Profitability in the automotive industry isn’t about selling the most cars — it’s about making the most from every car sold. In 2024, that truth became more evident than ever. While global new car sales reached approximately 73 million units, generating €2.38 trillion in revenue, the financial outcomes varied dramatically between automakers. The average revenue per car stood at €32,548, but profit margins were far from uniform across the board.
According to financial statements from 30 major automakers, total industry revenue rose by 2.4% between the end of 2023 and 2024. This increase came despite a drop of nearly 50,000 vehicles in total sales, suggesting that higher vehicle prices and exchange rate fluctuations played a larger role in revenue growth than volume. On average, profit margins across the industry settled around 7.5%, underscoring the slim margins many automakers operate under.
Yet while average margins were modest, a few companies far exceeded expectations. Ferrari and Porsche, two of the most iconic names in performance motoring, recorded the highest operating profits in the industry — despite ranking far from the top in unit sales. Their success highlights a clear divide between volume-based models and high-margin strategies. Selling fewer cars doesn’t mean earning less — not when those cars come with high price tags and premium brand value.
Ferrari remains in a class of its own when it comes to profitability. The company reported €1.88 billion in operating profit on €6.68 billion in total revenue, translating to a remarkable 28% operating margin. On a per-unit basis, Ferrari earned an average of €136,671 for each car delivered in 2024. Even more impressive, that figure represents a 16% increase over 2023, when the company posted €117,927 in profit per car.
Outside the luxury segment, Suzuki delivered one of the most notable performances of the year. The Japanese automaker achieved a 10.3% operating margin, up from 8.48% the previous year — the largest margin improvement among the 30 brands analyzed. Despite selling affordable vehicles for the mass market, Suzuki managed to become the third most profitable automaker globally, behind only Ferrari and Porsche. This result proves that profitability isn’t exclusive to the premium segment. Efficient operations, competitive pricing, and a clear market focus can produce exceptional results.
Not all automakers fared well. China’s Great Wall Motors recorded the weakest performance in the study. Its operating margin dropped to just 0.87% in 2024, reflecting both declining sales volumes and eroding profitability. The contrast between Great Wall and a brand like Suzuki serves as a reminder that efficiency and strategic discipline matter just as much as product type or price point.
Looking ahead, global automotive sales are expected to grow by 17 million units by 2035, yet from 2025 onward, volumes are likely to remain flat. This anticipated plateau reflects a range of market forces, including economic uncertainty, regulatory pressure, and evolving consumer trends. However, ongoing growth in China and other emerging markets could help stabilize demand.
What’s more important is the industry’s shifting profit model. Manufacturers are no longer relying solely on vehicle sales to drive earnings. New revenue streams — such as battery-electric vehicles (BEVs), data-driven services, and on-demand mobility platforms — are becoming central to profitability. As these profit pools expand, the definition of automotive success will evolve beyond the number of cars sold.
In this changing landscape, companies that can innovate across product, pricing, and digital services will have the best chance at sustainable profitability. Whether it’s Ferrari leveraging exclusivity, or Suzuki refining efficiency, the winners of the next decade will be those who understand how to extract value in more ways than one.
