The Global Automotive Economy
Hold it right there. This sounds like some heavy stuff, Tire Stickers. But haven’t you ever wondered where your beautiful ride came from and how the rest of the world fits into that puzzle?
We’re going to check out the top-5 auto manufacturing countries and what they bring to the table now and for the future.
- China
China is the leading car manufacturer by far. We’re talking more than double the number two. 28 million plus units. Damn!
In fact, China has been the leader since 2009. And they don’t plan on stopping.
China is only getting deeper into manufacturing – everything from tyres to technology. With the support of the Chinese government, the Chinese auto industry has been scooping up struggling businesses around the globe and investing in more successful ones.
Chinese automaker Geely owns Volvo. Guangzhou Automobile Group is partners with Japan’s Honda. A Chinese company even bought Italian tyre maker Pirelli for $7.86 billion. They’ve been making serious moves.
Though they’re on a steady rise, they have a major fight ahead of them if they want to put their vehicles on foreign soil and win over international auto enthusiasts. Keep an eye out for Trumpchi (not a typo) in the US soon and plenty of other brands popping up around the globe.
- USA
Not a huge surprise here since the United States led the world in auto production for decades, trading spots with Japan as the number one until China came along and started dominating.
The US has some of the biggest brand names in the auto world and a solid place on the history of the car. The Big Three: Ford, GM, and Chrysler. Detroit Motor City, baby. Thanks to WWII, the United States rapidly took control of the global market. But that was then.
History isn’t enough. Detroit isn’t exactly booming. Foreign manufacturers have long taken root on US soil. If the States want to stay in the game, they’re going to have to adapt.
Thanks to Tesla, driverless cars, ridesharing companies, and other forward-thinking innovations ‘Merica is still making it happen by embracing that the future of the auto industry is going to look a lot different than the past.
- Japan
Since the 1960s, Japan has been a contender. Overcoming their initial stigma, Honda, Nissan, Toyota, Mitsubishi, Mazda, and so many more are welcomed the world over for their reliability and efficiency.
That efficiency and rationality has kept them at the top of the field for innovation too. Pioneering robotic manufacturing in the 1970s, reliable supercars in the ‘80s, hybrid cars in the ‘90s and ‘00s, satellite tech, four-wheel drive, airbags, and so much more. Japan has even been testing out algae-fueled vehicles. Not as crazy as it sounds.
Check out these highlights from the recent Tokyo Auto Show for even more hot concepts and wacky innovations.
The rise of China has added a lot of pressure to Japan’s market share. Pressure that the US and Germany are a bit more geographically immune to. Even so, expect Japan to be a force for a long time.
- Germany
What Germany’s auto industry lacks in relative size to the rest of this list, it makes up for it with class and legacy. Germany practically started the industry thanks to Karl Benz in 1879, but they had an unfortunate bump down the road because - you know - World War II destroyed most of their manufacturing plants.
But hey, since then, they’ve grown the top car brands in the world. Thanks in huge part to their country’s big focus on educating engineers and keeping them in country, Mercedes-Benz, Porsche, BMW, and Audi are the cream of the crop and demand the world’s respect (and Euros).
Germany also has a storied racing history and the infamous Autobahn for the world’s speed demons to test their limits.
Just like their cars, the German auto industry is an elegant, refined beast that keeps on kicking.
- India
The young buck of the group, India has really come into its own. With the fastest growing economy in the world and the largest population (or at least on par with China), India is expected to make its way up this list over the next few decades.
Only recently, as of 2016, joining the top-5 thanks to South Korea’s lagging auto industry and India’s growing economy, India has become a major player in the auto market. They assemble and export vehicles for many of the top auto brands, notably those from Germany, Japan, and the US. Their Make In India campaign has opened the doors to innovation and expansion. The auto industry currently makes up 7.1% of their GDP. They’re rolling for sure.
They’re experiencing some growing pains due to the debt brought on by their growth though, so expect some possible shake-ups in the future.
Does South Korea still have a chance? We’ll see.
