The Automotive Industry



The automobile industry is one of the oldest in the world and parts manufacturing is a capital-intensive industry. The automobile industry has grown slowly but steadily for many years.

Statistics & Facts on the Global Automotive Industry

Global sales of passenger cars are forecast to hit 78.6 million vehicles in 2017. Along with China, the United States is counted among the largest automobile markets worldwide, both in terms of production and sales. About 6.9 million passenger cars were sold to U.S. customers in 2016, and around four million cars were produced here in the same year. The United States became a key automotive market in the early 1900s, when Ford introduced assembly line car production to mass-manufacture its Model T. Today, the Ford Motor Company still ranks among the leading manufacturers of passenger cars, its most popular passenger car model currently being the Ford Focus, which was also one of 2016’s best selling light vehicles worldwide. In terms of revenue, Toyota, Volkswagen, and Daimler topped the list of major automobile makers in 2016, while the automotive supplier industry was dominated by Bosch, Continental, Denso and Magna. 
Prompted by global initiatives, such as the Paris Agreement, several countries around the globe are enacting stricter emissions controls on new vehicle models. As such, automakers are beginning to expand their business into the electric mobility sector. Germany is expected to lead the way with projected electric car production to reach some 1.3 million units by 2021.

Over the next decade, Internet-connected car technologies and autonomous vehicles are set to stir up yet another revolution in the automotive sector. In 2016, some 40 percent of U.S. respondents stated that they were willing to use fully autonomous vehicles, presumably because they consider autonomous vehicles to be safer than conventional cars. The global market for autonomous driving hardware components is expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S. dollars in 2030.

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Statistic worldwide car sales 1990 2017

Statistic worldwide car sales 1990 2017 – Source: Scotiabank – Copyright Statista 2017

Industry Participants

 The automobile industry is a matured industry characterized by high volume and many competitors. Despite the pulverized complexion of the industry, leaders have emerged. Several have revenues in the hundreds of millions of dollars annually. Most automotive plants are located in three main regions of the world: North America, Asia and Europe.

Auto industry wrap up

Auto industry wrap up