Global Automotive Industry Overview
The auto industry has a large network of organizations and companies, which are focused on all of these – manufacturing, developing, innovations, supplying, distributing and many other operation groups you can imagine. Being so vast and intensively advancing, the automotive industry is a large scale to handle and get educated quickly. It is a leading driver of global economic growth.
No matter what type of reader you are – just an admirer of automobiles and luxury vehicles, or a serious player in the vehicle sector, there are many facts, data, and information you need to learn and then follow. Indeed, all the data and facts aren’t actually constant, but dynamically changed through the years and even day by day.
Among all the Global motor vehicle industry's categories of vehicle, passenger cars were the largest segment, followed by commercial vehicle sales, according to OICA. The Automotive Parts and Supplies Industry (including the automotive aftermarket industry) is also an important part of the global automotive area. For instance, the tire industry is considered a challenging "sub-market" to operate in.
Key Automobile Industry Markets
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China’s motor vehicle production grew by 14.5% in 2016 to reach 28.1 million units, according to Ken Research, while Japan’s production grew by 2.3% from 2011 to 2015 to reach 7.8 million units (MarketLine). Volume in the U.S. grew by 8.7% between 2011 and 2015 to reach 4.2 million units according to MarketLine. Get to know the latest automotive manufacturers’ market shares in India, Brazil, China & Russia by subscribing to ReportLinker.
Key Automotive Market Players
Speaking of companies, we are entirely focused on the largest key players in the field. For this purpose, we plan to show you all the current and hot news, which are connected with such companies. According to Statista, Toyota (11% market share), General Motors (10.8%), and Volkswagen AG (10.7%) were the top three automotive manufacturers in the world in 2015.
Toyota, based in Japan, produces vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Scion. It was one of the first companies to mass-produce hybrid gasoline-electric vehicles.
General Motors is based in the United States. It produces popular brands like Chevrolet, Buick, GMC, and Cadillac.
Volkswagen, based in Germany, is a provider of passenger and commercial vehicles, motorcycles, engines, and turbo machinery. It sells passenger cars under the marques Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen. Western Europe and Asia-Pacific were the two largest regions for Volkswagen, according to the company.
Automobile Industry Sales Forecast
Overall, ReportLinker focuses on three main categories of car statistics: production, sales and trade. They are a part of the vast and dynamic world of cars, trucks, as well as leading companies and their manufacturing, selling, and trading strategies. Global automotive sales increased from by 3.5% from 2011 to 2015 to reach a total of 65.6 million units, according to MarketLine.
The U.S. automotive market will be driven by demand for lighter cars and vehicles "Made in America" like the Toyota Camry or the Chevrolet Traverse. In Western Europe, replacement of old cars and a rebound in small car sales will drive growth. The Asian market is expected to show variations. India is expected to see good growth under the new Modi administration. In China, however, there is a danger that the end of the credit boom might lead to a slow-down in car sales.
The future of the automotive market is also strongly influenced by different variables such as the evolution of technology that should improve overall road safety (e.g. smart headlights to prevent collision), the economic situation of auto-retailers responsible for a large par of worldwide sales and the new trends in both public and private road transportation systems.
Key Trends and Strategies to Generate Growth in the Car Industry
One of the numerous key trends in the automotive industry is the development of networked and smart cars. From 2016 to 2020, the global connected car market with grow at an annual rate of 32.26% according to Technavio. According to Machina, connected services to and from vehicles will reach a value of $400 billion by 2022. Automotive companies should invest in network technologies and develop partnerships with telecommunications companies in order to exploit this trend.
Automotive services will also be a key element in the automotive area development.
High fuel prices are one of the major challenges in the automotive industry (especially after studies have shown that some cars burn oil excessively). This is driving demand for low-emission cars. About 76% of automakers believe that internal combustion engine downsizing and optimization is an effective way to lower fuel usage, according to KPMG. Automotive companies should continue to develop more fuel-efficient engines to decrease fuel costs for customers and reduce pollution.
Environmental concerns about the impact of carbon fuels on the climate changes are driving the development of EV (Electric Vehicles), hybrid cars and fuel cell technology. Toyota introduced a fuel cell hybrid vehicle concept for its Prius model in 2015, while Honda (whose CEO tries to restore the company's reputation after another vehicle recall the same year) already has a model in the marketplace. Implementation of LED lights is also key for energy savings. Automotive manufacturers need to move fast to gain a place in this expanding market segment.