Introduction to the Automotive Industry: At the Heart of Motion and Transformation

From the modern cars that dazzle us in traffic to the quietly moving electric vehicles... The automotive industry not only meets the need for transportation but is also at the very heart of economic development, technological innovation, and environmental transformation.

Today, the lives of millions of people around the world are shaped by the rhythm of this massive industry. With billions of dollars invested each year, hundreds of thousands of people employed, and an ever-evolving landscape, the automotive sector has undergone a unique transformation from the past to the present. And, this transformation is only just beginning.

The automotive industry is much more than just vehicles. It is a convergence point for various engineering disciplines, an arena where environmental consciousness is tested, and a force shaping the way of life in the future.

If you're ready, let’s embark on this journey together.

Our First Stop…

Hasçelik

Overview of the Automotive Industry: From Past to Present

The cars we turn on today, or the ones that silently move with a touch, are backed by over a century of engineering revolution. The automotive industry emerged from humanity's need for transportation, evolved with technological advancements, and has now become one of the most important players in sustainability.

The First Spark: From Steam-Powered Vehicles to Gasoline Engines

The foundations of the automobile go back to the late 18th century with the invention of the first steam-powered vehicles. However, the real concept of the automobile took shape in 1886 when Karl Benz produced the Benz Patent-Motorwagen, a car with an internal combustion engine.

This development marked the beginning of a process that would not only transform individual transportation but also change production, trade, and urban planning worldwide. Later, in 1913, Henry Ford developed the assembly line, making automobiles accessible to the masses rather than just the elite. With the Ford Model T rolling off the assembly line every 20 seconds, a new era in transportation began.

Crises and Technological Leaps

Throughout the 20th century, the automotive industry faced numerous challenges, such as oil crises and global economic fluctuations. However, each crisis led to a transformation within the industry.
• 1940s: World War II redirected production to military vehicles.
• 1970s: The oil crisis increased interest in fuel-efficient, compact cars.
• 1980s-1990s: Japanese automotive brands rose in the global market with a focus on quality and efficiency.
• 2000s: Integration of electronic systems transformed cars into "smart" vehicles.

21st Century: Digitalization, Electrification, and Sustainability

Today, the automotive industry is not just producing engines; it is also developing software, creating autonomous systems, and working to reduce its carbon footprint.
• Electric vehicles (EVs), led by brands like Tesla, have ushered in a new era.
• Autonomous driving technologies are advancing alongside artificial intelligence.
• Materials science is guiding environmentally-friendly production with lightweight, durable solutions.
• Connected cars are now internet-connected, enhancing the driving experience.

The automotive industry has played a pivotal role in every milestone, from the industrial revolution to the digital age. In its current form, it is not just a manufacturing sector but a strategic pillar shaping the future of digitalization, sustainability, and mobility.

Why is the Automotive Industry So Important?

There are very few sectors that play a pivotal role in a country's development, employment, exports, and even innovation power like the automotive industry. Today, without the automotive sector, supply chains wouldn't function properly, transportation systems wouldn't work at full capacity, and industrial economies wouldn't operate optimally.

But why is that?

1.    The Engine of Economies

The automotive industry is one of the largest contributors to industrial production in many countries.
•    In Europe, 6% of total industrial production comes from automotive.
•    In Turkey, the automotive sector has been an export champion over the last decade.
•    In the U.S., one out of every ten manufacturing jobs is related to the automotive sector.

Additionally, this sector doesn't operate in isolation; it drives numerous other industries, from rubber to steel, from software to electronics.

2.    High Value-Added and Innovation

The automotive industry is one of the largest investors in research and development (R&D). Because a vehicle is more than just its body; it requires innovation in areas such as engine technology, driving safety, connectivity systems, and battery chemistry.
•    Automotive companies spend billions of dollars annually on R&D.
•    Autonomous driving, artificial intelligence, data analysis, and software are at the heart of the sector.

This directly links the automotive industry to a country's ability to generate technology.

3.    Wide Employment Chain

The automotive sector is not only about engineers and workers in factories.
•    Component suppliers
•    Logistics firms
•    Maintenance and repair services
•    Dealers and sales points
•    Testing and certification centers
•    Software developers

Therefore, when a car is produced, a workforce chain involving thousands of people is activated.

4.    Shapes Consumer Habits

Purchasing a car is one of the biggest investments for many people. That's why the automotive industry is a powerful influencer in shaping consumer trends.
•    Security expectations
•    Fuel efficiency
•    Environmental preferences
•    Interest in smart technologies

These trends not only influence the market but also impact city infrastructures and government policies.

5.    Strategic Importance

The automotive sector is a determining factor for a country’s industrial independence, defense industry, and even its foreign trade balance.

•    Domestic production incentives are crucial for this reason.
•    Countries that lag behind in electric vehicles (EVs) will not have a say in future markets.

The automotive industry intersects with many fields, including technology, economy, employment, and sustainability. Therefore, a country’s success in the automotive sector is not just about producing more vehicles but also about how it designs the future.

Which Categories Do Automobile Manufacturers Fall Into?

When we see a car brand, we typically think of it as just a "brand." However, manufacturers within the automotive industry are positioned with different roles, goals, and marketing strategies.

So, how do these giant brands actually break down into categories? Let’s take a closer look.

1.    OEM (Original Equipment Manufacturer) – Main Manufacturers

OEMs are the primary companies that produce the entire vehicle. They manage the entire process, from vehicle design to manufacturing, supplier selection, and marketing.

Examples:
•    Toyota, Ford, Volkswagen, Mercedes-Benz, BMW, Hyundai, Renault, Stellantis are all OEMs.

OEMs typically:
•    Have their own R&D centers.
•    Work with global supply chains.
•    Develop products in both passenger and commercial vehicle segments.

2.    Tier 1 and Tier 2 Suppliers

Every vehicle is made up of thousands of parts, and OEMs source the majority of these components from suppliers.
•    Tier 1: They produce systems directly integrated into the vehicle (e.g., braking systems, steering, battery modules).
•    Tier 2: They supply parts or semi-finished products to Tier 1 manufacturers.

These companies typically produce high-tech products within their areas of expertise. Examples:
•    Bosch, Valeo, Denso, Continental, Magna, ZF are Tier 1 suppliers.
•    Hasçelik, positioned in Tier 2, provides raw materials suitable for automotive applications.

3.    Brand Groups and Conglomerates

Many consumers are unaware of the groups behind car brands. However, the global automotive industry is controlled by a few major conglomerates. Examples:
•    Volkswagen Group owns brands such as VW, Audi, Porsche, SEAT, Skoda, Lamborghini, Bentley.
•    Stellantis includes brands like Peugeot, Citroën, Opel, Fiat, Jeep, Alfa Romeo, Chrysler.
•    Toyota owns sub-brands like Lexus and Daihatsu.

These groups:
•    Appeal to consumers in different segments.
•    Reduce costs through technology and platform sharing.
•    Are major players managing internal competition.

4.    New-Generation Manufacturers – Technology-Focused Players

A new type of manufacturer has emerged in recent years in the automotive industry: tech-based manufacturers growing through software and battery technology. Who are they?
•    Brands like Tesla, Rivian, NIO, Lucid Motors, BYD break traditional production chains, bringing a fresh perspective to the sector.
•    These companies offer “wheel-based technology products” instead of just vehicles.

What makes these brands different?
•    They develop their own software.
•    They distance themselves from the traditional dealership system.
•    They can update their vehicles remotely through software updates.
•    They typically focus on electric vehicles.

5.    Special Purpose Manufacturers – Niche and Performance Manufacturers

This category includes companies that produce smaller-scale but highly specialized vehicles. Examples:
•    Supercar manufacturers like Ferrari, Lamborghini, Bugatti, McLaren, Aston Martin.

These brands typically:
•    Produce in low volumes but with high value-added.
•    Differentiate themselves through technological depth or design.
•    Often reflect prestige and engineering excellence.

The name on a vehicle is just the visible face of its production. Behind it lies a multi-layered structure, hundreds of suppliers, billions of dollars in technology investments, and complex strategies.

Categorizing automobile manufacturers helps us understand how this massive industry works.

The Role of the Automotive Industry in Terms of Safety, Economy, and Environmental Impact

The automotive industry is not just about producing vehicles; it is a major force shaping the safety of societies, the strength of economies, and the future of the environment. A car is not only a means of transportation; it is a fusion of technology, production, responsibility, and vision.

1.    Safety: Advancing Technology to Protect Lives

Traffic accidents affect millions of lives every year, making safety one of the top priorities in the automotive industry.

a) Passive Safety

b) Active Safety

c) Connected and Autonomous Safety

The automotive industry invests billions each year to develop safer, smarter, and more predictive systems.

2.    Economy: A Giant Employing Millions

The automotive industry is a backbone of many economies, influencing economies through production volume, the strength of the supply chain, and export potential. Employment increases at every stage of the supply chain. (For instance, the automotive industry in Turkey directly and indirectly provides jobs for over 500,000 people.)

Investment and Export

Supply Chain and Raw Material Demand

3.    Environmental Impact: Transition to Responsibility

Traditional vehicles have a significant environmental impact. However, the industry is now taking serious steps to lighten this burden.
Carbon Footprint and Emissions

Transition to Electric Vehicles

Use of Lightweight Materials

Recycling and Circular Economy

In short, the automotive industry has evolved beyond just speed and comfort; it now carries the values of a greener future.

The automotive industry:

Therefore, a car is not just a steering wheel, engine, and tires; it is a platform where technology, economy, and sustainability converge.

Challenges and New Perspectives Facing the Automotive Industry (2025-2030)

The automotive industry is on the brink of perhaps its most significant transformation in history. Technology is advancing at a dizzying pace, consumer expectations are changing, environmental crises loom, and the global economy is highly volatile.

So, what lies ahead for the automotive industry from 2025 to 2030? Here are the main challenges and the new perspectives that will turn them into opportunities:

1.    Transition to Electric Vehicles: Infrastructure and Adaptation Challenges

2.    Environmental Regulations and Carbon-Neutral Targets

3.    Supply Chain Crises and Raw Material Competition

4.    Development of Autonomous and Smart Vehicles

5.    High Investment Costs and the Squeeze on Smaller Manufacturers

6.    Changing Consumer Expectations

7.    Skilled Labor Shortage

From 2024 to 2030, the automotive world will face:
•    Uncertainty,
•    Investment pressure,
•    Environmental responsibility,
•    Technological revolution,
•    And new consumer dynamics.

However, brands that can turn these challenges into opportunities will not only lead the mobility sector today but also in the future.

Safety Standards and Regulations in the Automotive Industry

The automotive industry is not only about comfort or performance; it is also about safety. Therefore, safety standards are one of the most fundamental pillars of production and are becoming stricter each year.

What Are Safety Standards?

Safety standards are technical rules that regulate applications aimed at preventing accidents and increasing the chances of survival in the event of an accident during the design, production, and testing stages of vehicles. These standards cover:
•    Passenger safety (crash tests, airbags, seat belts)
•    Pedestrian safety (hood design, active safety systems)
•    Electrical system safety (especially battery fire risks in electric vehicles)
•    Autonomous system safety (software errors, sensor failures, etc.)

Leading Global Regulations

1.    Euro NCAP (European New Car Assessment Program): Conducts crash tests on vehicles in Europe and provides safety ratings using a star system.
2.    UNECE Regulations (United Nations Economic Commission for Europe): Sets international vehicle safety, emission, lighting, and braking system regulations.
3.    FMVSS (Federal Motor Vehicle Safety Standards - USA): These are federal safety standards in the United States. Every vehicle must comply with these standards.
4.    China NCAP / JNCAP (Japan) / Bharat NCAP (India): Each country has its own vehicle safety assessment programs.

Mandatory Safety Equipment

In recent years, many safety technologies have become mandatory in all vehicles, not just premium models:
•    ABS (Anti-lock Braking System)
•    ESC (Electronic Stability Control)
•    ISOFIX child seat attachment points
•    Airbag systems (front, side, curtain)
•    Emergency braking support system
•    Lane-keeping and warning systems (in some countries, mandatory according to new regulations)

The Smart Safety Era: ADAS and Autonomous Systems

As of 2024, ADAS (Advanced Driver Assistance Systems) regulations in the automotive industry have become much stricter. Now, vehicles must have:
•    Collision avoidance braking,
•    Lane departure warnings,
•    Traffic sign recognition features, and these systems are supported by regulations.

The European Union has made most of these systems mandatory in all new vehicles sold after 2024.

Electric Vehicles and New Safety Dynamics

Electric vehicles (EVs) bring new safety considerations:
•    Battery fire risks,
•    High-voltage systems,
•    Requirement for sound alert systems (AVAS) for pedestrians, as they operate silently.

Regulations are being restructured to address these specific situations.

The Transformation of the Automotive Industry with Electric Vehicles

The automotive industry is undergoing the most significant transformation in the past 100 years. Vehicles are no longer just "cars," but technology hubs on wheels. At the heart of this transformation are electric vehicles (EVs).

The Rise of Electric Vehicles: Just a Trend?

No, it is not a passing trend. Electric vehicles are now the cornerstone of global automotive strategies.

Why?
•    Environmental burden of fossil fuels,
•    Governments' zero-emission targets,
•    Developments in battery technology,
•    Changing consumer preferences towards sustainability...

All of these factors are gradually bringing an end to internal combustion engines.

Key Advantages of Electric Vehicles

1.    Low Emissions: EVs operate with zero carbon emissions, contributing to cleaner air in cities.
2.    Fewer Parts – Fewer Breakdowns: While internal combustion engines have around 2,000 parts, electric vehicles may have as few as 20, significantly reducing maintenance costs.
3.    Energy Efficiency: Electric motors can use energy up to 90% efficiently, while gasoline engines operate at around 30%.
4.    Driving Comfort: They run quietly, provide rapid acceleration, and produce less vibration.

Where is the Automotive Industry Heading Globally?

•    The European Union will ban the sale of fossil fuel-powered vehicles by 2035.
•    China alone produces 50% of the world's EVs.
•    The US is supporting electric vehicle infrastructure with billions in subsidies.
•    In countries like Norway, over 80% of new car sales are already electric!

While new players like Tesla, BYD, Rivian, Lucid, and Polestar challenge traditional brands, giants such as BMW, Mercedes, Toyota, and Ford are investing billions of dollars into electric models.

Challenges of the Transformation

This revolution is not easy because:
•    Charging infrastructure remains inadequate in many countries.
•    Raw materials for batteries (lithium, cobalt, etc.) are limited and expensive.
•    Converting old factories to EV production is costly.
•    In rural areas, using electric vehicles is not as practical as in cities.

However, these challenges also create new opportunities:
•    Battery recycling facilities,
•    Fast-charging stations,
•    Sustainable supply chains, etc.

Changes in Supply Chains and Material Preferences

Electric vehicles must be lighter, more aerodynamic, and quieter than traditional vehicles. This requires a shift in the materials used:
•    More aluminum, carbon fiber, and special steel types are being used.
•    Noise-reducing sound insulation materials are being prioritized.
•    Metals with high electrical conductivity (such as copper) are becoming more valuable.

In this context, high-quality steel producers like Hasçelik play a critical role in this transformation, bringing future vehicles to life with lightweight, sustainable steel types.

The New Identity of Automotive: Mobility, Software, and Data

Electric vehicles are not just changing the type of fuel; they are also changing the essence of the automotive industry. Now, a car is:
•    Internet-connected,
•    AI-powered,
•    Ready for autonomous driving,
•    Capable of over-the-air updates,
•    A software-based device...

In other words, the automotive industry is not just manufacturing vehicles but developing mobility solutions, processing data, and specializing in software.

Electric vehicles are ushering in a new automotive era at the intersection of environment, technology, and economy. This transformation deeply affects not only manufacturers but also suppliers, investors, consumers, and regulations.

Zero Emission and Steel: Why Material Choices in the Automotive Industry Are Changing

Electric vehicles, sustainability goals, and zero-emission strategies are reshaping not only the engine but also the body and soul of the car. This major transformation is fundamentally altering the materials used.

How Does the Zero Emission Goal Affect Material Choices?

Today, a car must be not only powerful but also lightweight, durable, environmentally friendly, and energy-efficient. Here's what it means:
•    Longer range with less fuel or energy,
•    Lower carbon emissions,
•    Recyclability,
•    Less environmental impact during production.

Achieving these goals depends on choosing the right materials.

Is Steel Still Central in This Change?

Absolutely, YES. But not the classic steel...
•    High strength,
•    Lightweight,
•    Formable,
•    Corrosion-resistant,
•    Steel with a low carbon footprint is now preferred.

The traditional view of steel is being replaced by “smart steel” solutions.

The Changing Role of Steel in Automotive

1.    Lightweight
Lightweight materials provide range advantages in electric vehicles. That's why high-strength, thinner-section steels are at the forefront.
2.    Safety
Ultra-high-strength steels (AHSS) absorb impact energy in accidents, enhancing passenger safety.
3.    Durability and Longevity
Electric vehicles are designed to be long-lasting. Therefore, stainless and surface-treated steels are preferred.
4.    Sustainable Production
Low-carbon steel production and high steel recycling rates support sustainability goals.

Next-Generation Material Choices

•    Aluminum: Lightweight but expensive. Often used in the premium segment.
•    Composite Materials: Durable but difficult to manufacture and recycle.
•    Magnesium Alloys: Ultra-lightweight but disadvantageous in terms of cost and corrosion.
•    Plastics: Commonly used inside cabins but with low structural strength.
•    Next-Generation Steels: The best solution in terms of price-performance ratio compared to all these materials.

“Steel is not an obstacle to the electric future; on the contrary, it is its pillar.”

The automotive industry is becoming lighter, faster, and more digital. But it still needs a strong, flexible, and sustainable support system: Next-generation steels.

Why Is Raw Material Selection Critical in the Automotive Industry?

The automotive industry is not just about design and engine power. A vehicle's performance, safety, environmental impact, and production cost are largely dependent on the raw materials used. Therefore, raw material selection is one of the most strategic decisions in the automotive industry.

The Foundation of Performance: Materials

Automotive manufacturers typically consider five key criteria when choosing materials:
•    Durability: Vehicle components must be long-lasting and resistant to impacts.
•    Weight: Lighter vehicles result in lower fuel consumption and longer electric range.
•    Workability: Ensures efficiency in production processes, offering time and cost advantages.
•    Cost: Affordable manufacturing is a must in this competitive industry.
•    Environmental Impact: The material must be recyclable and have a low carbon footprint.

Why Is Raw Material Selection More Important Than Ever?

Today, the automotive industry focuses not only on performance but also on sustainability and safety. This has led to the emergence of new criteria for raw material selection. For example:
•    Light but durable materials are crucial for reducing carbon emissions.
•    Recyclable materials contribute to the circular economy.
•    Regionally sourced materials reduce logistics risks.

Especially after the pandemic's supply chain disruptions and rising energy costs, manufacturers have had to rethink their material choices.

The Strategic Importance of Steel

Amid all these developments, steel remains the indispensable raw material for the automotive industry because:
•    It provides high strength.
•    It can be made lighter with different alloys.
•    It is easy to recycle and environmentally friendly.
•    It has a widespread supply network worldwide.
•    It is highly workable and compatible with production lines.

Especially advanced high-strength steel types reduce weight while increasing safety.

Steel is the Heart of Automotive: Steel Usage in the Automotive Industry

In the automotive industry’s century-long history, one thing has never changed: Steel remains the fundamental building block of the sector. Today, while materials used in car production have diversified, steel remains an essential raw material in automotive manufacturing. This is because steel offers not only durability but also safety, sustainability, economic production, and engineering flexibility.

Where Is Steel Used in a Car?

Steel makes up about 50-60% of a vehicle's total weight. This ratio may vary depending on the type and class of the vehicle. Steel usage areas include:
•    Body and chassis: The foundation of structural integrity.
•    Engine and transmission parts: Require special alloys that can withstand high temperatures and stresses.
•    Suspension and steering systems: Areas that require impact absorption and flexibility.
•    Brake systems and axles: Components that require strength due to high safety demands.

Is Steel Usage Decreasing in Electric Vehicles?

No. On the contrary, new safety requirements, such as protecting battery modules, are further increasing steel’s role. While aluminum and composite materials are more prominent in electric vehicles, steel remains one of the most strategic components. Particularly, high-strength steels are increasingly used in battery protection systems.

Hasçelik's Steel Products for the Automotive Industry

Hasçelik provides tailored steel solutions to meet the evolving needs of the automotive industry. From steels suitable for automatic machining to high-strength special alloys, Hasçelik offers a wide range of products for the sector. Custom chemical compositions, controlled surface quality, and homogeneous microstructure make Hasçelik steels indispensable for automotive manufacturers.

Some of the steel grades in Hasçelik’s production portfolio include:
•    Otomat Steels: Used in the automotive industry for fasteners due to excellent machinability.
•    Tempered Steels: Used in engine parts due to superior toughness.
•    Carburizing Steels: Used in gears, discs, and piston pins for their hardened, wear-resistant surface.
•    Micro-Alloyed Steels: Contain small amounts of alloying elements, offering high strength, toughness, weldability, and corrosion resistance, used in automotive components like gears, nuts, shafts, and wheels.
•    Transmission Shafts: Preferred for their high weldability due to low carbon content.

These special steels are safely used in engine parts, fasteners, shafts, gears, and much more.

The automotive industry is transforming, electric vehicles are becoming widespread, and sustainability demands are increasing. However, despite all these changes, steel remains the heart of the sector. Steel is not just a material; it is a strategic choice for automotive durability, safety, and sustainability.

Hasçelik’s steel solutions for the automotive industry stand out not only for their technical specifications but also for their expertise in production and delivery processes:
•    High stock capability: Provides project-specific steels on time and in full.
•    International quality certifications: Full compliance with automotive-focused quality systems such as ISO/TS 16949 and IATF 16949.
•    Customized solutions for customers: Customization based on chemical analysis, size, surface, and packaging requirements.
•    R&D and technical consultancy support: Technical assistance on steel selection, machinability, and performance.

Electric vehicles, lightweight designs, zero-emission goals... As the automotive industry transforms, Hasçelik continues to be part of this change, answering the sector’s sustainability and efficiency demands with next-generation high-strength and environmentally friendly steels.

Hasçelik’s steel products for the automotive industry offer solutions not only for today’s needs but also for tomorrow’s expectations. Whether in internal combustion engine vehicles or electric vehicles, Hasçelik steels continue to be the cornerstone of safety, efficiency, and quality continuity.

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