In 2021, the average profitability of the 16 largest automotive groups amounted to 8.5% of turnover. A historic high, after three years of decline.
2021 was not the most successful year for the automotive market, particularly in Europe. The Covid-19 crisis has indeed paralyzed the sale of many vehicles. In question, the lack of electronic components. Most of these are indeed made in East Asia.
To deal with this crisis and the lack of production, manufacturers have changed tactics. No more offers and discountsthe components were installed on high-margin vehicles.
And according to a study by EY (expert company in data processing) analyzing the 16 largest groups and manufacturers, it paid off. In 2021, the average EBIT margin (earnings before interest and taxes) has increased to 8.5% of turnover.
It’s about of a historical record for the past ten years. Indeed, between 2012 and 2018, the latter was running around 6%. In 2019, it rose to 4.8%, before completely unscrew, to 3.5% in 2020. In one year, the latter has therefore increased by 5%.
Profits, Tesla ahead, Renault behind
In detail, the brand generating the most important profits remain Tesla, at 12.1% (6.2 in 2020, for 45.5 billion in turnover). The American company ahead of BMW and Mercedes-Benzboth at 12% (respectively at 4.9% and 5% in 2020).
On the side of French companies, Stellantis is at the foot of the podiumwith a 10.6% margin. Renault, Mitsubishi and Nissan, on the other hand, are dead last., in this order. Their margin is 3%, 2.5% and 2% respectively. Their turnover on their side is 46.2 billion, 14.7 billion and 67 billion.
The operating result of the manufacturers analyzed reached 134 billion euros in 2021, compared to 50 billion in 2020 (+168%). Car sales increased slightly, driven by the boom in the United States. Overall, sales increased by 1.2%.
The study also ensures that 2022 will not be the year of rebound. The fault with the Covid-19, always, but also with the war in Ukraine. Prices should therefore continue to rise, with one sector remaining in alert mode.
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