The vehicle industry features a wide range of companies co-working from idea to finished product. The industry is one of the world’s most important economic sectors in terms of revenue. Global sales of passenger cars in 2017 are predicted to be around 78,6 million vehicles, which in terms of employment means that 9 million people are working directly in the making of the vehicles and the parts required. This means that the vehicle industry stands for in total over 5% of the global manufacturing employment. At a greater scale, it is estimated that each of these jobs supports at minimum 5 other indirect jobs for the community, totaling over 50 million jobs owed to the vehicle industry.
History of the vehicle industry
The history of vehicle industry dates to the early 1860s, where hundreds of manufacturers pioneered the development of “horseless carriage”. The United States was under many decades leading in the world’s total automobile production. Until around 1929, before the Great Depression, the world had over 32 million cars in use and 90% had been produced from the U.S. automobile industry. It wasn’t until the 1980s that the U.S. got overtaken by Japan as in the world leader in auto production. The U.S. became the world leader again in 1994 just to become overtaken by Japan in 2006. Today the country producing the most automotive vehicles is China.
To sum things up, the vehicle industry is a huge industry on a global scale. In 2007 there were 806 million cars and light trucks in use. Cars are the primary mode of transportation for many developed economies. However, this trend is forecasted to slow down as “the younger generations” mainly in highly urbanized countries, no longer prefer this mode of transportations. But as these markets face a decline in demand, other markets will raise.