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.
Comparing the above with the current year scenario, Chinese makers of electric vehicles had an eventful 2024, marked by new production and sales records as well as fierce competition that left some upstarts by the wayside and few EV manufacturers with profits to match their industriousness.
Since July, the EV penetration rate has exceeded 50 per cent in China, buttressed by government consumption subsidies.
Meanwhile, as domestic EV sales rise, some foreign carmakers are facing an existential challenge in China, which has been responsible for a significant proportion of their global sales over the past couple of decades.
Meanwhile, Chinese EV exports weakened in 2024 as the European Union, the United States and Canada all erected significant tariff barriers to EVs that are made in China.
