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 companies that had the highest CAGR for the five years and listed them.
BYD & Tesla essentially tied for first.
BYD:35.85%; Tesla:35.15%
Below them was BMW: Compound Annual Growth Rate from 2018 to 2023: 15.14%
Honda, VW & Toyota were better than Ford & GM but still in single digits. Stellantis was #6 at 10.43%.
Two things: I’m not sure the list is terribly meaningful going back through the pandemic when the auto industry when through convulsions, used cars doubled in price, deliveries were screwed up, ports were clogged, etc. I don’t know that it makes it useless, maybe just not really representative of the market today.
Second: I haven’t been to a more spam filled website in practically forever. Ads jumping around on every page, one took over the whole screen and wouldn’t release until I quit the entire link, plain text ads between the (so-called) content. Sheesh. Remind me never to visit MonkeyDunkey Heaven again.
GM and Ford managements don’t care about volume. They have been systematically carving away whatever was the lowest performing sectors, to maximize financial performance. Both companies have abandoned India, in spite of the growth potential. GM has abandoned Europe. Ford has abandoned South America. Both have abandoned Australia. Both are failing to compete effectively in China. Meanwhile, in the US, both started pruning their product line, from the bottom. Farley has openly said that, now that they have killed all their normal passenger cars, and their subcompact CUV, he wants to withdraw from the entire two-row SUV market. This all sounds much like Jack Welch, saying he didn’t want to be in an industry where GE was not already #1 or #2. It is not a growth strategy. It is a financial manipulation strategy. “wow, look how our ATP is increasing (because we quit selling the cheaper models)”
Read farther into my comment. GM and Ford have Wall St focused on ATP and GP. All their abandonment of entire geographic regions, and abandonment of lower priced segments where they do still operate, are all about inflating ATP and GP.
I am surprised VW is showing any growth. Their CFO openly said, a few years ago, they don’t care about volume, and they intend to move the brand “upmarket”, so they make more profit off of each of the shrinking number of units they sell.
Where we might be going is a division of the transportation market between fancy private “salon” cars for the wealthier or more status oriented, “work” vehicles that are reliable, carry “stuff” needed for various trades, and different grades of uber/taxi vehicles that are autonomous.
I also expect a variety of private electric scooterish things to become much more useful and accomodated on ubers and mass transit.