The Global Automotive Industry: An Overview
Dr Neil Ritsen (Senior Lecturer)
The Automotive industry –An introduction and brief history
The Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel (Dicken, 2007). The automotive industry we can divide in segments, the industry’s principal products are passenger automobiles (Luxury, utility, small cars and motorcycles) and light trucks, including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e., delivery trucks, armed forces battle tanks, heavy military trucks, and large transport trucks, heavy earth moving cranes, bulldoggers, often called semis), agriculture vehicles (i.e. Tractor, combines) and power solutions (i.e. heavy generators, Snow throwers, lawnmowers, Tillers, Water pumps ,Fishing boats, Marine Gen sets, Sailing vessels, Speed boats, General purpose engines (Aghabayk, Sarvi, & Young, 2012). Honda (japan) and Ashoka Leyland (India) are good examples of companies involves in both business, moving automobile vehicles and power solutions.. Passenger cars are a large and attractive segment of automobile industry, so main focus on will be the car industry.
The Automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters. The automotive industry is a huge contributor to the wellbeing of people and society, with millions of people living from the automobile (OICA 2014), while the vehicle manufacturing industry is an intervened network of mainly powerful