11 Most Valuable Car Companies in the World

Published on March 30, 2021 at 12:51 pm by Trish Novicio in Lists, News

In this article, we are going to talk about the 11 most valuable car companies in the world.

The automotive industry plays a key role in driving the world’s economic growth. Among the products of the industry are automobiles, sport utility vehicles (SUVs), electric vehicles, trucks, and commercial vehicles. According to data from the industry research firm IBISWorld, the global car and automobile manufacturing industry is worth $3.2 trillion in 2021.

The automotive industry contributes heavily to the GDP of the top countries that produce the most cars such as China (10%), Germany (5%), and the U.S. (3.5%). The auto industry also accounts for about 5% of the world’s manufacturing employment recruiting 9 million people to produce over 90 million vehicles annually. Car companies in the world are facing a growing demand of innovative vehicles. Overall global car sales are expected to increase, according to McKinsey statistics, but the annual growth rate is expected to slow down from 3.6% in the last five years to about 2% by 2030, due to the rise of ride-sharing services.

Global Auto Industry Trends

The biggest car companies are swiftly adapting to the changing trends. Even though car sales are declining, especially in the mature markets, people are buying more SUVs, electric and hybrid cars. One of the most hyped trends in the global automotive industry is the rise of electric vehicles. In a Deloitte Global Automotive Consumer Study conducted in 2020, 21% of the total respondents are planning to purchase a hybrid or battery electric vehicle. This is a good sign for the uprising EV giants worldwide including Ford (NYSE: F), Volkswagen, NIO (NYSE: NIO), BMW and EV market leader Tesla Inc. (NASDAQ: TSLA). With generous government incentives, stricter pollution regulations, and new releases, global EV sales will soar to about 3.4 million units in 2021.

Another trend that will push for the growth of the automotive industry is subscription services offered by the original equipment manufacturers (OEMs). The vehicle subscription service segment is expected to reach over $40 billion in value by 2026. The subscription services offered by car companies include vehicle insurance, maintenance, and roadside assistance. NIO (NYSE: NIO) recently made a smart move in offering battery-as-a-service (BaaS), a monthly battery subscription for car buyers.

most valuable car companies in the world

The automotive industry is not totally insulated from the economic distress brought in by the COVID-19 pandemic. In 2020, auto sales fell sharply as people held off buying new cars. Major car companies are installing HWW (Health, Wellness, and Well-being) features to lure health-conscious buyers. Jaguar Land Rover has been developing advanced ultraviolet (UV) ray technology that can destroy germs, while Geely has already released an SUV with an N95 air-filtration device that can remove bacteria and viruses from the air.

The Most Valuable Car Companies in the World

The global automotive industry is rapidly growing and receives a steady stream of investments to improve aesthetics and features of vehicles. To give you the most accurate insights about the 11 most valuable car companies in the world, we ranked each car company by its market cap that we sourced from Yahoo Finance.

11. Hyundai Motor Company (KSE: 005380.KS)

Market cap: $43.2 billion

We start our list of the 11 most valuable car companies in the world with Korean car manufacturer Hyundai Motor. According to Statista, the leading car maker headquartered in Seoul accounted for approximately 49% of the automobile market in South Korea. The company’s revenue in the fourth quarter of 2020 jumped 5.1% to $25.8 billion. The stock has gained 152.3% over the last twelve months.

Last year, Hyundai announced a collaboration with Canoo Inc. (NASDAQ: GOEV), a California-based autonomous vehicle company, to create a fully electric framework for future EVs based on Canoo’s modular skateboard technology.

Image by Varun Kulkarni from Pixabay

10. Ford Motor Co. (NYSE: F)

Market cap: $48.9 billion

Ford Motor Co. is one of the most valuable car companies in the world that is known for its highly powerful engines. Headquartered in Michigan, the iconic car company offers unbeatable value with its cars, pickups, SUVs, and trucks. The company represents about 12.1% of the North American car market, 6.8% of the European market, and 2.4% of the Chinese market as of 2020. The American car manufacturer stole the spotlight from EV giant Tesla when it started selling its fully-electric crossover SUV the Ford Mustang Mach-E in December 2020. The company’s revenue in 2020 was $127 billion.

The stock has risen 137% in the last year, with Barclays recently increasing its price target to $16 from $9 and upgrading it to overweight from equal weight.

Image by Marcin Machalski from Pixabay

9. Ferrari N.V. (NYSE: RACE)

Market cap: $50.7 billion

Italian supercar maker Ferrari N.V. ranks 9th in our list of the 11 most valuable car companies in the world. The luxury sports car maker manufactures and distributes limited edition hypercars, track cars, and race cars. Although the company isn’t going after the EV hype for now, in 2019, Ferrari debuted its first plug-in hybrid electric vehicle SF90 Stradale. As of December 2020, Ferrari owns 36 retail stores and has a network of 168 168 authorized dealers worldwide.

The company’s revenue in 2020 came in at approximately $4 billion. Shares of RACE are up 32.4% over the last twelve months.

Image by Toby Parsons from Pixabay

8. Honda Motor Co. (NYSE: HMC)

Market cap: $52.2 billion

Ranking 8th on the list of the 11 most valuable car companies is Japanese automobile manufacturer Honda Motor Co. Founded in 1948, the company is engaged in designing and producing motorcycles and automobiles. Honda holds 5.78% of the global automobile market selling 4.8 million automobile units in 2020. Honda started releasing battery-powered cars in the European region in 2020 and plans to sell two more fully-electric SUVs in 2024.

The company’s sales in the first nine months of 2021 came in at $86.6 billion. Shares of HMC jumped 30% over the past twelve months.

Image by StockSnap from Pixabay

7. NIO Limited (NYSE: NIO)

Market cap: $56.3 billion

Chinese EV maker NIO ranks 7th in our list of the 11 most valuable car companies in the world with shares gaining 1,210% over the last twelve months. In 2020, the company launched its Battery-as-a-Service where EV buyers can acquire a discounted battery-less car and purchase a monthly battery subscription from NIO instead. Following a near-bankruptcy situation in 2019, the company made a steady turnaround in 2020, selling 43,728 vehicles with total revenue of $2.5 billion.

Mizuho initiated a buy recommendation for NIO on March 11, 2021.

6. BMW (OTCMKTS: BMWYY)

Market cap: $63.7 billion

One of the most valuable car companies in the world is German luxury car manufacturer Bayerische Motoren Werke AG, most commonly known as BMW. The company was founded in 1916 and produces top luxury car brands including Mini and Rolls-Royce. BMW is a well-established brand known for its value for money and today the car company is racing to catch EV industry leader Tesla Inc. BMW sold nearly 193,000 electrified vehicles, including fully electric and plug-in hybrids, in 2020.

According to the financial statement of BMW, the company’s revenue in 2020 was $9.9 billion. Shares of BMW jumped 87.2% over the past twelve months.

5. General Motors Corp (NYSE: GM)

Market cap: $81.4 billion

General Motors Corp ranks 5th on the list of 11 most valuable car companies in the world. Headquartered in Detroit, GM is one of the leading manufacturers of cars, crossovers, trucks, and automobile parts domestically and internationally with brands including Cadillac, Chevrolet, Buick, and GMC. In 2020, the American car manufacturer held a significant 17.3% share of the US automobile market.

The company’s revenue in 2020 was $122.5 billion. The stock has gained 162.4% over the past twelve months.

General Motors Company (NYSE:GM), showroom, car, Cadillac

TonyV3112 / Shutterstock.com

4. Daimler AG ADR (OTCMKTS: DMLRY)

Market cap: $92.3 billion

Ranking 4th on the list of the most valuable companies in the world is Daimler AG. The German automobile manufacturer is one of the most successful producers of luxury cars and trucks under the brands of Mercedes-Benz, Fuso, Sterling, Freightliner, and Maybach. The first automobile powered by an internal combustion engine was developed in 1886 by Mercedes-Benz formerly known as Daimler-Benz. Daimler revealed in 2019 that it would spend more than $570 million over the next decade to commercialize autonomous trucks.

The company’s revenue in 2020 came in at $181 billion with the Mercedes-Benz brand contributing $115 billion to the total revenue. Shares of DMLRY increased 189.9% over the past twelve months.

Image by Free-Photos from Pixabay

3. Volkswagen AG (OTCMKTS: VLKAF)

Market cap: $161.8 billion

Ranking 3rd in our list of the 11 most valuable car companies in the world is Volkswagen. Car and motorcycle manufacturer Volkswagen is one of the most popular auto manufacturers that owns major brands like Audi, Bentley, Lamborghini, Porsche, Bugatti, and Ducati. Volkswagen jumped into the EV manufacturing scene in 2019 where the company started mass production of its electric car. The company is fully-devoted to pivot to the EV market in the US. Recently, it accidentally posted a press release prematurely unfolding the company’s new name, “Voltswagen of America”.

The company’s revenue in the fourth quarter of 2020 came in at $79 billion, up 2.1% from the same period in 2019. Volkswagen’s vehicle sales dropped 16.4% to 9.16 million units, while customer deliveries fell 15.2% to 9.31 million units. But the company’s EV segment capped off 2020 with 231,600 deliveries of battery-electric vehicles. Shares of VLKAF 177% over the past twelve months.

2. Toyota Motor Corp (NYSE: TM)

Market cap: $215 billion

Ranking 2nd on our list of the 11 most valuable car companies in the world is Toyota Motor Corp. The company held 10.24% of the global automotive market in 2019 based on data from Statista. The Japanese automaker also ranked 2nd on Consumer Reports’ Auto Reliability Survey in 2020. The company builds solid, efficient, and reliable vehicles with established operations in Europe, North and South America, Asia, and the Middle East.

Toyota recently announced a capital collaboration with Isuzu to build autonomous vehicles, such as small autonomous trucks, in which Toyota will claim a 4.6% interest in all issued Isuzu shares valued at $388 million as of the end of September 2021, while Isuzu plans to buy Toyota shares worth the same amount through a market acquisition. Toyota has formed a $72.5 million joint venture with SinoHytec Co., a Chinese fuel-cell manufacturer, to produce key systems for fuel-cell vehicles, mainly buses.

The company’s revenue in the first nine months of 2021 came in at $176.8 billion. Shares of TM increased 19% over the past twelve months.

Image by Admiral_Lebioda from Pixabay

1. Tesla Inc. (NASDAQ: TSLA)

Market cap: $593.8 billion

Topping the list of the 11 most valuable car companies in the world is American electric vehicle company Tesla Inc. Tesla has been one of the fastest-growing companies during the pandemic, delivering almost half a million electric vehicles in 2020. The company’s market share dropped to 69% in February 2021, according to a Morgan Stanley study, as Ford (NYSE: F) enters the scene with the new all-electric Ford Mustang Mach-E. Tesla also provides battery solutions such as “Powerwall” for homes and offices in addition to manufacturing electric vehicles.

Elon Musk recently confirmed on Twitter that the company would accept Bitcoin as payment for electric vehicles in the United States, where the cryptocurrency has increased by 5% after the announcement.

Tesla’s total revenue in 2020 came in at $31.5 billion. The stock has gained 483% over the last twelve months.