In this article, we will be looking at the 25 richest billionaires in automotive industry. To skip our detailed analysis, head directly to see the 5 Richest Billionaires in Automotive Industry.
Global Automotive Industry Outlook: 2024
The global automotive industry is thriving and we can see how it is transitioning from conventional vehicles to electric vehicles (EVs). The global automotive industry backs a lot of billionaires, especially Chinese billionaires in large numbers. According to research by MarketsandMarkets, China contributes about 60% to global EV sales annually. China controls the majority of the EV supply chain and continues to grow its global presence in EV leadership. China is expected to gain 12% of the European EV market share by 2025. Chinese EV makers have the advantage over cutting-edge battery technology and competitive pricing. In addition, Chinese EV makers are getting attention in the UK and other major European and Asian markets. In 2024, China will establish itself as a dominant force in the EV space both in the home market and globally.
2023 was not a good year for the automotive industry at all as EV sales tumbled due to widespread strikes in the US factories, rising material costs, and supply chain disruptions. Despite the challenging time last year, the global automotive industry saw total sales of 92 million units of both commercial and passenger vehicles. India is making an impact across different industries and automotive is one of them. In 2023, India jumped to become the fourth-largest auto market for light vehicles. The EV market is up for positive growth in 2024. The EV sales in the US in 2024 are projected to rise 16% year-over-year compared to an increase of 64% in 2023. In China, EV sales are expected to grow by around 11.1% in 2024, compared to 36.5% in 2023.
The uncertainty in the market is expected to slow down and the demand is expected to stabilize this year. In 2024, the demand for the used EV market will gain momentum, and used EV sales will soar roughly by 100% compared to 2022 and 40% over 2023, as per a report by Recurrent. Global passenger and commercial vehicle sales are projected to reach 95 million units in 2024, rising just over 3.1% from 2023, as per MarketsandMarkets.
Automakers’ Price Wars
According to Forbes, industry leaders are lowering prices to create demand for their newer models. Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) has reduced prices of its EVs. On Tesla, Inc.’s (NASDAQ:TSLA) used car website, Model Ys are priced starting at under $30,000. The ongoing situation in the market has impacted Tesla, Inc.’s (NASDAQ:TSLA) stock price. In the last 6 months, Tesla, Inc. (NASDAQ:TSLA) shares have plunged by 30%, as of March 30.
Prices of other cars including the Audi e-tron Sportback owned by Volkswagen AG (OTC:VWAGY) and Jaguar owned by Tata Motors Limited (NSE:TATAMOTORS) are also decreasing. Other car manufacturers including Hyundai Motor Company (OTC:HYMTF), Renault SA (EPA:RNO), and Ford Motor Company (NYSE:F) have also experienced price slumps. These major players are adjusting strategies to understand the changing market dynamics. BYD Company Limited (OTC:BYDDF), XPeng Inc. (NYSE:XPEV), and SAIC Motor Corporation Limited (SHA:600104) are some of the top Chinese automotive companies and suppliers in the world. These Chinese EV makers are competing greatly with European and American car makers. XPeng Inc.’s (NYSE:XPEV) co-founder and CEO, He Xiaopeng, also called the intense competition in the Chinese auto market a ‘bloodbath’. On March 19, CNBC revealed that in an employee memo, Xiaopeng said:
“This year also marks the beginning of a fierce competition that may end in a ‘bloodbath’ (or as I prefer to call it, the brutal ‘knockout round’) among Chinese automakers.”
XPeng Inc. (NYSE:XPEV) is planning to invest around $486 million in the R&D of AI technology focused on ‘intelligent driving.’ Xiaopeng aims to launch over 30 new or upgraded cars over the next three years. Another Chinese EV giant, BYD Company Limited (OTC:BYDDF) is gaining momentum. In 2023, BYD Company Limited (OTC:BYDDF) became the best-selling car brand in China with over 3 million sales. On January 5, BYD Company Limited (OTC:BYDDF) reported that the company closed 2023 with over 3 million as it became the global new energy vehicle (NEV) sales champion, for a consecutive year.
The global automotive industry is getting interesting with fierce competition and innovation. The United States, Germany, and Denmark are some of the highest paying countries for automotive engineers. With that said, let’s take a look at the 25 richest billionaires in the automotive industry.
A luxury car dealership’s showroom, representing the automotive industry the company operates in.
Our Methodology
We gathered the data for the 25 richest billionaires in the automotive industry from the Forbes Real Time Billionaires Index. The list of billionaires from the automotive industry is ranked in ascending order of their net worth, as of March 30.
25 Richest Billionaires in Automotive Industry
25. Roger Penske
Net Worth: $4.1 Billion
Roger Penske began his career as a car dealer in 1965. Penske is the chairman and CEO of car and truck dealer firm Penske Automotive Group, Inc. (NYSE:PAG). Roger Penske has a net worth of around $4.1 billion and ranks 25th among the richest billionaires in the automotive industry.
24. Nicolas D’Ieteren
Net Worth: $4.2 Billion
Nicolas D’Ieteren is the chairman of Belgium-based automobile and vehicle glass repair company, D’Ieteren Group SA (EBR:DIE). Nicolas D’Ieteren has a net worth of $4.2 billion, as of March 30.
23. Abhay Firodia
Net Worth: $4.4 Billion
Abhay Firodia is chairman of Force Motors Limited (NSE:FORCEMOT). With a net worth of around $4.4 billion, Abhay Firodia ranks among the richest billionaires in the automotive industry.
22. E. Joe Shoen
Net Worth: $4.4 Billion
E. Joe Shoen is the president and chairman of truck and trailer rental firm, U-Haul Holding Company (NYSE:UHAL). E. Joe Shoen owns around 20% of the company and is one of the richest billionaires in the automotive industry.
21. Mong-Koo Chung
Net Worth: $4.7 Billion
Mong-Koo Chung was the former chairman of Hyundai Motor Company (OTC:HYMTF) before he stepped down in March 2020. Chung served the company for over 20 years.
20. Vivek Chaand Sehgal
Net Worth: $4.8 Billion
Vivek Chaand Sehgal is the chairman of Samvardhana Motherson International Limited (NSE:MOTHERSON), one of the largest manufacturers of components for the automotive industry. Vivek Chaand Sehgal ranks 20th among the richest billionaires in the automotive industry.
19. Mark Shoen
Net Worth: $5 Billion
Mark Shoen owns around one-fifth of U-Haul Holding Company (NYSE:UHAL). Mark Shoen has a net worth of around $5 billion, as of March 30.
18. Li Ping
Net Worth: $5.3 Billion
Li Ping is the vice chairman of Contemporary Amperex Technology Co., Limited (SHE:300750), a leading supplier of batteries for EVs. Li Ping is one of the richest billionaires in the automotive industry.
17. Wu Jianshu
Net Worth: $5.9 Billion
Wu Jianshu is the chairman of Ningbo Tuopu Group Co., Ltd. (SHA:601689), a company that creates various parts for the auto industry. Wu Jianshu has a net worth of $5.9 billion, as of March 30.
16. Dan Friedkin
Net Worth: $6.4 Billion
Dan Friedkin’s firm, Gulf States Toyota, is one of the largest independent distributors of Toyota Motor Corporation (NYSE:TM) vehicles and parts. Dan Friedkin has a net worth of $6.4 billion and ranks among the richest billionaires in the automotive industry.
15. Li Xiang
Net Worth: $7 Billion
Li Xiang ranks 15th among the richest billionaires in the automotive industry. Li Xiang founded the EV maker Li Auto Inc. (NASDAQ:LI).
14. Vikram Lal
Net Worth: $7 Billion
Vikram Lal is the owner of Eicher Motors Limited (NSE:EICHERMOT), a multinational automotive company that manufactures motorcycles and commercial vehicles. Vikram Lal has a net worth of $7 billion and is one of the richest billionaires in the automotive industry.
13. Piero Ferrari
Net Worth: $8.9 Billion
Piero Ferrari is the vice chairman of luxury race car company Ferrari N.V. (NYSE:RACE). Piero Ferrari owns 10% of the company and has a net worth of $8.9 billion, as of March 30.
12. Ernest Garcia II
Net Worth: $9.1 Billion
Ernest Garcia II is the biggest shareholder of the online used car retailer, Carvana Co. (NYSE:CVNA). Ernest Garcia II has a net worth of $9.1 billion, as of March 30.
11. Georg Schaeffler
Net Worth: $10.5 Billion
Georg Schaeffler along with his mother owns Schaeffler AG (ETR:SHA), a company that makes rolling element bearings for automotive, aerospace, and industrial uses.
10. Wei Jianjun
Net Worth: $11 Billion
Wei Jianjun is the founder and chairman of Great Wall Motor Limited (SHA:601633). Great Wall Motor Limited (SHA:601633) is one of the leading Chinese SUV manufacturers. Wei Jianjun ranks 10th among the richest billionaires in the automotive industry.
9. Shahid Khan
Net Worth: $12.2 Billion
Shahid Khan is one of the richest billionaires in the automotive industry and has a net worth of around $12.2 billion, as of March 30. Shahid Khan owns the auto parts supplier Flex-N-Gate.
8. Lu Xiangyang
Net Worth: $12.3 Billion
Lu Xiangyang along with his cousin, Wang Chuanfu, started BYD Company Limited (OTC:BYDDF) in 1995. Lu Xiangyang is the vice chairman of the company and has a net worth of $12.3 billion, as of March 30.
7. Huang Shilin
Net Worth: $12.6 Billion
Huang Shilin served Contemporary Amperex Technology Co., Limited (SHE:300750) as vice chairman before he left the board in August 2022. Huang Shilin is one of the richest billionaires in the automotive industry.
6. Wang Chuanfu
Net Worth: $15.2 Billion
Wang Chuanfu founded BYD Company Limited (OTC:BYDDF), which is now the largest EV maker by unit sales. Wang Chuanfu ranks sixth among the richest billionaires in the automotive industry.
Click to continue reading and see the 5 Richest Billionaires in Automotive Industry.
Suggested articles:
Disclosure: None. 25 Richest Billionaires in Automotive Industry is originally published on Insider Monkey.