Global Top 100 Auto Parts Suppliers Post $939.6 Billion in Revenue... Chinese CATL and India’s Motherson Shake Up the Rankings

[Financial News] Combined revenue at the world’s 100 largest auto parts suppliers exceeded $900 billion last year, with the top 10 companies accounting for 71.6% of the total increase and driving growth, a report found. As restructuring by European companies coincides with gains by Chinese and Indian firms, the rankings are shifting, while electrification and smart-technology trends are expected to continue reshaping competition in the parts industry for the time being.
According to a report titled “Analysis of the World’s Top 100 Automotive Suppliers,” released by the Korea Automotive Technology Institute on the 21st, an analysis of the annual top 100 supplier rankings published by the U.S. outlet Automotive News (AN) found that the companies’ combined revenue rose 2.0% year over year to $939.62 billion last year. This was driven by a 3.9% increase in global production of passenger and light commercial vehicles over the same period. The top 10 companies accounted for 39.8% of total revenue and captured 71.6% of the increase, effectively leading the growth.
The rankings near the top changed modestly but noticeably. Germany’s ZF Friedrichshafen AG (ZF) fell from second place in 2023 to fifth last year as it restructured its business, including pursuing the sale of its advanced driver-assistance systems (ADAS) business. Germany’s Continental AG spun off its automotive division, excluding tires, as AUMOVIO last September, and its ranking fell from ninth to 38th; the newly separated AUMOVIO ranked 11th. By contrast, China’s CATL saw revenue surge 25.0% year over year, climbing two places to third, while India’s Motherson entered the top 10 for the first time, buoyed by revenue growth and the effect of Continental’s separation of AUMOVIO.
Companies focused on electrification and smart technologies stood out in terms of revenue growth. The leading growth rates were posted by Qualcomm (36.0%), Gotion (32.7%), Pineest (30.0%), CATL (25.0%) and Desay SV (17.6%), respectively. Of the top 10 companies by growth rate, six were classified as related to electrification and three as related to smart technologies. Notably, seven of the 10 were Chinese companies, indicating that the parts ecosystem is also expanding rapidly alongside the growth of Chinese automakers.
By region, Asia accounted for 39.4% of the top 100 companies’ combined revenue, ahead of Europe (29.0%) and North America (27.3%). The 55 companies that improved their rankings had an average 42.5% of revenue from Asia; among companies that climbed five or more places, the figure was 53.1%, markedly higher than for those whose rankings held steady or fell. This is attributed in part to production of passenger and light commercial vehicles rising 7.2% in Asia and Oceania last year, while it fell 2.1% in North America and 0.6% in Europe.
The number of companies in the top 100 rose from 14 to 16 in China, while it edged down in the United States (17 to 16), Germany (16 to 15) and South Korea (10 to 9). The report said South Korea’s decline was due to SK On’s merger with SK Enmove, which led to its exclusion from the tally of sales to automakers, and should not be seen as a result of declining competitiveness. China posted the highest increase in combined revenue by country, at 16.2%, followed by South Korea (2.3%), the United States (0.9%) and Germany (0.8%); Japan’s total fell 1.2%.
The combined revenue of the nine companies based in South Korea rose 2.3%, from $73.29 billion to $74.97 billion, accounting for 8.0% of the total. Hyundai Mobis held on to sixth place with revenue of $33.5 billion, while Hyundai Transys climbed from 31st to 27th as its revenue increased 9.7%. Hanon Systems (up 4.4%) and Seoyon E-Hwa (up 6.9%) also recorded growth, while Hyundai Wia’s revenue fell 7.0%.
The report forecast that growth centered on electrification and smart technologies would continue. In China, production is rising and the parts ecosystem is growing alongside it, as exports expand despite slower domestic growth. However, with restrictions on imports and other countermeasures, including tariffs, intensifying particularly in Europe, export growth is expected to gradually slow, while companies may increasingly expand into local production, the report said.
Oh Jin-woo, a researcher at the Industrial Research Office who authored the report, said, “We expect Chinese automakers and the overseas businesses of parts suppliers joining their localization efforts to expand, but at the same time, procurement from local parts suppliers is also expected to increase under pressure from local governments.” He predicted, “Parts suppliers with a track record of supplying Chinese automakers will be able to secure additional supply opportunities as a result of this localization trend.”
[email protected] Dongchan Kim Reporter