The global automotive industry consists of the manufacture and selling of more than 70 million vehicles every year. Rising fossil fuel prices have forced automobile manufacturers to come up with innovative solutions.

The automotive industry is engaged in design, development and manufacture of motor vehicles. Marketing and sale of vehicles is also included in the automotive industry. The industry includes vehicles for both personal and commercial use.

Vehicle manufacture
More than 70 million motor vehicles are manufactured worldwide every year. Continentwise, the biggest producer is Europe, with approximately 22 million vehicles sold. Europe follows close behind with 22.9 million. 19.4 million vehicles are manufactured each year in the North American continent (USA and Canada). Latin America, Middle East and Africa make up the rest with 4.4 million, 2.4 million and 1.4 million vehicles respectively. The most dynamic automotive markets for automobile sales are China, Russia and Brazil.

Major companies
Toyota is the biggest automobile manufacturing company in the world with nearly 9.5 million vehicles manufactured in 2007. General Motors (GM) comes second with 9.3 million vehicles produced. German manufacturer Volkswagen manufactured more than 6.3 million vehicles in 2007. Ford follows with 6.24 million automobiles. Honda manufactured and sold 3.9 vehicles in 2007. Other major global automobile majors include Tata Motors (India), Mazda (Japan), and Hyundai (South Korea).

Problems and solutions
Vehicle manufacturers across the world are facing the problem of rapid price rise in retail oil prices. Increasing economic uncertainty has also forced many consumers to re-look their vehicle usage. Change in consumer buying habits has forced many automotive companies to change. The introduction of hybrid cars (like Toyota Prius) make a perfect example. These type of cars run on both gasoline and electric power.