Background Information
The automobile industry continues to grow every year, with major advances in technology, marketing, and advertising all playing a part in this phenomenon. Global sales for 2020 suggest that the number of cars being bought and sold around the world is bigger than ever. But which company sells the most cars in the world? That is a highly contested question with numerous contenders in the running.
There are a variety of elements that come into play when determining the world’s top car makers by sales. This includes the total number of vehicles sold by the organisation, their geographical distribution and the countries in which they are selling the most cars. Companies with multiple brands and models also tend to have an advantage, as they can draw from a larger pool of customers.
Brands To Watch
When it comes to determining which company sells the most cars in the world, the answer may surprise most. Volkswagen, often thought of as a European car brand, is the world’s top selling car brand according to reports. This German carmaker sold more than 11 million cars in 2020, a significant number considering the demand for cars took a hit due to the COVID-19 pandemic.
Toyota, one of the oldest and most reliable car manufacturers in the world, is the second most popular seller of cars in 2020. The Japanese company sold 7.5 million vehicles in 2020 which indicates that Toyota is still highly sought-after despite being in the industry for years.
General Motors, another American giant, and Ford, the oldest car manufacturer in the US, rounded out the top 3. The two companies sold 4.7 million and 2.9 million vehicles in 2020, respectively.
Expert Perspectives
Experts in the automotive industry have been discussing the rise of Volkswagen and its path to becoming the leading carseller in the world. According to automotive analyst, Ronald Guzman, the rise of Volkswagen is due to its appeal in the SUV and luxury automobile segments. He explains that the German carmaker has done a great job at introducing sleek and luxurious SUVS while also offering classy and affordable sedans.
Analyst, Mandy Regonald, agrees that the German company has done an exemplary job at marketing itself to potential customers. She noted that it is easy to overlook the German carmaker’s strong advertising efforts to boost sales. The use of influencers, celebrities, and well-crafted commercials has enabled Volkswagen to cover all its bases no matter the region or customer demographic.
Furthermore, experts suggest that Volkswagen’s strong performance in the US market has made all the difference. The company’s USA branch reported an impressive 8.4 million sales in 2020. This figure is especially noteworthy as there was a great deal of uncertainty related to the pandemic and its effect on car sales.
Analyzing Car Sales
Car buying trends are always shifting and Volkswagen has been able to diversify its product offering to meet the needs of consumers. The strong presence of SUVS and luxury cars, both of which have seen a surge in demand over the years, has enable Volkswagen to capture the biggest share of car sales in 2020.
Analysts believe that the carmaker’s ability to stay ahead of the trends and produce attractive vehicles have been crucial to its success. Additionally, the carmaker’s broad presence in Europe and The United States has enabled it to capture markets in both regions. The range of cars offered by Volkswagen, ranging from compact sedans to powerful SUVs, has also been instrumental in its success.
Competition On The Rise
The race to become the top car maker in the world is far from over and various companies are vying for the title. Toyota, perhaps the strongest contender to Volkswagen, has stated its plans to expand its offering and improve its presence in the luxury and electric car markets. The Japanese manufacturer produced the world’s most popular hybrid cars in 2020 and plans to develop an entirely electric car by 2022.
Meanwhile, General Motors and Ford continue to leverage their familiarity in the US market to grow their numbers. Both carmakers still have the advantage of being part of the American legacy and believe that their loyal customer base will carry them through.
Consumer Perspectives
Car buyers have their own perspectives on which company sells the most cars in the world. According to a study conducted by the Automotive Consumer Awareness Group, respondents across all age, race, and gender categories expressed a positive view of Volkswagen. Many consumers said that the German carmaker’s convenience, low maintenance costs, and attractive designs were factors that swayed them towards Volkswagen.
Toyota, General Motors, and Ford, however, still remain popular choices among consumers in the US. The study found that these carmakers were most chosen due to their affordability, customer service, and wide selection of models.
Advanced Technologies
Unlike conventional cars, the development of electric vehicles is proving to be a major game changer in the automotive industry. Automobile companies are working hard to produce cars that are enticing to the customer while also being eco-friendly and fuel-efficient. Volkswagen has been at the forefront of this movement with its electric vehicles garnering positive reviews.
Tesla, a relatively newcomer to the market and the hottest electric brand on the planet, is set to give Volkswagen a run for its money. The US-based company has made a tremendous impact on the auto industry in recent times with its impressive fleet of electric cars. Tesla has already started production on a range of new models and experts estimate that the carmaker will be one of the top five sellers of cars in the next few years.
Analysis & Insights
The question of which company sells the most cars in the world is a complicated one, with various factors coming into play. It is clear that Volkswagen is currently the world’s biggest car maker by sales, with its advancement in the SUV and luxury car segments proving to be a great advantage. That said, the competition is growing more intense and companies such as Toyota, Ford, General Motors, and Tesla are all making sure they have a piece of the market.
It is difficult to pinpoint exactly which company will become the top seller of cars in the world in the near future. What is certain though is that advancements in electric cars, automated technologies and better marketing strategies will continue to redefine the industry.
