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Although Nicolas-Joseph Cugnot from France is often credited with building the first self-propelled mechanical vehicle or automobile in about 1769 by adapting an existing horse-drawn vehicle, this claim is disputed by some, who doubt Cugnot's three-wheeler ever ran or was stable. What is not in doubt is that Richard Trevithick built and demonstrated his Puffing Devil road locomotive in 1801, believed by many to be the first demonstration of a steam-powered road vehicle although it was unable to maintain sufficient steam pressure for long periods, and would have been of little practical use.
In 1885 Benz (From Germany has links to Mercedes-Benz) built his first motorwagon, approximately 25 of his vehicles were sold. On the right is the original Benz motorwagon.
* Information from wikipedia
*Picture From http://auto-car.info/?p=5
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