The turning point in the development of cars was the introduction of the petrol engine in 1885, which started an entirely new era and actually made the car a practical and safe proposition. The cars produced in this period were more like the cars we see today and thus began the era of the Modern Car.
1885 - Karl Benz
Karl Benz, born in 1844 was a son of an engine driver. Benz studied mechanical engineering, and since his days of education was interested in the internal combustion engine. His early working days at the time was however restricted to the two-stroke engine, since the four-stroke engine was under the Otto patent.
In 1885, by which time the Otto patent was no longer valid, Benz developed a four-stroke internal combustion engine. This he attached to a three-wheeled carriage, and thus was born the first of the modern automobiles.
The car however was not an immediate commercial success, and it was not till seven years and several improved versions later that Benz's car became popular.
1886 - Gottlieb Daimler
Gottlieb Daimler designed the first modern petrol-driven internal combustion engine for the car. Born in 1834, he was the son of a baker and the early education he received was in the form of an apprenticeship with a gunsmith.
Daimler joined Otto and Langen in 1872, where he worked for a decade. It during this time that he designed the first practical four-stroke engine, which was then patented by Otto and Langen.
In 1882, Daimler left Otto and Langen, and was joined by Wilhelm Maybach who was Chief Designer. Together they set up an independent company, where they designed the first petrol engine in 1883. In 1885 he fitted the engine to a bicycle and created the prototype of the present day motorcycle. A year later, in 1886, Daimler fitted one of his engines to a horse-carriage and ran the created the first four-wheeled motor car in history.
1891 - Emile Levassor and Rene Panhard
Emile Levassor and Rene Panhard (France) established the present design of cars - with the engine in front.
Levassor and Panhard were partners in a woodworking machinery business. 
They were commissioned to build Daimler engines by a solicitor name Edouard Sarazin, who held the patent for France. Levassor initially experimented with the engine in the rear, but later moved its position to the front of the car. The classic design had an upright Daimler engine, a pedal-operated clutch, change-speed gear box which drove the rear axle, front radiator and wooden ladder-chassis. The design came to be known as the Systeme Panhard, and was the forerunner of the modern cars.
1893 - Charles and Frank Duryea
America's first automobile was built by Charles and Frank Duryea, two bicycle makers. Charles spotted a gasoline engine at the 1886 Ohio State Fair and became convinced that an engine-driven carriage could be built. The two brothers designed and built the car together, working in a rented loft in Springfield, Massachusetts. After two years of tinkering, Charles and Frank Duryea showed off their home invention on the streets of Springfield, the first successful run of an automobile in the U.S.
They were the first in the country to manufacture cars for sale, and had built 13 cars by 1896.
1901 - Ransome Eli Olds
Ransome Eli Olds was the first person to mass-produce cars to be sold in the USA. He introduced the assembly line concept, and a factory was set up in Detroit to manufacture several prototypes. However the factory was burnt down before production could commence, and only one prototype - the single cylinder buggy with a curved dash remained. This little car - The Oldsmobile Gas Buggy - was highly successful and sold in large numbers.
In 1904, Ransom Olds left the company and started another which manufactured "Reo" cars (derived from his initials). The Reo, although similar to the Oldsmobile, did not receive the same popularity.
The Oldsmobile Company prospered and was joined by Buick in 1908, which subsequently led to the formation of the General Motors Group.
1908 - The Model T
The Model T, the first "people's car", was introduced by the Ford Motor Company. Henry Ford had no professional engineering education, but had a natural inclination towards mechanics. Earlier, the automobile fell strictly in the purview of the rich, and it was Ford's ambition to build a car for the masses.
Henry Ford used assembly-line production effectively to manufacture his celebrated Model T, nicknamed the Tin Lizzie because it used lightweight sheet steel for the body. Ford also introduced the moving conveyor belt to assembly manufacturing, further accelerating production. The production of the Model T continued till 1927, by which time, a record number - more than 16.5 million - vehicles had been produced.
The very first self-propelled car was built in 1769, when Nicolas Cugnot, a French military engineer designed a steam powered road-vehicle.
Nicolas Cugnot who designed the first car in 1769 made another steam-driven vehicle two years later, also at the Paris Arsenal. The machine reportedly ran quite well, although on one occasion it ran into a wall, thus recording the world's first motor-accident. The vehicle may still be seen today in the Conservatoire Nationale des Arts et Metiers in Paris.
A world without cars, although unimaginable today, was but a wink back in the evolution of times. The upright and the wise Man (as we know him today) first walked the earth 30,000 years ago and for the next 25,000 years, that was precisely what he continued to do.
The earliest reference to transport using the principles of mechanics has been made in 3500 BC, when, between the rivers of the Tigris and Euphrates the ancient Sumerian Civilization used flat structures mounted on wheels. The use of horses to pull these crude carts probably followed shortly.
