Largest Car Producers in the World 

Car production is at a phase of continuous growth. As countries develop their economies, cars become a staple need of their citizens.

The production of cars saw a decline in 2019. Ten years prior to that, the car manufacturing industry was growing at a rapid phase. There are many countries that produce cars, but only a few dominate the industry.

Today, let’s look at the largest car producers in the world. From the US to Korea, many countries have great companies that offer excellent cars for the masses.

1. Toyota

Based in Japan, Toyota has dominated the world’s car market. With a market cap of $183-billion, it was the first foreign car manufacturer to build a brand following in the United States. What makes Toyota a premier choice is the range of its products.

Toyota cars are known for their efficiency at a low price. They also offer many kinds of vehicles, like compact sedans, SUVs and higher-end sedans like the Camry. On top of that, they manufacture parts and accessories, which makes it easier for owners to find a replacement.

Toyota slowed down in its production during the pandemic, but this decline is not significant. They have produced at least 8-million units in the last five years.

2. Volkswagen 

Volkswagen is a German brand. As a multinational manufacturer, its cars are available in the North America, Asia, Europe and Africa. Volkswagen is a producer of many types of vehicles, including passenger cars, trucks and commercial vehicles.

Volkswagen is also a player in the luxury market. Their most notable high-end brands are Porsche and Audi.

If there’s one thing it’s known for, it’s the Beetle. However, they have already stopped the production of these cars because of the low demand for compact cars.

Toyota and Volkswagen manufacture parts for their cars. This is one reason the company has withstood the test of time, with consumers favouring their products because of availability for support.

3. Ford

Ford is a historic American car brand. However, it is not the first car manufacturer. It was only named after its founder. 

Ford is popular for its SUVs and “muscle” cars. The whole world knows the Mustang. For trucks, its most popular model is the F-150, while some prefer the Ranger.

Ford revolutionized how companies work. The founder, Henry Ford, introduced ways to manufacture goods in mass production and still give employees a decent salary.

4. Honda 

Honda is not just a car manufacturer; they also produce motorcycles.

Honda’s most popular models are the Civic and Accord. Acura, on the other hand, is the company’s flagship brand for high-end cars.

Honda is far from Toyota if one would look at its production. It had manufactured only 4.4 million units in 2020. However, the company averaged 5 million units annually in the four years prior to the pandemic.

5. General Motors

GM is the largest car manufacturer in the United States. It does not only manufacture cars but also trucks and parts. If there’s one thing the brand is known for, it is the Chevy.

GM now operates under four brands: GMC, Chevrolet, Cadillac and Buick.

In 2008, GM was about to go bankrupt. At that time, President Bush approved a bailout plan for the company: the TARP or Troubled Assets Relief Program. This bailout cost $13.4 billion.

6. Hyundai

Hyundai is a company based in South Korea with a market cap of $19.8 billion. Some of the models it’s known for are the Accent, Elantra, Sonata, and SUVs like the Santa Fe and Tucson. 

Hyundai has its own auto-repair centres, and they also manufacture spare parts. Like other car companies, they offer financing services.

Although Hyundai has cars for the masses, it also manufactures luxury cars. Their particular luxury flagship brand is Genesis.

Hyundai was the first car manufacturer to offer a 10-year warranty. It is either ten years or 100,000 miles. No car manufacturer has dared to do this before, as this kind of warranty requires substantial coverage and resources.

Summary

The car manufacturing industry is one that requires huge capital. The barrier to entry is so high that the existing manufacturers are the only ones that dominate it. No new manufacturer can easily get to the top spot. 

As such, the existing manufacturers are in a race to get to the top. The threat between them is palpable—they have to introduce new technologies to make sure that they are always the dominant brand.

The name of the game now is clean energy and reduced carbon footprint. While computer-based companies like VulkanVegas are doing their part by reducing power consumption, car manufactures are now busy creating cars that run on electricity, not fuel.