Everything You Need To Know About The US Automobile Sector
Learn all about the US automotive sector right from the big players in the industry to popular auto stocks and how you can invest in US auto stocks from India.
The US automotive industry is home to iconic car manufacturers like Ford, General Motors, Tesla, Chrysler, GMC, and more. Moreover, the US is a mammoth exporter and importer of auto parts and automobiles.
After a bumpy 2020, the industry will be aiming for more stability in 2021. The Dow Jones U.S. Auto Manufacturers Index stands at 788.41 compared to 207.98 at the same time last year.
In this blog, we’ll tell you all about the automotive industry in the US right from what it is to how you can invest in US auto stocks from India using Cube Wealth.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.
What Qualifies As An Automobile Company In The US?
An automobile company or organization manufactures automobiles, auto parts, or both. Broadly speaking, the US auto industry can be divided into 3 distinct segments:
Automakers: Companies like Ford, Tesla, and GMC that manufacture cars, electric vehicles, trucks, and SUVs
Auto Parts Man
The US automotive industry is home to iconic car manufacturers like Ford, General Motors, Tesla, Chrysler, GMC, and more. Moreover, the US is a mammoth exporter and importer of auto parts and automobiles.
After a bumpy 2020, the industry will be aiming for more stability in 2021. The Dow Jones U.S. Auto Manufacturers Index stands at 788.41 compared to 207.98 at the same time last year.
In this blog, we’ll tell you all about the automotive industry in the US right from what it is to how you can invest in US auto stocks from India using Cube Wealth.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.
What Qualifies As An Automobile Company In The US?
An automobile company or organization manufactures automobiles, auto parts, or both. Broadly speaking, the US auto industry can be divided into 3 distinct segments:
Automakers: Companies like Ford, Tesla, and GMC that manufacture cars, electric vehicles, trucks, and SUVs
Auto Parts Manufacturers: Companies Goodyear, Dana Inc., etc. that manufacture axle parts, tires, seatbelts, rims, etc. for automobiles
Auto Dealerships: Companies that sell cars from one or more car manufacturers (middle-men)
1. General Motors has the largest market share in the US automobile industry at approximately 17%.
2. Tesla Inc. has the largest market capitalization of any auto company in the world at $573.94 Billion.
3. Toyota has the largest revenue of any car manufacturer in the world at $275.356 Billion. You can consult a Cube Wealth Coach or download the Cube Wealth App.
4. The retail revenue of US auto vehicles and parts is approximately $1,252 Billion (for 2020).
5. Stocks of publicly traded automobile companies are called ‘auto stocks’.
Top 10 Popular US Automotive Companies
1. Tesla inc.
Ticker: TSLA
Market Cap: $573.94 B
Beta: 2.06
Share Price: $597.95
2. Toyota Motor Corporation
Ticker: TM
Market Cap: $206.38 B
Beta: 0.69
Share Price: $148.52
3. General Motors Co.
Ticker: GM
Market Cap: $77.44 B
Beta: 1.36
Share Price: $53.75
4. NIO Limited
Ticker: NIO
Market Cap: $59.41 B
Beta: 2.73
Share Price: $38.11
5. Ford Motor Company
Ticker: F
Market Cap: $48.81 B
Beta: 1.21
Share Price: $12.27
6. Dana inc.
Ticker: DAN
Market Cap: $3.52 B
Beta: 2.64
Share Price: $24.33
7. Goodyear Tire & Rubber Company
Ticker: GT
Market Cap: $4.26 B
Beta: 2.26
Share Price: $18.26
8. Visteon Corporation
Ticker: VC
Market Cap: $3.41 B
Beta: 2.11
Share Price: $122.16
9. Lear Corporation
Ticker: LEA
Market Cap: $10.624 B
Beta: 1.61
Share Price: $176.72
10. American Axle & Manufacturing Holdings Inc.
Ticker: AXL
Market Cap: $1.164 B
Beta: 2.62
Share Price: $10.27
Past Performance Of US Automotive Sector
Sales Of Major Auto Manufacturers (December 2020)
Manufacturer
Sales (December 2020)
Sales (December 2019)
Chrysler
13,345
13,887
Ford
195,380
188,718
GMC
62,493
58,365
Tesla
24,675
23,300
Toyota
211,378
207,373
Dow Jones U.S. Auto Manufacturers Index
Period
Value
March 2020
207.98
June 2020
299.12
September 2020
480.62
December 2020
810.21
March 2021
788.41
Note: All facts & figures mentioned in the tables above have been collated from publicly available sources.
How To Invest In US Automobile Companies From India?
The Cube Wealth app offers the best US stocks investment experience in India. You can conveniently invest in US auto stocks of companies like Tesla, General Motors, Ford, etc. on Cube Wealth for as low as $1.
The paperless KYC process is super simple and Cube even helps you create a US brokerage account in association with DriveWealth, Cube's brokerage partner.
Moreover, the Cube Wealth app is easy to use and shows your portfolio in one convenient view. Cube helps you get world class buying and selling advice from RIA Rick Holbrook. All you have to do is:
Get buying and selling advice from RIA, Rick Holbrook
Invest for as little as $1
Cube's partner, Registered Investment Advisor (RIA) Rick Holbrook, has 40+ years of experience in the US markets and currently manages ~$130 million for HNIs.
FAQs
1. Why is the US automobile sector important in the global context?
Ans. The US automobile sector is globally significant due to the presence of major automakers like General Motors, Ford, and Tesla, and their influence on automotive innovation, production, and exports. It's a crucial component of the US economy and a source of technological advancements.
2. What are the key trends and challenges in the US automobile sector today?
Ans. Current trends include a growing emphasis on electric and autonomous vehicles, sustainability, and the impact of global supply chain disruptions. Challenges encompass regulatory changes, competition, and the need for environmental responsibility.
3. Which are some of the leading companies in the US automobile sector?
Ans. Prominent companies in the US automobile sector include General Motors, Ford, Tesla, and a variety of manufacturers specializing in electric and hybrid vehicles like Rivian and Lucid Motors.
4. How can investors participate in the US automobile sector and make informed decisions?
Ans. Investors interested in the US automobile sector can invest in individual automobile stocks, ETFs, or mutual funds focused on the sector. To make informed decisions, it's essential to stay updated on industry trends, company financials, and consult with financial advisors.
Conclusion
The US automobile sector is a cornerstone of both the national economy and the global automotive industry. This sector encompasses traditional automakers, pioneers in electric and autonomous vehicles, and a broad spectrum of companies involved in vehicle design, production, and innovation. You can consult a Cube Wealth Coach or download the Cube Wealth App.
In recent years, the sector has experienced significant changes, with a growing focus on electric and autonomous vehicles, sustainability, and environmental responsibility. Global supply chain disruptions have also posed challenges. As a result, the sector has witnessed dynamic shifts in technology and business models.
Watch this video to know how US stock advice works on Cube Wealth
Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of US' most popular service sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
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