Record-breaking revenue and profit milestones marked the third quarter for top car manufacturers, defying the economic downturn and intensifying price competition. EY, the consulting firm, reported a staggering 11% elevation in the global giants' total revenue to approximately 504 billion euros, breaking all existing records. Remarkably, the overall profit also surged by a whopping 35% to around 39 billion euros during this period.
One notable factor contributing to these impressive figures is the significant appreciation of the Japanese yen. As such, Japanese manufacturers saw a dramatic 103% spike in their profits. However, this growth was not universally experienced, with German and American manufacturers recording a 7% and 18% reduction in profits, respectively.
Mercedes-Benz, BMW, and Toyota have emerged as the most profitable companies in this elite club. Mercedes-Benz boasted the highest profit margin of 13%, followed closely by Toyota and BMW with 12.6% and 11.3%, respectively.
EY expert Constantin Gall commended these results as "historical achievements," but warns of potential challenges looming ahead. The weakening car demand, the sluggish adoption of electric vehicles, and escalating price pressure are major concerns, suggesting a much more challenging year ahead.
With discount campaigns becoming increasingly common, manufacturers are resisting margin erosion by resorting to their traditional tactics, often at the expense of profitability. Nonetheless, the industry remains optimistic, seeking creative solutions to navigate the market shifts and consumer preferences to secure economic success.
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