Supercar maker Ferrari becomes most profitable car manufacturer in 2021

For the first time in 2021, the financial results of 19 automobile manufacturers from Europe, North America, Japan, and Korea have been analysed in detail. Despite the epidemic, sales of automobiles fell, but profits increased. The number of vehicles sold by this group was 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, the revenue totalled at $1.89 trillion. This represents an increase of 13% when compared to 2020, but a decline of 6% when compared to 2019.

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

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Another noteworthy detail was found in the operational profits section of the 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 that affected the automotive sector. There were $143.97 billion in operating profits for the firms in 2021.

These automakers were able to overcome significant losses from other internal combustion cars, such as sedans, by concentrating their efforts on SUVs and electric vehicles. With dwindling supplies of semiconductors, they concentrated their efforts on the most successful car line-ups, keeping the assembly lines going while other less profitable models faded away.

Ferrari is still the most lucrative car company in the world. There was an improvement in operating margin from 21.4% in 2020 to 25.5% in 2019. In 2021, the corporation made an incredible $106,078 (Rs 80.53 lakh) per unit sold, according to the numbers. Tesla came in second, bringing in $6,693 (Rs 5,08,115) per car.

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