Automobile Manufacturing Industry Profile

Companies in this industry engage in manufacturing complete automobile and light duty motor vehicles, as well as vehicle chassis only. Major companies include Ford, General Motors, and Tesla (all based in the US); along with Honda and Toyota (both based in Japan); SAIC Motor (China); Stellantis (the Netherlands); and Volkswagen (Germany).

Annual car sales grew to about 78 million in 2024, up from about 75 million in 2023, according to Statista. Demand in China will lead global growth but is slowing amid a cooling economy. Leading countries for car manufacturing include China, Germany, Japan, South Korea, and the US. Unit sales are highest in China, North America, and Western Europe.

The US automobile manufacturing industry includes about 230 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $300 billion.

COMPETITIVE LANDSCAPE

The global auto industry is dominated by a small number of US, Western European, and Japanese companies. In the pursuit of sales and market share growth, the major companies have expanded aggressively into emerging markets by setting up local subsidiaries or joint ventures. Domestic manufacturers in emerging markets often enjoy tax benefits or other policies that give them an advantage over foreign competitors. Manufacturers in emerging markets also have global expansion ambitions and are increasingly exporting their products to both established and other developing markets.

Demand is driven by employment, wage growth, and interest rates. The profitability ...