Automotive industry

Automotive industry

The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.

Contents

History

The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 (from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle;. Bernardi enlarged the tricycle in 1892 to carry two adults.

Until 2005, the U.S.A. was leading the world in total automobile production. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2008. In 2009, China took the top spot with 13.78 million units produced. With 18.3 million units produced 2010, China produced nearly twice the amount of second place Japan (9.6 million units), the U.S. trailed in place 3 with 7.8 million units.


Economy

About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion gallons of gasoline and diesel fuel yearly. 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). Other potentially powerful automotive markets are Iran and Indonesia. 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 expects this trend to accelerate.

World motor vehicle production

By year

Global production of motorvehicles

(cars and commercial vehicles)

Year Production Change Source
1997 52,987,000  
1998 57,987,000 -2.70%
1999 56,258,892 2.98%
2000 58,374,162 3.80%
2001 56,304,925 -3.50%
2002 58,994,318 4.80%
2003 60,663,225 2.80%
2004 64,496,220 6.30%
2005 66,482,439 3.10%
2006 69,222,975 4.10%
2007 73,266,061 5.80%
2008 70,520,493 -3.70%
2009 60,986,985 -13.50%
2010 77,857,705 26.00%


By country

By manufacturer


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:

  • Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, a 10% stake in Tesla Motors, a 6.75% stake in Tata Motors and a 3.1% in the Renault-Nissan Motors alliance. They are in the process of selling back their 40% stake (11% remaining) in McLaren Group. This process will be finalized in 2011.
  • Dongfeng Motor Corporation is involved in joint ventures with several companies around the world, including: Honda (Japan), Hyundai (South Korea), Nissan (Japan), Nissan Diesel (Sweden), and PSA Peugeot Citroen (France).
  • Fiat holds a 90% stake in Ferrari and a 53.5% stake in Chrysler.
  • Ford Motor Company holds a 3% stake in Mazda and an 8.3% share in Aston Martin.
  • Geely Automobile holds a 23% stake in Manganese Bronze Holdings.
  • General Motors and Shanghai Automotive Industry Corporation (SAIC) have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile.
  • Hyundai Kia Automotive Group holds a 38.67% stake in Kia Motors, down from the 51% that it acquired in 1998.
  • MAN SE holds a 17.01% voting stake in Scania.
  • Porsche Automobil Holding SE has a 50.74% stake in Volkswagen Group. Due to liquidity problems, Volkswagen Group is now in the process of acquiring Porsche.
  • Renault and Nissan Motors have an 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 20.5% of the voting stakes in Volvo Group.
  • Toyota holds a 51% stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru.
  • Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 53.7% stake in MAN SE (55.9% voting rights). Volkswagen is integrating Scania, MAN and its own truck division into one division.
  • Volkswagen Group has a 49.9% stake in Porsche AG. Volkswagen is in the process of acquiring Porsche, which will be completed in late 2011.
  • Volkswagen Group has a 19.9% stake in Suzuki, and Suzuki has a 5% stake in Volkswagen.

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 2010 end of year production figures from the International Organization of Motor Vehicle Manufacturers (OICA) 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.

Marque Country of origin Ownership Markets
1. Toyota Motor Corporation ( Japan)
Daihatsu Japan Subsidiary Global, except North America and Australia
Hino Japan Subsidiary Asia Pacific, North America and South America
Lexus Japan Division Global
Scion United States Division North America
Toyota Japan Division Global
2. General Motors Company ( United States)
Buick United States Division North America, China, Israel, Taiwan
Cadillac United States Division North America, Europe, Asia, Middle East, Africa
Chevrolet United States Division Global, except Australia, New Zealand
GMC United States Division North America, Middle East
Holden Australia Subsidiary Australia, New Zealand
Opel Germany Subsidiary Global, except North America, United Kingdom, Australasia
Vauxhall United Kingdom Subsidiary United Kingdom
3. Volkswagen Group AG ( Germany)
Audi Germany Subsidiary Global
Bentley United Kingdom Subsidiary Global
Bugatti France Subsidiary Global
Lamborghini Italy Subsidiary Global
Scania Sweden Subsidiary Global
SEAT Spain Subsidiary Europe, South America, North Africa, Middle East
Škoda Czech Republic Subsidiary Global, except North America, Japan and South Africa
Volkswagen Germany Subsidiary Global
Volkswagen Commercial Vehicles Germany Subsidiary Global
4. Hyundai Kia Automotive Group ( South Korea)
Hyundai South Korea Division Global
Kia South Korea Division Global, except Mexico
5. Ford Motor Company ( United States)
Ford United States Division Global
Lincoln United States Division North America, Middle East, Japan, South Korea
6. Nissan ( Japan)
Infiniti Japan Division Global, except Japan, South America and Africa
Nissan Japan Division Global
7. Honda Motor Company ( Japan)
Acura United States Division North America, China
Honda Japan Division Global
8. PSA Peugeot Citroën S.A. ( France)
Citroën France Subsidiary Global, except North America, South Asia
Peugeot France Subsidiary Global, except North America, South Asia
9. Suzuki Motor Corporation ( Japan)
Maruti Suzuki India Subsidiary India, Middle East, South America
Suzuki Japan Division Global
10. Renault ( France)
Dacia Romania Subsidiary Europe, Latin America, Africa, Asia, except Japan
Renault France Division Global, except North America, South Korea
Renault Samsung South Korea Subsidiary South America, Asia, except Japan and China
11. Fiat S.p.A. ( Italy)
Abarth Italy Subsidiary Global, except North America
Alfa Romeo Italy Subsidiary Global
Ferrari Italy Subsidiary Global
Fiat Italy Subsidiary Global
Fiat Professional Italy Subsidiary Global, except North America and Japan
Lancia Italy Subsidiary Europe (except UK and Republic of Ireland) and Japan
Maserati Italy Subsidiary Global
12. Daimler AG ( Germany)
Freightliner United States Division North America, South Africa, Australia, New Zealand
Master Pakistan Subsidiary Pakistan
Maybach Germany Division Global
Mercedes-Benz Germany Division Global
Mitsubishi Fuso Japan Subsidiary Global
Orion Canada Subsidiary North America
Setra Germany Subsidiary Europe
Smart Germany Division North America, Europe, Japan, South East Asia, South Africa
Thomas Built United States Subsidiary North America
Western Star United States Subsidiary North America, Australia, New Zealand
13. Chrysler Group, LLC ( United States)
Chrysler United States Division Global
Dodge United States Division Global
Jeep United States Division Global
Ram United States Division North America
14. BMW AG ( Germany)
BMW Germany Division Global
MINI United Kingdom Division Global
Rolls-Royce United Kingdom Subsidiary Global
15. Mazda Motor Corporation ( Japan)
Mazda Japan Division Global
16. Mitsubishi Motors Corporation ( Japan)
Mitsubishi Japan Division Global
17. Chana Automobile Company, Ltd ( People's Republic of China)
Chana People's Republic of China Division China, South Africa, Europe
18. Tata Motors, Ltd ( India)
Hispano Spain Subsidiary Europe
Jaguar United Kingdom Subsidiary Global
Land Rover United Kingdom Subsidiary Global
Tata India Division Global, except North America
Tata Daewoo South Korea Subsidiary South Korea
19. First Automotive Group Corporation ( People's Republic of China)
Besturn People's Republic of China Division China
Freewind People's Republic of China Subsidiary China
Haima People's Republic of China Subsidiary China
Hongqi People's Republic of China Division China
Jiaxing People's Republic of China Subsidiary China
Vita People's Republic of China Subsidiary China
Xiali People's Republic of China Subsidiary China
20. Geely Automobile ( People's Republic of China)
Geely People's Republic of China Division China, Russia, North Africa
Maple People's Republic of China Division China
Volvo (Cars) Sweden Subsidiary Global
21. Chery Automobile Company, Ltd ( People's Republic of China)
Chery People's Republic of China Division China, Africa, South East Asia, Russia
Riich People's Republic of China Division China
Rely People's Republic of China Division China
22. Fuji Heavy Industries, Ltd ( Japan)
Subaru Japan Division Global
23. Dongfeng Motor Corporation ( People's Republic of China)
Dongfeng People's Republic of China Division China
24. Beijing Automotive Industry Holding Corporation, Ltd ( People's Republic of China)
BAW People's Republic of China Division China
Foton People's Republic of China Subsidiary China
25. OAO AvtoVAZ ( Russia)
Lada Russia Division Global, except North America and Portugal
VAZ Russia Division Russia
26. BYD Auto ( People's Republic of China)
BYD People's Republic of China Division China, Russia
27. Isuzu Motors, Ltd ( Japan)
Isuzu Japan Division Global, except North America
28. Anhui Jianghuai Automobile Company, Ltd ( People's Republic of China)
JAC People's Republic of China Division China
29. Brilliance China Automotive Holding, Ltd ( People's Republic of China)
Brilliance People's Republic of China Division China, North Africa
Jinbei People's Republic of China Subsidiary China
30. Great Wall Motor Company, Ltd ( People's Republic of China)
Great Wall People's Republic of China Division China, South Africa, Russia, North Africa, Australia
Litex Motors Bulgaria Subsidiary Europe
31. Shanghai Automotive Industry Corporation ( People's Republic of China)
MG United Kingdom Subsidiary United Kingdom, Chile, Argentina, China
Roewe People's Republic of China Division China
Soyat People's Republic of China Division China
Yuejin People's Republic of China Division China
32. Mahindra & Mahindra, Ltd ( India)
Mahindra India Division India, South East Asia, Europe, North Africa, North America
SsangYong** South Korea Subsidiary Global
33. Hafei Motor ( China)
Hafei People's Republic of China Subsidiary China
34. AB Volvo ( Sweden)
Mack United States Subsidiary Global
Nissan Diesel Japan Subsidiary Global
NovaBus Canada Subsidiary North America
Prevost Canada Subsidiary North America
Renault (trucks) France Subsidiary Global, except Japan
Volvo (trucks) Sweden Division Global
35. Jiangxi Changhe Automobile ( China)
Changhe People's Republic of China Division China
36. Qingling Motors Company Ltd. ( China)
Qingling People's Republic of China Division China
37. Proton Holdings, Bhd ( Malaysia)
Proton Malaysia Division Asia Pacific (except Japan and South Africa), United Kingdom, Middle East
Lotus United Kingdom Subsidiary Global
38. Hunan Jiangnan Automobile ( People's Republic of China)
Jiangnan People's Republic of China Division China
39. MAN SE ( Germany)
MAN SE Germany Division Europe
40. Chongqing Lifan Automobile Company, Ltd ( People's Republic of China)
Lifan People's Republic of China Division China
41. Fujian Motor Industry Group Company ( People's Republic of China)
Soueast People's Republic of China Division China
42. Kuozui Motors, Ltd ( Taiwan)
Kuozui Republic of China Subsidiary Taiwan
43. Shandong Kaima ( China)
Kaima People's Republic of China Division China
Jubao People's Republic of China Division China
Aofeng People's Republic of China Division China
44. Porsche ( Germany)
Porsche Germany Subsidiary Global
45. Chenzhou Gonow Nanyan Chifeng Vehicle ( People's Republic of China)
Gonow People's Republic of China Division China
46. Ziyang Nanjun Automobile Co., Ltd. ( People's Republic of China)
Nanjun People's Republic of China Division China
47. Rongcheng Huatai Motor ( People's Republic of China)
Huatai People's Republic of China Division China

Notes

* Porsche Automobil Holding SE has a 50.7 percent share in the Volkswagen Group. However, Volkswagen Group will acquire Porsche AG, the automotive manufacturer under a new "Integrated Automotive Group". This merger/acquisition is expected to be fully completed in mid-2011.

** SsangYong Motor Company was acquired by India's Mahindra & Mahindra Limited in February 2011.

Minor automotive manufacturers

There are many automobile manufacturers other than the major global companies. They are mostly regional or operating in niche markets.

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See also

  • Alliance of Automobile Manufacturers
  • Automotive industry by country
  • Automotive industry crisis of 2008–2010
  • Automotive market
  • Big Three automobile manufacturers
  • Effects of the 2008-2009 automotive industry crisis on the United States
  • List of countries by motor vehicle production
  • Motocycle

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