Yahoo Autos 12 Countries That Produce the Best Cars in the World
In this piece, we will take a look at the 12 countries that produce the best cars in the world. For more countries, head on over to 5 Countries That Produce the Best Cars in the World.
The car industry is one of the largest industries in the world. The industry is also often used as a gauge for the wider economy due to its impact on job creation and output. Car manufacturing has traditionally been a labor intensive sector, which generates employment. Generally, an economic slowdown leads to lower car sales, which in turn reduces profits for the car companies and leads to unemployment as they cut costs and reduce their production.
In terms of production statistics, the global automotive market produced 110 million units in 2021, and these will grow at a compounded annual growth rate (CAGR) of 4.5% from then until 2030 to sit at 305 million units by the end of the forecast period according to data from the research firm Markets Research Future. The firm outlines that the industry grew in 2022 as pent up demand from the coronavirus pandemic was unleashed. The largest growth driver for this industry was the improvement in the automotive motor, and its ability to generate more power due to improvements. Additionally, Markets Research Future also believes that Europe was the largest constituent of the global automotive industry, as it accounted for 23% of the market last year. While the research firm assigns a 4.5% growth rate to the industry for 2030 as a whole, its growth estimate for Europe is stunning, with an estimated CAGR of 39.5%.
Another report, this time from McKinsey, breaks down the industry into different segments. McKinsey believes that going forward, the shared vehicle industry will grow the most, as consumers will shift to application specific uses for cars. This, in turn, will prompt manufacturers to make different kinds, such as those that are designed specifically for ridesharing applications and use. McKinsey is also quite optimistic about the future of autonomous vehicles, as it believes that up to 15% of vehicles sold in 2030 can be autonomous if the necessary regulatory requirements are met. On the topic of electric vehicles, it believes that adoption will depend on localization since the cost of ownership and government support will continue to play major roles in stimulating demand. Some leading car companies in the world are Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM).
Photo by carlos aranda on Unsplash
Our Methodology
In order to sift out which countries in the world make the best cars, we decided to take a look at the countries whose products are in greatest demand globally. This was carried out by determining country-wise exports by the end of 2021, under the Harmonized Tariff Schedule Item 8703 'Motor cars and other motor vehicles principally designed for the transport of persons, including station wagons and racing cars (excluding motor vehicles of heading 8702)'. The data for these exports has been gathered via Trademap.org.
12 Countries That Produce the Best Cars in the World
12. Czech Republic
Car Exports as of 2021: $23 billion
The Czech Republic is a landlocked European country with a gross domestic product (GDP) of $503 billion as of 2022 and a high GDP per capita of $47,527. The country has six local car manufacturers, with two that are among the oldest car companies in the world. Two of its oldest car companies are Skoda Auto a.s. and Praga. The former was set up in 1925 while the latter was in 1907. Out of these two, Praga now exclusively focuses its efforts on manufacturing sports cars and offers two models as of 2022. These are the Praga Bohema and the Praga R1. The Bohema has a top speed exceeding 300 kilometers per hour and can accelerate to 100 kilometers per hour in less than 2.3 seconds. While Praga is a sports car company, Skoda manufactures all kinds of vehicles such as sports utility vehicles and family cars.
11. People's Republic of China
Car Exports as of 2021: $24 billion
The People's Republic of China is the second largest economy in the world and the world's largest country in terms of population. This lends it a strong car industry since a growing population has to cater to its mobility needs. The Chinese car industry has been one the largest in the world in terms of total vehicles produced for more than a decade now. However, the country exports fewer cars than other economic powerhouses. Its car exports were worth $24 billion in 2021, and stood at 2.4 million tons with an average value of $10,143 per unit. Yet, the People's Republic of China is only one of two countries on our list that has grown its car exports between 2017 and 2021. It has around 50 car manufacturing companies, which are divided between private and state owned enterprises. International companies such as Tesla, Inc. (NASDAQ:TSLA) also build cars in China, to take the cost advantage and target the local population. Alongside Tesla, China is now witnessing a growth in local car companies as well, with firms such as Li Auto Inc. (NASDAQ:LI) and NIO Inc. (NYSE:NIO) making their mark on the local industry.
10. Slovak Republic
Car Exports as of 2021: $26 billion
The Slovak Republic is a Central European country that gained its independence in 1993. The country's car industry's strength is no surprise as it was formerly part of Czechoslovakia, and therefore, inherited the automobile industry in part as companies such as Skoda were also based in the Slovak Republic. After the dissolution of Czechoslovakia however, the car manufacturers shifted to the Czech Republic. Currently, domestic firms focus on manufacturing trucks for the military and other vehicles for urban transport. However, multinational giants such as Volkswagen, Kia, and Peugeot all have a manufacturing presence in the country, allowing the Slovak Republic to become of the largest car exporters in the world. As of 2021 end, it exported $26.8 billion worth of vehicles in the form of 1.6 million tons and a unit value of $16,345.
9. Canada
Car Exports as of 2021: $29 billion
Canada is a North American country and one of the largest in the world in terms of land mass. The country's economy stood at $2.2 trillion in purchasing power parity terms in 2022, making it the 15th largest in the world, lending it a GDP per capita of $57,827. Like Slovakia, Canada is also home primarily to foreign car manufacturers, with local firms focusing instead on manufacturing buses. However, Canada does make its own armored cars. The Canadian firm Terradyne Armoured Vehicles builds light and stock armored cars that are capable of stopping armor piercing bullets. Canada also has a diverse automotive manufacturing ecosystem of suppliers, and one of its largest companies is Magna International, an automotive parts supplier. Canada's car export stood at $29 billion in 2021. In Canada, American companies like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) enjoy a huge popularity of their products.
8. United Kingdom of Great Britain and Northern Ireland
Car Exports as of 2021: $30 billion
United Kingdom of Great Britain and Northern Ireland is a European country with an economy worth $3.8 trillion in 2022 and a GDP per capita of $55,862. The country is one of the first to have manufactured the modern day automobile, in the form of Rolls Royce 10 hp which was manufactured in 1904. Legend has it that the vehicle was so stable that a penny standing upright would maintain its position even when the engine was running. Since then, the U.K. has come a long way, and it is home to some of the most iconic car companies in the world such as McLaren, Lotus, Jaguar, Aston Martin, Bentley, and Land Rover. These are among some of the most valuable cars in the world, and McLaren's McLaren F1 is still the world's fastest naturally aspirated production car despite being introduced more than two decades back. These cars do not rely on turbochargers or other equipment to force air into the engine.
American cars made by Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) are also extremely popular in the country.
7. Kingdom of Belgium
Car Exports as of 2021: $31 billion
The Kingdom of Belgium is a European country that gained independence in 1830 from the Dutch Empire. It has a high GDP per capita of $62,065 and a high population density as well. Belgium has been home to some of the oldest car manufacturing companies in the world, such as Miesse, which established operations in 1894, and Ateliers Vivinus S.A., which started production a year later in 1895. Right now, Belgium is home to several different car companies, such as Edran which solely manufactures the Enigma sports car with 802 bhp, and Gillet, which is a car company started by a former racecar driver.
6. Kingdom of Spain
Car Exports as of 2021: $33 billion
The Kingdom of Spain is a European country with one of the oldest civilizations in the world. The country had a $2.2 trillion GDP in 2022. The country is currently home to six different car companies. Its largest car exporter is SEAT S.A., which is a Volkswagen subsidiary and sells vehicles under the SEAT and Cupra brands to countries such as the United Kingdom. The Kingdom of Spain's car exports stood at $33.9 billion in 2021, and it had exported a total of 2.5 million tons of vehicles with an average value of $13,308 per unit. A large chunk of population in Spain also imports cars from US automakers like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM).
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Disclosure: None. 12 Countries That Produce the Best Cars in the World is originally published on Insider Monkey.
