auto market first quarter 2022, sales are down but not profitability

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In the first quarter of 2022, lto the profitability of car manufacturers remains at high levels despite high uncertainty and falling sales. The strategy of focusing sales on higher value-added models, coupled with the help provided by formulas such as temptation regulatory practices, have enabled the world’s leading car manufacturers to register a joint operating profit of 34,116 million euros. This represents a 19.3% increase and over 5,500 million euros compared to the same period of the previous year.

According to a report by EY, i profits of global auto companies they increased in the first quarter of 2022, despite the semiconductor crisis, supply chain disruptions and the war between Ukraine and Russia. This situation is explained by the efficiency measures carried out by the brands, as well as by the increase in prices caused by the shortage of vehicles, which led to greater demand.

By region, German automakers were the ones that achieved the highest quarterly profits, with 16,943 million euros in total, 220% more. They rank ahead of US companies, which achieved operating income of € 8,148 million, down 159%.

Japanese houses closed the first three months of 2022 with a combined operating profit of 6,411 million euros, down 16%. The South Koreans did well, earning 2,614 million euros, up 29%.

Car market first quarter 2022, Tesla is the most profitable

Divided by brand, Tesla led the auto market in terms of profitability during the first quarter of 2022, reaching an operating margin of 19.2%. This is a much higher figure than the 5.7% recorded in the same months of 2021. The podium of the most profitable car manufacturers until March is completed by two German companies, Mercedes-Benz and Volkswagen. The first recorded a quarterly operating margin 15% (14.3% in 2021) while Volkswagen reached the 13,3% (7.7% in 2021).

On the other side (the least profitable) are three Japanese companies. Nissan therefore ended the quarter with a margin of 2.5%, escaping the negative figure of 0.7% the previous year, while Mazda’s margin was 4.2% (4.4% in 2021) and that Suzuki’s 4.5% (5.6% last year).

As regards the amount of operating profits, Volkswagen was the company that made the highest profit between January and March, with 8,323 million euros, 73% more, ahead of Mercedes-Benz, with 5,229 million, 11% more, and Toyota, with 3,556 million euros, 33% less.

The world’s leading car manufacturers have closed the first quarter with a total turnover of 424,585 million euros, an increase of 7% compared to the 396,964 million billed in the previous yeara.

Toyota leader in sales

German companies improved their revenues by 5.5% in March, to 128,742 million euros, while Japanese companies increased their revenues by 3.4%, to 129,063 million. In addition, US homes had an increase of 12.8%, with 79,551 million, and South Korean companies 10.6%, taking home 35,981 million euros.

Volkswagen leads the ranking of the quarterly turnover: 62.742 million, which is equivalent to 0.6% more. Toyota follows, with 62,199 million euros, 6% more, and Stellantis, with 41,500 million, 12% more.

In terms of global registrations, Toyota was the one that sold the most vehicles in the world until March, with a volume of 2.59 million units, a reduction of 4%, ahead of Volkswagen, with 1.83 million units, 23% less, and General Motors, with 1.42 million units, a drop of 18%.