Automotive industry

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An automotive assembly line at Opel Manufacturing Poland in 2015 002 Production line - car assembly line in General Motors Manufacturing Poland - Gliwice, Poland.jpg
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 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] It is one of the world's largest industries by revenue (from 16% such as in France up to 40% to countries like Slovakia). [2] [ failed verification ]

Contents

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 [3] [ need quotation to verify ] (1860–1930), first came into use with reference to automobiles in 1898. [4]

History

The Thomas B. Jeffery Company automobile factory in Kenosha, Wisconsin around 1916 Thomas B Jeffery Works Drawing.jpg
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 Workers in Fiat factories, Turin.jpg
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 today most cars are produced largely with automated machinery. [5]

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 mid-2000s. In 1929, before the Great Depression, the world had 32,028,500 automobiles in use, of which more than 90% produced by the U.S. automobile industry. At that time, the U.S. had one car per 4.87 persons. [6] After 1945, the U.S. produced around three quarters of 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 the years 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 2017, China reached its top record, of more than 29 million produced vehicles, which was the so far largest margin from that of the U.S. 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

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

Economy

An advertisement for the Pontiac 6, c. 1928 Vintage Pontiac Promotion.svg
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. [9] 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. [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 are Iran and Indonesia. [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 global light-vehicle sales 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 be zero-emission vehicles from 2035. [17]

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". [18] [19] 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. [20]

Environmental impacts

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. Without the shift towards SUVs, energy use per unit distance could have fallen 30% more than it did from 2010 to 2022. 1975- US vehicle production share, by vehicle type.svg
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. Without the shift towards SUVs, energy use per unit distance could have fallen 30% more than it did from 2010 to 2022.

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'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. [24]

World motor vehicle production

World motor vehicle production [25]
Motor Vehicle Prod volume RITA T1-23.svg
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
Motor Vehicle Prod share RITA T1-23.svg
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) World motor production (1997-2016).png
World motor production (1997–2016)

By year

YearProductionChangeSource
199754,434,000 [27]
199852,987,000Decrease2.svg 2.7% [27]
199956,258,892Increase2.svg 6.2% [28]
200058,374,162Increase2.svg 3.8% [29]
200156,304,925Decrease2.svg 3.5% [30]
200258,994,318Increase2.svg 4.8% [31]
200360,663,225Increase2.svg 2.8% [32]
200464,496,220Increase2.svg 6.3% [33]
200566,482,439Increase2.svg 3.1% [34]
200669,222,975Increase2.svg 4.1% [35]
200773,266,061Increase2.svg 5.8% [36]
200870,520,493Decrease2.svg 3.7% [37]
200961,791,868Decrease2.svg 12.4% [38]
201077,857,705Increase2.svg 26.0% [39]
201179,989,155Increase2.svg 3.1% [40]
201284,141,209Increase2.svg 5.3% [41]
201387,300,115Increase2.svg 3.7% [42]
201489,747,430Increase2.svg 2.6% [43]
201590,086,346Increase2.svg 0.4% [44]
201694,976,569Increase2.svg 4.5% [45]
201797,302,534Increase2.svg 2.36% [46]
201895,634,593Decrease2.svg 1.71% [47]
201991,786,861Decrease2.svg 5.2% [48]
202077,621,582Decrease2.svg 16% [49]
202180,145,988Increase2.svg 3.25% [50]
202285,016,728Increase2.svg 6.08% [51]

[52]

Percentage of exported cars by country (2014) 2014 Cars Countries Export Treemap.png
Percentage of exported cars by country (2014)
Global automobile import and export in 2011 Global imports and exports of cars.png
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. [54] [55]


Top 20 motor vehicle producing countries (2022)
CountryMotor vehicle production (units)
China
27,020,615
United States
10,060,339
Japan
7,835,519
India
5,456,857
South Korea
3,757,049
Germany
3,677,820
Mexico
3,509,072
Brazil
2,369,769
Spain
2,219,462
Others
2,030,138
Thailand
1,883,515
Indonesia
1,470,146
France
1,383,173
Turkey
1,352,648
Canada
1,228,735
Czech Republic
1,224,456
Slovakia
1,000,000
United Kingdom
876,614
Italy
796,394
Malaysia
702,275

† = cars and LCV only [56]

By manufacturer

These were the ten largest manufacturers by production volume as of 2017, [52] 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 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. [57]

Rank [lower-alpha 1] GroupCountryProduced
vehicles (2017) [52]
Sold vehicles
(2018)
Sold vehicles
(2019) [58]
1 Toyota Japan10,466,05110,521,13410,741,556
2 Volkswagen Group Germany10,382,33410,831,23210,975,352
3 General Motors
(except SAIC-GM-Wuling) [lower-alpha 2]
United States9,027,658
(6,856,880)
8,787,2337,724,163
4 Hyundai/Kia South Korea7,218,3917,437,2097,189,893
5 Ford United States6,386,8185,734,2175,385,972
6 Nissan Japan5,769,2775,653,7435,176,211
7 Honda Japan5,235,8425,265,8925,323,319
8 Fiat-Chrysler
(now part of Stellantis)
Italy/United States4,600,8474,841,3664,612,673
9 Renault France4,153,5893,883,9873,749,815
10 PSA Group
(now part of Stellantis)
France3,649,7424,126,3493,479,152

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

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.

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Further reading