Automotive industry

A video showing new Škoda & Volkswagen cars being transported by rail at Kutná Hora město train station in the Czech Republic

The automotive industry is 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 most important economic sectors 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.

The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. This term was proposed by SAE member Elmer Sperry.[2]

History

Thomas B. Jeffery automobile factory in Kenosha, Wisconsin, c.1916
Citroën assembly line in 1918

The automotive industry began in the 1890s 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.[3] After World War II, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and 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, with 10.3 million units, while Japan was in third place with 9.9 million units.[4] From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.[5]

Safety

Main article: Automobile 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 norms and 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.[6]

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

Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel yearly.[7] The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Meanwhile, in the developed countries, the automotive industry has slowed down.[8] 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.[9] Other potentially powerful automotive markets are Iran and Indonesia.[10] Emerging auto 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.[11][12] However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.[8] In the United States, vehicle sales peaked in 2000, at 17.8 million units.[13]

World motor vehicle production

World Motor Vehicle Production[14]
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.[15]

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; Korea became a volume producer. In 2004, Korea became No. 5 passing France.

2000s; China increased its production drastically, and 2009 became the world largest producing country.

2013; The share of China (25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA (12.7%), Japan, Germany, France and UK fell to 34%.

By year

Global production of motorvehicles

(cars and commercial vehicles)

Year Production Change Source
1997 54,434,000   [16]
1998 52,987,000 -2.7% [16]
1999 56,258,892 6.2% [17]
2000 58,374,162 3.8% [18]
2001 56,304,925 -3.5% [19]
2002 58,994,318 4.8% [20]
2003 60,663,225 2.8% [21]
2004 64,496,220 6.3% [22]
2005 66,482,439 3.1% [23]
2006 69,222,975 4.1% [24]
2007 73,266,061 5.8% [25]
2008 70,520,493 -3.7% [26]
2009 61,791,868 -12.4% [27]
2010 77,857,705 26.0% [28]
2011 79,989,155 3.1% [29]
2012 84,141,209 5.3% [30]
2013 87,300,115 3.7% [31]
2014 89,747,430 2.6% [32]

By country

Automobile Export Gross value Treemap (2012)[33]
This map showing only gross export amount. USA was the largest net importer, also UK and France are net importers.

By manufacturer

Rank of manufacturers by production in 2013[34]

Rank Group Country Total Cars LCV HCV Heavy Bus
1Toyota Japan10,324,9958,565,1761,481,722272,4115,686
2General Motors United States9,628,9126,733,1922,890,9584,762
3Volkswagen Germany9,379,229 9,259,506 119,723
4Hyundai South Korea7,233,0806,909,194242,02167,29014,575
5Ford United States6,077,1263,317,0482,667,22092,858
6Nissan Japan4,950,9244,090,677837,33122,916
7Fiat Chrysler Automobiles Italy /  United States4,681,7042,163,0402,350,697124,13143,836
8Honda Japan4,298,3904,263,23935,151
9Suzuki Japan2,842,1332,452,573389,560
10PSA Peugeot Citroën France2,833,7812,445,889387,892
11Renault  France2,704,6752,347,913356,762
12BMW Germany2,006,3662,006,366
13SAIC China1,992,2501,685,392231,37474,4311,053
14Daimler Germany1,781,5071,631,502150,005
15Mazda Japan1,264,1731,175,44388,730
16Dongfeng China1,238,948642,092226,319357,41413,123
17Mitsubishi Japan1,229,4411,090,571135,3063,564
18Changan China1,109,889873,794166,05670,039
19Tata India1,062,654650,708279,511117,42515,010
20Geely China969,896969,896
21BAIC China918,879243,437285,947384,4255,070
22Fuji Japan808,919808,919
23Brilliance China782,904479,335264,21039,359
24FAW China717,883448,29061,822203,8953,876
25Mahindra & Mahindra India584,534407,563173,3982,23371,236
26Great Wall China557,564430,423127,141
27Isuzu Japan532,966 36,094494,9071,965
28JAC China517,577206,132120,588174,57116,286
29BYD China510,950510,950
30AvtoVAZ Russia507,242495,01312,229

OICA[35] defines these entries as follows:

Company relationships

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:

Top vehicle manufacturing groups by volume

The table below shows the world's largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by 2013 production figures from the International Organization of Motor Vehicle Manufacturers (OICA)[34] for the parent group, and then alphabetically by marque. Joint ventures are not reflected in this table. Production figures of joint ventures are typically included in OICA rankings, which can become a source of controversy.[36][37]

Marque Country of origin Ownership Markets
1. Toyota Motor Corporation ( Japan)
DaihatsuJapan SubsidiaryEurope, Asia (except South Korea), Africa, and South America
HinoJapan SubsidiarySouth East Asia, Japan, North America (except United States) and South America
LexusJapan Business UnitSouth East Asia, Japan, Middle East, United States, Canada, Europe, Brazil, Costa Rica, Panama, Chile, Australia, New Zealand, South Africa, India
RanzChina Business UnitChina
ScionJapan DivisionUnited States, Canada
ToyotaJapan DivisionGlobal, except Iran
2. General Motors Company ( United States)
BuickUnited States Business UnitUnited States, Canada, Mexico, China, Israel
CadillacUnited States Business UnitNorth America, Europe, Middle East, China, Japan, South Korea
ChevroletUnited States Business UnitGlobal, except Australia, New Zealand
GMCUnited States Business UnitNorth America, Middle East (except Israel)
Holden Australia SubsidiaryAustralia, New Zealand
JieFangChina Business UnitChina
Opel Germany Business UnitEurope (except UK), North Africa, South Africa, Middle East, China, Singapore, Chile
Vauxhall United Kingdom Business UnitUnited Kingdom
UzDaewoo Uzbekistan Business UnitCentral Asia, Russia
WulingChina Business UnitChina
3. Volkswagen Group AG ( Germany)
AudiGermany SubsidiaryGlobal, except Iran
BentleyUnited Kingdom SubsidiaryGlobal
BugattiFrance SubsidiaryGlobal
LamborghiniItaly SubsidiaryGlobal
MANGermany SubsidiaryGlobal, except North America and Australia
PorscheGermany SubsidiaryGlobal, except Iran
SEATSpain SubsidiaryEurope, Central America, South America, Middle East and Northern Africa
ŠkodaCzech Republic SubsidiaryEurope, Asia, Central America (including Dominican Republic), South America, Northern and western Africa, Australia, New Zealand
VolkswagenGermany DivisionGlobal
Volkswagen Commercial VehiclesGermany SubsidiaryEurope, Central America, South America, Australia, China
VTBBrazil Business UnitBrazil, Mexico, Nigeria, South Africa
4. Hyundai Motor Group ( South Korea)
GenesisSouth Korea Business UnitSouth Korea, China, North America and Middle East
HyundaiSouth Korea DivisionGlobal
KiaSouth Korea SubsidiaryGlobal, except Japan
5. Ford Motor Company ( United States)
FordUnited States DivisionGlobal
LincolnUnited States Business UnitUnited States, Canada, Mexico, Middle East, Japan, South Korea, China
Troller Brazil SubsidiarySouth America, Africa
6. Nissan ( Japan)
DatsunJapan DivisionIndonesia, India, Russia, South Africa
InfinitiJapan SubsidiaryGlobal, except Japan, Korea, South America and Africa
NissanJapan DivisionGlobal
VenuciaChina Business UnitChina
7. Fiat Chrysler Automobiles ( Italy /  United States)
AbarthItaly SubsidiaryGlobal, except Iran
Alfa RomeoItaly SubsidiaryGlobal, except Iran, China, Taiwan and the Philippines
ChryslerUnited States DivisionGlobal, except Europe (excluding UK and Ireland), Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines)
DodgeUnited States DivisionGlobal, except Europe, Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines)
FerrariItaly SubsidiaryGlobal, except Iran
Fiat Italy SubsidiaryGlobal, except Africa (excluding South Africa), Iran, South East Asia and Canada
Fiat Professional Italy Business UnitGlobal, except Africa (excluding South Africa), Iran, South East Asia, United States, Canada
JeepUnited States DivisionGlobal, except Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines)
LanciaItaly DivisionEurope (excluding UK and Ireland)
MaseratiItaly SubsidiaryGlobal
RamUnited States DivisionUnited States, Canada, Mexico, Brazil, Middle East, Peru
8. Honda Motor Company ( Japan)
AcuraJapan DivisionUnited States, Canada, Mexico, China
EverusChina Business UnitChina
HondaJapan DivisionGlobal
9. Suzuki Motor Corporation ( Japan)
SuzukiJapan DivisionGlobal, except USA, Canada, North Korea and South Korea
Maruti SuzukiIndia SubsidiaryIndia, Middle East, South America
10. PSA Peugeot Citroën S.A. ( France)
CitroënFrance SubsidiaryEurope, Central and South America, Northern and Western Africa, South Africa, Madagascar, Australia, New Zealand, Asia (except India, Pakistan and Bangladesh)
PeugeotFrance SubsidiaryGlobal, except USA, Canada, India, Pakistan and Bangladesh
DSFrance SubsidiaryWorldwide, except United States, Canada, Mexico, and South Asia but including Malaysia

Car makes and their parent companies

The table below lists most car makes and their parent companies.

Make Parent (Owner) Parent Country
Abarth Fiat Chrysler Automobiles  Italy
Acura Honda  Japan
Alfa Romeo Fiat Chrysler Automobiles  Italy/ United States
Alpheon General Motors  United States
Aston Martin Aston Martin  United Kingdom
Audi Volkswagen Group  Germany
Baojun SAIC-GM-Wuling  China/ United States
Bentley Volkswagen Group  Germany
BMW BMW  Germany
Brilliance Brilliance  China
Bugatti Volkswagen Group  Germany
Buick General Motors  United States
Cadillac General Motors  United States
Caterham Caterham  United Kingdom
Chang'an Chang'an  China
Chevrolet General Motors  United States
Chrysler Fiat Chrysler Automobiles  Italy/ United States
Citroën PSA Peugeot Citroën  France
Dacia Renault  France
Daihatsu Toyota  Japan
Datsun Nissan  Japan
Dodge Fiat Chrysler Automobiles  Italy/ United States
Dongfeng Dongfeng  China
DS PSA Peugeot Citroën  France
Fengshen Dongfeng  China
Ferrari Fiat Chrysler Automobiles  Italy/ United States
Fiat Fiat Chrysler Automobiles  Italy/ United States
Fisker Wanxiang  China
Ford Ford  United States
Geely Geely  China
Genesis Hyundai Motor Group  South Korea
GMC General Motors  United States
Hino Motors Toyota  Japan
Holden (HSV) General Motors  United States
Honda Honda  Japan
Hyundai Hyundai Motor Group  South Korea
Infiniti Nissan  Japan
Isuzu Isuzu Motors  Japan
Jaguar Tata Motors  India
Jeep Fiat Chrysler Automobiles  Italy/ United States
Jie Fang FAW Jie Fang / FAW-GM  China/ United States
Koenigsegg Koenigsegg  Sweden
Kia Hyundai Motor Group  South Korea
Lada AvtoVAZ  Russia
Lamborghini Volkswagen Group  Germany
Lancia Fiat Chrysler Automobiles  Italy/ United States
Land Rover Tata Motors  India
Lexus Toyota  Japan
Lincoln Ford  United States
Lotus PROTON  Malaysia
LTI Geely  China
Luxgen Yulon Motor  Taiwan
Maserati Fiat Chrysler Automobiles  Italy/ United States
Mastretta Mastretta  Mexico
Maybach Daimler AG  Germany
Mazda Mazda  Japan
McLaren McLaren Automotive  United Kingdom
Mercedes-Benz Daimler AG  Germany
MG SAIC Motor  China
Mini BMW  Germany
Mitsubishi Mitsubishi  Japan
Morgan Morgan Motor Company  United Kingdom
Nissan Nissan  Japan
Noble Peter Dyson  United Kingdom
Opel General Motors  United States
Pagani Pagani Automobili  Italy
Perodua Perodua  Malaysia
Peugeot PSA Peugeot Citroën  France
Porsche Volkswagen Group  Germany
PROTON PROTON  Malaysia
Ram Fiat Chrysler Automobiles  Italy/ United States
Renault Renault  France
Roewe SAIC Motor  China
Rolls Royce BMW  Germany
Saleen Saleen  United States
Samand Iran Khodro (IKCO)  Iran
Renault Samsung Motors Renault  France
Saab National Electric Vehicle Sweden (NEVS)  Sweden
Scion Toyota  Japan
SEAT Volkswagen Group  Germany
Senova BAIC Motor  China
Škoda Volkswagen Group  Germany
Smart Daimler AG  Germany
SsangYong Mahindra & Mahindra  India
Subaru Fuji Heavy Industries  Japan
Suzuki Suzuki  Japan
Tata Tata Motors  India
Tesla Tesla  United States
Tiba/Miniator Saipa  Iran
Toyota Toyota  Japan
Vauxhall General Motors  United States
Venucia Dongfeng-Nissan  China/ Japan
Volkswagen Volkswagen Group  Germany
Volvo Geely  China
Wuling SAIC-GM-Wuling  China/ United States

See also

References

  1. "automotive industry". Encyclopaedia Britannica. Retrieved 25 March 2014.
  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. "U.S. Makes Ninety Percent of World's Automobiles". Popular Science 115 (5): 84. November 1929. Retrieved 6 August 2013.
  4. "2012 Production Statistics". OICA. Retrieved 6 August 2013.
  5. Aichner, T.; Coletti, P (2013). "Customers' online shopping preferences in mass customization". Journal of Direct, Data and Digital Marketing Practice 15 (1): 20–35.
  6. "ISO 26262-10:2012 Road vehicles -- Functional safety -- Part 10: Guideline on ISO 26262". International Organization for Standardization. Retrieved 25 March 2014.
  7. "Automobile Industry Introduction". Plunkett Research. 2008. Retrieved 25 March 2014.
  8. 1 2 Khor, Martin. "Developing economies slowing down". twnside.org.sg. Archived from the original on 13 October 2012. Retrieved 21 July 2015.
  9. "2014 Global Automotive Consumer Study : Exploring consumer preferences and mobility choices in Europe" (PDF). Deloittelcom. Retrieved 2015-07-03.
  10. Eisenstein, Paul A. "Building BRIC's: 4 Markets Could Soon Dominate the Auto World". TheDetroitBureau.com.
  11. Bertel Schmitt (15 February 2011). "Auto industry sets new world record". The Truth About Cars. Retrieved 7 August 2011.
  12. "Global Automotive Outlook for 2011 Appears Positive as Mature Auto Markets Recover, Emerging Markets Continue to Expand". J.D. Power and Associates. 15 February 2011. Retrieved 7 August 2011.
  13. "U.S. vehicle sales peaked in 2000". thecherrycreeknews.com. 2015-05-27. Retrieved 2015-06-18.
  14. "Table 1-23: World Motor Vehicle Production, Selected Countries (Thousands of vehicles) | Bureau of Transportation Statistics". Rita.dot.gov. Retrieved 2015-07-03.
  15. "Arno A. Evers FAIR-PR". Hydrogenambassadors.com. Retrieved 2015-07-03.
  16. 1 2 "1998 - 1997 WORLD MOTOR VEHICLE PRODUCTION BY TYPE AND ECONOMIC AREA" (pdf). oica.net. Retrieved 21 July 2015.
  17. "1999 Production Statistics". oica.net.
  18. "2000 Production Statistics". oica.net.
  19. "2001 Production Statistics". oica.net.
  20. "2002 Production Statistics". oica.net.
  21. "2003 Production Statistics". oica.net.
  22. "2004 Production Statistics". oica.net.
  23. "2005 Production Statistics". oica.net.
  24. "2006 Production Statistics". oica.net.
  25. "2007 Production Statistics". oica.net.
  26. "2008 Production Statistics". oica.net.
  27. "2009 Production Statistics". oica.net.
  28. "2010 Production Statistics". oica.net.
  29. "2011 Production Statistics". oica.net.
  30. "2012 Production Statistics". oica.net.
  31. "2013 Production Statistics". oica.net.
  32. "2014 Production Statistics". oica.net.
  33. "Who exported Cars in 2012? | The Atlas Of Economic Complexity". Atlas.cid.harvard.edu. Retrieved 2015-07-03.
  34. 1 2 "World Motor Vehicle Production: World Ranking of Manufacturers Year 2013" (PDF). OICA. Retrieved 2014-11-23.
  35. "Definitions" (PDF). OICA. Retrieved 25 March 2014.
  36. "GM Slips to Number Two Worldwide, Ford to Fourth". The Truth About Cars. Archived from the original on 13 May 2010. Retrieved 2010-06-12.
  37. "TTAC Announces World's Top Ten Automakers". The Truth About Cars. Archived from the original on 5 June 2010. Retrieved 2010-06-12.

External links

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