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Automotive industry
Organizations involved with motor vehicles

The automotive industry encompasses numerous companies and organizations involved in the design, manufacturing, marketing, selling, and repairing of motor vehicles. As one of the largest global industries by revenue, it contributes significantly to economies worldwide, ranging from 16% in France to 40% in Slovakia. The term automotive derives from the Greek autos (self) and Latin motivus (motion), reflecting self-powered vehicles. Coined by Elmer Sperry in 1898, it originally described automobiles, emphasizing innovation in transportation and industrial development.

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History

Main article: History of the automobile

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. In the 1960s, robotic equipment was introduced, 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 2024, China produced more than 31 million vehicles in a year, after breaking 30 million in 2023, reaching 29 million for the first time in 2017 and 28 million the year before. In 2024, China produced the most passenger cars in the world, with Japan, India, Germany, and South Korea trailing. This was achieved by Chinese car companies signing joint ventures with foreign manufacturers.8 From 1970 (140 models) to 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.9

Safety

Main article: Automobile safety

See also: 2009–2011 Toyota vehicle recalls, General Motors ignition switch recalls, and Firestone and Ford tire controversy

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.10

In case of safety issues, danger, product defect,1112 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

See also: Automotive industry by country

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.13 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.14 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.15 Other potentially powerful automotive markets are Iran and Indonesia.16 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.1718 However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.19 In the United States, vehicle sales peaked in 2000, at 17.8 million units.20

In July 2021, the European Commission released its "Fit for 55" legislation package,21 which contains important guidelines for the future of the automotive industry; all new cars on the European market must be zero-emission vehicles from 2035.22

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".2324 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.25

Environmental impacts

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

World motor vehicle production

By year

See also: List of countries by motor vehicle production

YearProductionChangeRef.
199754,434,000—28
199852,987,000 2.7%29
199956,258,892 6.2%30
200058,374,162 3.8%31
200156,304,925 3.5%32
200258,994,318 4.8%33
200360,663,225 2.8%34
200464,496,220 6.3%35
200566,482,439 3.1%36
200669,222,975 4.1%37
200773,266,061 5.8%38
200870,520,493 3.7%39
200961,791,868 12.4%40
201077,857,705 26.0%41
201179,989,155 3.1%42
201284,141,209 5.3%43
201387,300,115 3.7%44
201489,747,430 2.6%45
201590,086,346 0.4%46
201694,976,569 4.5%47
201797,302,534 2.36%48
201895,634,593 1.71%49
201991,786,861 5.2%50
202077,621,582 16%51
202180,145,988 3.25%52
202285,016,728 6.08%53

By country

Main article: Automotive industry 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).54

CountryProduced vehicles 202355
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

By manufacturer

Main article: List of manufacturers by motor vehicle production

See also: List of car brands

Top 10 (2016–2020)

These were the ten largest manufacturers by production volume as of 2017,56 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.57

Rank58GroupCountryProduced vehicles (2017)59Sold 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)61United 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 States4,600,8474,841,3664,612,673
9RenaultFrance4,153,5893,883,9873,749,815
10PSA Group (now part of Stellantis)France3,649,7424,126,3493,479,152

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.

Rank62GroupCountryProduced vehicles (2013)63Produced vehicles (2012)64Produced vehicles (2011)65
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 722662,336,954
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

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:

Joint ventures

China joint venture

Outside China

See also

Notes

Further reading

  • Ajitha, P. V., and Ankita Nagra. "An Overview of Artificial Intelligence in Automobile Industry–A Case Study on Tesla Cars." Solid State Technology 64.2 (2021): 503–512. online
  • Banerjee, Preeta M., and Micaela Preskill. "The role of government in shifting firm innovation focus in the automobile industry" in Entrepreneurship, 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 Environment 29.2 (2020): 727–743 online.
  • 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 Management 18.4 (2018): 345–370.
  • Chen, Yuan, C-Y. Cynthia Lin Lawell, and Yunshi Wang. "The Chinese automobile industry and government policy." Research in Transportation Economics 84 (2020): 100849. online
  • Clark, Kim B., et al. "Product development in the world auto industry." Brookings Papers on economic activity 1987.3 (1987): 729–781. online
  • Guzik, Robert, Bolesław Domański, and Krzysztof Gwosdz. "Automotive industry dynamics in Central Europe." in New 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." in Handbook 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 Management 20.2 (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 Paper Series 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 & innovation 15.4 (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." in Innovation, economic development, and intellectual property in India and China (Springer, Singapore, 2019) pp. 439–463.
  • Pavlinek, Petr (2025). Europe's Auto Industry: Global Production Networks and Spatial Change. Cambridge University Press. ISBN 9781009453196.
  • Qin, Yujie, Yuqing Xiao, and Jiawei Yuan. "The Comprehensive Competitiveness of Tesla Based on Financial Analysis: A Case Study." in 2021 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 Technology 11.6 (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." Energies 14.1 (2021): 78+ online
  • Ueno, Hiroya, and Hiromichi Muto. "The automobile industry of Japan." on Industry 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 Europe 13.1 (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 Engineering 135 (2019): 211–226. online
  • The dictionary definition of automotive industry at Wiktionary
  • Media related to Automotive industry at Wikimedia Commons

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  62. As of 2012 ↩

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