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Automotive industry

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An automotiveassembly lineatOpel Manufacturing Polandin 2015
SEAT,Škoda,andVolkswagencars being transported by train inKutná Hora,Czech Republicin 2014

Theautomotive industrycomprises a wide range ofcompaniesandorganizationsinvolved in thedesign,development,manufacturing,marketing,selling,repairing,andmodificationofmotor vehicles.[1]It is one of the world's largestindustriesbyrevenue(from 16% such as in France up to 40% to countries like Slovakia).[2][failed verification]

The wordautomotivecomes from theGreekautos(self), andLatinmotivus(ofmotion), referring to any form of self-powered vehicle. This term, as proposed byElmer Sperry[3][need quotation to verify](1860–1930), first came into use to describe automobiles in 1898.[4]

History

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Main article:History of the automobile
TheThomas B. Jeffery Companyautomobile factory inKenosha, Wisconsinaround 1916
Fiat 1800 and 2100sedans being assembled at aFiatfactory in 1961

The automotive industry began in the 1860s with hundreds of manufacturers pioneering thehorseless 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.[5]

For many decades, theUnited Statesled the world in total automobile production, with the U.S.Big ThreeGeneral Motors,Ford Motor Company,andChryslerbeing 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 theGreat 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.[6]After 1945, the U.S. produced around three-quarters of the world's auto production. In 1980, the U.S. was overtaken byJapanand then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007, and in 2008 alsoChina,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.[7]

Safety

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Main article:Automobile safety
See also:2009–2011 Toyota vehicle recalls,General Motors ignition switch recalls,andFirestone and Ford tire controversy
A 2010Hyundai Tucsonused for acrash testby theNational 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, ormanufacturersdo 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.Automobilesand othermotor vehicleshave to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standardISO 26262,is considered one of the best practice frameworks for achieving automotivefunctional safety.[8]

In case of safety issues, danger,product defect,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 calledproduct 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 thevalue chainare 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.

Economy

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See also:Automotive industry by country
An advertisement for thePontiac 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) ofgasolineanddiesel fuelyearly.[9]The automobile is a primary mode oftransportationfor many developed economies. The Detroit branch ofBoston Consulting Grouppredicted that, by 2014, one-third of world demand would be in the fourBRICmarkets (Brazil, Russia, India, and China). Meanwhile, in developed countries, the automotive industry has slowed.[10]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.[11]Other potentially powerful automotive markets areIranandIndonesia.[12] 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 globallight-vehiclesales in 2010. The study, performed in 2010 expected this trend to accelerate.[13][14]However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.[10]In the United States, vehicle sales peaked in 2000, at 17.8 million units.[15]

In July 2021, the European Commission released its "Fit for 55"legislation package,[16]which contains important guidelines for the future of the automotive industry; all new cars on the European market must bezero-emission vehiclesfrom 2035.[17]

The governments of 24 developed countries and a group of major car manufacturers includingGM,Ford,Volvo,BYD Auto,Jaguar Land RoverandMercedes-Benzcommitted 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".[18][19]Major car manufacturing nations like the United States, Germany, China, Japan and South Korea, as well asVolkswagen,Toyota,Peugeot,Honda,NissanandHyundai,did not pledge.[20]

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.[21]Without the shift towards SUVs, energy use per unit distance could have fallen 30% more than it did from 2010 to 2022.[22]

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.[23]

In 2022, Tesla'sGigafactory Berlin-Brandenburgran 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.[24]

World motor vehicle production

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World motor vehicle production[25]
Production volume (1000 vehicles)

1960s:Post-war increase

1970s:Oilcrisis and tighter safety and emission regulation

1990s:Production started inNICs.

2000s:Rise of China as a top producer

Automotive industry crisis of 2008–2010
To 1950:US had produced more than 80% of motor vehicles.[26]

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.
World motor production (1997–2016)

By year

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See also:List of countries by motor vehicle production
Year Production Change Source
1997 54,434,000 — [27]
1998 52,987,000 Decrease2.7% [27]
1999 56,258,892 Increase6.2% [28]
2000 58,374,162 Increase3.8% [29]
2001 56,304,925 Decrease3.5% [30]
2002 58,994,318 Increase4.8% [31]
2003 60,663,225 Increase2.8% [32]
2004 64,496,220 Increase6.3% [33]
2005 66,482,439 Increase3.1% [34]
2006 69,222,975 Increase4.1% [35]
2007 73,266,061 Increase5.8% [36]
2008 70,520,493 Decrease3.7% [37]
2009 61,791,868 Decrease12.4% [38]
2010 77,857,705 Increase26.0% [39]
2011 79,989,155 Increase3.1% [40]
2012 84,141,209 Increase5.3% [41]
2013 87,300,115 Increase3.7% [42]
2014 89,747,430 Increase2.6% [43]
2015 90,086,346 Increase0.4% [44]
2016 94,976,569 Increase4.5% [45]
2017 97,302,534 Increase2.36% [46]
2018 95,634,593 Decrease1.71% [47]
2019 91,786,861 Decrease5.2% [48]
2020 77,621,582 Decrease16% [49]
2021 80,145,988 Increase3.25% [50]
2022 85,016,728 Increase6.08% [51]
Percentage of exported cars by country (2014)[clarification needed][52]
Global automobile import and export in 2011

By country

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Main article:Automotive industry by country

TheOICAcounts over 50 countries that assemble, manufacture, or disseminate automobiles. Of those, only 15 countries (boldfacedin 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).[53]


Country Produced vehicles 2023[54]
China
(plusTaiwan)		 30,160,966
(30,446,928)
USA 10,611,555
Japan 8,997,440
India 5,851,507
Republic of Korea 4,243,597
Germany 4,109,371
Mexico 4,002,047
Spain 2,451,221
Brazil 2,324,838
Thailand 1,841,663
Canada 1,553,026
France 1,505,076
Turkey 1,468,393
Czechia 1,404,501
Indonesia 1,395,717
Slovakia 1,080,000
U.K. 1,025,474

By manufacturer

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Main article:List of manufacturers by motor vehicle production
See also:List of car brands

Top 10 (2016–2020)

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These were the ten largest manufacturers by production volume as of 2017,[55]of which the eight largest were in the top 8 positions sinceFiat's 2013 acquisitionof theChryslerCorporation (although thePSA Grouphad 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 untilthe merger between Fiat-Chrysler and the PSA Group in early 2021;onlyRenaultwas degraded to 11th place, in 2022, when being surpassed by bothBMW(which became the 10th largest in 2021) andChang'an.[56]

Rank[a] Group Country Produced
vehicles (2017)[55]		 Sold vehicles
(2018)		 Sold vehicles
(2019)[57]
1 Toyota Japan 10,466,051 10,521,134 10,741,556
2 Volkswagen Group Germany 10,382,334 10,831,232 10,975,352
3 General Motors
(exceptSAIC-GM-Wuling)[b]		 United States 9,027,658
(6,856,880)		 8,787,233 7,724,163
4 Hyundai South Korea 7,218,391 7,437,209 7,189,893
5 Ford United States 6,386,818 5,734,217 5,385,972
6 Nissan Japan 5,769,277 5,653,743 5,176,211
7 Honda Japan 5,235,842 5,265,892 5,323,319
8 Fiat-Chrysler
(now part ofStellantis)		 Italy /
United States		 4,600,847 4,841,366 4,612,673
9 Renault France 4,153,589 3,883,987 3,749,815
10 PSA Group
(now part ofStellantis)		 France 3,649,742 4,126,349 3,479,152

Top 20 (2012–2013)

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These were the twenty largest manufacturers by production volume in 2012 and 2013, or the 21 largest in 2011 (beforethe 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.

Rank[c] Group Country Produced
vehicles (2013)[58]		 Produced
vehicles (2012)[59]		 Produced
vehicles (2011)[60]
1 Toyota Japan 10,324,995 10,104,424 8,050,181
2 General Motors United States 9,628,912 9,285,425 9,031,670
3 Volkswagen Group Germany 9,379,229 9,254,742 8,525,573
4 Hyundai South Korea 7,233,080 7,126,413 6,616,858
5 Ford United States 6,077,126 5,595,483 5,516,931
6 Nissan Japan 4,950,924 4,889,379 4,631,673
7 Fiat/FCA Italy 4,681,704 4 498 722[d] 2,336,954
8 Honda Japan 4,298,390 4,110,857 2,909,016
9 PSA Peugeot Citroën France 2,833,781 2,911,764 3,582,410
10 Suzuki Japan 2,842,133 2,893,602 2,725,899
11 Renault France 2,704,675 2,676,226 2,825,089
12 Daimler Germany 1,781,507 2,195,152 2,137,067
Chrysler United States part ofFCA part of FCA 1,999,017
13 BMW Germany 2,006,366 2,065,477 1,738,160
14 SAIC China 1,992,250 1,783,548 1,478,502
15 Tata India 1,062,654 1,241,239 1,197,192
16 Mazda Japan 1,264,173 1,189,283 1,165,591
17 Dongfeng China 1,238,948 1,137,950 1,108,949
18 Mitsubishi Japan 1,229,441 1,109,731 1,140,282
19 Changan China 1,109,889 1,063,721 1,167,208
20 Geely China 969,896 922,906 897,107

Notable company relationships

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Stake holding

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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

[edit]

China joint venture

[edit]

Outside China

[edit]

See also

[edit]

Notes

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  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

[edit]
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Further reading

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  • Ajitha, P. V., and Ankita Nagra. "An Overview of Artificial Intelligence in Automobile Industry–A Case Study on Tesla Cars."Solid State Technology64.2 (2021): 503–512.online
  • Banerjee, Preeta M., and Micaela Preskill. "The role of government in shifting firm innovation focus in the automobile industry" inEntrepreneurship, Innovation and Sustainability(Routledge, 2017) pp. 108–129.
  • Bohnsack, René, et al. "Driving the electric bandwagon: The dynamics of incumbents' sustainable innovation."Business Strategy and the Environment29.2 (2020): 727–743online.
  • Bungsche, Holger. "Regional economic integration and the automobile industry: automobile policies, division of labour, production network formation and market development in the EU and ASEAN."International Journal of Automotive Technology and Management18.4 (2018): 345–370.
  • Chen, Yuan, C-Y. Cynthia Lin Lawell, and Yunshi Wang. "The Chinese automobile industry and government policy."Research in Transportation Economics84 (2020): 100849.online
  • Clark, Kim B., et al. "Product development in the world auto industry."Brookings Papers on economic activity1987.3 (1987): 729–781.online
  • Guzik, Robert, Bolesław Domański, and Krzysztof Gwosdz. "Automotive industry dynamics in Central Europe." inNew Frontiers of the Automobile Industry(Palgrave Macmillan, Cham, 2020) pp. 377–397.
  • Imran, Muhammad, and Jawad Abbas. "The role of strategic orientation in export performance of China automobile industry." inHandbook of Research on Managerial Practices and Disruptive Innovation in Asia(2020): 249–263.
  • Jetin, Bruno. "Who will control the electric vehicle market?"International Journal of Automotive Technology and Management20.2 (2020): 156–177.online
  • Kawahara, Akira.The origin of competitive strength: fifty years of the auto industry in Japan and the US(Springer Science & Business Media, 2012).
  • Kuboniwa, Masaaki. "Present and future problems of developments of the Russian auto-industry."RRC Working PaperSeries 15 (2009): 1–12.online
  • Lee, Euna, and Jai S. Mah. "Industrial policy and the development of the electric vehicles industry: The case of Korea."Journal of technology management & innovation15.4 (2020): 71–80.online
  • Link, Stefan J.Forging Global Fordism: Nazi Germany, Soviet Russia, and the Contest over the Industrial Order(2020)excerpt;influential overview
  • Liu, Shiyong. "Competition and Valuation: A Case Study of Tesla Motors."IOP Conference Series: Earth and Environmental Science.Vol. 692. No. 2. (IOP Publishing, 2021)online
  • Miglani, Smita. "The growth of the Indian automobile industry: Analysis of the roles of government policy and other enabling factors." inInnovation, economic development, and intellectual property in India and China(Springer, Singapore, 2019) pp. 439–463.
  • Qin, Yujie, Yuqing Xiao, and Jiawei Yuan. "The Comprehensive Competitiveness of Tesla Based on Financial Analysis: A Case Study." in2021 International Conference on Financial Management and Economic Transition(FMET 2021). (Atlantis Press, 2021).online
  • Rawlinson, Michael, and Peter Wells.The new European automobile industry(Springer, 2016).
  • Rubenstein, James M.The changing US auto industry: a geographical analysis(Routledge, 2002).
  • Seo, Dae-Sung. "EV Energy Convergence Plan for Reshaping the European Automobile Industry According to the Green Deal Policy."Journal of Convergence for Information Technology11.6 (2021): 40–48.online
  • Shigeta, Naoya, and Seyed Ehsan Hosseini. "Sustainable Development of the Automobile Industry in the United States, Europe, and Japan with Special Focus on the Vehicles' Power Sources."Energies14.1 (2021): 78+online
  • Ueno, Hiroya, and Hiromichi Muto. "The automobile industry of Japan." onIndustry and Business in Japan(Routledge, 2017) pp. 139–190.
  • Verma, Shrey, Gaurav Dwivedi, and Puneet Verma. "Life cycle assessment of electric vehicles in comparison to combustion engine vehicles: A review."Materials Today: Proceedings(2021)online.
  • Vošta, M. I. L. A. N., and A. L. E. Š. Kocourek. "Competitiveness of the European automobile industry in the global context."Politics in Central Europe13.1 (2017): 69–89.online
  • Zhu, Xiaoxi, et al. "Promoting new energy vehicles consumption: The effect of implementing carbon regulation on automobile industry in China."Computers & Industrial Engineering135 (2019): 211–226.online
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