Main Highlights of the 2017 Shanghai Motor Show
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Main Highlights of the 2017 Shanghai Motor Show
- The Shanghai show has become one of the world's largest car shows (nearly one million visitors in 2015). The Shanghai event takes place in odd years while the Beijing fair takes place in even years.
- This year, there were many novel vehicles on display: Inovev has selected the most noteworthy.
- Among these 27 novelties, there are 13 SUVs, 9 saloons, 3 MPV (minivans) and 2 coupés. SUVs are still predominant, as they represent one in every two new products, whereas they represent one in three sales in China. Of the 27 models selected, 13 are C segment, 10 are D segment and the other 4 are B, E and F segments. More than half (15 new products) are 100% Chinese, and most are presented as concept cars. It is difficult to predict whether or not a particular concept will be marketed in a series version, but it is likely that many will eventually be commercialized, notably at foreign manufacturers (Skoda Vision E, VW ID Cross, Audi E-tron, Mercedes A Class, Jeep Yuntu), and less frequently at Chinese manufacturers.
- Other models are available for sale in the year, such as the Citroën C5 Aircross, the Acura TLX-L, the Porsche Panamera-L, the Buick Regal GS (with the body of the new Opel Insignia) or the Hyundai iX35.
- Half of the innovations were equipped with 100% electric or rechargeable hybrid engines.
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Analysis of Renault-Nissan Factories in Russia
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Analysis of Renault-Nissan Factories in Russia
- Renault-Nissan produced 504,000 vehicles in Russia in 2016, a decrease of 12.5% compared to 2015, while the Russian market as a whole fell by 11%. The Franco-Japanese group has four factories in Russia:
1 / Togliatti: this factory (800 000 units annual capacity) was built at the end of the 60s by Autovaz to produce the Lada. In 2016, its production did not exceed 300 000 units, against 800 000 in the early 2000s, and therefore only works at 40% of its capacity. This sharp drop is explained by the opening of the market to foreign brands and the introduction of Western economic sanctions from 2013 that destabilized the Russian economy. The Russian market thus went from 2.8 million vehicles in 2013 to 1.4 million in 2016. Since Autovaz sells its vehicles almost exclusively in Russia, Togliatti's production curve followed the same trend. The contribution of Renault, Nissan and Datsun manufactures from 2013 could not compensate for the drop in Lada production. In 2016 Togliatti produced 172,000 LadaPriora / Kalina / Granta / Largus / Niva / X-Ray + 61,000 Renault Logan / Sandero + 17,000 Datsun On-Do / Mid-Do + 15,000 Nissan Almera + 35,000 Chevrolet Niva.
2 / Moscow: this factory opened in 2004 (200,000 units annual capacity)and produces only Renault vehicles. In 2016, it produced 75,000 vehicles and is therefore also operating at 40% of its capacity. It has significantly reduced its utilization rate in recent years as Renault has decided to transfer the Logan and Sandero produced in Moscow to the Togliatti plant in 2013, keeping only the Duster and the Captur. in Moscow.
3 / Saint Petersburg: this plant opened in 2009 (50 000 units annual capacity) and produces only Nissans. It was the only Russian factory to produce Nissan before 2013 and the arrival of the Nissan Almera on the assembly lines of Togliatti. In 2016, it produced 35,000 vehicles and thus operates at 70% of its capacity. It produces the Teana and X-Trail, as well as, more recently, the Qashqai.
4 / Izhevsk: this plant opened in 2012 (200,000 vehicles of annual capacity) and produces only Ladas. It previously belonged to the IZH Group which went bankrupt in the early 2010s. Starting in 2012, it recovered part of the production of the LadaGranta and since 2015 it is the only factory to produce the LadaVesta sedan. In 2016, the Izhevsk plant produced 95,000 Lada-branded cars and therefore operates at 50% of its capacity.
- In total, Renault-Nissan therefore has four factories in Russia with a cumulative capacity of 1.25 million units per year and produced 504,000 vehicles in 2016, representing a utilization rate of 40%. The French-Japanese group is counting on the expected restart of the Russian market and the launch of new models at Lada, Renault, Datsun and Nissan to boost the activity of its four factories and try to saturate its capacities.
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Genesis will have a six model product line-up in 2020
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Genesis will have a six model product line-up in 2020
- Genesis, the premium brand of the Hyundai-Kia Group, is starting to build up its product lineup. At present, the Genesis range is composed of two models: the 201 G 80 -E-segment sedan launched in 2015 (ex-Hyundai Genesis), and sold at 65,000 units in 2016, and the G90 F segment sedan (former Hyundai Equus), sold at 25,000 units in 2016.
- By 2020, Genesis will introduce four new models:
• A D segment sedan, the G70, ( to be launched in the second half of 2017). The G70 sedan should reach 90,000 sales.
• A D segment SUV: the GV70 (launched between 2018 and 2020).
• An E segment SUV: the GV80 (launched between 2018 and 2020), for which a concept car was presented at the New York Motor Show.
• Inovev expects 50,000 annual sales of GV80 from 2019 onwards.
• A coupe launched between 2018 and 2020.
The only Korean premium brand will therefore have six models in 2020.
- This broader range will allow Genesis to reach new markets and compete with Japanese premium brands (Lexus, Infiniti, Acura). By comparison, the Lexus range currently has 10 different models, the Infiniti range 8 different models and the Acura 6 models range.
- With this strategy, the Genesis brand could sell 300,000 cars worldwide in 2021.
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Kia will build its first assembly factory in India
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Kia will build its first assembly factory in India
- Currently, within the Korean Hyundai-Kia group, only Hyundai is producing in India. Hyundai has two plants located in Chennai, each with a production capacity of 325,000 vehicles per year. Last year, Hyundai manufactured 650,000 vehicles in India, saturating its plants in the country. The most popular models of the brand were the Grand i10 (181,000 units), Creta (142,000 units) and i20 (138,000 units). These three models account for more than 70% of the Hyundai brand in India.
- Kia, which currently does not sell any vehicles in India, is going to build its first factory, with a capacity of 300,000 vehicles per year, and which is expected to start operating from 2019. The manufacturer has not yet communicated the name of the city where the plant will be located, or the names of the models that will be manufactured there. However, given the locally produced Hyundai models and the physiognomy of the Indian market, Inovev thinks it could be Picanto (A segment sedan), Rio (B segment sedan), Forte (C segment sedan) and Sportage (C segment SUV) already known in many markets.
- Another model not yet unveiled today could be added to this list: it is the future B segment SUV that Kia will launch in Europe in 2018 under the name of Stonic.
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One Skoda in Four sold in 2025 will be electric or plug-in hybrid
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One Skoda in Four sold in 2025 will be electric or plug-in hybrid
- If the Volkswagen group wants to produce a million 100% electric vehicles plus one and a half million hybrid rechargeable vehicles in 2025 (see Analysis: VW wants to sell 1 million electric cars per year from 2025), it will be necessary that the brands Volkswagen, Audi, Skoda, Seat and Porsche each share a certain number of these models with alternative engines.
- At Skoda, the first plug-in hybrid model launched by the Czech firm will be the Superb PHEV (segment E) scheduled for 2019. In addition, at the Shanghai show a concept car called Vision E was introduced, announcing its first 100% electric sedan, which should be marketed in 2020.
- Skoda announces that it intends to sell one out of every four cars worldwide in 2025 with 100% electric or rechargeable hybrid engines, about 400 000 units that year, according to Inovev's forecasts. The distribution between the two types of engine is hardly foreseeable, but with the overall envelope announced by Volkswagen, Inovev estimates that 150,000 100% electric vehicles and 250,000 Skoda brand rechargeable hybrid vehicles will be sold in 2025.
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