The rapid evolution of technology has affected almost every industry. But, the development of the automobile industry has the most notable change. The automotive industry has always been a springboard for ambition and innovation. From the horseless carriage in the 1860s to today’s electric vehicles such as those made by Tesla, the industry’s rich history and evolution are evident.
New technologies, such as access and delivery of vehicles via online platforms and innovations in in-car services, prove helpful modernisms. Whether you’re an avid follower of the latest automotive news or a casual spectator to industry tidbits, you’ll appreciate this infographic.
Learn about the automotive industry’s statistics, facts, and trends shaping up the industry today by reading the infographic and article below.
What is the Automotive Industry?
The automotive industry consists of companies and activities involved in designing, developing, manufacturing, and selling motor vehicles. The sector covers most components of a car, from bodies to engines. However, it doesn’t include companies and activities dedicated to vehicle maintenance such as fuel, tires, and batteries.
The industry’s main products and producers are Original Equipment Manufacturers (OEM). OEMs are motorbikes, heavy trucks, cars, and heavy equipment manufacturers. Importers, distributors, dealers, wholesalers, and automotive suppliers also fall under the OEM category. The secondary products and producers under the automotive industry are car parts manufacturers.
The Automotive Industry: 5 Fast Facts and Statistics
Ford dominated the early auto market. In fact, 55% of all the cars in the world were Model T Fords in 1916. (Source: Stacker)
Ford built and sold more than 15,000,000 Model T’s during this time. The Model T era ended in May 1927 after a ceremony honoring the model’s end of production.
95% of vehicle buyers use digital as a source of information, with 2x as many starting their research online versus at a dealer. (Source: Google)
Users utilize textual searches when researching potential vehicle purchases. However, they also look for online videos. These videos include test drives, vehicle walkarounds, and product demonstrations. They want to experience the shopping journey without actually stepping foot at a dealership.
In Europe, trucks carry 73.1% of freight transported over land. (Source: ACEA)
There are around 6.2 million trucks for business in circulation throughout the European Union, and 85% of their road freight tonnage is carried over 150km or less.
China holds the title of largest automobile market worldwide. (Source: Statista)
China is the top country with the largest automobile market in demand and supply. Its automobile registrations were at 21.1 million units in 2020. The runner-ups were the United States (14.91M), Europe (11.77M), and Japan (3.68M).
43% of Filipino households own a tricycle or a motorcycle. (Source: Statista)
Almost half of Filipino households owned a two- or three-wheel vehicle, and only less than 10% of Filipinos owned a van, car, or jeep in 2020. With the pandemic rampant during this time, vehicle sales were greatly affected, resulting in a 39.5% decline.
The World’s Top Automakers by Market Capitalization
Market capitalization is the total value of a company’s stock shares. Since it measures what a company is worth in the open market, investors can determine its size and assess the risk of investing in its shares.
Tesla (U.S.)
Tesla is a California-based company founded in 2003 and is often associated with battery energy storage and solar energy generation industries. This company’s research and development (R&D) is so impressive that many of its rivals admit that Tesla’s electronics far surpass their own. The company’s CEO, Elon Musk, is also one of the driving forces behind Tesla’s high profile.
Toyota (Japan)
Toyota has a unique product portfolio that includes sports utility vehicles, engines, luxury vehicles, commercial vehicles, and robots. The company has also entered the all-electric vehicle (EV) market with plans to sell 500,000 units worldwide by 2025.
Volkswagen (Germany)
Founded in 1937, Volkswagen is often linked to the distribution and manufacturing of turbomachinery, engines, motorcycles, and commercial and passenger cars. They also offer fleet management, leasing, and auto loans.
As one of the leading automakers globally, Volkswagen plans to keep up with the times by shifting towards EVs in Europe. The company announced that it’d invest $86 billion in digital and EV technologies.
BYD (China)
Shenzhen-based auto manufacturer BYD makes different automobiles such as battery-powered bicycles, hybrid and full-electric cars, forklifts, light trucks, and buses. They also manufacture rechargeable batteries and solar panels. In 2021, billionaire Warren Buffett backed BYD with $1.78 billion to support their global EV fundraising.
Daimler/Mercedes-Benz (Germany)
As the second-largest German automotive manufacturer, Daimler produces off-road vehicles, passenger cars, vans, buses, and transport trucks. Aside from Mercedes-Benz, Daimler brands include Smart, Sterling, Maybach, Fuso, and AMG.
The Automotive Industry’s Latest Key Trends
Increased adoption of autonomous vehicles (AVs)
Autonomous vehicles or self-driving cars are set to transform everyday transportation. Their goal is to make the ride safer and reduce downtime. Because this vehicle will minimize the need for human drivers, it can decrease accidents caused by driver negligence and fatigue. With AV’s advanced recognition technologies, its AI-enhanced computer vision can identify obstacles along its route.
Continued rollout of electric mobility solutions
Electric vehicle (EV) adoption is one of the most important trends in the automotive industry. In 2021, about 6.5 million EVs were sold worldwide, a 109% increase from the previous year. The forecast for the EV market looks bright; by 2030, 7% of the global vehicle fleet will consist of EVs.
Aside from Tesla, Jaguar, Chevrolet, Nissan, Hyundai, and Kia are also making ways to release affordable EVs that can run 200-250 miles on a single charge.
Internet-of-Things (IoT) Technology development
IoT technology allows vehicles to gather data to understand and comprehend their surroundings. You can access the data collected by your vehicle through in-car apps. For example, real-time driving data can be utilized through navigation apps and help you stay alert on bad road conditions or traffic hazards.
Rise of automotive digital retail
Shopping online is easy, simple, and convenient; this also goes for online car shopping. With online marketplaces, businesses aren’t burdened by the overhead costs of physical showrooms, making prices extremely competitive.
Automotive companies need to develop innovative marketing strategies like utilizing social media influencers and augmented reality (AR) and virtual reality (VR) to stand out from the competition. They should also create enticing offers and diversify their services like providing online financing.
Fundamental changes in human-machine interfaces (HMI)
As the automotive industry moves toward an autonomous world, you’ll be able to use speech input to control your vehicles. This innovation expands the scope of what aspects of a car you can control, making the driving experience more enjoyable and safer.
An example of HMI includes smart virtual assistants that can combine smart cameras, augmented reality, and surround-view monitoring. When working together, these features can assist you in maintaining safe distances and preventing collisions.
Ride the Highway of Growth
The automotive industry is an old and enormous sector filled with interesting facts, promising statistics, and futuristic trends. It has come a long way from the horseless carriage of the 1800s as the industry rapidly advances to autonomous and electric opportunities. These new technologies shake up how cars are manufactured, sold, and driven.
If you want to hop on the growth of the automotive industry, you can consider applying now for an auto loan at Asialink Finance. As one of the leading finance companies in the country, we offer different kinds of convenient and accessible online loans in the Philippines with competitive interest rates. With Asialink Finance, you can surely find a loan that fits your financial goals and capabilities.
This article and infographic were published here with permission from Asialink Finance.
You can check out the original article here.