Vehicle Manufacturers, a history of evolution and consolidation
After more than 150 years since the production of the first vehicle, the auto industry has experienced a significant transformation in the past years. What before was a map full of individual manufacturers has evolved into an oligopoly, where a few control the large majority of all the well-known brands.
Cost Savings and Efficiency: The Drivers of Consolidations
Cost savings have been a key catalyst for the merging of companies in the automotive industry. Belonging to the same automobile group allows brands to share technologies, components, motors and materials, creating more efficiency from the beginning of the production line. Not only does this approach reduce costs, but it also promotes collaboration and innovation, resulting in more advanced and sustainable vehicles.
Constant Change in a Dynamic Market
In a dynamic car market, manufacturers experience ongoing acquisitions and strategic transformations to consolidate their position. Industry leaders have taken over rival brands, merging them with their own to preserve their competitiveness in a landscape of constant evolution. The intense competition promotes collaborations essential for survival in the challenging automotive industry.
Cooperation among different groups to Promote the Development of the Industry
Cooperation among brands from different groups is not only an economic strategy, but also an opportunity for development and innovation. Examples such as the Mercedes A-Class, which uses motors developed in collaboration with Renault, or the Toyota Supra, born from collaborating with BMW, demonstrate that these alliances can result in exceptional products. Even the Toyota Group’s release of nearly 24,000 hybrid patents to be used by other manufacturers underscores the importance of sharing knowledge for the common good.
Alliances in a Competitive World: The Race towards the Future
The automotive industry has entered a race of alliances and mergers over the last two decades, driven by intense competition, incentives, fluctuations in raw material prices, and the pressure to develop greener and safer vehicles. This phenomenon is the answer to the need to reduce costs and improve profitability in a market with production overcapacity.
The Chinese Revolution: New Car Manufacturers in the Global Scene
China’s automotive industry has made significant progress in the last 15 years, emerging as a global benchmark in several key sectors. Manufacturers such as Geely, BYD and NIO have gained prominence both in their domestic market and internationally. Examples such as Geely’s acquisition of Volvo and Polestar are evidence of a global expansion strategy, changing the global dynamics of the industry.
China in Charge of The Future of Mobility
China has not only entered the auto industry, but it is also actively influencing its future. Large-scale investment in electric cars, artificial intelligence, and autonomous driving technologies positions China as the leader of the next phase in the mobility industry. Chinese brands do not only intend to compete, they are trying to lead the coming technological revolution.
These are the Main Automobile Groups and their Brands in 2024
