The world's most profitable automotive suppliers
Operating margin of the world's largest automakers and automotive suppliers: how much of every euro of revenue the automotive business turns into operating profit, for conglomerates the automotive segment only. Compiled by Philipp Raasch, 10 years at Mercedes-Benz, independent automotive industry analyst.
CATL leads with 19.2 %, ahead of Infineon (17.5) and Pirelli (16.0).
Automotive suppliers by operating margin
| # | Company | Size | Country | Margin | FY |
|---|---|---|---|---|---|
| 1 | CATL | China | 19.2 % | 2025 | |
| 2 | Infineon | Germany | 17.5 % | 2025 | |
| 3 | Pirelli | Italy | 16.0 % | 2025 | |
| 4 | Knorr-Bremse | Germany | 13.0 % | 2025 | |
| 5 | Cummins | United States | 12.0 % | 2025 | |
| 6 | Michelin | France | 10.9 % | 2025 | |
| 7 | Continental | Germany | 10.3 % | 2025 | |
| 8 | Brembo | Italy | 9.1 % | 2025 | |
| 9 | Bridgestone | Japan | 8.6 % | 2025 | |
| 10 | Denso | Japan | 7.3 % | 2026 | |
| 11 | Sumitomo Electric | Japan | 6.9 % | 2025 | |
| 12 | Aptiv | Ireland | 5.8 % | 2025 | |
| 13 | Goodyear | United States | 5.8 % | 2025 | |
| 14 | Magna International | Canada | 5.6 % | 2025 | |
| 15 | Forvia | France | 5.6 % | 2025 | |
| 16 | Hyundai Mobis | South Korea | 5.5 % | 2025 | |
| 17 | OPmobility | France | 4.8 % | 2025 | |
| 18 | Valeo | France | 4.7 % | 2025 | |
| 19 | Aisin | Japan | 4.5 % | 2026 | |
| 20 | Schaeffler | Germany | 4.0 % | 2025 | |
| 21 | HASCO (Huayu Automotive) | China | 3.9 % | 2025 | |
| 22 | Lear | United States | 3.3 % | 2025 | |
| 23 | Mobileye | Israel | -23.2 % | 2025 |
Fiscal years can differ by company (FY column).
Operating margin is the industry's most honest profitability number. It shows how much of revenue pure carmaking yields before financial services and taxes dress the picture up or down. This is where luxury parts ways with volume: a manufacturer selling few expensive cars at a high margin is often healthier than a giant moving millions of vehicles on a thin one.
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.
Frequently asked questions
Which automotive supplier has the highest operating margin?
CATL has the highest operating margin of any automotive supplier, at 19.2 %, ahead of Infineon (17.5) and Pirelli (16.0). As of Jul 12, 2026.
How is the operating margin calculated?
The operating margin shows how much of every euro of revenue the automotive business turns into operating profit, in percent, before financial results, taxes and one-off effects. It is the metric the automotive industry uses to measure its own profitability. We deliberately take the automotive business only: for groups with banking, tractor or electronics divisions the margin of the automotive segment as reported by the manufacturer counts, not the diluted group figure. Losses appear as a negative margin.
Why do some suppliers have higher margins than automakers?
Specialized suppliers, for example in batteries, semiconductors or brake systems, sometimes earn higher operating margins than volume manufacturers. They tie up less capital in plants and distribution and operate in high-margin niches. Mass-market manufacturers often run on thinner margins.
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The German Autopreneur, by Philipp Raasch, 10 years at Mercedes-Benz.
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