Top 8 Automakers in the U.S. Based on Revenue
Since the 1890s, when the automotive industry began to take shape in the U.S., cars have become an integral part of American culture. It should come as no surprise that the U.S. has one of the biggest automotive markets in the world, given how deeply ingrained the fondness of cars is in American culture. From mass production to owning several cars, the automotive industry has changed dramatically, influencing both economic and consumer trends.
Financial realities
In 2022, an impressive 91.7% of U.S. households owned at least one vehicle. Nearly two-thirds of families possess two or more cars, indicating a continued high demand for vehicle storage. Car ownership has been steadily rising due to this trend between 2018 and 2022. However, owning a car comes with costs. The cost of owning a car increased by more than 13% annually in the U.S. between 2022 and 2023, reaching a staggering $12,182.
In addition, the average interest rate on an auto loan increased to 7.2% in 2023, the highest level since 2007, posing financial challenges for consumers. Moreover, the U.S. automotive market is dominated by a mix of legacy companies and foreign manufacturers. Ford is the market leader with $177.49 billion in revenue, closely followed by General Motors with $174.87 billion. With $94.74 billion in revenue, electric vehicle pioneer Tesla is a prime example of the industry's transition to sustainable mobility.
Ford's and GM's dominance in the U.S. is evident in its sales figures. General Motors sold 2.6 million vehicles in 2023, marking its best year since 2019. Ford, not far behind, recorded almost 2 million vehicle sales in the same period, reflecting a 7.1% increase from the previous year.
EV revolution
The automobile industry in the U.S. is changing as a result of the rise of electric vehicles (EVs). Leading the surge is Tesla, which increased its sales from 234,000 to 354,822 automobiles in the U.S. in 2022. As a new player in the EV industry, Rivian grew rapidly, selling 19,410 vehicles in 2023, a huge increase from 9,900 in 2022.
Traditional automakers, including Ford and GM, are making significant investments in electric and autonomous technologies in response to the EV revolution. Ford has committed to sustainability with its investment in electric vehicles, with the goal of having 40-50% of its global vehicle volume be electric by 2030. Similarly, General Motors has set aside $35 billion for electric cars and driverless cars, with plans to achieve carbon neutrality by 2040.
Beyond manufacturing, the automotive industry fuels employment opportunities across the US. Ford and GM collectively employ over 140,000 workers, with Ford witnessing a 3.6% increase in its US workforce from 2022 to 2023. Tesla, with almost 140,500 employees, continues to expand its workforce, reflecting its rapid growth path.
As of 2024, environmental sustainability is a top priority for automakers in the U.S. Tesla leads the way with initiatives to reduce energy consumption and waste at its factories. Lucid Motors, known for its energy-efficient vehicles, aims to minimize environmental impact through innovative design and manufacturing practices.
Brand perception is significantly influenced by customer satisfaction. Buick, Cadillac, and Chevrolet of General Motors are among the most popular car brands in the U.S. based on customer satisfaction. On the Other hand, Tesla's favorability has seen a decline, with only 13.4% of U.S. adults holding a favourable view of the brand in January 2023.
Innovation, customer demand, and sustainability are the driving forces behind the continual growth of the U.S. automobile sector. The future holds promising developments in transportation technology and mobility solutions as new players enter the market and traditional companies embrace electric mobility.