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The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles.[1][2] It is one of the world's largest industries by revenue (from 16% such as in France up to 40% to countries such as Slovakia).[3][failed verification]

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An automotive assembly line at Opel Manufacturing Poland in 2015
SEAT, Škoda, and Volkswagen cars being transported by train in Kutná Hora, Czech Republic in 2014

The word automotive comes from the Greek autos (self), and Latin motivus (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]

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History

The Thomas B. Jeffery Company automobile factory in Kenosha, Wisconsin around 1916
Fiat 1800 and 2100 sedans being assembled at a Fiat factory in 1961

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 Three General 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]

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Safety

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A 2010 Hyundai Tucson used for a crash test by the National Highway Traffic Safety Administration

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.

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Economy

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An advertisement for the Pontiac 6, c.1928

In 2007, there were about 806 million cars and light trucks on the road, consuming over 980 billion litres (980,000,000 m3) 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]

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Environmental impacts

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Trucks' share of US vehicles produced, has tripled since 1975. Though vehicle fuel efficiency has increased within each category, the overall trend toward less efficient types of vehicles has offset some of the benefits of greater fuel economy and reduction of carbon dioxide emissions.[24] Without the shift towards SUVs, energy use per unit distance could have fallen 30% more than it did from 2010 to 2022.[25]

The global automotive industry is a major consumer of water. Some estimates surpass 180,000 L (39,000 imp gal) 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]

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World motor vehicle production

World motor vehicle production[28]
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Production volume (1000 vehicles)

1960s: Post-war increase

1970s: Oil crisis and tighter safety and emission regulation

1990s: Production started in NICs.

2000s: Rise of China as a top producer

Automotive industry crisis of 2008–2010
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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.
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World motor production (1997–2016)

By year

More information Year, Production ...
Year Production Change Source
1997 54,434,000 [30]
1998 52,987,000 Decrease 2.7% [30]
1999 56,258,892 Increase 6.2% [31]
2000 58,374,162 Increase 3.8% [32]
2001 56,304,925 Decrease 3.5% [33]
2002 58,994,318 Increase 4.8% [34]
2003 60,663,225 Increase 2.8% [35]
2004 64,496,220 Increase 6.3% [36]
2005 66,482,439 Increase 3.1% [37]
2006 69,222,975 Increase 4.1% [38]
2007 73,266,061 Increase 5.8% [39]
2008 70,520,493 Decrease 3.7% [40]
2009 61,791,868 Decrease 12.4% [41]
2010 77,857,705 Increase 26.0% [42]
2011 79,989,155 Increase 3.1% [43]
2012 84,141,209 Increase 5.3% [44]
2013 87,300,115 Increase 3.7% [45]
2014 89,747,430 Increase 2.6% [46]
2015 90,086,346 Increase 0.4% [47]
2016 94,976,569 Increase 4.5% [48]
2017 97,302,534 Increase 2.36% [49]
2018 95,634,593 Decrease 1.71% [50]
2019 91,786,861 Decrease 5.2% [51]
2020 77,621,582 Decrease 16% [52]
2021 80,145,988 Increase 3.25% [53]
2022 85,016,728 Increase 6.08% [54]
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Percentage of exported cars by country (2014)[clarification needed][55]
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Global automobile import and export in 2011

By country

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]


More information Country, Produced vehicles 2023 ...
CountryProduced vehicles 2023[57]
China
(plus Taiwan)
30,160,966
(30,446,928)
USA10,611,555
Japan8,997,440
India5,851,507
Republic of Korea4,243,597
Germany4,109,371
Mexico4,002,047
Spain2,451,221
Brazil2,324,838
Thailand1,841,663
Canada1,553,026
France1,505,076
Turkey1,468,393
Czechia1,404,501
Indonesia1,395,717
Slovakia1,080,000
U.K.1,025,474
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By manufacturer

Top 10 (2016–2020)

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]

More information Rank, Group ...
Rank[a]GroupCountryProduced
vehicles (2017)[58]
Sold vehicles
(2018)
Sold vehicles
(2019)[60]
1ToyotaJapan10,466,05110,521,13410,741,556
2Volkswagen GroupGermany10,382,33410,831,23210,975,352
3General Motors
(except SAIC-GM-Wuling)[b]
United States9,027,658
(6,856,880)
8,787,2337,724,163
4HyundaiSouth Korea7,218,3917,437,2097,189,893
5FordUnited States6,386,8185,734,2175,385,972
6NissanJapan5,769,2775,653,7435,176,211
7HondaJapan5,235,8425,265,8925,323,319
8Fiat-Chrysler
(now part of Stellantis)
Italy /
United States
4,600,8474,841,3664,612,673
9RenaultFrance4,153,5893,883,9873,749,815
10PSA Group
(now part of Stellantis)
France3,649,7424,126,3493,479,152
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Top 20 (2012–2013)

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.

More information Rank, Group ...
Rank[c]GroupCountryProduced
vehicles (2013)[61]
Produced
vehicles (2012)[62]
Produced
vehicles (2011)[63]
1ToyotaJapan10,324,99510,104,4248,050,181
2General MotorsUnited States9,628,9129,285,4259,031,670
3Volkswagen GroupGermany9,379,2299,254,7428,525,573
4HyundaiSouth Korea7,233,0807,126,4136,616,858
5FordUnited States6,077,1265,595,4835,516,931
6NissanJapan4,950,9244,889,3794,631,673
7Fiat / FCAItaly4,681,7044 498 722[d]2,336,954
8HondaJapan4,298,3904,110,8572,909,016
9PSA Peugeot CitroënFrance2,833,7812,911,7643,582,410
10SuzukiJapan2,842,1332,893,6022,725,899
11RenaultFrance2,704,6752,676,2262,825,089
12DaimlerGermany1,781,5072,195,1522,137,067
ChryslerUnited Statespart of FCApart of FCA1,999,017
13BMWGermany2,006,3662,065,4771,738,160
14SAICChina1,992,2501,783,5481,478,502
15TataIndia1,062,6541,241,2391,197,192
16MazdaJapan1,264,1731,189,2831,165,591
17DongfengChina1,238,9481,137,9501,108,949
18MitsubishiJapan1,229,4411,109,7311,140,282
19ChanganChina1,109,8891,063,7211,167,208
20GeelyChina969,896922,906897,107
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Notable company relationships

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.

Notable current relationships include:[citation needed]

Joint ventures

China joint venture

Outside China

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See also

Notes

  1. As of 2017
  2. 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.
  3. As of 2012
  4. 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.

References

Further reading

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