Automobile IndustryInternationalization > Internationalization of automobile production

The market shares of the ten largest car countries 2015 to 2000

The dramatic internationalization of the locations of worldwide automobile production

The market shares of each country at the world automobile production have been dramatically changing in the last fifteen years. The driving power of these changes is the internationalization of production.

Ten largest automobile countries.

Update April 4th, 2016 - The internationalization of the worldwide production locations has been becoming the main strategy of the ten largest automobile manufacturers since the end of the nineties.

 

Production takes place where highest profits are expected and for this purpose many factors must coincide.

 

Just to indicate are sales market and important subcontractors nearby, low labor costs, favorable logistics, communication and infrastructures, low taxes, subsidies as high as possible, investor friendly surrounding field, international capital market nearby and other more.

 

This internationalization of production caused a dramatic reorganization of the worldwide automobile industry’s production locations during the last fifteen years.

In Brazil, China and India almost as many cars are now produced as in the USA, Japan, Germany, Spain and Canada

In 2000 the five countries USA, Japan, Germany, Spain and Canada produced still almost 60% of world-wide motor vehicle production.  Fifteen years later this world market share was almost cut in half to 36%.

 

In 2000 scarcely 8% of the worldwide automobile production came from the three countries Brazil, China and India. Fifteen years later this share more than quadrupled to 34%.

 

So now almost as many cars roll from the assembly belts in Brazil, China and India as together in the USA, Japan, Germany, Spain and Canada.

Internationalization of automobile production in countries from 2000 to 2015.

In China, the new number 1 in worldwide automobile production, more cars are now produced than in the USA and Japan

China’s jump to the top of the worldwide automobile production is surely the most spectacular impact of the internationalization of production.

Market shares of the 10 largest automibile countries from 2000 to 2015 and their ranking.

China could more than seventuple its world market share within fifteen years catapulting itself from rank eight on rank one.

 

In China more motor vehicles (27.0%) are now produced than in the USA and Japan (23.6%). More than each fourth worldwide produced automobile is already manufactured in China.

 

India could more than triple its world market share while Brazil's market share decreased. Both countries did not still belong to the ten largest motor vehicle countries fifteen years ago. France left this circle and was replaced by Canada.

 

At the same time the world market shares of the USA, Spain and France were nearly cut in half during the 15 years. While in 2000 still each third automobile came from these countries, it is currently even still each sixth. Also Japan and Germany experienced declining market shares.

Internationalization of production – structurally, not cyclically caused

A view of the worldwide motor vehicle production shows a continuous growth with exception of the economic crises 2001 and 2008/2009, affecting the total industrial production.

Index of the worldwide automobile production from 2000 to 2015.

So internationalization of production is structurally caused not cyclically.

 

Finally a remark to the term globalization. Globalization, however, already originated in the 15th century when the Spanish king Philipp II governed the first world realm of history. This global, i.e. worldwide realm reached from America over Europe up to Asia. Since then many national states as well as large enterprises have globally been active, there were colonialism, imperialism and two world wars.

 

So the new phenomenon is not globalization but internationalization of production in a worldwide interlaced network.

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