Record profits for car manufacturers

SHAFAQNA TURKEY. According to the report, both total sales and total profit of the 16 companies were recorded as the highest levels ever recorded in the third quarter, while improved supply of semiconductors (chips) and strong demand for luxury cars provided a good profit for automakers. In terms of operating profit, Mercedes-Benz ranked first with around 5.2 billion euros, followed by Volkswagen with 4.7 billion euros. German luxury car maker BMW, on the other hand, came in fifth with an operating profit of 3.7 billion euros.

It was a dream quarter

“Overall, the third quarter of the year was a dream quarter, despite the slowdown in the economy and a very difficult geopolitical situation for the automotive industry,” said Konstantin Gall, head of EY mobility in Western Europe.

Notably, German manufacturers increased their sales in the Chinese market by 28 percent compared to the same quarter last year. Mercedes-Benz was the brand that grew the most in China with 67 percent. While the supply of semiconductors, which was a big problem during the Covid-19 epidemic, is recovering, demand, in particular for premium cars, remains high, according to the study. The study predicted that the market, especially wholesale producers, would be under pressure in the future due to high inflation and the loss of purchasing power of a significant part of the population in key sales markets.