Passenger Car
Overview
A passenger car (승용차, 乘用車) is an automobile manufactured for the purpose of transporting, including the driver, typically nine or fewer people together with a small amount of luggage. In modern industrial society it is a representative consumer good that underpins individual freedom of movement, and the central axis of a vast industrial ecosystem linking the automotive industry, energy, logistics, and urban planning. In recent years, the paradigm has been shifting rapidly from an internal-combustion-centered structure toward battery electric vehicles and software-defined vehicles (SDVs).
Main Content
Definition and Classification
Under South Korea's Automobile Management Act, a passenger automobile is defined as a vehicle built to be suitable for transporting ten or fewer people, and is subdivided into general, SUV, van, and pickup types. Internationally, the European classification (A, B, C, and D segments) and the American classification (subcompact to full-size) are used side by side. By body style, cars are divided into sedans, hatchbacks, SUVs, coupes, MPVs, and wagons, and in recent years crossovers, which blur the boundary between sedans and SUVs, have become mainstream.
Structure and Key Components
A passenger car is broadly composed of a powertrain (engine or motor and battery), the body and chassis, the drivetrain (transmission and drive shafts), braking and steering systems, and the electrical and software architecture. Internal combustion vehicles center on the combination of engine, transmission, and fuel tank, while electric vehicles center on the combination of battery pack, inverter, and drive motor. Car bodies have evolved toward simultaneously securing lightweight construction and crash safety by mixing high-strength steel, aluminum, and carbon-fiber composites.
Changes in Power Sources
In the 20th century, passenger cars were dominated by gasoline and diesel internal combustion engines. Starting with the Toyota Prius in 1997, hybrids were commercialized, and entering the 2010s, as the cost of lithium-ion batteries plunged, pure electric vehicles (BEVs) came into widespread use in earnest. In the 2020s, a phase of diversification continues in which plug-in hybrids (PHEVs), mild hybrids, and hydrogen fuel cell vehicles (FCEVs) coexist.
Industrial Structure and Market
The passenger car industry forms a vertically integrated structure in which thousands of first-, second-, and third-tier parts suppliers participate, with finished-vehicle makers at the apex. In the global market, large groups such as Toyota, Volkswagen, Hyundai Motor Group, GM, and Stellantis compete with emerging powers such as Tesla and BYD. Since 2023, South Korea has kept automobiles among its largest export items and has pursued a high-value-added strategy centered on eco-friendly vehicles and SUVs.
Safety and Regulation
Passenger cars are subject to crash safety rules (airbags, body structure, ADAS), emissions and fuel economy regulations, and noise regulations. The European Union applies Euro NCAP and CO2 emissions regulations, while the United States applies NHTSA and EPA standards. In the 2020s, there is a trend toward making advanced driver assistance systems such as automatic emergency braking (AEB) and lane keeping assist (LKA) mandatory as standard equipment.
Environmental Impact
Passenger cars account for a significant share of global CO2 emissions. Electrification reduces emissions during the driving phase, but differences in actual emissions depending on battery production, spent-battery recycling, and the composition of electricity sources remain contested issues. Countries are strengthening life cycle assessment (LCA) standards through expanded renewable energy, battery passports, and mandatory recycling.
Latest Trends
The key keywords in the passenger car market of 2024–2025 are "moderating the pace of electrification" and "software competition." As EV demand, which had grown rapidly through 2023, saw its growth rate slow in 2024—the so-called "EV chasm"—finished-vehicle makers expanded their hybrid and plug-in hybrid lineups and partially adjusted their EV investment schedules. At the same time, China's BYD rapidly increased its global share with low-priced models based on LFP batteries, leading price competition, and the United States and the EU raised tariffs on Chinese-made EVs.
Technologically, the transition to SDVs (software-defined vehicles) has accelerated, establishing a structure in which a vehicle's value is determined less by hardware than by OTA updates, connectivity, and the SDK ecosystem. In autonomous driving, the advancement of Level 2+ (highway and parking automation) has entered the stage of popularization, while Level 3 and above is expanding in a limited manner alongside regulatory approval and the sorting out of liability. In addition, 800V high-voltage architectures, LFP and all-solid-state batteries, and integrated thermal management modules have emerged as core technologies of next-generation passenger cars. In 2025, AI-based voice assistants and infotainment equipped with generative AI have become differentiating factors for new cars, while responding to cybersecurity regulations (UN R155) and diversifying the parts supply chain remain major tasks.
Related Topics
- [[Electric Vehicle]]
- [[Autonomous Driving]]
- [[Automotive Industry]]
- [[Hybrid Vehicle]]
- [[Battery]]
- [[Internal Combustion Engine]]