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83-584: Connected Vehicle Systems Alliance ( COVESA ), formerly known as GENIVI Alliance is a non-profit automotive industry alliance that develops reference approaches for integrating operating systems and middleware present in connected vehicles and the associated cloud services. The alliance was founded as GENIVI Alliance on March 2, 2009, by BMW Group , Delphi , GM , Intel , Magneti-Marelli , PSA Peugeot Citroen , Visteon , and Wind River Systems . It rebranded as COVESA in October 2021. The industry alliance develops

166-580: A "pillar industry". The Chinese automotive industry gradually moved away from the manual workshop model and adopted Western advanced technologies and quality control management. Over the course of a decade, the localization rate of Chinese automotive components significantly increased. In 1997, the localization rate of the SAIC-VW Santana , one of the most popular sedans in China at that time, jumped from 60.09% six years prior to over 90%, with key components like

249-580: A 20-year contract to produce their Jeep -model vehicles in Beijing. The following year, Germany's Volkswagen signed a 25-year contract to make passenger cars in Shanghai , and France's Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou . These early joint ventures did not allow the Chinese to borrow much foreign technology, as knock-down kit assembly made up

332-500: A breakthrough, strengthening independent innovation to establish new competitive advantages." It explicitly outlined China's plan to use electric vehicle. This strategy is commonly referred to as the "corner overtaking strategy" in the Chinese automotive industry. In 2010, China's sales of electric vehicles were only 5,000 units. By 2015, the sales had surged to 331,000 units. In 2015, the Xi Jinping Administration launched

415-430: A car, and prefer other modes of transport. Other potentially powerful automotive markets are Iran and Indonesia . Emerging automobile markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in 2010 expected this trend to accelerate. However, more recent reports (2012) confirmed

498-422: A common hardware and software architecture for system providers for the automotive industry. This includes Linux-based services, middleware and open application layer interfaces. GENIVI was announced at CeBit 2009 as a new Open Source development platform for the auto industry. Its founding members included BMW, Delphi, General Motors, Intel, Magneti Marelli, PSA Peugeot Citroën, Visteon and Wind River, and its goal

581-544: A group of major car manufacturers including GM , Ford , Volvo , BYD Auto , Jaguar Land Rover and Mercedes-Benz committed to "work towards all sales of new cars and vans being zero emission globally by 2040, and by no later than 2035 in leading markets". Major car manufacturing nations like the United States, Germany, China, Japan and South Korea, as well as Volkswagen , Toyota , Peugeot , Honda , Nissan and Hyundai , did not pledge. The global automotive industry

664-438: A heightened focus on innovation and value-added features in vehicles. However, there are concerns from analysts, journalists and executives in the industry about its long-term effects on the overall health and stability of the Chinese automotive industry. In mid-2023, Bloomberg News reported most top Chinese automakers, except BYD and Changan, suffered a decline in profits as a result of the price war, hitting its lowest since

747-791: A plant in Shanghai, becoming the first foreign automaker to open a wholly-owned manufacturing facility in China. The liberalization was followed by commercial vehicles in 2020 and passenger cars in 2022. The regulation preventing foreign automakers from forming more than two joint ventures in China was also lifted in 2022. In December 2020, Volkswagen gained majority control of its Chinese electric car joint venture JAC-VW, controlling 75% of its Chinese business operation and renamed it to Volkswagen Anhui . In 2021, Volvo took complete ownership control of its Chinese manufacturing and sales subsidiaries. In 2022, BMW took control of its Chinese joint venture, BMW Brilliance with Brilliance Auto Group , reaching 75% of

830-487: A severe trade deficit , the Chinese leadership put on the brakes through the adjustment of import and foreign exchange policies. Customs duties on imported goods were raised in March 1985, and a new "regulatory tax" was added a little later. In September 1985, a two-year moratorium on nearly all vehicle imports was imposed. In July 1979, China adopted its first Law on Joint Venture Using Chinese and Foreign Investment. This law

913-406: A significant advantage over other countries. The Chinese automotive industry holds a dominant position in the electric vehicle supply chain, with more than 600,000 EV-related enterprises operating in the country as of 2022 . Chinese manufacturers' share of the global EV battery market stood at 60% in 2022. Industry analyst Chris Berry stated that China has a 10 to 15-year head start on the rest of

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996-647: A surge in car sales, with China becoming the largest auto producer globally in 2008. Strategic initiatives and industrial policy such as Made in China 2025 specifically prioritized electric vehicle manufacturing. In the 2020s, the automotive industry in mainland China has experienced a rise in market dominance by domestic manufacturers, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems . The domestic market size, technology, and supply chains have also led foreign carmakers to seek further partnerships with Chinese manufacturers. In 2023, China overtook Japan and became

1079-493: A top producer 1950s : United Kingdom, Germany, and France restarted production. 1960s : Japan started production and increased volume through the 1980s. United States, Japan, Germany, France, and the United Kingdom produced about 80% of motor vehicles through the 1980s. 1990s : South Korea became a volume producer. In 2004, Korea became No. 5 passing France. 2000s : China increased its production drastically, and became

1162-503: A wider variety of vehicles at more competitive prices, driving increased demand and competition within the industry. By following WTO regulations, starting in 2006, the import tariffs on complete vehicles in China were lowered from the previous 30% to 28%. In 2010, they were further reduced to 25%. Tariffs on automotive components like transmissions , shock absorbers , radiators , clutches , and steering units decreased from 13.5% to 12.9% and eventually to 10%. With China's entry into

1245-643: Is a major consumer of water. Some estimates surpass 180,000 L (39,000 imp gal) of water per car manufactured, depending on whether tyre production is included. Production processes that use a significant volume of water include surface treatment, painting, coating, washing, cooling, air-conditioning, and boilers, not counting component manufacturing. Paintshop operations consume especially large amounts of water because equipment running on water-based products must also be cleaned with water. In 2022, Tesla's Gigafactory Berlin-Brandenburg ran into legal challenges due to droughts and falling groundwater levels in

1328-463: Is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world demand would be in the four BRIC markets (Brazil, Russia, India, and China). Meanwhile, in developed countries, the automotive industry has slowed. It is also expected that this trend will continue, especially as the younger generations of people (in highly urbanized countries) no longer want to own

1411-518: The Cultural Revolution , the landscape started to shift during the Chinese economic reform period, especially after the government 's seventh five-year plan prioritized the domestic automobile manufacturing sector. Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among

1494-724: The Jiefang trucks for military or industrial departments and the Hongqi sedans used by a limited number of government officials. The concept of private cars had not yet emerged in China during this period. Several vehicle assembly factories were set up in the 1950s and 1960s. They were Beijing (today's Beijing Automotive Industry Holding Corporation ), Shanghai (today's Shanghai Automotive Industry Corporation ), Nanjing (later Nanjing Automobile , merged with SAIC), and Jinan (evolving into China National Heavy Duty Truck Group ). The Second Automobile Works (later Dongfeng Motor Corporation )

1577-462: The Made in China 2025 industrial policy that prioritized electric vehicles. By 2020, electric vehicles sales reached 1.367 million units, accounting for more than 50% of global market share. Following the Chinese economic reform , from 1994 to 2018, Chinese automotive policy mandated that foreign carmakers had to establish joint ventures with a Chinese counterpart to produce vehicles in the country, with

1660-462: The PSA Group had been in the top 8 1999 to 2012, and 2007 to 2012 one of the eight largest along with the seven largest as of 2017) and the five largest in the top 5 positions since 2007, according to OICA, which, however, stopped publishing statistics of motor vehicle production by manufacturer after 2017. All ten remained as the ten largest automakers by sales until the merger between Fiat-Chrysler and

1743-546: The Shanghai SH760 ) all from 1958. Changan Automobile traces its origins back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. It was not until 1979, when the factory was repurposed to manufacture Suzuki automobiles, that it became an automobile manufacturer. The passenger car industry was a minor part of vehicle production during the first three decades of

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1826-551: The United States led the world in total automobile production, with the U.S. Big Three General Motors , Ford Motor Company , and Chrysler being the world's three largest auto manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s. In 1929, before the Great Depression , the world had 32,028,500 automobiles in use, of which the U.S. automobile enterprises produced more than 90%. At that time,

1909-596: The World Wide Web Consortium (W3C) Automotive Working Group, consisting of experts from vehicle manufacturers, suppliers, solution providers and researchers. Automotive industry The word automotive comes from the Greek autos (self), and Latin motivus (of motion ), referring to any form of self-powered vehicle. This term, as proposed by Elmer Sperry (1860–1930), first came into use to describe automobiles in 1898. The automotive industry began in

1992-435: The largest in the world measured by automobile unit production since 2008. As of 2024 , mainland China is also the world's largest automobile market both in terms of sales and ownership . The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during

2075-485: The value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences. In 2007, there were about 806 million cars and light trucks on the road, consuming over 980 billion litres (980,000,000 m ) of gasoline and diesel fuel yearly. The automobile

2158-469: The 1860s with hundreds of manufacturers pioneering the horseless carriage . Early car manufacturing involved manual assembly by a human worker. The process evolved from engineers working on a stationary car, to a conveyor belt system where the car passed through multiple stations of more specialized engineers. Starting in the 1960s, robotic equipment was introduced to the process, and most cars are now mainly assembled by automated machinery. For many decades,

2241-539: The 2020s, Chinese technology corporations such as Huawei , Baidu , DJI have entered the automotive business. Huawei's partnership with automobile manufacturers has taken the form of three business models, the standardized parts supply model, the "Huawei Inside" (HI) model, and the Harmony Intelligent Mobility Alliance (HIMA). Baidu and DJI have provided autonomous driving system and hardware to automotive manufacturers. Qihoo 360 invested in

2324-713: The China Association of Automobile Manufacturers (CAAM) to avoid "abnormal pricing" practices and prevent a price war. However, just two days later, CAAM retracted the "abnormal pricing" clause due to concerns about violating China's antitrust laws . This move quickly ended the temporary "peace" and triggered another round of price cuts. In the 2020s, foreign global manufacturers started seeking technological assistance from its Chinese counterparts and invested in China through joint ventures or other forms of partnerships, including Renault - Nissan , VW , BMW , Mercedes-Benz , Toyota , Stellantis , and Jaguar Land Rover. Since

2407-547: The China Passenger Car Association (CPCA), in the first half of 2020, the market share of local brands in the Chinese automotive market was slightly more than 30 percent, with German and Japanese brands then at around 30 percent and 25 percent respectively. Two years later, in October 2022, the share of local car brands in China reached 51.53 percent. It was the first time in history that the monthly share of local car brands in China exceeded 50 percent. In contrast,

2490-521: The Chinese EV startup company Hozon Auto . Geely collaborates with Baidu to set up joint venture brands, and acquired Chinese smartphone company Meizu for its Polestar and Lynk & Co brands with its auto OS and AR system . Xiaomi is the first and the only Chinese tech company that is directly involved in automotive design, development and manufacturing, and operates its factory in Beijing. In terms of electric vehicle production, China has

2573-646: The Chinese automobile industry following the Chinese Communist Revolution was relatively slow due to the lack of free market competition and the turbulence of the Culture Revolution . Except for a degree of development in the 1950s with assistance from the Soviet Union, the Chinese automobile industry remained closed and lagging behind until the period of Chinese economic reform under Deng Xiaoping . Most domestically produced vehicles were primarily

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2656-437: The Chinese partner owning at least 50% of the venture. This measure was implemented to protect local manufacturers and provide it with the chance to bridge the technology gap and develop their brands. In the 2010s, automotive analysts speculated China would lift its restriction on joint venture ownership once the domestic industry matures. In 2017, the Chinese government announced the intention to lift ownership restrictions in

2739-790: The Common Vehicle Interface Initiative (CVII), the Android Automotive Special Interest Group (SIG), the Vehicle Payments Special Interest Group (SIG) and the Automotive Cybersecurity Team. Notable projects include the development of vehicle signal specifications (VSS) including related APIs for vehicle signals and service catalogs, as well as using service-oriented architecture to accelerate integration of new features into automotive systems. The group also works with

2822-615: The Nanjing Automobile, previously a vehicle servicing unit of the People's Liberation Army , began making China's first domestically produced light-duty trucks. Production continued until the last truck (NJ134) rolled off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135, and NJ134). The first production automobiles were the Dongfeng CA71 , Hongqi CA72 , Feng Huang (later known as

2905-689: The PRC. China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. In 2009, China produced 13.79 million automobiles, of which 8 million were passenger cars and 3.41 million were commercial vehicles and surpassed

2988-645: The PSA Group in early 2021 ; only Renault was degraded to 11th place, in 2022, when being surpassed by both BMW (which became the 10th largest in 2021) and Chang'an . These were the twenty largest manufacturers by production volume in 2012 and 2013, or the 21 largest in 2011 (before the Fiat-Chrysler merger ), of which the fourteen largest as of 2011 were in the top 14 in 2010, 2008 and 2007 (but not 2009, when Changan and Mazda temporarily degraded Chrysler to 16th place). The eighteen largest as of 2013 have remained in

3071-520: The People's Republic of China. As late as 1985, the country produced a total of only 5,200 cars. Cars were almost entirely purchased by danweis ( work units  – private car ownership was virtually unknown at the time, in spite of the Sun Guiying story). As domestic production was very limited, import totals rose dramatically despite a 260 percent import duty on foreign vehicles. Before 1984,

3154-501: The Second Sino-Japanese War because of fuel shortages. Tung oil was also used during the war as a petroleum substitute. The number of automobiles in China had been growing steadily which was close to 70,000 vehicles in 1937. However, due to the war, car ownership volume plummeted to 16,000 in 1940, which was only 23.8% of 1937. It was not until 1947 that car ownership volume returned to pre-war levels. The development of

3237-428: The U.S. had one car per 4.87 persons. After 1945, the U.S. produced around three-quarters of the world's auto production. In 1980, the U.S. was overtaken by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007, and in 2008 also China , which in 2009 took the top spot (from Japan) with 13.8 million units, although the U.S. surpassed Japan in 2011, to become

3320-419: The United States as the world's largest automobile producer by volume. In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. In 2017, total vehicle production in China reached 28.879 million, accounting for 30.19% of global automotive production. In the first half of 2023, China overtook Japan to become

3403-475: The WTO, competition from both domestic and foreign automotive brands increased. This intense competition caused prices in the domestic automotive market to decline steadily. The annual average reduction in car prices has exceeded 8%, with a particularly notable decrease of 13.5% in 2004. The Chinese automotive market experienced significant growth after 2000. This growth is closely tied to China's economic development and

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3486-470: The World Trade Organization in 2001, marking a significant shift in the country's automotive industry. Following the admission, automotive tariffs began to be substantially reduced, leading to a decrease in the prices of imported cars. This reduction in tariffs transformed the market. As foreign automotive companies started bringing their latest models into China, Chinese consumers gained access to

3569-662: The automotive industry and allowed foreign automotive companies to take majority or full ownership of their operations in China. On April 17, 2018, The National Development and Reform Commission (NDRC) of China announced that foreign ownership limits on automakers would be phased out over a 5-year period. The goal of the Chinese government was to open the Chinese market to foreign companies and new technologies, ease trade tension, and increase market competition. On 28 July 2018, China lifted foreign ownership restrictions on new energy vehicle production, which benefited American electric car manufacturer Tesla, Inc . The company established

3652-486: The automotive industry, safety means that users, operators, or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves implies that there is no risk of damage. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on

3735-955: The beginning of the COVID-19 pandemic in 2020. BYD, which specialized in electric vehicles, became an outlier as it experienced record profits and deliveries in this period, securing its position as a key player in the market. The market dynamics also drove the share of Chinese automakers to an all-time high, accounting for slightly over 50% of the market. However, the market dynamics in China also led to overcapacity, especially in EVs, which prompted Chinese carmakers to increase exports and expand sales overseas. Declining sales and profits also affected foreign joint venture brands. In March 2023, SAIC-Volkswagen reduced prices on its ID.3 electric cars by 18 percent. Toyota implemented workforce reductions at GAC Toyota , eliminating around 1,000 jobs. Additionally, Hyundai sold two of its plants, while Mitsubishi Motors left

3818-565: The car body, engine, transmission, and front and rear axle assemblies all achieving localization. The localization rate of the FAW-VW Audi 100 reached 93%, while the Jetta achieved an 84.02%. The localization rate of the Citroën Fukang by FAW exceeded 80%. The improvement in the localization rates of complete vehicles were made possible by the growing capabilities of complementary enterprises in

3901-489: The country compared to just over 10 million in the US. At this point, almost 200 million Chinese people were able to drive a vehicle, making up about 15 percent of the country's 1.3 billion population. With the rapid growth of China's automobile production, China became the country with the most diverse range of automotive brands globally. Competition in China's automobile market significantly intensified during this period. However,

3984-500: The dominance of foreign brands are gradually declining. The share of German brands fell to 19.25 percent, and Japanese brands fell to 18.94 percent in October 2022. Throughout 2023, the market share of local brands has remained at around 50 percent. These changes were attributed to the rapidly increasing popularity of new energy vehicles, and the failure of foreign brands to catch up with the shift. Due to these market dynamics, some joint ventures that were already facing challenges during

4067-586: The dominant exporter of cars to China had been the Soviet Union . In 1984, Japan's vehicle exports to China increased sevenfold (from 10,800 to 85,000), and by mid-1985, China had become Japan's second biggest export market after the U.S. The country spent some $ 3 billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in 1985 alone. Three taxi companies in particular imported many Japanese cars such as Toyota Crowns and Nissan Bluebirds . As this spending binge began to lead to

4150-483: The early 1990s to 84 in 2019. In 2017, China imported $ 51 billion of vehicles. In 2018, China lowered the vehicle import tariffs to 15%, and the vehicle components import tax to 6% to provide greater access for foreign automakers in China. In 2009, the State Council of the People's Republic of China issued the "Automobile Industry Adjustment and Revitalization Plan," which emphasized, "Using new energy vehicles as

4233-454: The early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC , FAW , Dongfeng , and Changan , collectively known as the "Big Four". The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to

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4316-436: The end of July 2012. Experts attribute this lack of success to the joint ventures' failure to transfer know-how effectively. Former Chinese industry minister He Guangyuan likened auto manufacturing joint ventures to " opium ," criticizing Chinese firms for relying on assembling foreign cars with minimal changes instead of developing vehicles from scratch to gain know-how and patent rights. To facilitate consolidation, in 2012,

4399-760: The era of traditional fuel-powered cars are further disadvantaged. In May 2023, Zhu Huarong, chairman of Changan Automobile, predicted that "in the next 2–3 years, it is conservatively estimated that 60%-70% of brands will face closure and transfer." Between 2018 and 2023, eight joint venture manufacturers opted to withdrew the Chinese market. Other joint ventures with significantly decreased sales are scaling back their production capacity by closing and selling their underutilized manufacturing plants. The remaining production capacity has been acquired by their Chinese joint venture partners. In August 2023, BYD chairman and CEO Wang Chuanfu called on local Chinese car manufacturers to "unite" to take on foreign manufacturers, responding to

4482-468: The export market remained relatively small compared to the domestic market. In 2008, motor vehicle exports constituted about 7% of Chinese automobile production, decreasing to about 3% in 2009 due to the global financial crisis. Key export destinations in 2010 included Algeria, Vietnam, Russia, Iran, and Chile. Most motor vehicle exports at that time were directed towards developing and emerging economies . Apart from mainstream joint venture brands dominating

4565-610: The government revoked production permits for manufacturers producing fewer than 1,000 passenger vehicles annually. On February 29, 2016, the Ministry of Industry and Information Technology shut down 13 automobile manufacturers that did not meet mandatory production evaluations for two consecutive years. After 2018, an increasing number of these smaller brands became 'zombie company' state, with many suspending production and operations, as market-driven consolidation accelerated. The number of Chinese automotive brands increased from just over 20 in

4648-517: The industry chain. During this period, diesel engines from Yuchai Machinery Factory and automotive glass from Fuyao began to emerge. Several enterprises entered the automobile industry beginning in 1994. Some of them are originated from the defense industry , such as Changan , Changhe , and Hafei ; some were developed from state-owned companies, such as BYD , Brilliance , Chery , and Changfeng Motor . Others are private-owned companies, such as Geely Auto and Great Wall Motor . China entered

4731-479: The list below) currently possess the capability to design original production automobiles from the ground up, and 17 countries (listed below) have at least one million produced vehicles a year (as of 2023). These were the ten largest manufacturers by production volume as of 2017, of which the eight largest were in the top 8 positions since Fiat's 2013 acquisition of the Chrysler Corporation (although

4814-479: The majority of manufacturing activities; tooling may not have been allowed to slip past borders. Until the late 1990s, there were eight joint venture enterprises in China producing passenger cars, including Shanghai Volkswagen , FAW-Volkswagen , Beijing Jeep , Guangzhou Peugeot , Dongfeng Citroën , Changan Suzuki , Changhe Suzuki , and Soueast Motor . In April 1986, the Chinese government's seventh five-year plan , which recognized automobile manufacturing as

4897-482: The market completely in that year. Layoffs were also observed at GAC Honda , Volkswagen, Volvo , Tesla, and Kia . The Chinese government has attempted to mitigate the negative impacts of the price war through various measures, such as subsidies for electric vehicle purchases and initiatives to promote the adoption of new energy vehicles in rural areas. In July 2023, sixteen manufacturers, including fifteen Chinese carmakers and Tesla, signed an agreement facilitated by

4980-545: The market. The standard ISO 26262 , is considered one of the best practice frameworks for achieving automotive functional safety . In case of safety issues, danger, product defect , or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall . Product recalls happen in every industry and can be production-related or stem from raw materials. Product and operation tests and inspections at different stages of

5063-515: The mid-to-high-end market, there was a substantial presence of local state-owned and private small and medium-sized automotive companies. However, despite the Chinese government's policy of requiring foreign carmakers to establish local joint ventures, Chinese carmakers faced difficulty to compete with foreign competitors during this era. According to the China Association of Automobile Manufacturers (CAAM), local car brands saw their market share decline, dropping from 30.9 percent in 2010 to 26.8 percent by

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5146-625: The opposite; namely that the automotive industry was slowing down even in BRIC countries. In the United States, vehicle sales peaked in 2000, at 17.8 million units. In July 2021, the European Commission released its " Fit for 55 " legislation package, which contains important guidelines for the future of the automotive industry; all new cars on the European market must be zero-emission vehicles from 2035. The governments of 24 developed countries and

5229-603: The organization renamed itself as the Connected Vehicle Systems Alliance (COVESA), to add an emphasis on the group's work with cloud computing and data exchange. In October 2022, the group's work with vehicle operating systems and software platforms was reviewed, categorized and presented by researchers at the International Conference on Information and Communication Technology Convergence (ICTC). The group's projects are divided into groups including

5312-770: The region. Brandenburg's Economy Minister Joerg Steinbach said that while water supply was sufficient during the first stage, more would be needed once Tesla expands the site. The factory would nearly double the water consumption in the Gruenheide area, with 1.4 million cubic meters being contracted from local authorities per year — enough for a city of around 40,000 people. Steinbach said that the authorities would like to drill for more water there and outsource any additional supply if necessary. 1960s : Post-war increase 1970s : Oil crisis and tighter safety and emission regulation 1990s : Production started in NICs . 2000s : Rise of China as

5395-400: The rise of the middle class. An increasing number of Chinese households can afford cars, leading to a surge in sales. China's automobile production grew from two million vehicles in 2000 to 29 million vehicles in 2017. During that time, its global market share rose from 3% to 30%. By 2017, there were 300.3 million registered vehicles in China. In January 2007, China surpassed Japan to become

5478-461: The second-largest automobile industry. In 2023, China had for the first time in history more than 30 million produced vehicles a year, after reaching 29 million for the first time in 2017 and 28 million the year before. From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially. Safety is a state that implies being protected from any risk, danger, damage, or cause of injury. In

5561-578: The severe price war in the Chinese market throughout 2023. The call was welcomed by the CEOs of Nio and Li Auto . Since late 2022, the Chinese automotive industry has experienced a significant price war characterized by aggressive price reductions by carmakers to attract customers and increase market share, amid an economic slowdown and production overcapacity. Tesla initiated the subsequent price war by offering two substantial price cuts on its Chinese-made models in October 2022 and January 2023. The situation

5644-465: The stake. Since 2020, the Chinese automotive industry has entered a phase marked by the maturation and advancement of technology among local manufacturers. As a result, there has been a notable increase in the market share held by local manufacturers within the domestic market. Additionally, many foreign brands have sought partnerships with Chinese automakers to capitalize on their technological advancements and supply chain capabilities. According to

5727-523: The top 20 as of 2017, except Mitsubishi which fell out of top 20 in 2016, while Geely fell out of the top 20 in 2014 and 2015 but re-entered it in 2016. It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies. Notable current relationships include: Automotive industry in China The automotive industry in mainland China has been

5810-419: The wake of the city's bombing and attack. After the foundation of the People's Republic of China (PRC) in 1949, plants and licensed auto design were established in China with assistance from the Soviet Union in the 1950s, marking the beginning of the country's automobile sector. However, the Chinese automotive industry did not exceed 100–200 thousand automobiles produced per year during the first 30 years of

5893-456: The world in terms of EV battery supply chain. The dominance of the EV battery supply chain is considered a major factor contributing to the lower cost of Chinese EVs. Some 75 percent of the world's lithium-ion batteries are made in China, and the country's EV manufacturing facilities are close to the source of these components. China has invested heavily in refinery capacity, housing more than half of

5976-433: The world largest car exporter. However, the industry also faced heightened scrutiny, increased tariffs and other restrictions from other countries and trade blocs , especially in the area of electric vehicles due to allegations of significant state subsidies and Chinese industrial overcapacity. The first automobile in China was purchased from Hong Kong in 1902 by Yuan Shikai and gifted to Empress Dowager Cixi . It

6059-493: The world's No. 2 vehicle market after the United States, with a 37 percent increase in car purchases. An estimated 7.2 million vehicles was sold in China in 2006. Following the 2007–2008 global financial crisis , the Chinese government implemented various policies to stimulate car purchases. This included a car-scrappage scheme and sales tax reductions on smaller vehicles, leading to a surge in demand for cars with engines less than 1.6 liters. Due to these stimulus measures, growth

6142-557: The world's largest exporter of automobiles, exporting 2.34 million vehicles compared to 2.02 million for Japan. As of 2024 , China is the world's largest market both in terms of automobile sales and ownership. The first Chinese-built motor vehicle was a truck called the Minsheng 75 truck (民生牌75) . It was designed by Daniel F Myers, and a prototype was made at the Liao Ning Trench Mortar Arsenal, Shenyang . The prototype

6225-457: The world's largest-producing country in 2009. 2010s : India overtakes Korea, Canada, Spain to become 5th largest automobile producer. 2013 : The share of China (25.4%), India, Korea, Brazil, and Mexico rose to 43%, while the share of United States (12.7%), Japan, Germany, France, and United Kingdom fell to 34%. The OICA counts over 50 countries that assemble, manufacture, or disseminate automobiles. Of those, only 15 countries ( boldfaced in

6308-481: The world's processing and refining capacity for lithium , cobalt , and graphite , which are essential materials for making EV batteries. 70 percent of the global production capacity for cathodes and 85 percent for anodes are also hosted in China. China's strength in EV supply chain resulted in reduced costs in logistics, labor, and land management. Additionally, economies of scale are enabled by its large domestic EV market. China's EV manufacturing sector enjoys

6391-622: Was also caused by the fact that China's automobile industry is moving towards electrification, which led to overcapacity of internal combustion engine vehicles . In 2023, China's light vehicle production capacity was 48.7 million units, with a capacity utilization rate of 59%. By 2023, Reuters reported that over 40 carmakers in China in both internal combustion engine and electric vehicle segments followed suit to maintain their market position. Brands resorted to extreme measures by offering deep discounts and other incentives while pressing auto suppliers to reduce costs. The competitive climate also caused

6474-577: Was completed on May 31, 1931, for Zhang Xueliang . Prior to production commencing, the factory was bombed during the Japanese invasion of Manchuria and production never commenced. A fellow general, Yang Hucheng , patronized the inventor Tang Zhongming to make a new type of automobile engine powered by charcoal. In 1932 Tang founded the Chung Ming Machinery Co. Ltd. in Shanghai to produce the engines. Charcoal-powered vehicles were mainly used during

6557-522: Was effective in helping to attract and absorb foreign technology and capital from developed countries like the United States, facilitating China's exports to such countries and thereby contributing to China's subsequent rapid economic growth. While limiting imports, China also tried to increase local production by boosting the various existing joint venture passenger car production agreements, as well as adding new ones. In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation ) signed

6640-642: Was founded in 1968. The first Chinese production vehicles were trucks made by the First Automotive Works in 1956, called the Jiefang CA-10 . This was followed on March 10, 1958, by the 2½ ton light duty truck (NJ130), which was based on the Russian GAZ-51 , was produced in Nanjing. The truck was named Yuejin (meaning "leap forward") by China's First Ministry of Industrial Machinery. In June 1958,

6723-679: Was later put on display in the Summer Palace Museum. During the early twentieth century, major western automobile manufacturers such as the Ford Motor Company , General Motors , and Mercedes-Benz had plants operating in Shanghai . However, the Second Sino-Japanese War hampered the progress of the Chinese auto industry, as seen by the relocation of the Changan Automobile factory from Shanghai to Chongqing in

6806-432: Was particularly strong over 2009 and 2010, with production and sales of automobiles doubling over this period. Both the scrappage scheme and the sales tax discount ended in late 2010. In 2010, the Chinese automotive industry became the largest in the world, surpassing the United States. Following a 59 percent year-on-year sales increase, China's car sales exceeded those of the US in 2009, with 13.6 million vehicles sold within

6889-435: Was to jointly develop Linux-based infotainment software. It was incorporated as a 501(c)(6) nonprofit organization. The name GENIVI was a portmanteau of Geneva and IVI, which stood for in-vehicle infotainment. In January 2016, the organization released an Automotive Grade Linux Unified Code Base distribution featuring GENIVI components, and announced new members including Ford, Subaru, Mazda and Mitsubishi Motors. In October 2021,

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