25 Mar 2020
Posted in Automotive
Tesla and Toyota rank top automotive companies after COVID-19 review, says GlobalData
A ranking of top vehicle manufacturing companies worldwide compiled by data and analytics company GlobalData shows that the impact of the coronavirus (COVID-19) crisis will be strongly adverse across the industry this year, with all major companies impacted. Of the automotive manufacturers listed, Tesla and Toyota will lead the 32-strong field.
Published in GlobalData’s report, ‘Thematic Research: Automotive Sector Scorecard (2020)’, the ranking takes into account factors impacting company performance such as positioning for disruptive megatrends and the impact of COVID-19. The virus stands out as the number one short-term theme for the automotive sector, however, trends such as electric vehicles are just as important for medium to long-term prospect, which partly drives Tesla’s position at the top of the pile.
Calum MacRae, Automotive Analyst at GlobalData, comments: “The COVID-19 crisis is hitting automotive companies hard on both the supply- and demand-side this year. Supply chains are being disrupted and market demand has suddenly plummeted across the major regions of the world during March. It looks like the market demand crisis and loss of volume for companies will extend into the second quarter before some stabilisation and recovery thereafter.
“However, the sector was under pressure before the coronavirus crisis hit. This crisis is rather unhelpfully layered on top of already rapidly growing pressures on company bottom lines arising from the need for increased investment in costly advanced technologies such as electrification and automated drive systems. In Europe, manufacturers were also facing challenging new CO2 averages that European companies said impeded their global competitiveness.
“The industry is now clearly facing even tougher conditions and headwinds this year. Top-of-the-ranking Tesla is fortunate to have only just started production in China. If you didn’t have much to lose you can’t lose too much. Second-placed Toyota benefits from a pretty diverse geographical footprint.”
“The industry faces a very difficult year. Some industrial consolidation and restructuring is inevitable. The long-term disruptors pointed to sector transformation anyway. The COVID-19 crisis will likely accelerate that process and add to volatility in the sector and company performance in 2020.”