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Old 20th February 2013, 23:53   #1
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Default The 12 Most Profitable Cars in the World

I was reading this article online, thought I would share it -

Most profitable cars since 1995

Full size pickup trucks and luxury sedans make up most of the top 10. However, am amazed at seeing Honda Accord in there. The Toyota Camry comes in at number 12. That goes to show the engineering and design superiority of Honda and Toyota - making cars that have huge pricing pressure (and competition)) profitable. The truck market is purely suited to American tastes, and they have archaic body on frame platforms with big engines - not much R&D or production changes have happened on them till recently. Luxury cars, well, they obviously make a lot of money as you tick things off on the option list (BMW - I'm looking at you, every thing is an option!). Same goes for Mercedes as well.

What could be the most profitable car in India? Maruti 800? Does Maruti do anything at all on that car anymore?

Last edited by Rehaan : 21st February 2013 at 14:51. Reason: Fixing typo. 19915 > 1995
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Old 21st February 2013, 10:03   #2
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Default re: The 12 Most Profitable Cars in the World

This proves SUVs make more money than cars or, people are willing to pay more for SUVs than cars for the same features.
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Old 21st February 2013, 12:06   #3
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Default re: The 12 Most Profitable Cars in the World

Quote:
Originally Posted by vineethvazhayil View Post
Full size pickup trucks and luxury sedans make up most of the top 10. However, am amazed at seeing Honda Accord in there. The Toyota Camry comes in at number 12. That goes to show the engineering and design superiority of Honda and Toyota - making cars that have huge pricing pressure (and competition)) profitable.
The first sentence of the article says this - "These models have brought in more money for the manufacturers than any other, according an industry analyst's report." Profit come primarily in two ways - sheer numbers or much lower input costs than the selling price. For Honda and Toyota, I think it's the numbers and for other luxury brands, it should be the latter (my gut feeling). For pickups, it should be a combination of both. In America, where big is beautiful, this should not come as a surprise. If this is a study over the lifetime of a car, then it could also include spares etc.
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Old 21st February 2013, 16:23   #4
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Default Re: The 12 Most Profitable Cars in the World

Is it this why the trend in the market for SUVs ? Well also baby SUVs for that matter (Duster, Ecosport etc)

Also may be our Indian manufacturers (M&M & TATA) know this fact & thats why they have always concentrated more on making SUVs / MUVs ?

Sell Less Earn more (Low Volume & High Profit)

And also this may be the reason behind internationally premium car makers looking out to offer / manufacture SUVs like Lamborghini, Bentley, Maserati etc

Last edited by karan561 : 21st February 2013 at 16:40.
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Old 21st February 2013, 21:46   #5
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Default Re: The 12 Most Profitable Cars in the World

Quote:
Originally Posted by A350XWB View Post
The first sentence of the article says this - "These models have brought in more money for the manufacturers than any other, according an industry analyst's report." Profit come primarily in two ways - sheer numbers or much lower input costs than the selling price. For Honda and Toyota, I think it's the numbers and for other luxury brands, it should be the latter (my gut feeling). For pickups, it should be a combination of both. In America, where big is beautiful, this should not come as a surprise. If this is a study over the lifetime of a car, then it could also include spares etc.
The Ford F150 has sold more than 34 million units since its' launch. So it really is one of the most, if not most, sold car in the world. No surprise that it has brought in a boat load of money for Ford over the years.

These F150 are something else. They are still very, very basic. Solid rear axle with leaf springs! The interior is awfull cheap plastic and the fit of panels is poor at best. I sort of like the early F150, as they were a bit more to my taste, just honest 'trucks'. The more recent models are opulent, loaded with bling, and look just awful. No account for taste but I just don't like them. They are like mini monster trucks on steroids.

But you need to understand that most Americans absolutely love their trucks. Everybody that can afford one will get one. It really epitomizes the American way of live. It's big, bold, brash, no sophistication or finesse. You get what's written on the tin; a mediocre effing big truck.

In many societies there tends to be an upward push. In the sense that everybody would like to look smarter, more sophisticated, more refined. In the USA it is totally the opposite.

In their spare time every American wants to wear jeans, T-shirt, boots, drink beer, grill a burger on the barbecue and drive a truck. In essence every American wants to pretend he's just a regular common guy. And they have this strange misconception that being just regular means you have to have poor taste in cars.

As modern cars go this F150 is really unbelievable bad. A good friend of mine bought one just before we left Kansas City. So I spent several hours driving it. Now, American cars, by and large, are never known for how well they drive, but this thing is particularly bad. It wallowed across the highways. Even though it was brand new, there were all sorts of gaps on the panels, the interior wasn't put together very well either with bits coming of.

My friend absolutely loved his F150! He was very passionate about his new truck. I'm ok with that, I like it when people get passionate. Just didn't understand it in the case of the F150.

Jeroen
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Old 22nd February 2013, 12:29   #6
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Default Re: The 12 Most Profitable Cars in the World

I am sure MM Scorpio would be one to make the list in India. I had read that it took just 600 people to develope the whole vehicle, and was a case study to B-schools. The big manufacturers are known to have 1000's of people in each divison and MM story was nothing short of a miracle.
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Old 23rd February 2013, 08:12   #7
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Default Re: The 12 Most Profitable Cars in the World

No surprise to see the F150 there on top. Before recession, it was the fastest selling car in the world. And that is not just over a period of time, but the fastest selling per minute or per hour at any given time. Ford is making big money considering the low production cost and R&D.

In fact, I am not surprised to see pick up trucks from the big 3 in the top 3 spots. The high pension cost pushed the US automakers to go behind the highly profitable truck segment. I don't recall the exact number, but they lost a few grand on each car before even it was put to production due to the very high overheads. And this pushed the manufacturers to go for the big costly trucks and traditional SUVs which were highly profitable.

But I am amazed to see the S class in 4th spot. I always thought Mercedes blew heavy money on R&D for the S. Very impressive indeed! And little surprised to not see Audi any where at the top with the synergy that they have achieved in the V.A.G.

Would love to see an extended list.
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Old 23rd February 2013, 15:44   #8
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Default Re: The 12 Most Profitable Cars in the World

The irony is that 3 american car makers (GM, Ford, Chrysler) which made most of the cars in the list went through trying times with GM and Chrysler going through bankruptcy and Ford barely managing to stay afloat a few years ago. So it could be that stupendously successful cars may mask problems elsewere and make the companies complacent and when trends change, they are caught napping.
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