In this article, we are going to discuss the 20 countries that produce the most motor vehicles in 2023. You can skip our detailed analysis of the global automotive industry, the largest auto manufacturer in the world, and the rise of autonomous vehicles, and go directly to 5 Countries that Produce the Most Motor Vehicles in 2023.
The automobile manufacturing sector is one of the largest industries worldwide. Often, a country’s automotive sector is a reflection of its broader economic condition. This industry comprises various sectors, including production, sales, and marketing, besides demanding significant resources from other supply chains, such as oil, steel, plastics, and rubber. Additionally, it also plays a vital role in developing roads, fuel stations, and transportation systems, which contribute to the overall growth of the economy.
Hence, very often, large auto production plants are surrounded by other manufacturing facilities, like steel, glass, components etc., forming clusters that lead to new municipalities. The cities of Detroit and Guangzhou are good examples of how such clusters can form into municipalities.
Global Automotive Industry:
As we mentioned in our article – 15 Most Profitable Car Companies in the World – the automotive sector contributes around 3% to the global GDP and this share is even higher in emerging markets like India and China, where the sector’s contribution to the national GDP is up to 7%. It affects every aspect of daily life and is an important source of employment – approximately 5% of the global labor force is directly or indirectly employed in the auto sector.
According to OICA, around 85 million motor vehicles were produced globally in 2022, an increase of 6% from the previous year. The easing of Covid-19 restrictions globally boosted automobile sales, as consumers who had put off purchases during lockdowns finally started buying again, which has helped outweigh even the effects of the semiconductor shortage.
The current global market for automotive manufacturing was valued at $2.9 trillion last year, and it is currently growing at a CAGR of 3.1% following several years of decline where the market dropped by 0.6% between 2017 and 2022. Currently, the automotive manufacturing industry is ranked first out of all global manufacturing industries in terms of market size.
Largest Auto Manufacturer in the World
With total worldwide sales of 10.48 million vehicles last year, the Toyota Motor Corporation (NYSE:TM) is the largest auto company in the world. The Japanese giant boasted a revenue of $266.6 billion in 2022, with a net profit of $17.59 billion. The company’s sales of industrial equipment, particularly forklifts, also boomed 25% to $12.9 billion. One of the reasons Toyota has had such success with its vehicles is that the company has long been known for producing reliable, easy, and inexpensive-to-fix products, which hasn’t changed over the years.
Toyota Motor Corporation (NYSE:TM) also made headlines in 2021 when it overtook General Motors Company (NYSE:GM) for the first time ever as the Top-Selling Car Company in the United States. The Japanese automaker, which for decades, has worked to expand its presence in the U.S., sold a total of 2.3 million vehicles in the country’s market, against GM’s sales of 2.2 million. Prior to this, the General Motors Company (NYSE:GM) had been the top auto seller in the U.S. since 1931.
Toyota Motor Corporation (NYSE:TM) had largely benefited from its decision to stockpile computer chips, which are used in a vast array of vehicle electronics. It bet earlier than most other car manufacturers on a recovering U.S. car market and cut parts and production orders less sharply than rivals, making it better prepared for an eventual surge in consumer demand.
However, the status quo was restored in 2022 when the General Motors Company (NYSE:GM) regained its top spot, with its brands selling 2.27 million vehicles in the American market, against Toyota Motor Corporation (NYSE:TM)’s 2.1 million units.
Stocks of the General Motors Company (NYSE:GM) were held by 72 out of 910 hedge funds in the Insider Monkey database at the end of Q2 2023. GM ranks among the 11 Best Consumer Cyclical Stocks to Buy Now.
The Rise of Autonomous Vehicles
Autonomous driving vehicles, also known as self-driving cars, have been a topic of great fascination and innovation in the automotive industry in recent years. Today’s autonomous vehicles use a combination of forward-facing cameras and radar systems that collect relevant information about road conditions for further processing. These systems can learn to detect, classify, and assign ‘weights’ to road obstacles, thereby giving the vehicle’s processors enough information to choose the path of least resistance.
One of the primary advantages of autonomous vehicles is their potential to significantly reduce human error, which is a leading cause of accidents. With their advanced perception systems and real-time decision-making capabilities, self-driving cars can react faster and more accurately, potentially saving thousands of lives each year. Another benefit of autonomous driving technology is increased mobility for people who are unable to drive due to age, disability, or other reasons. Autonomous driving vehicles could also improve traffic flow and reduce congestion, as they can communicate with other vehicles and adjust their speeds and routes to avoid traffic.
Although there is still a lot of skepticism around AV and in 2022 alone, AV investments went down nearly 60% YoY, Elon Musk still remains a hardcore supporter of full self-driving (FSD) vehicles, believing that FSD could one day account for most of Tesla, Inc. (NASDAQ:TSLA)’s value and give it a cushion rivals lack as they try to turn their EV operations profitable. As a result, Tesla, Inc. (NASDAQ:TSLA) plans to spend over $1 billion through next year on Dojo, its supercomputer to train AI models for autonomous cars, which it said would go into production in July this year. Speaking at the 2023 World Artificial Intelligence Conference in Shanghai in July, Musk said:
“In terms of where Tesla is at this stage, I think we are very close to achieving full self-driving without human supervision. This is only speculation, but I think we’ll achieve full self-driving, maybe what you would call (level) four or five, I think later this year.”
Tesla, Inc. (NASDAQ:TSLA) shares have risen by 96.19% this year, bouncing back from a drop of 65% in 2018, driven by a rush for technology and growth stocks, with fears of recession easing. TSLA sits among the 12 Best Aggressive Growth Stocks to Buy According to Hedge Funds.
With that said, here are the Largest Motor Vehicle Producing Countries in the World.
An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems. Editorial photo for a financial news article. 8k. –ar 16:9
Methodology:
To collect data for this article, we have referred to OICA – International Organization of Motor Vehicle Manufacturers, looking for the Countries that Produce the Most Vehicles. We have ranked the following countries by their total production of motor vehicles in 2022, which includes both cars and commercial vehicles.
If you wish to read about which cars are dominant in the American market, here are the Best-Selling Car Brands in the U.S.
20. Russia
Cars Produced in 2022: 448,897
Commercial Vehicles Produced in 2022: 159,563
Total Motor Vehicles Produced in 2022: 608,460
Although Russia has been one of the leading automobile manufacturers worldwide and even exported over $1.75 billion worth of vehicles in 2021, the country’s auto sector was heavily affected by its invasion of Ukraine last year. The war further exacerbated the supply chain blockages and semiconductor shortages that had already limited supply. As a result, the country witnessed a 61% decrease in production in 2022, when compared to the previous year.
19. Malaysia
Cars Produced in 2022: 650,190
Commercial Vehicles Produced in 2022: 52,085
Total Motor Vehicles Produced in 2022: 702,275
Malaysia’s automobile industry is the third-largest in Southeast Asia. Since the first domestic automobile – Proton – was manufactured in 1983, the automotive industry has become one of the major industries supporting the country’s economy. Currently, there are more than 20 manufacturing and assembly plants in Malaysia, where passenger cars, commercial vehicles, etc. are manufactured.
18. Italy
Cars Produced in 2022: 473,194
Commercial Vehicles Produced in 2022: 323,200
Total Motor Vehicles Produced in 2022: 796,394
Italy needs no introduction when it comes to the automobile industry. With brands ranging from the reliable Fiat to the super sleek Ferraris and Lamborghinis, Italy has gifted the world one icon after another. The automotive sector is one of the country’s major industries and employs 278,000 people. In 2020, the sector’s turnover was €106.1 billion ($113.3 billion), which was 11% of Italy’s manufacturing turnover and 6.2% of its GDP.
Italy sits among the Top Vehicle Manufacturing Countries in 2023.
17. United Kingdom
Cars Produced in 2022: 775,014
Commercial Vehicles Produced in 2022: 101,600
Total Motor Vehicles Produced in 2022: 876,614
Automotive-related manufacturing contributes $82 billion turnover and $17 billion value added to the U.K. economy, and typically invests around $3.7 billion each year in R&D. Moreover, eight out of ten cars produced in the country are exported overseas to 130 different markets worldwide.
Boasting a total revenue of around $22.5 billion, Jaguar Land Rover is the largest auto manufacturer in the U.K.
16. Slovakia
Cars Produced in 2022: 1,000,000
Commercial Vehicles Produced in 2022: 0
Total Motor Vehicles Produced in 2022: 1,000,000
Car manufacturing is the largest industry in Slovakia, constituting 13% of GDP, 54% of industrial production, and 33% of industrial exports. Today, the Central European country is the leading car producer per capita in the world, owing to four world-class automotive companies – Volkswagen Slovakia, PSA Peugeot Citroën Slovakia, Kia Motors Slovakia, and Jaguar Land Rover.
Slovakia sits among the Top Auto Manufacturing Countries in Europe.
15. Czech Republic
Cars Produced in 2022: 1,217,787
Commercial Vehicles Produced in 2022: 6,669
Total Motor Vehicles Produced in 2022: 1,224,456
The Czech automotive sector is highly internationalized. More than 90% of the country’s carmakers are foreign-owned and more than half of the world’s 50 top vehicle suppliers have facilities there. The main car manufacturers in the Czech Republic are Skoda Auto/Volkswagen, PSA Peugeot Citroën/Toyota Motor Corporation, and Hyundai.
As the biggest industrial sector in the Czech Republic, the automotive industry accounts for more than 9% of GDP, 26% of manufacturing, and 24% of Czech exports.
14. Canada
Cars Produced in 2022: 289,371
Commercial Vehicles Produced in 2022: 939,364
Total Motor Vehicles Produced in 2022: 1,228,735
Canada is the second-largest automotive market in North America. Most global vehicle manufacturers are present in the Great White North, including five with local assembling lines – Ford, General Motors, Stellantis, Toyota, and Honda. Motor vehicles were the second-largest Canadian export by value in 2020, at $42.9 billion, of which 93% was exported to the U.S.
Canada is counted among the Largest Auto Manufacturing Countries.
13. Turkey
Cars Produced in 2022: 810,889
Commercial Vehicles Produced in 2022: 541,759
Total Motor Vehicles Produced in 2022: 1,352,648
Turkish automotive companies like TEMSA, Otokar, and BMC are among the world’s largest van, bus, and truck manufacturers. Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of 2022, 156 R&D and design centers belonging to automotive manufacturers and suppliers are operational in the country. In 2021, the Turkish auto industry received $662 million worth of investments, mainly for new model development projects.
12. France
Cars Produced in 2022: 1,010,466
Commercial Vehicles Produced in 2022: 372,707
Total Motor Vehicles Produced in 2022: 1,383,173
The French automotive sector plays a vital role both in industry and in research and development. Moreover, the auto sector has also been instrumental in the country’s cross border trade, with $22.97 billion worth of vehicles exported in 2020, mostly to France’s European neighbors.
The French government also granted $315 million to support the auto sector at the outset of the Covid-19 crisis, besides extending a $5.3 billion state-guaranteed loan to Renault.
France also ranks among the Countries with the Most Electric Vehicles in 2023.
11. Indonesia
Cars Produced in 2022: 1,214,250
Commercial Vehicles Produced in 2022: 255,896
Total Motor Vehicles Produced in 2022: 1,470,146
Auto manufacturing is a highly promising sector in Indonesia, as it contributes around 4% to the country’s GDP. Aside from the rapid growth, the quality of the automotive products in Indonesia has also proved its competitiveness, as it has penetrated the Australian market by exporting two million units of cars, whereas Australia is known to have strict specifications regarding automotive.
10. Thailand
Cars Produced in 2022: 594,057
Commercial Vehicles Produced in 2022: 1,289,458
Total Motor Vehicles Produced in 2022: 1,883,515
The Thai government offers substantial backing in the form of tax and non-tax incentives to encourage foreign investment in its auto industry, and so the country’s market is dominated by Japanese automakers that have established Thailand as the production base of one-ton pick-up trucks and eco cars for exports.
Of the 1.88 million vehicles produced in Thailand last year, 0.84 million cars were assembled for domestic distribution and over 1 million for export.
Thailand sits among the Top 10 Vehicle Producing Countries in 2023.
9. Spain
Cars Produced in 2022: 1,785,432
Commercial Vehicles Produced in 2022: 434,030
Total Motor Vehicles Produced in 2022: 2,219,462
Spain is the 2nd largest vehicle manufacturer in Europe, and the automotive sector provides nearly 2 million jobs throughout the Southern European country, being an important generator of employment in many regions, even beyond the big cities.
However, the Spanish auto industry is in dire need of an overhaul in terms of catching up to other European nations in the electrification process, as under 10% of new passenger car sales in the country last year were plug-in electric vehicles, compared to 12.14% overall in the E.U.
8. Brazil
Cars Produced in 2022: 1,824,833
Commercial Vehicles Produced in 2022: 544,936
Total Motor Vehicles Produced in 2022: 2,369,796
As one of the world’s major emerging economies, Brazil is also home to one of the most prominent automotive markets worldwide. The industry employed over 1.5 million people and contributed $53.6 billion to the Brazilian economy in 2021.
The General Motors Company (NYSE:GM) was the leading passenger car brand in Brazil last year, based on number of vehicle registrations, with over 264,200 units.
Brazil is one of the Countries that Produce the Most Cars in the World.
7. Mexico
Cars Produced in 2022: 658,001
Commercial Vehicles Produced in 2022: 2,851,071
Total Motor Vehicles Produced in 2022: 3,509,072
Mexico has consolidated its significant role in the world’s heavy vehicle industry. The country is the sixth-largest manufacturer of heavy-duty vehicles for cargo, hosting 14 manufacturers and assemblers of buses, trucks, tractor trucks, and engines. Around 90% of vehicles produced in Mexico are exported, with 76% destined only for the United States.
6. Germany
Cars Produced in 2022: 3,480,357
Commercial Vehicles Produced in 2022: 197,463
Total Motor Vehicles Produced in 2022: 3,677,820
Germany is the largest car producer in Europe and is home to some of the most well-known auto companies in the world, including global industry giants like Volkswagen, Mercedes-Benz, and BMW.
Germany is under growing pressure to retool dozens of fossil fuel-era factories employing 786,000 workers in a race for clean-technology leadership with the U.S. and China. Volkswagen, Mercedes-Benz, and BMW are rolling out several new battery-powered models in the coming months to narrow the gap to Tesla and China’s BYD, the two clear leaders in EV sales.
Germany ranks 6th in our list of Top Vehicle Producing Countries.
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Disclosure: None. 20 Countries that Produce the Most Motor Vehicles in 2023 is originally published on Insider Monkey.