Companies establish subsidiaries for a variety of reasons; they can allow them to expand into profitable new markets, to increase revenue, and to diversify their holdings to better manage risk. As a vital component to a company’s expansion plans, the establishment of a subsidiary can offer insight into investment trends, with our database allowing you to see these investment patterns on a wider, sector level.
GlobalData’s subsidiary database contains information for 2,188 of the world’s top multinational companies (MNCs) by revenue. Of these MNCs, 48 are in the automotive manufacturing and supply industry, representing 2.2% of the companies in our database.
These automotive manufacturing and supply companies are less likely than average to establish subsidiaries in North America (16.6% vs 27.8%) and a more likely to establish them in Asia-Pacific (31.6% vs 21.4%).
Overall, the 48 automotive manufacturing and supply MNCs in our database operate 5,159 subsidiaries. This comes to an average of 107.5 subsidiaries per company, compared to an average of 99 for the entire database of 2,188 companies. It should be noted, however, that the number of subsidiaries is by no means evenly distributed within the sector. The most common number of subsidiaries for a automotive manufacturing and supply MNC (the mode) is 34, while the median comes in at 47, indicating that the simple average is skewed heavily by the bigger parent companies.
Germany-based Continental AG has the largest number of subsidiaries among the automotive manufacturing and supply sector MNCs within our database with 468. This means it ranks in 87th place across our entire database when measured by the total number of subsidiaries.
Where has Continental AG established subsidiaries?
Continental AG’s subsidiaries are distributed across the world with 46.2% of the total located in Western Europe, the most for any region. Germany is the most popular destination for Continental AG with 89 subsidiaries based there, while China was second with 37.
After Continental AG, Daimler AG had the second largest number of subsidiaries within the automotive manufacturing and supply industry MNCs in the database with 448, while Tesla Inc was third with 367 and Michelin SCA was fourth with 358.
Where has Daimler AG established subsidiaries?
Overall, 1,425 of the subsidiaries owned by the automotive manufacturing and supply MNCs in the database were located in the same country as the parent company was headquartered. This meant that MNCs in the sector were less likely than average to have a preference for domestic subsidiaries at 27.6%, with the figure for the entire database standing at 45.7%.