This document provides a summary of the global automobile industry. It begins with a brief history of the automobile starting in the late 18th century. It then discusses the growth of the industry globally and lists the top 10 automobile manufacturers as of 2008, led by Toyota, General Motors, and Volkswagen. The document examines industry trends, including the growth of emerging markets in China and India and the shift to more fuel-efficient vehicles. It provides an overview of the key developments and competitive landscape within the global automobile industry.
This document provides a summary of the global automobile industry. It begins with a brief history of the automobile starting in the late 18th century. It then discusses the growth of the industry globally and lists the top 10 automobile manufacturers as of 2008, led by Toyota, General Motors, and Volkswagen. The document examines industry trends, including the growth of emerging markets in China and India and the shift to more fuel-efficient vehicles. It provides an overview of the key developments and competitive landscape within the global automobile industry.
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This document provides a summary of the global automobile industry. It begins with a brief history of the automobile starting in the late 18th century. It then discusses the growth of the industry globally and lists the top 10 automobile manufacturers as of 2008, led by Toyota, General Motors, and Volkswagen. The document examines industry trends, including the growth of emerging markets in China and India and the shift to more fuel-efficient vehicles. It provides an overview of the key developments and competitive landscape within the global automobile industry.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
S.NO. TOPIC PAGE NO. 1 INTRODUCTION 3 2 GLOBAL AUOMOBILE INDUSTRY 5 3 TOP TEN KEY PLAYERS 7 4 GROWTH RATE 12 5 FUTURE ASPECTS 16 6 CONCLUSION 17
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INTRODUCTION
In the year 1769, a French engineer by the name oI Nicolas J. Cugnot invented the Iirst automobile to run on roads. This automobile, in Iact, was a selI-powered, three-wheeled, military tractor that made the use oI a steam engine. The range oI the automobile, however, was very brieI and at the most, it could only run at a stretch Ior IiIteen minutes. In addition, these automobiles were not Iit Ior the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the Iirst to design a steam engine driven automobile in the U.S. A Scotsman, Robert Anderson, was the Iirst to invent an electric carriage between 1832 and 1839. However, Thomas Davenport oI the U.S.A. and Scotsman Robert Davidson were amongst the Iirst to invent more applicable automobiles, making use oI non-rechargeable electric batteries in 1842. Development oI roads made travelling comIortable and as a result, the short ranged, electric battery driven automobiles were no more the best option Ior travelling over longer distances. The Automobile Industry Iinally came oI age with Henry Ford in 1914 Ior the bulk production oI cars. This lead to the development oI the industry and it Iirst begun in the assembly lines oI his car Iactory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses. According the History oI Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, aIter the end oI the Second World War in 1945, the Automobile Industry oI other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry
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was Ilooded with Ioreign automobile companies, especially those oI Japan and Germany. The Iirst practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent Ior his automobile on 29 January 1886, and began the Iirst production oI automobiles in 1888, aIter Bertha Benz, his wiIe, had proved with the Iirst long-distance trip in August 1888 (Irom Mannheim to PIorzheim and back) that the horseless coach was absolutely suitable Ior daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event. Soon aIter, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle Irom scratch to be an automobile, rather than a horse- drawn carriage Iitted with an engine. They also are usually credited as inventors oI the Iirst motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, oI the University oI Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, Iitting it into his son's tricycle, making it at least a candidate Ior the Iirst automobile, and Iirst 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 1929 beIore the Great Depression, the world had 32,028,500 automobiles in use, and the US automobile industry produced over 90 oI the automobiles in the world, ie 28,551,500. And over one halI the cars in Ioreign lands were oI U.S. make. At that time the U.S. had one car per 4.87 persons. 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 oI second place Japan (9.6 million units), the U.S. trailed in place 3 with 7.8 million units.
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The Global Automobile Industry: hanging with Times
From a humble origin as a horseless carriage` manuIacturing industry dating back to the 1890s, the global automobile industry oI 2008 has come a long way emerging as the market leader in the manuIacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the industry oI industries` by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in the manuIacturing activity by contributing mass production techniques during the early 1910s. The Japanese soon Iollowed by oIIering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry`s global output touched 64.6 million vehicles in 2005. But with a downward slide in the market share, the Big Three was Iast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground Ior the emergence oI the New Six. Meanwhile UK, served as the single largest customer Ior European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention oI global auto-makers, vying Ior setting up a cost- eIIective export base Ior meeting the demand Irom Asian markets. Despite government controls, the Chinese market boasted oI sales oI more than 2.7 million commercial vehicles in 2004. With industry reports on the highest growth in mobility in the world at 3 per annum, a Iurther surge in demand was anticipated Irom the Chinese market. A booming economy and a low interest regime helped India to make its mark in the automobile sector in 2004, with sales Iigures exceeding more than 1 million in the passenger car segment Ior the Iirst time. The sale oI commercial vehicles showed a record growth oI 29 over 2003. Foreign auto-makers such as Mercedes Benz, Volkswagen Group,
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General Motors, Honda, Toyota, Ford, Fiat and Mitsubishi were all making a bee-line to set up their manuIacturing units in India to tap the growing demand. In the environment Iront, the Kyoto Protocol, which came into Iorce in February 2005, led to the emergence oI a closed loop strategy encompassing production, vehicle operation and recycling in the global automobile sector. On analyzing the response oI auto-manuIacturers to climate change, it is noticed that despite Iragmented views on the ratiIication oI the Kyoto Protocol, automakers were in the IoreIront oI popularizing environment-Iriendly initiatives. They were investing on engine modiIications and related pollution-reducing technologies aimed at producing more Iuel eIIicient vehicles. Hybrid vehicles and green vehicles running on alternative Iuels are proving to be commercially viable options with customers queuing up Ior these products, which oIIered signiIicant savings on gasoline prices. The industry report on 'Global Automobile Industry Changing with Times, traces the genesis, and market trends in the production and the initiatives to spearhead less polluting technologies. The US automobile industry and Ford Motor Company are taken as classic examples to identiIy Porter`s Five Forces and to do SWOT analysis, respectively. The results stand testimony Ior the Iact that the industry is becoming highly competitive. In the Future Outlook, the growing signiIicance oI made-to-order vehicles, and the competitiveness oI the emerging markets is dealt with in detail.
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TOP 10 KEY PLAYERS IN AUTOMOBILE INDUSTRY
@@ Japanese car maker Toyota Motor Corporation is the world`s largest car manuIacturer. It has manuIactured 9,237,780 units in the year 2008. The company was number one in global automobile sales Ior the Iirst quarter oI 2008. The widest produced model is likely to be Corolla` which is one oI the most popular and best selling cars in the world. The Japanese giant has been severely aIIected by the 2007-2009 Iinancial crises with a loss oI US$4.4 billion. The company was Iounded by Kiichiro Toyoda in 1937 as a spinoII Irom his Iather`s company Toyota Industries to create automobiles. In 1934, it created its Iirst product, the Type A engine, while still a department oI Toyota Industries. It manuIactured its Iirst passenger car the Toyota AA in 1936. Toyota also owns and operates Lexus and Scion brands and has a majority shareholding stake in Daihatsu and Hino Motors, and minority shareholdings in Fuji Heavy Industries, Isuzu Motors, Yamaha Motors, and Mitsubishi AircraIt Corporation.
GENRAL MOTORS By sales, General Motors ranked as the largest U.S. automaker and the world`s second largest Ior 2008. General Motors had the third highest 2008 global revenues among automakers on the Fortune Global 500. Amongst GM`s more Iamous brands worldwide are Cadillac and Chevrolet. General Motors was established in 1908 by William C. Durant. GM was world`s number one car company Ior consecutive 77 years Irom 1931 to 2007. Because oI the economic conditions, the car
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giant went bankrupt on June 1, 2009. On 10th July 2009, the company emerged Irom 'Chapter 11 bankruptcy reorganization. While no GM shares are currently available to the public, the company plans an initial public stock oIIering (IPO) in 2010.
'OLKSWAGEN At third on the list is German business Volkswagen group with a total oI 6,517,288 cars rolling oII the production line in 2008. A large proportion oI these cars are likely to be Irom the GolI` range. Volkswagen is second-largest market is China, where its subsidiary, Volkswagen Group China (VGC), is by Iar the largest joint venture automaker, selling more than one million vehicles in 2008. The Volkswagen Group constitutes the car brands like Audi AG, Automobili Lamborghini Holding S.p.A., Bentley Motors Ltd., SEAT, Skoda Auto and heavy goods vehicle manuIacturer Scania AB. Recently, Porsche has united with the Volkswagen Group. It also holds the proud oI parenting Bugatti Automobiles SAS which produces one oI the world`s Iastest car Bugatti Veyron. The German luxury car company was Iounded on May 28, 1937 under the leadership oI AdolI Hitler. AdolI Hitler wanted a 'people`s car. Volkswagen literally means people`s car` in German.
FORD Ford Motor Company was Iounded by Henry Ford and incorporated on June 16, 1903. Presently, it is world`s Iourth largest car maker with 2,145,000 units oI global sales. It should be noted however that Ford does have a popular range oI vans and other non passenger vehicles. In
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2007, Ford Iell Irom second to third-ranked car maker Ior the Iirst time in 56 years, behind only General Motors and Toyota. As oI 2008, Ford has become the second largest automaker in Europe (only behind Volkswagen), with sales that occasionally exceed those in the United States and large markets in Germany, Italy, and the United Kingdom. Ford is the seventh-ranked overall American-based company in the 2008 Fortune 500 list, based on global revenues in 2008 oI $146.3 billion
HONDA The Honda Motor Company secures the IiIth place with total volume oI 3,912,700 units as per 2008. The Civic and the Accord were in the top Iive list oI sales. Honda superseded Nissan in 2001 and became Japan`s second largest car maker. Honda is also the world`s largest manuIacturer oI motorcycles and the internal combustion engines. Honda produces more than 14 million internal combustion engines each year. The company was Iounded by a selI-taught engineer Soichiro Honda on 24th September 1948. The Iirst production car Irom Honda was the S500 sports car. Also, Honda was the Iirst Japanese automobile manuIacturer to release a dedicated luxury brand, Acura in 1986.
NISSAN
Nissan Motors stands sixth in the list oI top 10 motor vehicle manuIacturers. It is among the top three Asian car companies. Nissan Motors was Iounded in 1932. Nissan Iaced severe Iinancial diIIiculties in 1999 and entered an alliance with Renault S.A. oI France. The Nissan VQ engines, oI V6 conIiguration, have Ieatured among World`s 10 Best Engines Ior 14 straight years.
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PSA PEUGEOT ITROGEN Peugeot Citroen, which oI course is the producer oI both Peugeot and Citroen models, is the seventh largest automaker in the world and the second largest in the Europe. The total volume manuIactured Ior the year 2008 is 3,325,407 units. In December 1974 Peugeot S.A. acquired a 38.2 share oI Citron. In May 1976 they increased their stake oI the then bankrupt company to 89.95, thus creating the PSA Group. PSA`s old TU engine Iamily has been replaced by Prince engine(link here) which was designed by the joint venture between PSA and BMW.
HYNDAI At number 8 on the list oI top ten motor manuIacturers is South Korean manuIacturer Hyundai-Kai who produced 2,777,137 cars during the year 2008. The Indian subsidiary oI Hyundai Kia Automotive Group, the Hyundai Motors India, is the country`s second largest car manuIacturer. The Hyundai Motor Company was Iounded in 1967. It became the Hyundai Kia Automotive Group when Hyundai Motor Company purchased 51 oI South Korea`s second-largest car company, Kia Motors in 1998. . SUZUKI Motor Corporation is the 9th largest automobile manuIacturer in the world by production volume with almost 2.6 million units released during the year 2008. Suzuki has 35 main production Iacilities in 23 countries and 133 distributors in 192 countries. Suzuki was Iounded in 1909 as Suzuki Loom Works by Michio Suzuki. The company`s Iirst 30
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years were Iocused on the production and development oI the complex weaving machines. Later he decided to diversiIy the products and based on the consumer demand, decided to build compact cars. In 1953, Suzuki scored the Iirst oI many racing victories when the tiny 60 cc 'Diamond Free won its class in the Mount Fuji Hill Climb .By 1954, Suzuki was producing 6,000 motorcycles per month and had oIIicially changed its name to Suzuki Motor Co., Ltd.
FIAT The 10th and Iinal manuIacturer on this list is Fiat S.p.A., an Italian automobile manuIacturer, engine manuIacturer, Iinancial and industrial group based in Turin in the Piedmont region. In 2008, 2,524,325 volume oI units are manuIactured. Fiat was Iounded in 1899 by a group oI investors including Giovanni Agnelli. Though Fiat is Italy`s largest carmaker, Fiat-based cars are constructed all around the world, with the largest number produced outside Italy being built in Brazil. The Fiat group has received The European Car oI the Year award` Ior 12 twelve times, more than any other manuIacturer. In 2008, Fiat 500 has won the European Car oI the Year` award.
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GROWTH RATE
Toyota said its quarterly proIit slid 18.5 percent to 80.4 billion yen ($1 billion) on plunging sales caused by parts shortages Irom the tsunami disaster in northeastern Japan and warned it Iaces a new challenge Irom Ilooding in Thailand. Toyota Motor Corp. declined Tuesday to give a Iorecast Ior the Iull Iinancial year ending March 2012, citing uncertainties stemming Irom the Thai Iloods which have disrupted supplies oI parts and prompted it to cut some car production. Toyota, !apan's top automaker, said that vehicle sales plunged in the key markets oI Japan and North America, but it was making up Ior some oI the losses by strong sales in Asia, such as India and Indonesia. Toyota`s quarterly sales Iell nearly 5 percent Irom a year earlier to 4.57 trillion yen ($58.7 billion). All the Japanese automakers are suIIering aIter the March 11 earthquake and tsunami in Japan damaged key parts suppliers. That meant they made and sold Iewer cars than normal. The Thai Iloods, which began in July and now threaten central Bangkok, are compounding the production damage. The country is the Southeast Asian base Ior several automakers. Toyota said production cuts in Japan, which began last month, will continue through Nov. 18. Ceneral MoLors Co (n?SL CM) Loday reporLed LoLal sales of 186893 vehlcles ln CcLober up 2 percenL compared wlLh CcLober 2010 8eLall dellverles were up 3 percenL compared wlLh Lhe same monLh a year
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ago and accounLed for 77 percenL of CM sales uellverles Lo fleeL cusLomers were essenLlally flaL 'Chevrolet led the way Ior GM in October driven by the continued success oI the Cruze and Equinox, said Don Johnson, vice president, U.S. Sales Operations. 'Chevrolet, Buick, Cadillac and GMC have all perIormed well this year, which has set the stage Ior our transition to a higher mix oI 2012 model-year vehicles. Combined with the launches oI several new Iuel-eIIicient cars, including the Chevrolet Sonic and Buick LaCrosse eAssist, we are very well positioned going Iorward. In October, GM`s year-over-year passenger car sales increased 4 percent, crossover sales decreased 1 percent and sales oI trucks, which include Iull-size pickups, vans and SUVs, increased 2 percent. For the month, 2012 models accounted Ior 80 percent oI passenger car sales and about halI oI truck and crossover sales. Highlights Ior October include double-digit sales increases Ior the Chevrolet Equinox, Camaro and Express, the Cadillac SRX, the Buick Regal and the GMC Terrain, as well as the continued success oI the Chevrolet Cruze. In addition, Chevrolet dealers delivered more than 1,100 Volts Ior the vehicle`s best month to date, and GM remains on track to expand Volt availability to 2,600 dealers in all 50 states by the end oI the year. The new 40-mpg Chevrolet Sonic also is building momentum, with sales oI more than 3,800 units in its second month oI launch.
Volkswagen is pleased to report that it has established a new company record Ior sales during the month oI July. This marks the tenth consecutive month during which an all-time high has been reached. The 4,522 new vehicles sold exceed last year's total oI 3,881 by 17. Year-to-date sales oI 31,464 are 18 above the same period last year.
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The all-new 2011 Jetta has established itselI as one oI the best selling cars in Canada. Noticeably larger than its predecessor, the Jetta oIIers more space, better Iuel economy and a Iresh, modern look despite a signiIicantly lower starting price. During the month oI July, 2,323 were sold, bringing its year-to-date total up to 16,364. The GolI Iamily, including hatchback, wagon and sporty GTI, contributed 1,292 to the overall sales Iigure, and continues to oIIer outstanding versatility and value to the Canadian consumer. Volkswagen presently oIIers a wide range oI vehicles. Each one delivers outstanding Iuel economy and combines sportiness, saIety and value in a Iun-to-drive package. The range oI available engines includes the award-winning TDI Clean Diesel, which can be Iound in the Jetta, GolI, GolI wagon and Touareg sport utility, and will soon be oIIered in the upcoming all-new Passat.
Ford`s Iull-year sales totaled 1.935 million, up 19 percent versus a year ago, marking the largest increase oI any Iull-line manuIacturer. Ford`s December retail sales were the highest Ior any month since August 2009, up 17 percent versus a year ago. Total sales (including Ileet deliveries) were 190,976, up 7 percent versus a year ago. The total sales result include a 40 percent reduction in deliveries to daily rental customers. Ford`s U.S. market share was higher Ior the second year in a row marking the Iirst back-to-back increase in market share since 1993. Ford`s U.S. market share in 2010 is estimated at 16.4 percent, up 1.1 points Irom 2009 and 2.2 points Irom 2008.
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'With our balanced line oI high-quality, Iuel-eIIicient products, we have a solid Ioundation to deliver more sales and improved results in 2011, said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service. 'Consideration Ior Ford is increasing beyond our traditional areas oI strength signaling that the seeds oI growth already have taken hold.
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FUTURE ASPETS OF AUTOMOBILE INDUSTRY
The soaring oil prices and the rising level oI awareness among the masses regarding the rapidly deteriorating environmental conditions are compelling many car makers to switch over the developing hybrid cars. There are already more than one million hybrid vehicles running on American roads (May, 2008). Big car companies like GM and Toyota have already made big strides in this direction. In Iact GM is cutting down on producing and marketing its behemoth gas-guzzling trucks and Iocusing more on lighter, Iuel-eIIicient cars. The number one selling hybrid car is Toyota`s Prius. Incidentally, Toyota is Iar ahead in the race Ior producing hybrid cars. The environmental concerns have even hit the stars oI Hollywood: during the recent academy awards the gaudy limousines were not the most prestigious way oI arriving and hitting the red carpet, it was coming in a hybrid car. A hybrid car has two engines working under the hood. The Iirst is an electric motor and the second is the good old gasoline engine. When your car is running at a constant speed or when it is standing but the engine is running, the gasoline engine automatically shuts oII and the electricity part takes on. This helps a lot when you are stuck in traIIic jams and your engine is running lots oI pollution is caused during the traIIic jams. When you need to accelerate, the gasoline engine pumps in the requisite gas, and then again hands the control over to the electric engine. This way the consumption oI Iossil Iuel is cut down to almost halI and so is the emission level. The noise pollution comes down too.
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The automobile industry growing in all respects and Iields. New innovations and new products launch Irequently which is a major Iactor oI growth in this sector. There are also various service station networks Ior the repair and maintenance oI your vehicle. Automobile Industry, expected to witness a tremendous growth in the global market.