The world's most profitable automakers

Methodology

Operating margin, also called operating return on sales, is operating profit divided by revenue, in percent, from each company's latest available fiscal year. It is the industry standard for profitability: unlike net margin it is not distorted by financial results, taxes or one-off effects and shows how profitably the actual car business operates. Crucially, we measure the automotive business only. Many automakers are more than carmakers: they run large captive banks (such as Ford Credit, BMW or Mercedes-Benz Mobility), Mahindra also builds tractors, Xiaomi smartphones. Their group margin would not be a fair comparison of carmaking. For these groups we therefore use the operating margin of the automotive segment as reported by the manufacturer itself (excluding financial services and non-automotive divisions), the same basis on which BMW, Mercedes, VW, Toyota or Stellantis give their guidance. For pure carmakers (such as Tesla, Ferrari, BYD, Maruti) the group margin already equals the automotive business. All values come from the financial and segment figures reported by the manufacturers, cross-checked against the original reports. For Chinese manufacturers we use the core operating margin of the automotive business, excluding state subsidies and the result of non-consolidated joint ventures, to keep the comparison of the core car business fair. Reported segment definitions differ slightly (some manufacturers report an adjusted margin), and fiscal years vary; Japanese and Indian manufacturers report through the end of March. Pure holding companies such as Porsche SE, which run no automotive business of their own, are excluded. Porsche AG, the sports car maker, is included as normal. Losses appear as a negative margin.

All information is provided for informational purposes only and does not constitute investment advice. Financial figures may be delayed, preliminary or contain errors. No guarantee of accuracy, completeness or timeliness. Exchange rates: European Central Bank.