992.0 176,191.0 158,057.0 136,341.0 127,144.0 155,900.0 160,338.0
MAR
NA 16,914.9 14,889.9 11,983.8 10,267.9 10,117.8 15,247.1
DEC 118,619.8 125,438.5 113,033.0 98,736.2 95,562.4 91,595.8 86,964.0
DEC 19,889.6
5,054.6
4,944.8
2,631.7
2,190.7
2,604.1
2,942.8
5.0
2.5
6.7
7.0
31.5
5.2
20.8
3.5
5.0
5.9
15.3
10.6
7.7
51.6 305.0
NA
115
NA
136
676
94
110
111
144
172
89
99
98
130
168
84
85
79
114
89
83
79
67
110
74
97
97
66
105
88
STELLANTIS N.V.
TATA MOTORS LIMITED
SAIC MOTOR CORPORATION LIMITED
LI AUTO INC.
KIA CORPORATION
DEC 162,416.4 209,510.3 191,933.3 169,929.5 58,294.8 66,202.4 84,757.3
MAR
NA 52,560.6 42,129.0 36,691.8 34,143.6 34,751.8 43,668.9
DEC 85,981.8 105,022.7 107,879.0 122,760.1 113,674.1 121,116.8 131,176.7
DEC 19,791.5 17,466.2
6,566.0
4,251.8
1,448.5
40.8
0.0
DEC 72,735.6 76,967.6 68,828.2 58,650.7 54,369.0 50,365.0 48,659.2
11.8
21.6 (17.2)
6.5
7.7
26.6
(0.0) (5.7) (15.7)
NA 247.7
16.6
8.6
13.1
7.7
Ticker
TSLA
7203
1211
RACE
MBG
Com pany
TESLA, INC.
TOYOTA MOTOR CORPORATION
BYD COMPANY LIMITED
FERRARI N.V.
MERCEDES-BENZ GROUP AG
VOW3
BMW
P911
GM
MARUTI
VOLKSWAGEN AG
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT
DR. ING. H.C. F. PORSCHE AG
GENERAL MOTORS COMPANY
MARUTI SUZUKI INDIA LIMITED
7267
F
M&M
A005380
601127
STLAM
500570
600104
LI
A000270
Million $
Yr. End
2024
2023
2022
2021
2020
2019
2018
DEC 97,690.0 96,773.0 81,462.0 53,823.0 31,536.0 24,578.0 21,461.0
MAR
NA 298,141.1 279,494.3 258,407.9 246,065.5 277,565.0 272,770.3
DEC 106,465.5 84,942.0 61,483.0 34,024.2 23,986.4 18,345.6 18,909.6
DEC
6,912.4
6,599.0
5,445.4
4,857.2
4,232.2
4,226.9
3,916.1
DEC 150,734.0 168,442.6 160,326.0 152,272.3 148,963.9 193,855.9 191,621.3
192 247 226 200
69
78
NA 120
96
84
78
80
66
80
82
94
87
92
NA
NA
NA
NA
NA
NA
149 158 141 121 112 104
Note: Companies are arranged by market capitalization size. #Of the follow ing calendar year.
Source: S&P Global Market Intelligence.
35
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
Net Income
Million $
Yr. End
2024
2023
2022
2021
2020
2019
2018
DEC 7,091.0 14,997.0 12,556.0
5,519.0
721.0
(862.0)
(976.0)
MAR
NA 32,692.7 18,440.1 23,470.4 20,300.9 18,922.9 16,991.9
DEC 5,515.0
4,236.5
2,410.0
479.4
648.6
231.9
404.2
DEC 1,575.6
1,383.9
996.7
944.8
743.5
780.9
898.4
DEC 10,567.3 15,763.2 15,497.5 26,164.0
4,436.7
2,667.5
8,299.7
10-Yr.
NA
10.5
57.3
19.3
3.9
DEC 11,751.7 18,274.6 16,519.2 17,493.5 10,846.5 15,583.0 13,895.1
DEC 7,547.4 12,479.3 19,173.9 14,081.7
4,617.7
5,515.7
5,515.7
DEC 3,718.8
5,700.2
5,300.8
4,585.5
3,867.9
3,137.7
3,564.2
DEC 6,008.0 10,127.0
9,934.0 10,019.0
6,427.0
6,732.0
8,014.0
MAR 1,697.0
1,618.9
1,006.3
511.2
599.9
753.8
1,104.0
0.3
2.3
5.0
4.3
16.8
(4.0)
8.2
5.1
(2.2)
12.0
(31.3)
(35.4)
(30.3)
(40.7)
63.2
85
137
104
75
154
7267
HONDA MOTOR CO., LTD.
F
FORD MOTOR COMPANY
M&M
MAHINDRA & MAHINDRA LIMITED
A005380 HYUNDAI MOTOR COMPANY
601127 SERES GROUP CO.,LTD
MAR
DEC
MAR
DEC
DEC
NA
5,879.0
NA
8,479.7
814.6
5.9
12.7
16.9 162.7
9.2
16.2
5.5
33.3
34.8 145.5
70.0
35.2
9.6
4.7
NM
NA
160
NA
626
5,873
133
89
118 (54)
176 163
681 432
NM NM
106 108
77
488 (35)
1
113
32
2
306
97 191
NM NM 69
STLAM STELLANTIS N.V.
500570 TATA MOTORS LIMITED
600104 SAIC MOTOR CORPORATION LIMITED
LI
LI AUTO INC.
A000270 KIA CORPORATION
DEC
MAR
DEC
DEC
DEC
5,666.2 20,554.9 17,953.4 16,149.2
2,658.1
3,592.2
3,236.8
NA 3,768.6
294.0 (1,507.6) (1,838.6) (1,603.0) (4,160.5)
228.3
1,989.3
2,336.8
3,861.9
3,129.5
3,677.1
5,235.6
1,100.5
1,650.6
(291.7)
(50.6)
(23.2)
(350.2)
(222.8)
6,615.6
6,768.4
4,301.4
3,996.5
1,366.9
1,582.2
1,038.4
NA 11.3
(70.6)
8.4
NM 1200.6
(24.6) (42.1) (88.2)
NA
NM (31.4)
12.6
39.9
11.3
175
NA
4
(494)
637
635 555
(91)
(7)
38
45
(741) 131
652 414
499
36
74
23
385
Ticker
TSLA
7203
1211
RACE
MBG
Com pany
TESLA, INC.
TOYOTA MOTOR CORPORATION
BYD COMPANY LIMITED
FERRARI N.V.
MERCEDES-BENZ GROUP AG
VOW3
BMW
P911
GM
MARUTI
VOLKSWAGEN AG
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT
DR. ING. H.C. F. PORSCHE AG
GENERAL MOTORS COMPANY
MARUTI SUZUKI INDIA LIMITED
7,319.9
4,900.3
5,822.6
5,944.2
4,347.0 (1,981.0) 17,937.0 (1,279.0)
1,352.5
1,252.0
866.7
247.7
9,224.3
5,855.8
4,149.2
1,308.9
(345.5)
(555.6)
(287.1)
(264.8)
4,235.5
47.0
16.9
2,581.3
9.6
5,507.8
3,677.0
767.2
1,354.7
13.9
CAGR(%)
5-Yr.
1-Yr.
NM (52.7)
21.3
101.7
90.3
34.0
16.9
21.6
33.8
(28.4)
Index Basis (2011=100)
2024 2023 2022 2021 2020 2019
(727)
NM NM (565) (74) 88
NA
192 109 138 119 111
1,364 1,048 596 119 160
57
175
154 111 105
83
87
127
190 187 315
53
32
132
226
160
126
147
119
348
149
124
91
126
255
129
125
46
78
84
109
80
54
82
44
60
10
132
112
100
88
84
68
111
39
70
157
152
Note: Companies are arranged by market capitalization size. #Of the follow ing calendar year.
Source: S&P Global Market Intelligence.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
36
Return on Revenues (%)
Ticker
TSLA
7203
1211
RACE
MBG
Com pany
TESLA, INC.
TOYOTA MOTOR CORPORATION
BYD COMPANY LIMITED
FERRARI N.V.
MERCEDES-BENZ GROUP AG
Yr. End 2024 2023 2022 2021 2020 2019
DEC 7.3 15.5 15.4 10.3
2.3
NM
MAR NA 11.0
6.6
9.1
8.3
6.8
DEC 5.2
5.0
3.9
1.4
2.7
1.3
DEC 22.8 21.0 18.3 19.5 17.6 18.5
DEC 7.0
9.4
9.7 17.2
3.0
1.4
VOW3
BMW
P911
GM
MARUTI
VOLKSWAGEN AG
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT
DR. ING. H.C. F. PORSCHE AG
GENERAL MOTORS COMPANY
MARUTI SUZUKI INDIA LIMITED
DEC
DEC
DEC
DEC
MAR
3.5
5.1
5.5
6.1
4.0
5.1
7.3 12.6 11.1
3.8
9.0 12.7 13.2 12.2 11.0
3.2
5.9
6.3
7.9
5.2
9.5
9.5
7.0
4.4
6.2
7267
F
M&M
A005380
601127
HONDA MOTOR CO., LTD.
FORD MOTOR COMPANY
MAHINDRA & MAHINDRA LIMITED
HYUNDAI MOTOR COMPANY
SERES GROUP CO.,LTD
MAR
DEC
MAR
DEC
DEC
NA
3.2
NA
7.1
4.1
5.4
2.5
8.0
7.4
NM
3.9
4.9
NM 13.2
8.4
7.2
5.2
4.2
NM NM
STLAM
500570
600104
LI
A000270
STELLANTIS N.V.
TATA MOTORS LIMITED
SAIC MOTOR CORPORATION LIMITED
LI AUTO INC.
KIA CORPORATION
DEC
MAR
DEC
DEC
DEC
3.5
NA
0.3
5.6
9.1
9.8
7.2
1.9
9.5
8.8
9.4
0.7
2.2
NM
6.2
9.5
NM
3.1
NM
6.8
Return on Assets (%)
Return on Equity(%)
2024 2023 2022 2021 2020 2019
5.8 14.1 15.2
8.9 1.4
NM
NA 5.5
3.3
4.2 3.6
3.8
5.1
4.4
3.4
1.0 2.1
0.8
16.0 15.6 12.0 12.1 9.7 12.8
3.9
5.4
5.6
8.9 1.3
0.8
2024 2023 2022 2021 2020 2019
10.4 27.3 32.5 20.4
5.4
NM
0.0 15.7
8.8 11.2 10.0 10.2
23.8 23.1 15.7
4.7
9.5
3.4
46.1 44.3 39.0 41.7 37.2 49.2
11.2 16.2 18.5 16.3
6.4
4.2
5.5
4.7
9.8
4.9
7.5
1.8
2.8
2.7
2.7
4.5
7.3
6.7 10.2 10.4
2.1
3.7
3.8
11.0 11.7
8.2
2.9
5.4
7.8
4.1
5.2
1.8
1.7
7.0
2.7
6.1
2.8
2.2
6.6
3.0
8.9
6.4
8.2
16.1
8.9
15.9
5.0
NM
2.4
1.4
NM
3.1
0.0
0.2
2.8
0.4
NA
2.1
NA
3.7
6.3
3.7
1.6
4.8
4.2
NM
2.6
NM
5.0
2.9
NM
2.9 3.0
7.0
NM
3.8 1.1
2.1 0.7
NM NM
2.2
0.0
0.1
1.5
0.2
0.0
9.7
6.4
7.6
13.4 10.1
NM 45.1
0.0 17.0 18.4 13.5
12.2 13.5
9.5
7.2
49.6
NM NM NM
4.6
NM
2.8
NM
2.5
5.4
NM
3.0
NM
3.1
2.6
9.2
NA 8.5
0.2
1.4
4.9
8.2
10.5 10.9
9.0
0.7
1.6
NM
7.3
8.3 2.9
NM NM
2.7 2.2
NM NM
7.1 2.5
4.6
NM
3.0
NM
3.3
6.7
0.0
1.7
12.2
19.1
9.7
13.2
26.6
14.0
16.8
9.8
22.3
24.9
14.1
12.7
11.2
7.0 11.6
18.2
6.4
8.5
18.7 16.8 16.5
17.2 13.2 15.0
7.2
8.6 11.8
7.9
NM
7.5
2.5
NM
6.1
0.2
5.7
4.2
1.1
24.1 26.1 33.0 10.2 14.1
42.2
5.1
NM NM NM
5.9
6.9 10.6
9.6 12.1
22.3
NM NM NM NM
20.4 14.6 14.7
5.1
6.5
Note: Companies are arranged by market capitalization size. #Of the follow ing calendar year.
Source: S&P Global Market Intelligence.
37
AUTOMOBILE MANUFACTURERS / MAY 2025
INDUSTRY SURVEYS
Current Ratio
Ticker
TSLA
7203
1211
RACE
MBG
Com pany
TESLA, INC.
TOYOTA MOTOR CORPORATION
BYD COMPANY LIMITED
FERRARI N.V.
MERCEDES-BENZ GROUP AG
VOW3
BMW
P911
GM
MARUTI
VOLKSWAGEN AG
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT
DR. ING. H.C. F. PORSCHE AG
GENERAL MOTORS COMPANY
MARUTI SUZUKI INDIA LIMITED
DEC
DEC
DEC
DEC
MAR
1.1
1.1
1.4
1.1
1.0
1.2
1.1
1.5
1.1
0.9
1.2
1.1
1.2
1.1
0.7
1.2
1.1
1.4
1.1
1.0
1.2
1.1
1.3
1.0
1.1
7267
F
M&M
A005380
601127
HONDA MOTOR CO., LTD.
FORD MOTOR COMPANY
MAHINDRA & MAHINDRA LIMITED
HYUNDAI MOTOR COMPANY
SERES GROUP CO.,LTD
MAR
DEC
MAR
DEC
DEC
NA
1.2
NA
1.5
0.9
1.4
1.2
1.3
1.4
0.7
1.4
1.2
1.3
1.3
0.8
1.5
1.2
1.3
1.4
0.8
STLAM
500570
600104
LI
A000270
STELLANTIS N.V.
TATA MOTORS LIMITED
SAIC MOTOR CORPORATION LIMITED
LI AUTO INC.
KIA CORPORATION
DEC
MAR
DEC
DEC
DEC
1.1
NA
1.2
1.8
1.5
1.2
1.0
1.1
1.6
1.5
1.3
1.0
1.1
2.4
1.3
1.2
1.0
1.1
4.3
1.4
Debt/Capital Ratio(%)
Yr. End 2024 2023 2022 2021 2020 2019
DEC 2.0
1.7
1.5
1.4
1.9
1.1
MAR
NA 1.2
1.1
1.1
1.1
1.0
DEC 0.7
0.7
0.7
1.0
1.0
1.0
DEC 1.8
1.8
1.6
1.9
1.7
1.9
DEC 1.4
1.2
1.2
1.2
1.2
1.2
Debt as a % of Net Working Capital
2024 2023 2022
7.0
4.0
2.2
NA 7.0
8.2
9.8 18.7
9.9
35.1 35.4 40.8
0.0
0.0 13.2
2021
11.9
8.2
18.3
48.4
22.9
2020
26.6
13.7
45.4
50.0
30.9
2019
56.1
7.6
79.6
52.3
35.4
2024 2023 2022 2021
18.7
12.9
7.2
57.5
NA 47.0 102.1 125.7
(16.2) (20.0) (13.8)
NM
88.3
94.9 115.4 128.3
0.0
0.0
90.7 142.7
2020
68.7
270.1
773.5
147.5
180.4
2019
722.5
214.5
NM
131.4
156.9
1.1
1.1
1.1
0.9
0.7
11.3
32.4
21.0
19.2
0.0
8.7
27.3
20.5
19.1
0.2
10.9
28.9
23.0
19.9
1.7
14.4
36.6
19.7
20.1
0.7
10.8
44.7
19.2
26.3
1.0
12.5
46.7
20.7
24.2
0.3
89.3
523.9
103.3
122.8
0.0
53.7
437.5
86.6
222.7
(4.6)
52.8
68.5
52.9
477.0 447.4
504.5
142.0 103.1
125.8
188.2 214.0 1699.4
(17.5)
NM
26.8
90.0
655.6
334.2
NM
(4.8)
1.3
1.2
1.4
1.4
0.6
1.3
1.2
1.2
1.4
0.8
NA
29.9
NA
53.9
5.5
31.8
31.2
54.9
51.8
34.5
27.6
30.8
52.7
52.1
37.2
31.6
26.0
51.3
55.6
42.2
33.5
43.1
55.6
54.6
54.8
33.8
29.7
61.7
50.7
45.4
NA
106.8
NA
357.9
(6.7)
170.7
96.4
356.5
351.3
(29.5)
149.5
97.3
311.5
391.0
(85.4)
175.7
93.0
287.1
358.5
(96.3)
253.0 279.4
117.0
87.5
278.2 600.0
310.8 288.1
(64.2)
NM
1.2
0.9
1.1
7.3
1.2
1.0
0.9
1.1
1.1
1.2
22.1 18.5
NA 46.1
31.1 39.1
10.3
3.9
4.1
5.7
19.8
73.6
39.5
17.0
13.1
26.8
79.7
34.9
12.7
20.2
32.0
79.0
39.6
1.7
27.0
29.8
70.8
33.1
5.2
16.4
365.2 105.7
99.4 207.0
NA
NM
NM
NM
133.5 219.7 399.4 202.7
14.3
5.8
23.3
14.8
16.2
24.0
65.0 105.1
176.8
NM
NM
NM
255.7 229.8
1.9
61.9
187.7 126.0
Note: Companies are arranged by market capitalization size. #Of the follow ing calendar year.
Source: S&P Global Market Intelligence.
Ticker
TSLA
7203
1211
RACE
MBG
Com pany
TESLA, INC.
TOYOTA MOTOR CORPORATION
BYD COMPANY LIMITED
FERRARI N.V.
MERCEDES-BENZ GROUP AG
Yr. End
2024
DEC 215 - 64
MAR 11 - 5
DEC 23 - 12
DEC 54 - 36
DEC
8 - 5
VOW3
BMW
P911
GM
MARUTI
VOLKSWAGEN AG
BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT
DR. ING. H.C. F. PORSCHE AG
GENERAL MOTORS COMPANY
MARUTI SUZUKI INDIA LIMITED
DEC
DEC
DEC
DEC
MAR
6
10
24
9
29
7267
F
M&M
A005380
601127
HONDA MOTOR CO., LTD.
FORD MOTOR COMPANY
MAHINDRA & MAHINDRA LIMITED
HYUNDAI MOTOR COMPANY
SERES GROUP CO.,LTD
MAR
DEC
MAR
DEC
DEC
STLAM
500570
600104
LI
A000270
STELLANTIS N.V.
TATA MOTORS LIMITED
SAIC MOTOR CORPORATION LIMITED
LI AUTO INC.
KIA CORPORATION
Price/Earnings Ratio (High-Low)
2023
62 - 23
13 - 10
27 - 19
50 - 29
6 4
2022
2021
2020
2019
99 - 27 220 - 101 939 - 98
NM - NM
12 8 11 8 11 8 12 9
58 - 29 299 - 133 141 - 23 119 - 74
46 - 32 55 - 34 57 - 35 42 - 23
6 4
4 3 17 6 27 - 18
- 4
- 6
- 15
- 5
- 19
4
6
21
6
36
7
4
20
11
70
9
10
20
6
37
- 5
- 7
- 11
- 4
- 14
DEC 15
MAR 13
DEC 137
DEC
6
DEC
5
- 6
- 5
- 80
- 2
- 4
-
-
4
3
15
5
50
8 5 NA 10 57 -
5
4
NA
6
28
10 14 15 5 NM -
8
9 9 NM 8 16 3
8 NM NM -
7
NM
12
5
NM
9 5 57 14 NM -
6 12 9 11
2
NM - NM 888
17 598 - 234 20
10 36 - 12 13
NM NM - NM 259
4
78
13
4
4
2
59
11
2
3
2
NM
10
NM
5
4 NM 12 NM 9 -
3
NM
9
NM
5
-
3
5
14
4
27
4 NM 15 NM 6 -
11 13 NA 11 41 -
NA NM 16 NM 18 -
5
7
NA
4
22
NA
NM
10
NM
6
Dividend Payout Ratio(%)
Dividend Yield(High-Low, %)
2024
0
NA
24
29
54
2023
0
18
13
26
39
2022
0
30
9
27
37
2021
0
25
80
19
6
2020
0
28
86
34
27
2019
0
30
263
28
146
5
8
NA
7
26
46
52
58
9
27
71
48
95
5
20
28
21
68
3
22
19
10
46
0
35
33
44
57
10
41
21
47
82
35
43
11.3 8.4 5.5 1.1 1.2 -
5.8 11.3 5.1 9.2 3.7 4.0 0.9 1.3 0.7 1.1 -
7.0 8.8 5.2 9.7 1.2 1.2 0.8 1.4 0.7 0.8 -
5.3 6.3 5.7 8.4 0.8 0.0 0.8 1.1 0.6 0.9 -
2.5 3.5 1.9 3.7 0.0 0.0 0.0 0.0 0.5 2.0 -
2.0
2.0
0.0
0.0
0.7
5.6 8.7 0.0 9.0 1.5 -
2.6
3.3
0.0
0.0
1.0
8
- 647
- 13
- 10
- 165
NA
41
NA
31
10
22
55
16
21
NM
33
NM
12
18
NM
27
2
15
24
NM
22
43
NM 5083
15
893
63
38
NM 625
5.6 8.6 0.9 6.8 1.1 -
3.0
7.1
0.7
5.0
0.2
4.2 8.0 1.3 6.1 0.0 -
2.2 4.0 4.8 6.2 0.8 1.3 2.9 3.7 0.0 0.0 -
3.1 3.6 3.9 5.4 0.7 1.2 2.5 3.1 0.0 0.0 -
2.4 5.2 1.6 2.6 0.3 3.2 0.9 2.2 0.0 0.3 -
1.6
0.0
0.3
0.9
0.0
4.6 6.7 1.9 6.1 1.0 -
3.5
0.0
1.1
2.1
0.2
85
NA
802
0
22
23
2
49
0
16
20
0
65
0
22
2
NM
38
0
8
0
NM
61
0
31
13.2 0.5 2.7 0.0 7.9 -
5.3 13.1 0.2 0.4 1.8 3.2 0.0 0.0 5.2 6.2 -
5.6 9.4 0.2 0.0 1.9 5.2 0.0 0.0 2.7 5.2 -
6.7 0.0 0.0 0.0 2.2 5.0 0.0 0.0 3.9 4.7 -
0.0 0.0 0.0 0.0 2.8 4.5 0.0 0.0 1.2 1.9 -
0.0
0.0
2.7
0.0
1.1
0.0 0.0 7.1 0.0 5.3 -
0.0
0.0
3.1
0.0
1.9
7 10 NA 9 39 -
NA NM 14 NA 10 -
NA
NM
10
NA
7
19
NM
65
0
20
2024
2023
2022
2021
2020
2019
0.0 - 0.0 0.0 - 0.0 0.0 - 0.0 0.0 - 0.0 0.0 - 0.0 0.0 - 0.0
3.5 - 1.7 3.2 - 1.8 2.9 - 2.1 2.8 - 2.0 3.7 - 2.6 3.5 - 2.8
1.3 - 0.8 1.7 - 0.6 0.6 - 0.0 0.1 - 0.0 0.1 - 0.0 0.7 - 0.0
0.8 - 0.5 0.7 - 0.5 0.8 - 0.5 0.8 - 0.4 0.7 - 0.4 1.0 - 0.6
11.4 - 7.8 10.3 - 6.9 9.4 - 6.7 9.9 - 1.6 2.0 - 1.2 14.9 - 1.6
Note: Companies are arranged by market capitalization size. #Of the follow ing calendar year.
Source: S&P Global Market Intelligence.
The accuracy and completeness of information obtained from third-party sources, and the opinions based on such information, are not guaranteed.
INDUSTRY SURVEYS
AUTOMOBILE MANUFACTURERS / MAY 2025
38
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