Introduction

Automotive industry, all those companies and activities

involved in the manufacture of motor vehicles, including most
components, such as engines and bodies, but excluding tires,
batteries, and fuel. The industry’s principal products are
passenger automobiles and light trucks, including pickups, vans,
and sport utility vehicles. Commercial vehicles (i.e., delivery
trucks and large transport trucks, often called semis), though
important to the industry, are secondary. The design of modern
automotive vehicles is discussed in the
articles automobile, truck, bus, and motorcycle; automotive
engines are described in gasoline engine and diesel engine. The
development of the automobile is covered in transportation,
history of: The rise of the automobile
The history of the automobile industry, though brief compared
with that of many other industries, has exceptional interest
because of its effects on history from the 20th century. Although
the automobile originated in Europe in the late 19th century,
the United States completely dominated the world industry for the
first half of the 20th century through the invention of mass
production techniques. In the second half of the century the
situation altered sharply as western European countries
and Japan became major producers and exporters

History
Although steam-powered road vehicles were produced earlier, the
origins of the automotive industry are rooted in the development
of the gasoline engine in the 1860s and ’70s, principally
in France and Germany. By the beginning of the 20th century,
German and French manufacturers had been joined
by British, Italian, and American makers.

Developments before World War I

Most early automobile companies were small shops, hundreds of
which each produced a few handmade cars, and nearly all of
which abandoned the business soon after going into it. The
handful that survived into the era of large-scale production had
certain characteristics in common. First, they fell into one of three
well-defined categories: they were makers of bicycles, such
as Opel in Germany and Morris in Great Britain; builders of horse-
drawn vehicles, such as Durant and Studebaker in the United
States; or, most frequently, machinery manufacturers. The kinds
of machinery included stationary gas engines (Daimler of
Germany, Lanchester of Britain, Olds of the United States), marine
engines (Vauxhall of Britain), machine tools (Leland of the United
States), sheep-shearing machinery (Wolseley of Britain), washing
machines (Peerless of the United States), sewing machines (White
of the United States), and woodworking and milling machinery
(Panhard and Levassor of France). One American company,
Pierce, made birdcages, and another, Buick,
made plumbing fixtures, including the first enameled cast-iron
bathtub. Two notable exceptions to the general pattern
were Rolls-Royce in Britain and Ford in the United States, both of
which were founded as carmakers by partners who combined
engineering talent and business skill.

In the United States almost all of the producers were assemblers

who put together components and parts that were manufactured
by separate firms. The assembly technique also lent itself to an
advantageous method of financing. It was possible to begin
building motor vehicles with a minimal investment of capital by
buying parts on credit and selling the finished cars for cash; the
cash sale from manufacturer to dealer has been integral in
the marketing of motor vehicles in the United States ever since.
European automotive firms of this period tended to be more self-
sufficient.
The automotive industry after 1945

After World War II there was a striking expansion of motor vehicle

production. During a 35-year period the total world output
increased almost 10-fold. The most significant feature of this
increase was that most of it occurred outside the United States.
Although American production continued to grow, its share of
world automotive production fell from about 80 percent of the
total to 20 percent. Among individual countries the United States
was the leading producer until the recession of the early 1980s. In
1980 Japan, which had had little automotive manufacturing before
the war, became the leading producer, with the European
Economic Community (EEC) ranking second. The United States
regained the lead in vehicle production in 1994, since by that
time Japanese manufacturers were building more of their
products in factories in their major overseas markets, such as the
United States, in response to economic and political pressures in
those markets. However, in the early 21st century, China became
the leading manufacturer of cars.

The Entire History of Automotive

Manufacturing Processes

Since its early days in the late 19th century, the automotive
manufacturing industry has come a long way. Today, this industry is
a major global economic force that is responsible for 2.8 million jobs
and $130 billion in annual compensation in the US.

Some of the key moments in the history of

automotive manufacturing processes are:

 1886 - The first gasoline-powered car was built by Karl

Benz in Germany. This invention of Benz is widely
considered to be the first true automobile.
 1896 - The Daimler Stahlradwagen, the first mass-
produced car, rolled off the assembly line in Germany.
 1908 - Model T was launched by the Ford Motor
Company. This was the first mass-produced car that
was produced with the objective of being affordable for
many middle-class Americans.
 The 1920s - In the 1920s, the automotive industry
rapidly expanded in the United States. In part, this was
due to the growing popularity of cars as a status
symbol. During this period, major manufacturers like
General Motors and Chrysler emerged.
 The 1930s - The Great Depression takes a major toll
on the automotive industry, with sales plunging and
many companies going out of business.
 The 1940s - In this period, the attention of the
automotive industry is drawn to wartime production
during World War II, and thus building of vehicles for
military use.
 The 1950s - The postwar boom increased the demand
for automobiles, and thus this industry entered a new
era of growth and prosperity.


 The 1960s - “Muscle cars' ' like the Ford Mustang and
Chevrolet Camaro become hugely popular as a new
generation of American consumers comes of age.
Companies started producing automobiles as per these
new buyer personas.
 The 1970s - There was a shift from the large, V8-
powered cars towards smaller, more fuel-efficient
models due to the oil crisis and the resultant rise in gas
prices.
 The 1980s - The automotive industry rebounded and
experienced renewed growth due to new
manufacturing technologies like fuel injection and
computer-aided design. This led to
increased revenues for companies in this industry that
were adopting the new manufacturing technologies.
 The 1990s - As Japanese automakers establish a
major presence in the United States and other markets
 worldwide, a wave of globalization sweeps through the
automotive industry.
 The 2000s - The automotive industry was dealt a
major blow by the global financial crisis of 2008, but in
the following years, it started recovering.
 Today - The automotive industry is one of the major
drivers of economic growth around the globe. With new
vehicles, trends, predictions, and technologies that are
constantly emerging, this industry’s future is set to be
exciting as its past.
In fact, in the coming years, electric vehicles will take over the
automotive market. In fact, with advances in battery technology,
automotive manufacturing processes, and a growing awareness of
the environmental benefits of electric cars, more and more
consumers are switching to electric vehicles each day.

Departments and types of automotive

industry
The Automotive Industry consists of a broad range of
organizations and companies with a critical objective of designing,
developing, marketing, manufacturing, and selling of motor
vehicles. The automotive industry makes a vital part of the
world's economic sectors by revenue Automobiles, however, are
not entirely included in the industry. The industry also does not
include companies or organizations dedicated to the maintenance
of automobiles such as fuel filling stations and automobile service
and repair shops.
Companies in the automotive industry fall into two categories that
are car manufacturers and car parts manufacturers. Vehicles in
the modern world are becoming more complex and involve more
electronic parts than in the past years. It, therefore, increases the
number of components manufactured by suppliers rather than the
manufacturers.

What are the Key Segments in

Automotive Industry?
 Light vehicles: These are motorcycles and cars used
for business transportation involving goods and people.
Examples include SUVs, passenger cars, minivans, and pick-
up trucks.

 Trucks and buses: They are mainly commercial

vehicles used for transportation of goods and people.
Examples include coaches, trailers, and light and heavy
buses.

 Construction and agriculture: Is any industrial

machinery used for mining, agricultural and construction
transportation tasks. Examples include earth movers and
commercial vehicles.

 Electric cars and plug-in hybrids: Include

automobiles propelled by a single or several electric motors.
They use electrical energy stored in rechargeable batteries.
The electric motors provide electric cars with instant torque,
thus creating a stable and smooth acceleration.
 Autonomous vehicles: These are self-driving,
driverless or robotic cars that can sense their environment
and navigate without human input. They use global
positioning system, radar, and computer vision to detect
their surroundings.

 The Automotive Workplace

Work Environment

 While most automotive service technicians worked a standard

40 hour week in 2006, 30 percent worked longer hours. Some
may work evenings and weekends to satisfy customer service
needs.
 Generally, service technicians work indoors in well-ventilated
and well-lighted repair shops. However, some shops are drafty
 and noisy. Although many problems can be fixed with simple
computerized adjustments, technicians frequently work with
dirty and greasy parts, and in awkward positions. They often
lift heavy parts and tools. Minor cuts, burns and bruises can
occur, but technicians can avoid serious accidents if safe
practices are observed.

What is Automotive Manufacturing?

Automotive manufacturing is the process of assembling components
to build automobiles, trucks, and other motor vehicles.

This process is complex and involves many stages, from designing

the vehicle and its components to assembling the parts, testing the
vehicle, and finally delivering it to customers.

Automotive manufacturing requires the use of specialized

equipment, highly trained technicians, and a variety of raw
materials.

What are the Manufacturing Steps of the

Automotive Industry?
Globally, the automotive industry is one of the most lucrative
industries that is responsible for producing millions of dollars worth
of products each year.

However, the manufacturing process of automotive products is

complex, especially because it involves several different steps and
factors. These are:

First Step: Designing

In the manufacturing process of automotive products, the first step

is designing. Here, designers and engineers create the plans,
specifications, and bills of materials for the vehicles that will be
produced.

Depending on the complexity of the project, though, this step can

take months or even years to complete. However, this step is very
important as it will determine your customer loyalty as well as
your cash flow.

Second Step: Building

Following the designing phase is the step where the vehicles are
built. Here thus, assembly lines and industrial robots come into play.
While the assembly process is used to assemble the various parts of
the cars, robots are used for tasks such as painting and welding. This
phase can take weeks or even months to complete.

It is however vital that this phase is carried out diligently as this too
will play a determining role in whether you will have returning
customers or not, and also in the cost of goods manufactured.

Third Step: Quality Checks

After the vehicles are built, they will need to undergo a series of
safety tests and quality checks before you can sell them to dealers
or customers.

The primary purpose of these tests is to ensure that your vehicles

are meeting all the safety and performance standards. Only if these
safety tests and quality checks are passed by your vehicles can they
be sold to your customers.
Final Step: Shipping

This is the last step in the automotive manufacturing process,

wherein you ship your vehicles to dealerships. Thus, logistics and
transportation come into play here.

You must ensure that your vehicles are loaded carefully onto trains
or trucks and then transported safely to their destination. Based on
the distance to be traveled and various other factors, this step of the
automotive manufacturing process can take days to weeks to
complete.
What Raw Materials do Automotive
Manufacturers Use?
Various raw materials are used during automotive manufacturing
processes. This includes iron for steel, petroleum products, rubber,
and aluminum. All of these raw materials are used to create the
different parts and components that will make up your vehicle:

 One of the most important materials used in automotive

manufacturing is iron. This is because it is used to create steel,
a solid and durable sheet metal that is essential for the
construction of the body parts of your vehicles.
 Another important material that is used during the automotive
manufacturing process is aluminum. This material is lighter
than steel and is used to create lightweight automotive parts.
 Rubber is used to create tires and other automotive parts that
require flexibility.
 Petroleum is used to create plastics and other synthetic
materials that are used in the production of automotive.
 What are the Different Types of
Production Lines Found in Automotive
Production Facilities?

 In automotive manufacturing, the three main types of

production lines that are followed are:
 Conventional Production Line
 A conventional production line is one of the most common
types of the automotive production line. Here, each of your
vehicles will pass through a series of stations in a conventional
or repetitive manufacturing process. Each of these stations will
be dedicated to a specific task.
 For example, one station might be responsible for the
installation of the engine, while another might be responsible
for attaching the wheels.
 There are several benefits of using a conventional production
line in the automotive manufacturing industry. One of the
prime benefits of the same is that it will help in achieving
increased efficiency, and therefore reduced manufacturing
costs and higher returns on investment.
 Also, when all of the steps in the production process are carried
out linearly, it is much easier to keep track of progress and
ensure that each of the steps is completed correctly. This also
 leads to improved quality control, which will lead to
positive brand awareness.
 Additionally, considering that a conventional production line
follows the same continuous process, it tends to lead to more
consistent results.
 Also, when all the steps are carried out in the same order every
time, it will become easier for you to predict as well control the
outcome of the process. This will ensure that your vehicles
meet safety and quality standards.
 Lastly, a conventional production line helps in creating a better
working environment for your employees while enabling
better management of workplace stress. This is because when
your workers specialize in one particular task, they become
more efficient and skilled. This leads to higher motivation and
morale among them. It also leads to further improving your
final product.


 Flexible Production Line


 A flexible production line or discrete manufacturing is quite
similar to a conventional production line. However, this type of
manufacturing has more production flexibility.
 For instance, a moving assembly line might have stations that
can be reconfigured to accommodate different tasks depending
on the vehicle being assembled.
 Often, flexible production lines are used in the automotive
manufacturing process because they offer several advantages
over other production systems.
 One of the primary advantages of this type of production line is
that it helps in increasing efficiency and productivity. This is
because flexible production lines allow for a greater degree of
customization.
 This means that each vehicle can be produced more quickly
and with fewer errors, which increases customer satisfaction
and their loyalty to the company. It also leads to a higher
number of sales referrals.
 Additionally, flexible production lines will also help you in
reducing production costs because often they require less
investment in terms of machinery and equipment. Additionally,
they also tend to use less energy and water than other types of
 production systems. This leads to lesser pressure on
your working capital.
 Lastly, a flexible production line will help to improve
communication and coordination within your company. It will
allow your different departments to work together more
closely, which in turn will lead to a more efficient production
process.

 Modular Production Line

 A modular, or job shop manufacturing, is a production line that

comprises a series of modules responsible for a specific task.
Once a module is complete, it is then moved to the next station
on the line.
 Typically, modular lines are used for assembling vehicles with
complex designs. In fact, one of the main benefits of using this
type of production line is that it will help in improving the
productivity and efficiency of your manufacturing process.
 This is because, when you have a dedicated line for each type
of your product, you will be able to help in reducing waste and
 errors while also ensuring the improvement of the overall
quality of your products being produced.
 Additionally, your modular production lines can be easily
configured to accommodate changes in production volume or
demand, thereby making them highly adaptable and versatile.