Automotive industry
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]
Contents
History
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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
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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
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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
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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
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
This map showing only gross export amount. USA was the largest net importer, also UK and France are net importers.
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| « previous year — Top 20 motor vehicle producing countries 2013 — next year » |
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By manufacturer
Rank of manufacturers by production in 2013[34]
| Rank | Group | Country | Total | Cars | LCV | HCV | Heavy Bus |
|---|---|---|---|---|---|---|---|
| 1 | Toyota |  Japan |
10,324,995 | 8,565,176 | 1,481,722 | 272,411 | 5,686 |
| 2 | General Motors |  United States |
9,628,912 | 6,733,192 | 2,890,958 | 4,762 | |
| 3 | Volkswagen |  Germany |
9,379,229 | 9,259,506 | 119,723 | ||
| 4 | Hyundai |  South Korea |
7,233,080 | 6,909,194 | 242,021 | 67,290 | 14,575 |
| 5 | Ford | United States |
6,077,126 | 3,317,048 | 2,667,220 | 92,858 | |
| 6 | Nissan | Japan |
4,950,924 | 4,090,677 | 837,331 | 22,916 | |
| 7 | Fiat Chrysler Automobiles |  Italy / United States |
4,681,704 | 2,163,040 | 2,350,697 | 124,131 | 43,836 |
| 8 | Honda | Japan |
4,298,390 | 4,263,239 | 35,151 | ||
| 9 | Suzuki | Japan |
2,842,133 | 2,452,573 | 389,560 | ||
| 10 | PSA Peugeot Citroën |  France |
2,833,781 | 2,445,889 | 387,892 | ||
| 11 | Renault | France |
2,704,675 | 2,347,913 | 356,762 | ||
| 12 | BMW | Germany |
2,006,366 | 2,006,366 | |||
| 13 | SAIC |  China |
1,992,250 | 1,685,392 | 231,374 | 74,431 | 1,053 |
| 14 | Daimler | Germany |
1,781,507 | 1,631,502 | 150,005 | ||
| 15 | Mazda | Japan |
1,264,173 | 1,175,443 | 88,730 | ||
| 16 | Dongfeng | China |
1,238,948 | 642,092 | 226,319 | 357,414 | 13,123 |
| 17 | Mitsubishi | Japan |
1,229,441 | 1,090,571 | 135,306 | 3,564 | |
| 18 | Changan | China |
1,109,889 | 873,794 | 166,056 | 70,039 | |
| 19 | Tata |  India |
1,062,654 | 650,708 | 279,511 | 117,425 | 15,010 |
| 20 | Geely | China |
969,896 | 969,896 | |||
| 21 | BAIC | China |
918,879 | 243,437 | 285,947 | 384,425 | 5,070 |
| 22 | Fuji | Japan |
808,919 | 808,919 | |||
| 23 | Brilliance | China |
782,904 | 479,335 | 264,210 | 39,359 | |
| 24 | FAW | China |
717,883 | 448,290 | 61,822 | 203,895 | 3,876 |
| 25 | Mahindra & Mahindra | India |
584,534 | 407,563 | 173,398 | 2,2337 | 1,236 |
| 26 | Great Wall | China |
557,564 | 430,423 | 127,141 | ||
| 27 | Isuzu | Japan |
532,966 | 36,094 | 494,907 | 1,965 | |
| 28 | JAC | China |
517,577 | 206,132 | 120,588 | 174,571 | 16,286 |
| 29 | BYD | China |
510,950 | 510,950 | |||
| 30 | AvtoVAZ |  Russia |
507,242 | 495,013 | 12,229 |
OICA[35] defines these entries as follows:
- Passenger cars are motor vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat.
- Light commercial vehicles (LCV) are motor vehicles with at least four wheels, used for the carriage of goods. Mass given in tons (metric tons) is used as a limit between light commercial vehicles and heavy trucks. This limit depends on national and professional definitions and varies between 3.5 and 7 tons. Minibuses, derived from light commercial vehicles, are used for the transport of passengers, comprising more than eight seats in addition to the driver's seat and having a maximum mass between 3.5 and 7 tons.
- Heavy trucks (HCV) are vehicles intended for the carriage of goods. Maximum authorised mass is over the limit (ranging from 3.5 to 7 tons) of light commercial vehicles. They include tractor vehicles designed for towing semi-trailers.
- Buses and coaches are used for the transport of passengers, comprising more than eight seats in addition to the driver's seat, and having a maximum mass over the limit (ranging from 3.5 to 7 tones) of light commercial vehicles.
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:[citation needed]
- AB Volvo and Eicher Motors has a 50-50% joint venture called VE Commercial Vehicles.
- Anadolu Group and Isuzu have a 50-50% joint venture called Anadolu Isuzu.
- Beijing Automotive Group has a joint venture with Daimler called Beijing Benz, both companies hold a 50-50% stake. both companies also have a joint venture called Beijing Foton Daimler Automobile. BAG also has a joint venture with Hyundai called Beijing Hyundai, both companies hold a 50-50% stake.
- BMW and Brilliance have a joint venture called BMW Brilliance. BMW owns a 50% stake, Brilliance owns a 40.5% stake, and the Shenyang municipal government owns a 9.5% stake.
- Chang'an Automobile Group has three joint ventures, one with PSA Peugeot Citroen(CAPSA), both hold a 50-50% stake, one with Suzuki(Changan Suzuki), both hold a 50-50% stake, and one with Ford and Mazda(Changan Ford Mazda), CAG holds a 50% stake, Ford holds a 35% stake, and Mazda holds a 15% stake. Chang'an and Ford have a joint venture called Chang'an Ford Nanjing. Jiangling and Chang'an have a joint venture called Jiangxi Jiangling.
- Chery has a joint venture with Tata Motors called Chery Jaguar Land Rover, both companies hold a 50-50% stake. Chery and Israel Corporation has a joint venture called Qoros, both companies hold a 50-50% stake.
- Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, an 89.29% stake in Mitsubishi Fuso Truck and Bus Corporation, a 6.75% stake in Tata Motors and a 3.1% in the Renault-Nissan Alliance, a 12% stake in Beijing Automotive Group, and an 85% stake in Master Motors. Daimler and BYD Auto have a joint venture called Denza, both companies hold a 50-50% stake.
- Dongfeng Motor Corporation and Nissan have a 50-50% joint venture called Venucia, and another 50-50% joint venture called Dongfeng Motor Company. Dongfeng and PSA Group have a 50-50% joint venture called Dongfeng Peugeot-Citroen, a 50-50% joint venture with Honda called Dongfeng Honda, a joint venture with AB Volvo called Dongfeng Nissan-Diesel,a 50-50% joint venture with Renault named Dongfeng Renault in Wuhan, which was founded in the end of 2013
- FCA holds a 90% stake in Ferrari, a 67% stake in Fiat Automobili Srbija and 37.8% of Tofaş with another 37.8% owned by Koç Holding.
- Fiat Automobili Srbija owns a 54% stake in Zastava Trucks.
- Fiat Industrial owns a 46% stake in Zastava Trucks.
- Ford Motor Company holds a 3% stake in Mazda, a 12.1% share in Aston Martin, a 49% share in Jiangling Motors. Ford and Navistar International have a 50-50 joint venture called Blue Dimond Truck. Ford and Sollers JSC have a 50-50 joint venture called Ford Sollers. Both Ford and Koç Holding own a 41% stake in Ford Otosan. Ford and Lio Ho Group hanve a joint venture called Ford Lio Ho, Ford owns 70% and Lio Ho Group owns 30%.
- FAW Group and GM has a 50-50 joint venture called FAW-GM, a 50-50 joint venture with Volkswagen Group called FAW-Volkswagen, and a 50-50 joint venture with Toyota called Sichuan FAW Toyota Motor and both companies also have another joint venture called Ranz. FAW Group owns 49% of Haima Automobile
- Fujian Motors Group holds a 15% stake in King Long. FMG, China Motor, and Daimler has a joint venture called Fujian Benz. FMG, China Motor, and Mitsubishi Motors has a joint venture called Soueast, FMG holds a 50% stake, and both China Motor and Mitsubishi Motors holds an equal 25% stake.
- Geely Automobile holds a 23% stake in Manganese Bronze Holdings.
- General Motors holds a 20% stake in Industries Mécaniques Maghrébines. General Motors and Shanghai Automotive Industry Corporation (SAIC), and has two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile. Both also hold an equal 50% stake in General Motors India Private Limited. And General Motors holds a 94% stake in GM Korea and SAIC Group holds a 6% stake. General Motors and UzAvtosanoat have a joint venture called GM Uzbekistan, UzAvtosanoat owns 75% and General Motors owns 25%. General Motors and UzAvtosanoat also have a joint venture called UzDaewooAvto both each hold a 50-50 stake. GM, AvtoVAZ, and EBRD have a joint venture called GM-AvtoVAZ, Both GM and AvtoVAZ owns 41.61% and EBRD owns 16.76%.
- Hyundai Motor Group and Kibar Holding has a joint venture called Hyundai Assan Otomotiv, Hyundai Motor Group owns 70% and Kibar Holding owns 30%.
- Isuzu and General Motors has a 50-50% joint venture called Isuzu Truck South Africa. Isuzu owns 10% of Industries Mécaniques Maghrébines. Isuzu, Sollers JSC, and Imperial Sojitz have a joint venture called Sollers-Isuzu, Sollers JSC owns66%, Isuzu owns 29%, and Imperial Sojitz owns 5%.
- Mahindra & Mahindra and Navistar International has a joint venture called Mahindra Trucks and Buses Limited. Mahindra & Mahindra owns 51% and Navistar International owns 49%.
- MAN SE holds a 17.01% voting stake in Scania. MAN and UzAvtosanoat have a joint venture called MAN Auto-Uzbekistan, UzAvtosanoat owns 51% and MAN owns 49%.
- Marcopolo owns 19% of New Flyer Industries.
- Navistar International and JAC has a joint venture called Anhui Jianghuai Navistar.
- Nissan owns 43% of Nissan Shatai.
- Porsche Automobil Holding SE has a 50.74% voting stake in Volkswagen Group. The Porsche automotive business is fully owned by the Volkswagen Group.
- PSA Peugeot Citroen and Toyota have a 50-50% joint venture called Toyota Peugeot Citroen Automobile Czech, and another joint venture with Chang'an called Chang'an PSA automobile.
- Renault and Nissan Motors have an alliance( Renault-Nissan Alliance ) involving two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. The alliance holds a 3.1% share in Daimler AG.
- Renault holds a 25% stake in AvtoVAZ and an 80.1% stake in Renault Samsung.
- SAIPA holds a 51% stake in Pars Khodro.
- Sollers JSC is involved in Joint ventures with Ford(Ford Sollers) and Mazda to produce cars.
- Toyota holds a 51% stake in Daihatsu, 16.7% in Fuji Heavy Industries, parent company of Subaru, and a 10% stake in Tesla, .
- Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), a 53.7% stake in MAN SE (55.9% voting rights), and a 99.55% stake in the Audi Group. Volkswagen is integrating Scania, MAN and its own truck division into one division.
- Paccar inc. has a 19% stake in Tatra.
- Tata Motors also formed a joint venture with Fiat and gained access to Fiat's diesel engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Tata and Marcopolo have a Tata Marcopolo, Tata owns 51% and Marcopolo owns 49%.
- ZAP owns 51% of Zhejiang Jonway.
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) |
||||
| Daihatsu | |
Subsidiary | Europe, Asia (except South Korea), Africa, and South America | |
| Hino | |
Subsidiary | South East Asia, Japan, North America (except United States) and South America | |
| Lexus | |
Business Unit | South East Asia, Japan, Middle East, United States, Canada, Europe, Brazil, Costa Rica, Panama, Chile, Australia, New Zealand, South Africa, India | |
| Ranz | |
Business Unit | China | |
| Scion | |
Division | United States, Canada | |
| Toyota | |
Division | Global, except Iran | |
| 2. General Motors Company ( United States) |
||||
| Buick | |
Business Unit | United States, Canada, Mexico, China, Israel | |
| Cadillac | |
Business Unit | North America, Europe, Middle East, China, Japan, South Korea | |
| Chevrolet | |
Business Unit | Global, except Australia, New Zealand | |
| GMC | |
Business Unit | North America, Middle East (except Israel) | |
| Holden |  |
Subsidiary | Australia, New Zealand | |
| JieFang | |
Business Unit | China | |
| Opel | |
Business Unit | Europe (except UK), North Africa, South Africa, Middle East, China, Singapore, Chile | |
| Vauxhall |  |
Business Unit | United Kingdom | |
| UzDaewoo |  |
Business Unit | Central Asia, Russia | |
| Wuling | |
Business Unit | China | |
| 3. Volkswagen Group AG ( Germany) |
||||
| Audi | |
Subsidiary | Global, except Iran | |
| Bentley | |
Subsidiary | Global | |
| Bugatti | |
Subsidiary | Global | |
| Lamborghini | |
Subsidiary | Global | |
| MAN | |
Subsidiary | Global, except North America and Australia | |
| Porsche | |
Subsidiary | Global, except Iran | |
| SEAT |  |
Subsidiary | Europe, Central America, South America, Middle East and Northern Africa | |
| Škoda |  |
Subsidiary | Europe, Asia, Central America (including Dominican Republic), South America, Northern and western Africa, Australia, New Zealand | |
| Volkswagen | |
Division | Global | |
| Volkswagen Commercial Vehicles | |
Subsidiary | Europe, Central America, South America, Australia, China | |
| VTB |  |
Business Unit | Brazil, Mexico, Nigeria, South Africa | |
| 4. Hyundai Motor Group ( South Korea) |
||||
| Genesis | |
Business Unit | South Korea, China, North America and Middle East | |
| Hyundai | |
Division | Global | |
| Kia | |
Subsidiary | Global, except Japan | |
| 5. Ford Motor Company ( United States) |
||||
| Ford | |
Division | Global | |
| Lincoln | |
Business Unit | United States, Canada, Mexico, Middle East, Japan, South Korea, China | |
| Troller | |
Subsidiary | South America, Africa | |
| 6. Nissan ( Japan) |
||||
| Datsun | |
Division | Indonesia, India, Russia, South Africa | |
| Infiniti | |
Subsidiary | Global, except Japan, Korea, South America and Africa | |
| Nissan | |
Division | Global | |
| Venucia | |
Business Unit | China | |
| 7. Fiat Chrysler Automobiles ( Italy / United States) |
||||
| Abarth | |
Subsidiary | Global, except Iran | |
| Alfa Romeo | |
Subsidiary | Global, except Iran, China, Taiwan and the Philippines | |
| Chrysler | |
Division | Global, except Europe (excluding UK and Ireland), Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines) | |
| Dodge | |
Division | Global, except Europe, Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines) | |
| Ferrari | |
Subsidiary | Global, except Iran | |
| Fiat | |
Subsidiary | Global, except Africa (excluding South Africa), Iran, South East Asia and Canada | |
| Fiat Professional | |
Business Unit | Global, except Africa (excluding South Africa), Iran, South East Asia, United States, Canada | |
| Jeep | |
Division | Global, except Africa (excluding South Africa and Egypt), South Asia, South East Asia (including the Philippines) | |
| Lancia | |
Division | Europe (excluding UK and Ireland) | |
| Maserati | |
Subsidiary | Global | |
| Ram | |
Division | United States, Canada, Mexico, Brazil, Middle East, Peru | |
| 8. Honda Motor Company ( Japan) |
||||
| Acura | |
Division | United States, Canada, Mexico, China | |
| Everus | |
Business Unit | China | |
| Honda | |
Division | Global | |
| 9. Suzuki Motor Corporation ( Japan) |
||||
| Suzuki | |
Division | Global, except USA, Canada, North Korea and South Korea | |
| Maruti Suzuki | |
Subsidiary | India, Middle East, South America | |
| 10. PSA Peugeot Citroën S.A. ( France) |
||||
| Citroën | |
Subsidiary | Europe, Central and South America, Northern and Western Africa, South Africa, Madagascar, Australia, New Zealand, Asia (except India, Pakistan and Bangladesh) | |
| Peugeot | |
Subsidiary | Global, except USA, Canada, India, Pakistan and Bangladesh | |
Car makes and their parent companies
The table below lists most car makes and their parent companies.
See also
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- Alliance of Automobile Manufacturers
- Automotive industry by country
- Automotive industry crisis of 2008–10
- Automotive market in the United States
- Big Three (automobile manufacturers)
- Effects of the 2008–10 automotive industry crisis on the United States
- List of countries by motor vehicle production
- Motocycle
- List of largest automotive companies by revenue
References
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External links
 |
Look up automotive industry in Wiktionary, the free dictionary. |
 |
Wikimedia Commons has media related to Automotive industry. |
|
Automotive industry
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