The largest car company in the world is American Honda Motor Co., with $123.803 million in revenue and a 8.7% market share.
The market size of the global car industry is $2.7 trillion U.S. dollars.
The car industry is projected to grow at CAGR of 6.55% through 2027.
Americans buy an average of 17 million automobiles per year.
The first gas vehicle was introduced to the public in 1886, and we’ve been riding along on four wheels ever since. Cars allow people to get where they need to go, whether that’s ten minutes down the road to work or across North America. They are one product on the market that’s considered a necessity for the majority of consumers.
With its grave importance in modern society, it probably doesn’t come as a surprise that the car industry stimulates the United States economy with nearly $500 billion annually. This yearly total of revenue is supplied by a series of big players in the automotive field around the world.
The 14 Largest Car Companies in the World: A Closer Look
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Kia Motors America. Headquarters: Seoul, South Korea
Number of Cars Sold 2019: 615,338
2022 Sales Revenue: $69.86 Trillion
South Korea is responsible for a few notable car companies, but the oldest one is Kia Motors. Founded in 1944, Kia began as a manufacturer of metal bike parts. Eventually, the company shifted its focus to motorcycles, and then trucks, and finally cars exactly 30 years after its creation.
In 1986, Kia began a partnership with Ford to produce a line of cars that had similar features to a Mazda. This propelled Kia into the American market in 1992.
Today, Kia has also taken advantage of the electric car movement by announcing its plans for a plug-in hybrid design in 2017. The company is also known for having stellar vehicle safety ratings and a low percentage of recalls.
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Volkswagen Group of America. Headquarters: Wolfsburg, Germany
Number of Cars Sold 2019: 10.97 Millon
2021 Sales Revenue: $296.01 Billion (€252.6 Billion)
Even in the United States, Volkswagens are commonly seen on the road in a variety of shapes and colors, but few of these car owners know that the company was originally state-owned by the Nazi Socialist Party in Germany in 1937.
Adolf Hitler and his government marketed it as “the people’s car.” It was a much cheaper alternative that was promoted as still having the desirable qualities of the more expensive cars being produced in Germany at the time, like BMW.
Just as the car was gaining popularity among Germans, World War II began in 1939 and production ceased. In post-war Germany, Volkswagen was looked at as the country’s chance to restart the economy and car industry.
It took a long time for Volkswagen to get anywhere internationally because it was associated with Nazi Germany. To fight this stereotype, Volkswagen sold a majority of its shareholdings to the public in 1960. It worked. By 1972, their unique bulbous car called the Beetle had broken the world record for production at 15 million vehicles made.
In the 50 years since their reemergence into the market as a public-owned company, Volkswagen improved upon its original negative image and became the largest car company in the world.
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Toyota Motor Manufacturing. Headquarters: Aichi, Japan
Number of Cars Sold 2019: 2.38 Million
2022 Sales Revenue: $279.278 Billion
The Toyota Motor Corporation has been around since the late 1930s, but these cars didn’t make it to the United States until 25 years later. Founded by Kiichiro Toyoda, the company was supported by its home country of Japan.
They even eliminated their competition within Japanese borders by now allowing cars to be imported in from other large automotive companies at the time, like Ford and General Motors. The government also provided them with a bail-out in 1949.
Toyota began building plants and a national headquarters in the United States in 1980 after out-selling Volkswagen at the one million sold mark. This feat made them the top imported car brand in the United States at the time.
By the early 2000’s they’d revolutionized the car market by putting out the first hybrid car that ran on both gas and electricity called the Prius. This came to be followed by more companies in environmentally conscious automobiles. It’s a standard that the company still upholds today.
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Key Chrysler Jeep & Dodge. Headquarters: Auburn Hills, Michigan
Number of Cars Sold 2019: 923,291
2022 Sales Revenue: $172.4 Billion
While Jeep is technically a brand owned by Fiat Chrysler Automobiles, its impact on the market is large enough to warrant a spot as one of the largest automakers in the world.
The first remnants of the Jeep brand were established in 1941 under a company called “Willy’s MB Jeep”. It built military vehicles to use in World War II. This model was similar to the modern Jeep Wrangler and inspired many other brands, like Land Rover.
Following the war, Jeep changed hands for several years and started creating new car designs. After releasing one of their most iconic models, the XJ Cherokee, Jeep was acquired by Chrysler Corporation when they seized AMC in 1987.
This purchase proved to be one of the best decisions Chrysler made. Today, Jeep is the company’s most profitable brand, by a wide margin, bringing in nearly half of its yearly revenue.
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Daimler AG. Headquarters: Stuttgart, Germany
Number of Cars Sold 2019: 3.3 Million
2020 Sales Revenue: $154.3 Billion
While you might not initially be familiar with the name “Daimler AG,” you definitely know some of the car brands that they own. These include Mercedes-Benz and Smart cars. Additionally, they produce many of the commercial trucks driving down the highway, such as Freightliner, Sterling, and others.
Daimler AG began as “Daimler-Benz” in 1926, conjoining two German automobile makers named Karl Benz and Gottlieb Daimler. The two banded together after both stating that they had created the first gasoline automobile engine 30 years prior.
The company was involved in a lot of firsts in the automobile industry, including the first diesel engine to be used in regular passenger cars. It wasn’t until 1998 that the company merged with another popular brand at the time, Chrysler Corporation to become DaimlerChrysler. They didn’t adopt the name Daimler AG until 2007 when the company was desperately trying to offset the effects of the 2008 recession.
In more recent years, Daimler AG, along with other German car manufacturers, began working towards an automated car through a partnership with Nokia in 2015. They’ve been vocal about their participation in moving towards electric vehicles, which has secured them a spot as one of the largest car companies in the industry.
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Ford Motor Company. Headquarters: Dearborn, Michigan
Number of Cars Sold 2019: 5.4 Million
2022 Sales Revenue: $136.341 Billion
When thinking about the most influential car companies in human history, Ford Motor Company is one of the first that comes to mind. Founded by Henry Ford and a series of investors in 1903, the trajectory of Ford Motor Company’s history set the standard for the automobile industry.
Five years after its inception, they released the Model T. The car was so popular among consumers that Ford needed to figure out ways to produce them faster. This led them to construct the first automotive assembly plant in the United States.
Their early success allowed Ford Motor Company to glide easily as the top car manufacturer for most of the 20th century. In the 1990s the organization acquired a few other luxury car brands under their title to define their image, such as Jaguar, Volvo, and Land Rover. All of which have now been sold by the brand during tumultuous business periods of the early 2000s.
Ford Motor Company was one of the large American car companies bailed out in 2008. Similar to General Motors, this act revived the car company enough for them to continue making hundreds of billions in profit as of 2019.
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General Motors. Headquarters: Detroit, Michigan
Number of Cars Sold 2019: 7.7 Million
2022 Sales Revenue: $130.50 Billion
The business that eventually formed General Motors was originally called “Durant-Dort Carriage Company”. They were the largest producer of horse-drawn carriages in their day.
That was, until the owner William Durant, was given the opportunity to buy Buick Motor Company. This inspired the movement towards evolving the company into General Motors in 1904.
General Motors went on to add a lot of automobiles to their lineup throughout the 1900s. These included the Oldsmobile, Cadillac, and Elmore. With all its acquisitions, the company was the largest motor vehicle manufacturer in the world.
General Motors became the most sold car brand in the United States in 1962, effectively beating out Ford Motor Company with 50% of sales in the market.
The triumph of General Motors in the automotive industry slowed during the 21st century. The company revenue declined so much that President George W. Bush issued a bail-out to them and two other floundering American car manufacturers in 2008.
This gave General Motors the boost to stay afloat. It remains one of the highest-earning and producing car companies in the world.
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BMW. Headquarters: Munich, Germany
Number of Cars Sold 2019: 2.5 Million
2022 Sales Revenue: $113.2 (€111.24 Billion)
Another huge car company to come out of Germany is BMW. It was formed in 1916 as a union between three major automotive corporations at the time. BMW began their history with the construction of aircraft engines in World War I.
Post-war, the company went on to start developing cars in 1928 and came out with high-end models that were desired by every citizen. With the rise of World War II, BMW was once again pulled in by aiding the Socialist party in aircraft engine creation. By the end of the war in 1945, nearly all the company’s plants were destroyed and BMW was not allowed to manufacture cars.
It wasn’t until the 1950s that BMW automobile production continued, and even then, the company nearly went under at every turn for the next 20 years. The brand sought to rearrange consumer’s perspectives by producing more luxury models to match their successful competitors. This change was enough to bring the BMW back to life.
By the 2000s, BMW was putting most of its attention into creating vehicles with turbo-charged engines and electric features. The fruits of these efforts have resulted in developing a long list of cars that fit this mold, such as the G11 7 Series and F30 3 Series.
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SAIC Motor. Headquarters: Shanghai, China
Number of Cars Sold 2019: 5.38 Million
2021 Sales Revenue: $107.6 Billion
SAIC Motor is younger than most of the other prominent car companies and gained most of its popularity over the past 20 years. Originally called Shanghai Automotive Industry Corporation, the tide turned for this small car company when they ventured into business with General Motors in the 1990s.
This merger allowed them to participate in some powerful acquisitions in the early 2000s, such as a Korean car company called Daewoo.
By 2010, SAIC had become the largest exporter of cars from China with 3.58 million sold. This was a trend that rose more in the years following.
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Fiat Chrysler Automobiles (FCA US). Headquarters: London, United Kingdom
Number of Cars Sold 2019: 2.20 Million
2020 Sales Revenue: $104.893 Billion
These two major car companies existed as separate automobile companies until 2009 when Fiat absorbed Chrysler after they filed bankruptcy. While Fiat initially only purchased 20% stock to keep the company going, they took over the entire business by 2014. With the controlling share, the names were merged to become Fiat Chrysler Automobiles (FCA).
Over the next two years, Fiat Chrysler released a multitude of new car models to compete with larger brands, like Ford and Toyota. Since the organization’s most profitable vehicle was Jeep, they focused the majority of their energy there.
Despite their action plan for success over the next five years, they were met with a lot of lawsuits involving diesel emissions, which they settled for $800 million in 2019.
Following their legal debacles, Fiat Chrysler Automobiles had planned to invest $4.5 billion in the creation of Jeep manufacturing plants in Michigan. An endeavor that would create an estimated 6,500 jobs. Unfortunately, the plans were put on hold due to Covid-19.
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Tesla. Headquarters: Palo Alto, California
Number of Cars Sold 2019: 367,500
2022 Sales Revenue: $18.7 Billion
Coming in as the youngest car company in the top 14 is Tesla, Inc., whose making moves towards climbing their way up the rankings. Tesla Motors was founded in 2003 by Martin Eberhard and Marc Tarpenning. They wanted to create a car that functions from computer software and other forms of technology.
An original investor in Tesla, Elon Musk, ended up with a position as chairman of the board of directors and took on an active leadership role. He’s stated his goal as making electric cars the norm and accessible for all.
In 2014, the company announced a revolutionary new feature on their cars. A driving assistance program called Autopilot, that initiated the beginning of their sensor system. They followed this up with the release of the Model X in 2015.
Over the past five years, Tesla has become successful faster than any car company before it. They’ve maintained qualities of innovation and expanded their business into solar energy. While it might not be the largest company yet, it’s estimated to overtake the competition very soon.
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Nissan North America. Headquarters: Kanazawa, Japan
Number of Cars Sold 2019: 1.35 Million
2021 Sales Revenue: $9.7 Billion
The Nissan brand was formed in 1928, originally under the name of “Nihon Sangyo”, by its president Yoshisuke Aikawa. The name later changed to Nissan as the company branched to markets outside of Japan.
Their original car, called Datson, was the first Japanese car that became mass-produced and it also served as inspiration for sedan design in the future.
Though the first American Nissan production plant wouldn’t open until 1983, the car became popular there nearly 20 years earlier. People were such fans of Nissans that the company opened manufacturing locations in several different countries to make for easy distribution.
Nissan Motor Company entered the 2000s with a strong appeal in markets around the world. They continued to perform well and doubled their sales within ten years.
Similar to a lot of other large car companies in recent years, Nissan made it a priority to start creating zero-emission vehicles with the introduction of the LEAF. Sales of the Nissan LEAF reached 400,000 in 2019, making it the top-selling electric car in the world.
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Hyundai Motor America. Headquarters: Seoul, South Korea
Number of Cars Sold 2019: 688,771
2021 Sales Revenue: $348.4 Million
Another late bloomer in the league of largest car companies, Hyundai Motor Group was officially founded by Chung Ju Yung in 1967. It wasn’t until eight years after that the company produced and distributed its first car called the Pony. The car was received well by consumers, and eventually, made its way to Canada where it would become the best-selling vehicle in the country.
By 1986, Hyundai Motor Group had entered the American market and began work on their own automotive technology in their new model, the Sonata. Within five years, four million Hyundai Sonatas had been made in response to the overwhelming demand.
While Hyundai had an early emergence into the automotive spotlight, its rise to the top has slowed in recent years. While they haven’t done anything particularly wrong in that time, their sales numbers simply never outranked that of their toughest competitors.
However, they still bring in enough steady revenue to make them one of the biggest car companies in the world.
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American Honda Motor Co. Headquarters: Tokyo, Japan
Number of Cars Sold 2019: 1.6 Million
2021 Sales Revenue: $123.803 Million
The Honda Motor Group is a major player in the international car industry, and they’re also the world’s leader in Japanese motorcycle production.
In 1948 the company was established and began releasing their first design of motorcycle in the following year called the “Honda C-100”. Within the next decade, it became the top-selling motorcycle in the world.
With this newfound success, the Honda Motor Group rooted their company in the United States by forming a branch in Los Angeles, California. By the late 1960s, Honda had officially sold over a million motorcycles in America, adding more innovative designs along the way.
Around this time, they also released their first car called the Honda N600. It didn’t take long before they released several models of cars, including the first hatchback Honda Accord. Unlike some of the other big car companies, Honda thrived during the turn of the new century. They were even named car of the year in 2006 and 2016.
Since 2015, a lot of the Honda Motor Group’s efforts have been focused on producing zero-emissions technology in their vehicles and planning for the future of cars.
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Author
Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.
