The world's 100 largest automotive suppliers have increased their revenues strongly thanks to price increases and higher rates of car production. According to a study by management consultants Berylls, revenues increased by 16 percent last year to 1,064 billion euros compared with 2019, the year before the COVID-19 pandemic. But profit margins shrank, the study said, with higher material and energy costs lowering profitability to an average of 5.6 percent - it was only lower at the height of the pandemic.
"While Europe suffered from high energy costs, Chinese companies were hardly affected. This effect was particularly strong in Germany," the published study said.
To be sure, German suppliers Bosch, ZF Friedrichshafen, and Continental continue to top the list of the top 100, along with Japan's Denso. Mahle, Schaeffler, Brose, Eberspächer, Dräxlmaier, and Thyssen-Krupp are also among the big players. But "Korean and Chinese suppliers are making exceptionally strong gains, while the market share of German and Japanese companies continues to decline," the industry experts wrote.
In the coming years, sales and margin shifts in favor of Chinese suppliers are likely to continue, said Berylls partner Alexander Timmer. "Key drivers for this are the advancing electrification and digitalization of vehicles."
The consultants calculated an average profitability of 10.6 percent for battery manufacturers in 2022 - the industry average managed only half that. One of the biggest winners in the current trend, according to Berylls, was Chinese battery manufacturer CATL, which moved up to 7th place in the rankings, with 85 percent revenue growth.
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