Automotive industry

The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.[1] It is one of the world's largest industries by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations.

A modern assembly-line

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[2] (1860-1930), first came into use with reference to automobiles in 1898.[3]

History

Thomas B. Jeffery automobile factory in Kenosha, Wisconsin, c.1916
Fiat assembly line in 1961

The automotive industry began in the 1860s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United States led the world in total automobile production. In 1929, before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time, the U.S. had one car per 4.87 persons.[4] After 1945, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and then became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled the U.S. production of 10.3 million units, while Japan was in third place with 9.9 million units.[5] From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.[6]

Safety

Safety is a state that implies to be 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 as one of the best practice framework for achieving automotive functional safety.[7]

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 called product recall. Product recalls happen in every industry and can be production-related or stem from the raw material.

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.

Economy

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.[8] 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 the developed countries, the automotive industry has slowed.[9] 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 anymore, and prefer other modes of transport.[10] Other potentially powerful automotive markets are Iran and Indonesia.[11] 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.[12][13] However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.[9] In the United States, vehicle sales peaked in 2000, at 17.8 million units.[14]

World motor vehicle production

World Motor Vehicle Production[15]
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 top producer

Automotive industry crisis of 2008–2010
to 1950: USA had produced more than 80% of motor vehicles.[16]

1950s: UK, Germany and France restarted production.

1960s: Japan started production and increased volume through the 1980s. US, Japan, Germany, France and UK 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 USA (12.7%), Japan, Germany, France and UK fell to 34%.

2018: India overtakes Germany to become 4th largest automobile producer.
World motor production (1997-2016)

By year

[17]

Year Production Change Source
1997 54,434,000 [18]
1998 52,987,000 2.7% [18]
1999 56,258,892 6.2% [19]
2000 58,374,162 3.8% [20]
2001 56,304,925 3.5% [21]
2002 58,994,318 4.8% [22]
2003 60,663,225 2.8% [23]
2004 64,496,220 6.3% [24]
2005 66,482,439 3.1% [25]
2006 69,222,975 4.1% [26]
2007 73,266,061 5.8% [27]
2008 70,520,493 3.7% [28]
2009 61,791,868 12.4% [29]
2010 77,857,705 26.0% [30]
2011 79,989,155 3.1% [31]
2012 84,141,209 5.3% [32]
2013 87,300,115 3.7% [33]
2014 89,747,430 2.6% [34]
2015 90,086,346 0.4% [35]
2016 94,976,569 4.5% [36]
2017 97,302,534 2.36% [37]
2018 95,634,593 1.71% [38]
2019 91,786,861 5.2% [39]

[[File:2014 Cars Countries Export Treemap.png|thumb|upright=1.35|left|Car exports by country (2014) from Harvard Atlas of Economic Complexity]

Global automobile import and export in 2011

By country

The OICA counts over 50 countries which assemble, manufacture or disseminate automobiles. Of that figure, only 14 countries (boldfaced in the list below) currently possess the capability to design original production automobiles from the ground up.[40][41]

Top 20 motor vehicle producing countries (2018)
Country Motor vehicle production (units)
China
27,809,196
United States
11,314,705
Japan
9,728,528
India
5,174,645
Germany
5,120,409
Mexico
4,100,525
South Korea
4,028,834
Brazil
2,879,809
Spain
2,819,565
France
2,270,000
Thailand
2,167,694
Canada
2,020,840
Russia
1,767,674
United Kingdom
1,604,328
Turkey
1,550,150
Czech Republic
1,345,041
Indonesia
1,343,714
Iran
1,095,526
Slovakia
1,090,000
Italy
1,060,068

"Production Statistics". OICA.

By manufacturer

This were the 15 largest manufacturers by production volume in 2017, according to OICA.[17]

RankGroupCountryVehicles
1Toyota Japan10,466,051
2Volkswagen Group Germany10,382,334
3Hyundai South Korea7,218,391
4General Motors United States6,856,880
5Ford United States6,386,818
6Nissan Japan5,769,277
7Honda Japan5,236,842
8Fiat Chrysler Automobiles Netherlands4,600,847
9Renault France4,153,589
10Groupe PSA France3,649,742
11Suzuki Japan3,302,336
12SAIC China2,866,913
13Daimler Germany2,549,142
14BMW Germany2,505,741
15Geely China1,950,382

Other rankings

This is the list of the 15 largest publicly-traded car manufacturers by market capitalisation as of 23 January 2021, according to CompaniesMarketCap.com.[42]

RankGroupReg. baseMarket cap (US dollars)
1TeslaUnited States$802.53 billion
2ToyotaJapan$204.38 billion
3VolkswagenGermany$104.74 billion
4BYDChina$98.09 billion
5NIOChina$96.57 billion
6General MotorsUnited States$79.29 billion
7DaimlerGermany$76.44 billion
8BMWGermany$55.64 billion
9HyundaiSouth Korea$54.27 billion
10VolvoSweden$53.01 billion
11FerrariNetherlands$52.21 billion
12StellantisNetherlands$50.38 billion
13Great Wall MotorsChina$47.13 billion
14HondaJapan$47.08 billion
15FordUnited States$45.83 billion
Top 10 largest motor vehicle manufacturers by revenue (2019)[43][44]
RankGroupCountryRevenue (USD)
1VolkswagenGermany$290.2B
2ToyotaJapan$272.3B
3Stellantis
(PSA-FCA)
Netherlands$205.6B
4FordUnited States$156B
5HondaJapan$143.1B
6General MotorsUnited States$137.2B
7BMWGermany$116.9B
8DaimlerGermany$104.6B
9NissanJapan$92B
10HyundaiSouth Korea$90.8B

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:

China joint venture

Outside China

See also

References

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  2. Scientific and Technical Societies of the United States (Eighth ed.). Washington DC: National Academy of Sciences. 1968. p. 164. Retrieved 25 March 2014.
  3. Harper, Douglas. "automotive". Online Etymology Dictionary. Retrieved 16 October 2018.
  4. "U.S. Makes Ninety Percent of World's Automobiles". Popular Science. 115 (5): 84. November 1929. Retrieved 6 August 2013.
  5. "2012 Production Statistics". OICA. Retrieved 6 August 2013.
  6. Aichner, T.; Coletti, P (2013). "Customers' online shopping preferences in mass customization". Journal of Direct, Data and Digital Marketing Practice. 15 (1): 20–35. doi:10.1057/dddmp.2013.34. S2CID 167801827.
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  17. OICA: World Ranking of Manufacturers
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  39. "2019 Production Statistics". oica.net.
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