In this article, we will take a look at the Fastest Growing Automotive Brand in the World. We have also compiled a full free list of the 15 Fastest Growing Automotive Brands in the World.
Global Automotive Market Trends
The global automobile manufacturing sector is one of the largest industries worldwide and has been growing over the past many years. The global automobile market was valued at $2.73 trillion in the year 2021. Among automobiles, passenger cars are the most popular in most countries. In 2022, the global passenger car market was valued at a whopping $1.66 trillion, with an expected compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. At this growth rate, the market is projected to reach an impressive valuation of $2.67 trillion by 2030.
The automobile industry has a close link to the economy and even acts as one of the barometers for a country’s economic health. The rising per capita income and growing population are some of the factors that have led to increased demand for cars around the world, especially in developed countries. However, the expected growth in sales is not very promising given the poor economic conditions globally, especially in the US and China.
Fitch Ratings has predicted a 4% increase in global sales and production in 2024. As discussed earlier, the main reasons for a low growth rate are slower economic growth and higher interest rates that are expected to impact overall vehicle demand in 2024. However, pent-up consumer demand is going to drive the demand for the next year. S&P Global Mobility has predicted that 88.3 million new vehicles will be sold globally in 2024. With these sale units, a 2.8% year-over-year increase in global new light vehicle sales is expected.
Against the global landscape, the United States stands as one of the largest automotive markets in the world. Almost 15.5 million new light vehicles were sold in the US in the year 2023 while the number of used vehicles sold stood at approximately 40 million. With 278,870,463 vehicles registered in the country as of 2022, almost 92% of households in the US owned at least one vehicle with vehicles per household averaging at 1.9.
The global automobile manufacturing sector is one of the largest industries worldwide and has been growing over the past many years. The global automobile market was valued at $2.73 trillion in the year 2021. Among automobiles, passenger cars are the most popular in most countries. In 2022, the global passenger car market was valued at a whopping $1.66 trillion, with an expected compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. At this growth rate, the market is projected to reach an impressive valuation of $2.67 trillion by 2030.
The automobile industry has a close link to the economy and even acts as one of the barometers for a country’s economic health. The rising per capita income and growing population are some of the factors that have led to increased demand for cars around the world, especially in developed countries. However, the expected growth in sales is not very promising given the poor economic conditions globally, especially in the US and China.
Fitch Ratings has predicted a 4% increase in global sales and production in 2024. As discussed earlier, the main reasons for a low growth rate are slower economic growth and higher interest rates that are expected to impact overall vehicle demand in 2024. However, pent-up consumer demand is going to drive the demand for the next year. S&P Global Mobility has predicted that 88.3 million new vehicles will be sold globally in 2024. With these sale units, a 2.8% year-over-year increase in global new light vehicle sales is expected.
Against the global landscape, the United States stands as one of the largest automotive markets in the world. Almost 15.5 million new light vehicles were sold in the US in the year 2023 while the number of used vehicles sold stood at approximately 40 million. With 278,870,463 vehicles registered in the country as of 2022, almost 92% of households in the US owned at least one vehicle with vehicles per household averaging at 1.9.
Some of the biggest names in the automobile industry are Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F).
Tesla, Inc. (NASDAQ:TSLA)
Tesla, Inc. (NASDAQ:TSLA) is the best-selling electric vehicle manufacturer in the United States capturing over 50% of the U.S. EV market in 2023. Its popularity can be gauged from the number of units it sold in the US. In 2022, Tesla, Inc. (NASDAQ:TSLA) sold a total of 354,822 vehicles in America, up from 234,000 in 2021 showing a growth of 53%. However, the current year has not been the best for the company in terms of its sales and financial performance. In Q1 2024, the company’s revenue was $21.3 billion, a 9% decrease year-over-year, missing estimates of $22.34 billion, according to Yahoo Finance.
Ford Motor Company (NYSE:F)
Ford Motor Company (NYSE:F) is one of the largest auto manufacturers in the world. Ford Motor Company (NYSE:F) manufactures cars, trucks, and SUVs as part of its diverse lineup. Ford’s sales of electric vehicles hit a new record at 61,575 units in 2022 which was an increase of 126% compared to the prior year. These unit sales made the company the second-largest automaker of electric vehicles in America.
A carpenter assembling an automotive seating system, using components, frames and mechanisms.
Methodology
For the purpose of this ranking, we scoured multiple sources, including U.S. News, Forbes India, Automotive Technology, CarLogos, etc, that had listed top automobile companies. We then compiled a list of 25 automotive brands that appeared the most frequently across these sources. After this, we proceeded to go through the financial statements of these companies to collect data on each company’s revenue for the years 2018 and 2023. With this data, we calculated the compound annual growth rate (CAGR) for 5 years and ranked them in ascending order. Through this approach, we picked the company that had the highest CAGR for five years.
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1. BYD Company Limited
Compound Annual Growth Rate from 2018 to 2023: 35.85%
BYD Company Limited is a prominent Chinese conglomerate involved in various manufacturing sectors, including the production of passenger cars. The company has more than 30 industrial parks all over the world involved in industries related to electronics, automobiles, new energy and rail transit. It has two major subsidiaries, BYD Auto and BYD Electronic. Specializing in the production of passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), BYD Auto is a leading player in China’s new energy vehicle market.
You can see the full free list by going to the 15 Fastest Growing Automotive Brands in the World.
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Disclosure: None. This article is originally published at Insider Monkey
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