Three Chinese auto brands were among the top 10 most "future-ready" carmakers, according to the 2023 Future Readiness Indicator for the auto industry.

Chinese carmaker BYD moved up three places from last year to second position just after Tesla, while XPeng ranked 6th and Li Auto ranked 7th, up six and seven notches, respectively, the business school International Institute for Management Development IMD said in a report.

The Future Readiness Indicator has been compiled annually since 2010 to assess the world's top carmakers' ability to adapt to future challenges. The rankings are based on the companies' performance in financial fundamentals, investor expectations, business diversity, research and development, early innovation results, and cash and debt.

Let's take a look at the top 10 most "future-ready" carmakers in the world.

Toyota displays its product lineup at the 2021 China (Shenyang) International Auto Show. [Photo by YAN BO/FOR CHINA DAILY]

General Motors showcases its Ultium-based models in Shanghai on Nov 22, 2022. [Photo provided to China Daily]

A Mercedes-Benz car is on display at the 4th China International Import Expo in Shanghai on Nov 5, 2021. [Photo/Xinhua]

Li Auto CEO Li Xiang presents the L7 SUV on Feb 8, 2023. [Photo provided to chinadaily.com.cn]

Xpeng Aeroht's X2 is displayed during an auto expo in Guangzhou, Guangdong province, on Jan 6, 2023. [Photo/China Daily]

Ford Mustang Mach-E is presented at the New York International Auto Show, in Manhattan, New York City, April 5, 2023. [Photo/Agencies]

A Hyundai fuel cell electric vehicle is displayed during the Fourth China International Import Expo in Shanghai on Nov 5, 2021. [Photo/IC]

Volkswagen shows its electric platform and models in Haikou, Hainan province, on Jan 24, 2022. [Photo by Li Fusheng/chinadaily.com.cn]

BYD showcases the Seal sedan at the 2023 Shanghai auto show in April. [PHOTO by CAO YINGYING/CHINA DAILY]

Workers put final touches to a vehicle at Tesla's gigafactory. [GAO ERQIANG/CHINA DAILY]

（Picture: Veer）