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Every major industrial revolution has had a significant impact on the automotive industry, which has been at the centre of many of these changes. The automotive business is one of the most significant economic sectors on the planet in terms of revenue. Typically, industries devoted to automobiles after they are delivered to the consumer, such as repair shops and motor fuel filling stations, are not included in the definition of the automotive industry.

The lifetime of a car built in the 2020s is expected to be about 16 years, or about 2 million km (1.2 million miles) if driven a lot. According to the International Energy Agency fuel economy improved 0.7 per cent in 2017, but an annual improvement of 3.7 per cent is needed to meet the Global Fuel Economy Initiative 2030 target. Many cities in Europe, have banned older fossil fuel cars and all fossil fuel vehicles will be banned in Amsterdam from 2030. Many Chinese cities limit licensing of fossil fuel cars, and many countries plan to stop selling them between 2025 and 2050. Some particular contemporary developments are the proliferation of front- and all-wheel drive, the adoption of the diesel engine, and the ubiquity of fuel injection. Most modern passenger cars are front-wheel-drive monocoque or unibody designs, with transversely mounted engines.

1997 saw the Toyota RAV4 EV and the Nissan Altra, the first production battery electric cars to use NiMH and Li-ion batteries respectively. Other hydrocarbon fossil fuels also burnt by deflagration in ICE cars include diesel, autogas, and CNG. Removal of fossil fuel subsidies, concerns about oil dependence, tightening environmental laws and restrictions on greenhouse gas emissions are propelling work on alternative power systems for cars. This includes hybrid vehicles, plug-in electric vehicles and hydrogen vehicles.

In 1914, an assembly line worker could buy a Model T with four months’ pay. 2009–present, Mitsubishi i-MiEV—first highway-capable series production all-electric car, launched in Japan in July 2009 for fleet customers, and in April 2010 for retail customers. Rebadged versions of the i-MiEV are sold in Europe by PSA Peugeot Citroën as the Peugeot iOn and Citroën C-Zero.

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