The word automotive comes from the Greekautos (self), and Latinmotivus (of motion), referring to any form of self-powered vehicle. This term, as proposed by Elmer Sperry[4][need quotation to verify] (1860–1930), first came into use to describe automobiles in 1898.[5]
The automotive industry began in the 1860s with hundreds of manufacturers pioneering the horseless carriage. Early car manufacturing involved manual assembly by a human worker. The process evolved from engineers working on a stationary car, to a conveyor belt system where the car passed through multiple stations of more specialized engineers. Starting in the 1960s, robotic equipment was introduced to the process, and most cars are now mainly assembled by automated machinery.[6]
For many decades, the United States led the world in total automobile production, with the U.S. Big ThreeGeneral Motors, Ford Motor Company, and Chrysler being the world's three largest auto manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s. In 1929, before the Great Depression, the world had 32,028,500 automobiles in use, of which the U.S. automobile enterprises produced more than 90%. At that time, the U.S. had one car per 4.87 persons.[7] After 1945, the U.S. produced around three-quarters of the world's auto production. In 1980, the U.S. was overtaken by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007, and in 2008 also China, which in 2009 took the top spot (from Japan) with 13.8 million units, although the U.S. surpassed Japan in 2011, to become the second-largest automobile industry. In 2023, China had for the first time in history more than 30 million produced vehicles a year, after reaching 29 million for the first time in 2017 and 28 million the year before. From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.[8]
Safety is a state that implies being protected from any risk, danger, damage, or cause of injury. In the automotive industry, safety means that users, operators, or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves implies that there is no risk of damage.
Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered one of the best practice frameworks for achieving automotive functional safety.[9]
In case of safety issues, danger, product defect,[10][11] or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from raw materials.
Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences.
In 2007, there were about 806 million cars and light trucks on the road, consuming over 980billion litres (980,000,000m3) of gasoline and diesel fuel yearly.[12] The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world demand would be in the four BRIC markets (Brazil, Russia, India, and China). Meanwhile, in developed countries, the automotive industry has slowed.[13] It is also expected that this trend will continue, especially as the younger generations of people (in highly urbanized countries) no longer want to own a car, and prefer other modes of transport.[14] Other potentially powerful automotive markets are Iran and Indonesia.[15]
Emerging automobile markets already buy more cars than established markets.
According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in 2010 expected this trend to accelerate.[16][17] However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.[13] In the United States, vehicle sales peaked in 2000, at 17.8 million units.[18]
In July 2021, the European Commission released its "Fit for 55" legislation package,[19] which contains important guidelines for the future of the automotive industry; all new cars on the European market must be zero-emission vehicles from 2035.[20]
The governments of 24 developed countries and a group of major car manufacturers including GM, Ford, Volvo, BYD Auto, Jaguar Land Rover and Mercedes-Benz committed to "work towards all sales of new cars and vans being zero emission globally by 2040, and by no later than 2035 in leading markets".[21][22] Major car manufacturing nations like the United States, Germany, China, Japan and South Korea, as well as Volkswagen, Toyota, Peugeot, Honda, Nissan and Hyundai, did not pledge.[23]
The global automotive industry is a major consumer of water. Some estimates surpass 180,000L (39,000impgal) of water per car manufactured, depending on whether tyre production is included. Production processes that use a significant volume of water include surface treatment, painting, coating, washing, cooling, air-conditioning, and boilers, not counting component manufacturing. Paintshop operations consume especially large amounts of water because equipment running on water-based products must also be cleaned with water.[26]
In 2022, Tesla's Gigafactory Berlin-Brandenburg ran into legal challenges due to droughts and falling groundwater levels in the region. Brandenburg's Economy Minister Joerg Steinbach said that while water supply was sufficient during the first stage, more would be needed once Tesla expands the site. The factory would nearly double the water consumption in the Gruenheide area, with 1.4 million cubic meters being contracted from local authorities per year — enough for a city of around 40,000 people. Steinbach said that the authorities would like to drill for more water there and outsource any additional supply if necessary.[27]
To 1950: US had produced more than 80% of motor vehicles.[29]
1950s: United Kingdom, Germany, and France restarted production.
1960s: Japan started production and increased volume through the 1980s.
United States, Japan, Germany, France, and the United Kingdom produced about 80% of motor vehicles through the 1980s.
1990s: South Korea became a volume producer. In 2004, Korea became No. 5 passing France.
2000s: China increased its production drastically, and became the world's largest-producing country in 2009.
2010s: India overtakes Korea, Canada, Spain to become 5th largest automobile producer.
2013: The share of China (25.4%), India, Korea, Brazil, and Mexico rose to 43%, while the share of United States (12.7%), Japan, Germany, France, and United Kingdom fell to 34%.
2018: India overtakes Germany to become 4th largest automobile producer.
The OICA counts over 50 countries that assemble, manufacture, or disseminate automobiles. Of those, only 15 countries (boldfaced in the list below) currently possess the capability to design original production automobiles from the ground up, and 17 countries (listed below) have at least one million produced vehicles a year (as of 2023).[56]
These were the ten largest manufacturers by production volume as of 2017,[58] of which the eight largest were in the top 8 positions since Fiat's 2013 acquisition of the Chrysler Corporation (although the PSA Group had been in the top 8 1999 to 2012, and 2007 to 2012 one of the eight largest along with the seven largest as of 2017) and the five largest in the top 5 positions since 2007, according to OICA, which, however, stopped publishing statistics of motor vehicle production by manufacturer after 2017. All ten remained as the ten largest automakers by sales until the merger between Fiat-Chrysler and the PSA Group in early 2021; only Renault was degraded to 11th place, in 2022, when being surpassed by both BMW (which became the 10th largest in 2021) and Chang'an.[59]
These were the twenty largest manufacturers by production volume in 2012 and 2013, or the 21 largest in 2011 (before the Fiat-Chrysler merger), of which the fourteen largest as of 2011 were in the top 14 in 2010, 2008 and 2007 (but not 2009, when Changan and Mazda temporarily degraded Chrysler to 16th place). The eighteen largest as of 2013 have remained in the top 20 as of 2017, except Mitsubishi which fell out of top 20 in 2016, while Geely fell out of the top 20 in 2014 and 2015 but re-entered it in 2016.
This section needs to be updated. The reason given is: several of these have changed. (September 2024)
Stake holding
It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies.
Mercedes-Benz Group holds a 3.1% stake in the Renault-Nissan-Mitsubishi Alliance, while Renault-Nissan-Mitsubishi Alliance holds a 3.1% stake in Mercedes-Benz Group.
Mercedes-Benz Group holds a 12% stake in BAIC Group, while BAIC Group holds 5% stake in Mercedes-Benz Group.[65]
Fujian Motors Group holds a 15% stake in King Long. FMG, Beijing Automotive Group, China Motor, and Mercedes-Benz Group has a joint venture called Fujian Benz. FMG, China Motor, and Mitsubishi Motors has a joint venture called Soueast, FMG holds a 50% stake, and both China Motor and Mitsubishi Motors holds an equal 25% stake.
Nissan holds a 34% stake in Mitsubishi Motors since October 2016,[68] thus having the right to nominate the chairman of Mitsubishi Motors' board and a third of its directors.
Porsche holds a 50.74% voting stake in Volkswagen Group. The Porsche automotive business is fully owned by the Volkswagen Group.
Renault and Nissan have an alliance (Renault-Nissan-Mitsubishi Alliance) involving two global companies linked by cross-shareholding, with Renault holding a 43.4% stake in Nissan shares, and Nissan holding a 15% stake of (non-voting) Renault shares.
Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), a 53.7% stake in MAN SE (55.9% voting rights). Volkswagen is integrating Scania, MAN, and its own truck division into one division.
Beijing Automotive Group also has a joint venture with Hyundai called Beijing Hyundai, both companies hold a 50-50% stake.
BMW and Brilliance have a joint venture called BMW Brilliance. BMW owns a 50% stake, Brilliance owns a 40.5% stake, and the Shenyang municipal government owns a 9.5% stake.
OICA lists SAIC-GM-Wuling combined with G.M. until 2014 but separately from 2015. Including SAIC-GM-Wuling, G.M. would still be larger than Hyundai until 2020.
As of 2012
Fiat acquired Chrysler in 2012. However, Fiat and Chrysler was still listed separately by OICA in 2012, and combined first from 2013. Separately, the production by Fiat was 2,127,295 and by Chrysler 2,371,427.
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