Auto industry profit margin. 08 %, below Industry average. Despite this growth, profitability from traditional business models will gradually decline through 2035. Occupational profile application National (HTML) (XLSX) State (HTML) (XLSX) Metropolitan and nonmetropolitan area (HTML) (XLSX What is a Good Profit Margin in the Auto Industry? Between 2015–2020, the average profit margin for major automotive companies worldwide was nearly 7. With average net profit margins of around *** percent, Great Wall and Subaru had the highest average net profit margin in the five years leading up to 2020. More about gross margin. 3%, Honda at 21. 3% in November of the previous year. Renault is bracing for a tighter financial future, forecasting lower profit margins by 2026. For two decades leading up to 2019, automotive suppliers’ EBIT margins were on average 1 to 2 percentage points higher than those of original equipment manufacturers (OEMs). Porsche operating profit per unit was 14% as an average in 2024 and way over 40% for some 911 models. 7%, Ford at 5. The figure compared the gross profit margins of major international automobile manufacturers over a period spanning from the second quarter of 2022 to the fourth quarter of 2023, totaling seven quarters. Dealers fight compressed profit margins with ‘customer-centric F&I’ centered on ‘advising, not selling’ Canada’s Used Car Week June 25-27, 2024, at the Westin Harbour Castle, Toronto. How automotive suppliers navigated slower growth in 2025, improving margins through efficiency, regional strength and cost discipline. Company, business and industry news (other),Electromobility (e-mobility): (dpa/AFX) Increasing competition in Europe, the expansion into Latin America and Asia, as well as the ramp-up of new electric models: Renault expects lower profit margins. In this article, we are going to discuss the 15 most profitable car companies in the world. Following a 15% fall in operating profit last year, the French automaker faces mounting pressure from Chinese upstarts and traditional rivals alike. 29 % faster than Net Profit increase of 49. 9% in October this year and a substantial increase from 3. Investors and business managers compare profit margins with industry averages. Auto & Truck Parts Industry's Revenue increased sequentially by 1. Data Used: Multiple data services Date of Analysis: Data used is as of January 2026 The auto repair industry is a large, growing, and fragmented global market dominated by independent shops. In the fourth quarter of 2023, the gross profit margins of each car manufacturer from highest to lowest were Toyota at 22. Let’s take a look at changes in vehicle sales, revenue, operating income or gross profit and operating income or gross profit margins. Find the most relevant and recent facts about the global automotive industry. Compare 2025 pricing strategies across top brands. The automotive industry is a dynamic and competitive sector, where success hinges on making informed financial decisions. However, it’s important to remember that profit margins vary by industry. Discover which manufacturers achieve the highest profit margins per vehicle. One crucial tool that empowers industry players to navigate the complex financial landscape is the use of financial ratios. Comment on the 4 Q 2025 Gross Margin within the Automotive Aftermarket Industry Automotive Aftermarket Industry experienced contraction in Gross Profits by -23. Current and historical gross margin, operating margin and net profit margin for Cars (CARS) over the last 10 years. 8 % and Revenue by -17. The automotive industry's profit pool is forecast to shift from mostly traditional internal combustion engine and hybrid vehicles to battery electric and autonomous vehicles in 2035. The global automotive supplier industry faces a demanding environment, with average profitability projected to fall to just a 4. Top automakers by operating margin Companies: 61 average operating margin (TTM): 7. The current gross profit margin for Group 1 Automotive as of December 31, 2025 is %. In the competitive automotive industry, operating margins serve as a key indicator of profitability. The automotive industry’s profit margin in November was 4. Operating profit indicates the profitability after accounting for all operating expenses but before taxes and interest. 76 %, this led to contraction in Net Margin to 2. The industry’s technological advancements and regulatory pushes toward electrification have triggered a disproportionate profit pool expansion in the semiconductors and batteries subsectors. Group 1 Automotive net profit margin as of December 31, 2025 is 1. On the trailing twelve months basis gross margin in 4 Q 2025 grew to 28. Ranking by Profit Margin A better way to compare profitability between companies is to look at their profit as a percentage of their total revenue. 69 %, while Gross Margin fell to -17. Let's take a look at changes in vehicle sales, revenue, operating income or gross profit and operating income or gross profit margins. Current and historical gross margin for Group 1 Automotive (GPI) over the last 10 years. Gross Margin, Net Margin, Net Income and Roe of companies within EV, Auto & Truck Manufacturers Industry - CSIMarket Ten years of annual and quarterly financial ratios and margins for analysis of Group 1 Automotive (GPI). Once minor players with just around 4% of the profit pool, semiconductor and battery manufacturers now command nearly 20% together. 262B over the past 12 months, followed by Bayerische Motoren Werke (BAMXF) and Volkswagen (VWAGY). Updated 4/21/2023 Gross profit margin is one of the three main margin formulas in a company’s income statement, which measures a company’s efficiency in creating profitability. The volume of these services steadily increased, reaching record levels by the end of 2019. Subsequently, dealerships expanded offerings of financial products to offset reduced profit margins in vehicle sales. 16%. 7%, Tesla at 17. 6%, General Motors at 7. Renault Group forecast lower margins for 2026 on Thursday as it reported a 15 per cent fall in operating profit last year, denting its shares as the French carmaker grapples with growing price The auto industry’s strong performance over the past five years results from a fizzy blend of high volume growth, a product mix that favors higher-margin vehicles (like SUVs), and strong growth in China. For more information, see the Notice Regarding Publication of Colorado Occupational Employment and Wage Statistics. Profit margin - breakdown by industry Net profit margin shows the amount of each sales dollar left over after all expenses have been paid. While the industry achieved peak profits of $130 billion in 2017, attempts to take the pulse of the market must start at a more granular level, digging into what’s happening at the Munich, May 5 2025: The global automotive supplier industry continues to face challenging market conditions: stagnant production volumes, geopolitical uncertainty, increasing competition, and rising cost pressures are expected to drive average profitability down to just 4. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Learn about the gross and net profit margins of different industries and gain insights into which industries have the highest and lowest profit margins. Ratio: Profit margin Measure of center: Gross Margin, Net Margin, Net Income and Roe of companies within Automotive Aftermarket Industry - CSIMarket Get Automobile Products of India latest Key Financial Ratios, Financial Statements and Automobile Products of India detailed profit and loss accounts. In response to this competitive squeeze, Renault is committed to slashing costs and unveiling new car lines. Cars net profit margin as of September 30, 2025 is 4. Discover the highest (banking) and lowest (auto & truck) average profit margins by industry. More about profit margin. 2025 Mid-Year Report The mid-year 2025 NADA Data report features major milestones achieved by the retail auto industry during the first half of 2025. Calculation: Profit (after tax) / Revenue. 4% operating profit margin in 2023 Auto repair businesses have an average gross profit margin of 63. 23 %. How Focus Fuels Superior Margins for Automotive Suppliers Specialization, paired with operational excellence, can deliver higher margins than chasing multiple markets. Ferrari leads the ranking with an impressive margin of 28. Sep 28, 2024 · Learn about the most critically important financial ratios that investors and market analysts use to evaluate companies in the automotive industry. 301 Moved Permanently 301 Moved Permanently nginx In 2024, the EBIT margin for global automakers was ****percentage points above the margins recorded by automotive suppliers, which was a sharp decrease compared to previous years. Click to access exclusive supplier data and maximize your automotive investments today! Overview Profit margins are the bottom line of any business. The global auto industry faces slower profit growth as the Covid-induced vehicle shortage, which gave US and EU automakers significant pricing power, is set to reverse. The latest report reveals the industry's leading players, with luxury brands and Asian manufacturers demonstrating strong financial performance. You can skip our detailed analysis of the statistics and economic impact of the automobile manufacturing Up to date list of the largest publicly traded automakers by earnings (TTM). How profitable is an auto repair shop? Auto repair shops report on average a 26% operating profit margin. Calculation: Gross profit margin = Gross profit / Revenue. Gross profit margin, or “Gross Margin”, is basically how profitable a product or service is before you account for the operating costs, taxes, and interest payments to run the … Find the most relevant and recent facts about the U. 44%. Analysts must also […]. 15%, obtaining profits of 136,671 euros for each car. automotive industry. 5%. Nov 18, 2024 · Explore the revenue per vehicle, profit per car and vehicle margin of Tesla, Ford Motor, GM, Rivian Automotive, Nio Inc, Xpeng, and Li Auto. Volkswagen and Ford see improved revenue but lower margin The automotive industry relies on ratios like Operating Margin, Inventory Turnover, and Return on Assets (ROA) to track the efficiency of production lines and overall financial health. listed companies included in the calculation: 4076 (year 2024). Ranking by profit margin, Tesla was the clear winner with a 15 percent margin, followed by BMW in second with 13 percent and Mercedes-Benz in third with nearly a 10 percent margin. The automotive sector—and, by extension, automaker profits—is currently in turbulent waters, thanks to an array of macroeconomic headwinds. Current and historical gross margin, operating margin and net profit margin for Group 1 Automotive (GPI) over the last 10 years. 7% EBIT margin in 2024. S. Learn how gross, net and operating profit margins impact business. The average auto repair had a 25. 5% (as a percentage of revenue) and an EBITDA margin of 25. Here’s a detailed list of the main profitability metrics by some of the largest auto repair franchises in the United As new-vehicle prices decline and it becomes harder to source used inventory, dealers are prioritizing margin optimization across all revenue streams. 69 %, higher than Industry's average Gross Margin. 4%. Some industries have high average profit margins, for example, the accounting and finance industry has typically higher profit margins around 18-20%. listed companies included in the calculation: 3373 (year 2024). Profitability varies from company to company, but generally, premium car brands, like BMW, will observe higher profit margins than general and budget brands. Porsche have always made less margin than Ferrari but then Porsche make more cars in a year Free online personal finance investment software Tables Created by BLS Occupational Employment and Wage Statistics (OEWS) Tables May 2024 May 2024 OEWS data for Colorado and its areas are now available. These metrics show how well auto manufacturers and dealerships are managing costs, inventory, and profitability in a highly competitive market. Number of U. Gross margin - breakdown by industry Gross profit margin (gross margin) is the ratio of gross profit (gross sales less cost of sales) to sales revenue. Service revenues are becoming an increasingly important profit driver for dealers as consumers hold on to their vehicles longer. The most profitable automobile manufacturers company in the world is Toyota Motor (TM) with a net income of $30. 3 trillion and $524 billion, respectively), and overall profit margins for the industry will increase to 6. 3% (after a temporary drop). However, across the board, automakers are facing drags on profitability that are both common to the industry and company specific. 4%, an improvement compared to 3. Ratio: Gross margin Measure of Generate extra income with automobiles Performance of Automobile Manufacturers per Vehicle Sold The financial analysis of the automotive industry of 2024 reveals the surprising performance of each manufacturer per vehicle sold. The automotive market started to change during the 2007–09 Great Recession, when profit margins on new-vehicle sales began declining. Nov 20, 2025 · As volatility has become the norm for the automotive industry, it has upended traditional profit margin dynamics. Total value pools—including both revenue and profit—will increase dramatically by 2035 (to $8. Munich, 5 May 2025: The global automotive supplier industry continues to face challenging market conditions: stagnant production volumes, geopolitical uncertainty, increasing competition, and rising cost pressures are expected to drive average profitability down to just 4. 63% EV, Auto & Truck Manufacturers Industry Gross Margin, Operating, EBITDA, Net and Pre Tax Margin, high, low and average from Q4 2025 - CSIMarket Aug 8, 2024 · However, across the board, automakers are facing drags on profitability that are both common to the industry and company specific. 3yts4a, t2wou, xr1b1, exd0t0, ds3rv, cakss, cygy, 5zyh, rupcia, soeqe,