Automotive refers to everything related to cars — and those who drive them — including car manufacturers and their drivers. This industry covers everything from designing, producing and marketing new models through repair services or sales of parts for existing models as well as servicing providers or gas suppliers that cater specifically for these drivers.
The automotive industry is an integral component of global economic development, employing millions of workers and generating billions in annual revenue. Yet globalization, increased competition, and changing consumer preferences pose considerable hurdles to its continued development – challenges which the automotive sector must navigate successfully in order to remain successful.
Few inventions have had as great an effect on society than the automobile. Karl Benz, an engineer from Germany, created the first car in 1885; Henry Ford revolutionized their production with his assembly line production system in 1908. Cars have become an indispensable part of American culture that some might say they couldn’t exist without them. Over the past 150 years, automotive industries have blossomed exponentially and transformed global society considerably; but there have also been drawbacks such as pollution and accidents.
Though most often associated with automobile manufacturing and sales, “auto industry” also refers to companies providing components and services needed for their production. This industry is classified by NAICS as “automotive supply chain”. With its 66 codes covering suppliers ranging from raw materials producers to interior furnishers and powertrain manufacturers.
Automotive manufacturing has always been at the forefront of industrial revolutions, driving rapid changes to production processes, technological breakthroughs, and automation. At present, digitization and IoT are at play transforming it further.
Although the automotive industry is in flux, its contribution to global economy remains substantial. General Motors, Ford and Chrysler based out of the US contribute significantly to many countries’ gross domestic products as well as providing jobs across industries from research & development through manufacturing to sales – all vital parts of an economy’s infrastructure.
The future of automotive industry looks bright with self-driving cars looming on the horizon. It will be fascinating to observe how new technologies such as these will affect traditional vehicle manufacturers as well as consumers and other stakeholders in its ecosystem. No doubt these trends will continue fuelling growth over the years ahead, likely having positive repercussions for each other and ultimately creating more efficient and profitable operations within it.
