Tesla Model Y is the first electric car to top the global sales chart for an entire quarter. After, at the end of 2022, the absolute leader was the Toyota RAV4, a vehicle sold last year in 1.016 million copies, and the second position was also occupied by a Toyota model, the Corolla, with 992,000 units, the Tesla Model Y occupying an honorable 3rd place (747,000 units), in the first quarter of 2023 the hierarchy changed radically.
According to JATO Dynamics, Tesla Model Y became the leader between January and March 2023, with 267,171 units, Toyota Corolla remained in second place, while Toyota Hilux climbed to third position, a vehicle that at the end of 2022 was only in the sixth position. The former leader, the Toyota RAV4, has dropped to 4th place, while another Toyota vehicle, the Camry, is on the list.
Beyond this spectacular result, however, Tesla seems to have problems related to profitability. Expanding into more markets, building new plants, and repeatedly cutting prices to help boost sales have eaten deeply into financial indicators that show a company’s stability and prospects.
According to EY analysts, the decrease in profitability did not only affect Tesla, but also other large car manufacturers, but in the case of the American company, the decline of this indicator is the most pronounced. On average, EBIT return – which compares operating profit to sales – fell across the world car market from 9% to 8%.
In this context, the former leader, the electric car manufacturer Tesla, dropped in the first quarter of 2023 to the 4th place, with a margin of only 11.4%. Its place at the top of the ranking was taken by the Germans from Mercedes-Benz, a company that recorded an EBIT margin of 14.7%.
The second place in the ranking of profit margins is occupied in 2023 by BMW (14.6%), while the third position is, surprisingly, Kia (12.1%).
In the report titled “The Time of Dream Margins Should End Soon,” EY analysts note that “for the first time since early 2021, we see clear signs of slowing profits, which are no longer growing as fast as sales.”
At the same time, Constantin Gall, head of the Western Europe mobility division at EY, is of the opinion, according to Reuters, that the market is normalizing after the tensions caused by the pandemic and crises of semiconductors and supply chains. “Cars won’t be as hard to come by as they were last year,” and that means automakers won’t be able to sustain high prices, Gall says, concluding that “the days of dream margins will soon be over for some companies “.
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– Dacia Sandero, the leader of the European car market in April. Tesla Model Y, first position after the first four months of 2023 – final data
2023-06-04 10:32:14
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