The first conclusion that can be drawn from the first half-year financial results is that it was not an easy period. At least for most of the 12 car manufacturers analysed in this article. The latest financial and volume figures released by Aston Martin, BMW Group, Ferrari, Ford Motor Co, General Motors, Hyundai Motor (excluding Kia), Mercedes-Benz Group, Renault Group, Stellantis, Tesla, Volkswagen Group and Volvo Cars, show that the situation is getting worse this year.
Although since the pandemic many of these companies have posted healthy financial results due to their focus on profits at the expense of fewer units sold, times are changing. First of all, competition is greater today than five years ago.
The arrival of Chinese car manufacturers all over the world is hurting the profits of the traditional companies, which until now have decided to increase the price of cars and make customers wait longer to get their brand new car, decreasing the number of cars produced (and sold) to make more money. Now, however, this strategy of raising prices is no longer valid because direct competition from Chinese rivals has arrived.
The winners (for now)
In the first half of this year General Motors increased its operating profits by 42%. This was the best result among the OEMs included in this analysis, due to a better product mix that included more commercial vehicles, pick-ups and SUVs, lower administrative expenses and a good scale-up of EV strategy.
While this group decreased wholesale sales by 2 per cent compared to the first half of 2023, operating profit per unit sold increased from €2,204 to €3,188. Although still struggling to sell its electric vehicles, GM is showing signs of a definitive take-off.
Volvo Cars was another winner. It sold more cars (+14%), but recorded lower sales (-1%) mainly due to the big impact that the small and less expensive Volvo EX30 is having on the company's results. On the positive side, it seems that this B-SUV is quite profitable, as Volvo recorded a 26% increase in operating profits. However, the Swedish brand earned less per unit sold than Mercedes, BMW and Tesla.
In the case of Ferrari, profits continued to grow (+16%) almost at the same level as revenues (+14%), despite an almost zero change in terms of units delivered (from 6,959 units in H1 2023 to 7,044 units in H1 2024). This means that the company is selling more profitable models than in the past and thus Ferrari continues to be the carmaker with the highest profits per unit sold, at €135,300.
Units sold in the first half of 2024
| first half-year 2023 | first half-year 2024 | Var % | ||
| Volkswagen Group | Deliveries | 4,372,000 | 4,348,000 | -1% |
| Stellantis | Deliveries | 3,327,000 | 2,931,000 | -12% |
| General Motors | Wholesale Sales | 2,257,000 | 2,213,000 | -2% |
| Ford | Wholesale sales | 2,174,000 | 2,187,000 | +1% |
| Hyundai (excluding Kia) | Wholesale sales | 2,082,000 | 2,064,000 | -1% |
| BMW Group | Deliveries | 1,214,864 | 1,213,276 | 0% |
| Mercedes Group | Deliveries | 1,237,619 | 1,168,550 | -6% |
| Renault Group | Registrations | 1,133,000 | 1,155,000 | +2% |
| Tesla | Deliveries | 889,015 | 830,766 | -7% |
| Volvo | Retail sales | 341,700 | 388,100 | +14% |
| Ferrari | Shipments | 6,959 | 7,044 | +1% |
| Aston Martin | Wholesale sales | 2,954 | 1,998 | -32% |
| Total | 19,038,111 | 18,507,734 | -3% |
Revenues in millions of Euro
| first half-year 2023 | first half-year 2024 | Var % | |
| Volkswagen Group | 156,257 | 158,800 | +2% |
| Stellantis | 91,176 | 85,017 | -7% |
| GM | 78,543 | 84,338 | +7% |
| BMW Group | 74,072 | 73,558 | -1% |
| Hyundai (excluding Kia) | 53,960 | 57,782 | +7% |
| Tesla | 44,726 | 43,376 | -3% |
| Mercedes Group | 38,241 | 36,743 | -4% |
| Renault Group | 26,849 | 26,958 | 0% |
| Volvo | 17,086 | 16,861 | -1% |
| Ferrari | 2,903 | 3,297 | +14% |
| Aston Martin | 799 | 711 | -11% |
| Total | 664,729 | 671,411 | +1% |
Operating profit in millions of Euro
| first half-year 2023 | first half-year 2024 | Var % | ||
| Volkswagen Group | Operating profit | 11,347 | 10,052 | -11% |
| BMW Group | Profit/loss before financial results | 9,718 | 7,931 | -18% |
| General Motors | Operating profit | 4,975 | 7,055 | +42% |
| Mercedes Group | Operating profit | 9,387 | 6,978 | -26% |
| Stellantis | Operating profit | 13,541 | 6,639 | -51% |
| Hyundai (excluding Kia) | Operating Profit | 5,288 | 5,285 | 0% |
| Ford | Operating profit | 4,240 | 2,881 | -32% |
| Tesla | Operating Income | 4,693 | 2,573 | -45% |
| Renault Group | Operating profit | 2,040 | 2,175 | +7% |
| Volvo | EBIT | 872 | 1,096 | +26% |
| Ferrari | EBIT | 822 | 953 | +16% |
| Aston Martin | Operating profit | (109) | (125) | - |
| Total | 66,814 | 54,493 | -20% |
Stellantis and Tesla in trouble
Stellantis' global deliveries fell by 12% in the first six months of this year due to ageing lines in North America (Chrysler and Dodge still need new cars) and Europe (Lancia, Fiat, Maserati, Alfa Romeo, Abarth), and the group is also feeling the growing competition from Chinese manufacturers in Brazil, its second largest market after the US.
Tesla, on the other hand, cannot grow indefinitely and the price cuts that worked in 2023 have not been as effective this year. Its deliveries fell 7% to 831,000 units, but it remained the world's best-selling BEV manufacturer. Lower volumes and prices and higher operating expenses due to more operations and plants abroad had a direct impact on profitability. Operating profits fell by 45% to €2,573m in H1 2024.
BEV sales in the first half of 2024
| first half-year 2023 | first half-year 2024 | Var % | |
| Tesla | 889,015 | 830,766 | -7% |
| Volkswagen Group | 321,610 | 317,185 | -1% |
| BMW Group | 152,936 | 190,614 | +25% |
| Stellantis (estimated) | 160,000 | 145,000 | -9% |
| Hyundai (excluding Kia) | 144,430 | 104,315 | -28% |
| Mercedes Group | 121,474 | 101,553 | -16% |
| Volvo | 59,300 | 90,800 | +53% |
| GM | 61,000 | 87,000 | +43% |
| Renault Group | 75,700 | 63,700 | -16% |
| Ford | 47,000 | 36,000 | -23% |
| Ferrari | - | - | - |
| Aston Martin | - | - | - |
| Total | 2,032,465 | 1,966,933 | -3% |
More Motor1 Numbers analysis:
The author of the article, Felipe Munoz, is Automotive Industry Specialist at JATO Dynamics.