AutoCAD is an old and long-established CAD application, and probably has the most existing drawing files of any. It's very flexible and used in lots of different ways, not just mechanical design. However, in mechanical engineering, designing parts and assemblies is usually done in 3D CAD modeling software. AutoCAD can work well in 3D, but it's not the best around. Parametric modelers like SolidWorks or Inventor are more modern and sophisticated, with features like assembly constraints, sheet metal, animation and content libraries.
Design and modification of complex parts and mechanical assemblies is much easier with parametric modeling products like these. For any kind of 2D work, AutoCAD is highly versatile and powerful. Whether it's dimensioned part or assembly drawings, or complex diagrams for piping, electrical or hydraulic systems, industry does a lot of them with AutoCAD. Most manufacturers use it along with a 3D modeler to have the best product for the job.
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