Supercar maker Ferrari becomes most profitable carmaker in 2021

For the first time in 2021, the financial results of 19 automobile manufacturers in Europe, North America, Japan and Korea have been analyzed in detail. Despite the pandemic, vehicle sales declined, but profits rose. The number of vehicles sold by this group stood at 69.54 million in 2021, up 2% from 2020 and down 14% from 2019.

Based on the financial statements of companies such as Tata Group, Tesla, BMW Group, Daimler, Aston Martin Ferrari, Ford, Geely Group, General Motors, Hyundai Motor Group, Renault-Nissan, Honda, Isuzu, Mazda, Stellantis, Subaru, Suzuki, Toyota and Volkswagen Group had total revenue of $1.89 trillion. This represents an increase of 13% compared to 2020, but a decline of 6% compared to 2019.

This represents an increase of 2% compared to 2020 and a decrease of 14% compared to 2019. This means that automakers increased prices or decreased discounts during the year. Due to chip shortage, resulting in fewer cars available combined with higher demand after the COVID lockdown, this strange trend of units sold versus profit has been observed.

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Another notable detail was found in the operating profit section of financial reporting. There was still more money to be made by these 19 OEMs in 2020 than in 2019, despite the pandemic and supply chain challenges affecting the automotive sector. There were $143.97 billion in operating profit for the firms in 2021.

These automakers were able to offset significant losses from other internal combustion cars, such as sedans, by focusing their efforts on SUVs and electric vehicles. With the dwindling supply of semiconductors, they focused their efforts on the most successful car line-up, keeping assembly lines running while other less profitable models faded.

Ferrari is still the most attractive car company in the world. Operating margin improved to 25.5% in 2019 from 21.4% in 2020. In 2021, the corporation, by the numbers, earned an incredible $106,078 (Rs 80.53 lakh) per unit sold. Tesla came second, with $6,693 (Rs 5,08,115) per car.

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