Auto market share
Global market share is dominated by the top ten original equipment manufacturers (or OEM), which account for 81% of the global automotive industry’s annual sales. The top three manufacturers have close to 12% of the market each. Toyota Motor Corporation (TM) is the largest, with a global 11.8% market share in 2013. General Motors Company (GM) had an 11.5% global market share in 2013. The third largest, Volkswagen AG (VOW), had an 11.4% global market share in 2013. The fourth largest manufacturer by number of units sold in 2013 was Hyundai–Kia Group, with 8.8% market share. Renault-Nissan Group is the fifth largest manufacturer globally, with an 8.6% global market share. Ford Motor Company (F) is the sixth largest manufacturer globally, with a 6.0% market share. The Chinese manufacturer SAIC Motor Corporation is the seventh largest manufacturer, while the Fiat Chrysler Group is the eighth largest manufacturer globally. Surprisingly, Honda is the ninth largest manufacturer by 2013 cars sold, and Peugeot SA of France is the tenth largest, with a 3.3% global share. Well-known auto names like Daimler AG, BMW, Mazda, and Tesla (TSLA) aren’t among the global top ten manufacturers by units.
The market leaders have to be significant players in all the top markets. TM has been able to do this but is behind in China, where it has approximately 6% of the market compared to approximately 12% of the U.S. market. Conversely, VOW has approximately 14% of the market in China, according to LMC Automotive, whereas it has an approximate 4% market share in North America. F has an approximate 4% market share in China versus its 12% market share in the U.S. GM has 17% of the U.S. market and a 14% market share in China. You could invest in the industry with one purchase, CARZ, an automobile industry ETF holding shares in the world’s leading automobile manufacturers.
Let’s take a closer look at the revenue strategies of some of the leading OEMs. Find out more in the next part of this series.