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Tesla Leads the Way -Autonexa

Tesla Leads the Way -Autonexa

Tata Motors has reclaimed the top spot as India’s largest car company, overtaking Maruti Suzuki with a market capitalization of $48 billion. Meanwhile, no Indian carmaker has made it into the global top 10, with Tata Motors at 12th place globally.

According to reports, US-based Tesla is the world’s most valuable carmaker with a market capitalization of $704 billion, followed by Japan’s Toyota with $299 billion and China’s BYD with $97 billion.

Tesla, owned by Elon Musk, remains the most valuable car company with a market cap of $704 billion. The company operates in two sectors: automotive and energy generation and storage. Despite a recent drop in its stock price, Tesla retains a significant lead in market valuation, more than double that of the next largest player.

Japan’s Toyota Motor Corp. is the world’s second-largest with a market capitalization of $299 billion. The company’s shares have risen nearly 13% this year. Toyota’s 4Runner, the best-selling vehicle in North America, has generated strong sales, helping the automaker maintain its dominant position. Toyota sold 66,550 4Runners in the United States in the first half of 2024, up from 50,736 units a year earlier.

China’s BYD ranks third with a market value of $97 billion. BYD briefly overtook Tesla in pure electric vehicle sales in the fourth quarter of 2023, selling 526,409 units compared to Tesla’s 484,507. The Chinese automaker maintains a strong market position, valued at around $100 billion.

Germany’s Mercedes-Benz comes in fourth with a market capitalization of $74 billion. The company’s shares have been weighed down by weaker-than-expected second-quarter results and an unimpressive outlook. Mercedes has cut its annual profit margin forecast but expects new models to help it compete in tough Chinese conditions in the second half of 2024.

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Italy’s luxury carmaker Ferrari comes in fifth with a market cap of $73 billion. Ferrari is closely competing with Mercedes-Benz for market value. The company recently made headlines by announcing plans to introduce a cryptocurrency payment system for European dealerships in late July, following its successful launch in the United States the year before.

Porsche, also from Germany, is in sixth place with a market value of $69 billion. The Volkswagen-owned sports car maker has seen its value fall by more than a quarter since April due to a weak performance in China. Porsche’s net profit for the first half of the year fell to €2.15 billion ($2.33 billion) from €2.77 billion, driven by high supplier costs and capital expenditure.

Germany’s BMW comes in seventh with a market value of $61 billion. Bayerische Motoren Werke, better known as BMW, produces and sells about 2.5 million premium branded cars and SUVs annually under the BMW, MINI and Rolls-Royce brands. Volkswagen, another German automaker, comes in eighth with a market value of $59 billion. The company, which owns premium brands such as Audi, Bentley, Lamborghini and Ducati, had a rough first half due to factory closures. Despite these setbacks, Volkswagen remains one of the world’s most productive automakers, competing with the likes of Toyota.

Netherlands-based Stellantis is ranked ninth with a market cap of $55 billion. Despite a 40% drop from its March peak, Stellantis is still among the world’s top 10 automakers. The company’s revenue and profit fell in the first half of 2024, and Morgan Stanley said free cash flow was a big disappointment. Citi analysts also see Stellantis as a tough investment until operating margins recover.

Honda of Japan completes the top 10 with a market capitalization of $54 billion. Honda operates globally, with more than 45% of its sales coming from the United States, about 15% from Japan and the rest from other countries.

In India, Tata Motors and Maruti Suzuki remain the largest automakers. Tata Motors, with a market capitalization of $48 billion, recently overtook Maruti Suzuki, with a market capitalization of $47.6 billion. Tata regained the top position after almost six months, while Maruti Suzuki had retained it earlier this year.

“Tata Motors has regained the top position among Indian automakers after almost six months,” industry analysts noted.

Despite their significant presence in India, neither Tata Motors nor Maruti Suzuki managed to crack the top 10 global automakers. Tata Motors comes closest, at 12th position with a market capitalization of USD 48 billion.

Also Read: Indian Auto Components Industry Posts 9.8% Growth in FY24 at INR 6.14 Lakh Crore