Auto sales could increase by up to ten percent

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According to consulting firm Ernst & Young (EY), automakers’ sales figures could increase significantly this year, after a slight decline last year. “The delivery situation is improving. Global sales could therefore increase by up to ten percent this year,” said Constantin Gall, head of Western Europe mobility at EY, on the occasion of an analysis of key figures from the world’s 16 largest auto companies released Friday.

After significant delivery challenges last year, sourcing of semiconductors and other pre-products will continue to improve the delivery situation this year and with it.

Global sales fell 2.7 percent in 2022, according to the analysis. However, the industry recorded record sales and profits – because it was able to push the high prices. Sales of the largest automakers increased by 18 percent to 1.87 trillion euros. Operating profit increased by 16 percent to approximately 157 billion euros.

According to Gall, the challenge for companies this year will be to keep prices high and not allow any cuts in the profit-to-sales margin. Due to the weak economy, demand is likely to weaken and there will be a great temptation to respond with price cuts.

On average, companies achieved an operating margin of 8.4 percent in 2022. This was slightly less than the previous year (8.5 percent), but significantly more than in previous years. Tesla, the US electric car manufacturer, had the highest margin with 16.8 percent, followed by Stuttgart automaker Mercedes-Benz with 13.6% and Opel parent company Stellantis with 11.7 percent. BMW fell 9.8 percent and Volkswagen 7.9 percent.

(SDA)

Source :Blick