Global carmakers see stark divide as profits and sales shift in Q1 2023

The global car industry showed mixed results in the first quarter of 2023. While some manufacturers thrived, others faced sharp declines in both sales and profits. A new report highlights the contrasting fortunes of automakers across different regions. The world’s 19 largest carmakers saw combined revenue grow by 1.7 percent in Q1 2023. However, overall operating profit (EBIT) dropped by 32.4 percent, falling to €17.2 billion.

U.S. manufacturers led the gains, with Ford, General Motors, and Tesla reporting an 82.9 percent surge in operating profit. Their revenue also climbed by 5 percent. Constantin Gall, an automotive expert at EY, linked this growth to trade barriers and the easing of some import tariffs. Japanese carmakers followed with a 4.3 percent revenue increase. European firms Stellantis and Renault recorded a 6.7 percent rise in revenue for the same period. In contrast, German automakers struggled. Volkswagen, Mercedes-Benz, and BMW experienced a 4.3 percent drop in sales revenue. Their operating profit fell even harder, declining by 23.3 percent. Sales in China, a key market, plummeted by 16 percent. Chinese manufacturers also faced difficulties. Their revenue slipped by 1.4 percent, while operating profit crashed by 43.4 percent.

The first quarter of 2023 revealed a divided industry. U.S. and some European automakers made gains, while German and Chinese firms saw significant losses. The differences in performance reflect regional challenges and shifting market conditions.