The Automotive Industry’s primary products are passenger automobiles and light trucks. Light trucks include pickup trucks, vans and sports utility vehicles. Commercial trucks are secondary in the automotive industry. This industry covers all activities for involved in manufacturing of parts and fuel.
In terms of revenue size, the automotive industry is one of the most important industries to the world economy. For instance, 2016 marked the first time that over 70 million passenger cars were built within one year. In 2017, over 79 million cars were bought worldwide.
Germany leads the way in terms of exports of motor vehicles, amassing a total of $157.4 billion in exports, representing a massive 21.3% of total car exports. Germany is then followed by Japan, the United States, Canada and the United Kingdom.
The Automotive Industry first started in Europe thanks to the development of the gasoline engine in France and Germany who had been joined by the British and Italians. Before the gasoline engine, the first-powered vehicle was made in 1769. After, the United States dominated the industry for the first half of the 20th century. This was because of the invention of mass production. The process standardized cars and allowed for more interchangeability. This mass production began with the idea of the assembly line. The most popular car in history, the Model T, was one of the first cars made on an assembly line. It was known for being durable and low cost at the same time. The idea of the assembly line was made by Henry Ford. Today, General Motors Corporation (GM) is the world’s largest automotive firm.
Car pollution is one of the contributors to the downgrade of air conditions in major populated areas and CO2 emissions also contribute, for a small part, to Global Warming. As such, people have begun to place more and more importance on the development of electric vehicles.
The Automotive Industry is currently going through huge changes and developments and will continue to do so for the years to come.
It is currently predicted that electric vehicles will grow in number from 3 million (2018) to 125 million by 2030. This represents a huge shift, and will redefine the automotive industry.
Currently, Renault-Nissan are the biggest producer of electronic vehicles, closely followed by Elon Musk’s Tesla.
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