India 2015 Automobile Export (PC+UV) : Up 2.7 Percent to 730,000 units (1/2)
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India 2015 Automobile Export (PC+UV) : Up 2.7 Percent to 730,000 units (1/2)
- India's automobile (PC+UV) export volume increased 2.7 percent compared to 2014 to 729,000 units in 2015. While two major exporters Hyundai Motor and Nissan Motor declined, commercial vehicle exports by Tata Motors and Mahindra & Mahindra went up. EU and US carmakers increased exports to Central and South America, overall volume reaching an historic high. While Ford Motor, VW and GM's combined exports did not even reach 10,000 units in 2010, total exports of the three carmakers reached some 190,000 units in 2015. Brisk exports to Mexico, a major export destination of the three companies, are expected to continue. Total exports from India are forecasted to surpass 800,000 units in 2016.
- India's largest exporter Hyundai Motor declined 17.2 percent to 167,000 units. A portion of the production capacity, which was devoted to exports before, was shifted to meet strong domestic demand. As a result, export volume was reduced as planned at the beginning of 2015.Although plant operation rate reached 95 percent in 2015, capacity expansion plan has yet to be announced. Export volume is planned to be reduced to 150,000-160,000 units in 2016 and exports are projected to decrease in the medium term as well.
- Maruti Suzuki increased 6.7 percent to 126,000 units, although exports were negatively impacted by the introduction of stricter safety standards in Algeria, a major export destination of the company. In Sri Lanka, l,000cc and smaller automobiles enjoyed a tax break between October 2014 and November 2015. In response to lower tax rate, export volume of the Alto, Celerio and other Maruti Suzuki models increased tenfold to some 40,000 units in 2015.
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SAIC MG-Roewe sells less than 200 000 cars per year
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SAIC MG-Roewe sells less than 200 000 cars per year
- SAIC MG-Roewe (excluding its JVs with General Motor and Volkswagen) sold 172,000 vehicles in 2015 (against 186,000 in 2014). When the former British manufacturer MG Rover went bankrupt in 2005, SAIC purchased the make and the models.
It created the SAIC MG-Roewe company, adapted the models in a first phase and then totally redesigned them.
It created the SAIC MG-Roewe company, adapted the models in a first phase and then totally redesigned them.
- The current range is composed of a dozen models, including 6 under the Roewe brand (350, 360, 550, 750, 950 and E50) and 6 under the MG brand (MG GS, MG 3, MG 5, MG 6 MG 7, MG GT). Most models are sedans, which explains the low volume of SAIC production compared to its competitors in the Chinese market (market increasingly demanding for SUVs).
- However, the carmaker will probably focus more on the SUV, since the first SUV of the MG brand (GS) launched in 2015 is a success. It accounted for 26% of sales of MG-Roewe in 2015 and over 50% of sales in 2016. It helped stop the brand's decline that began in 2014 (MG Roewe sold 123,000 vehicles in the first half of 2016) .
- In 2015, three models accounted for 72% of total sales of the carmaker (Roewe 350, MG GS, Roewe 360). Most of the MG-Roewe models are sold in China, but they are also sold in Great Britain (3000 yearly), as a consequence of the initial origin of the group. MG-Roewe also uses part of the old Longbridge plant to assemble these models.
In China, MG-Roewe has two factories: Shanghai and Nanjing (combined capacity: 400,000 units per year).
In China, MG-Roewe has two factories: Shanghai and Nanjing (combined capacity: 400,000 units per year).
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Mercedes could overpass BMW on the Chinese market in 2017
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Mercedes could overpass BMW on the Chinese market in 2017
- The three German Premium carmakers started their production in China at different times. Audi arrived first in 1992, then came BMW in 2003 and finally Mercedes in 2005.
- Audi has managed for ten years to be the only representative of the European Premium range. It allied with the Chinese car group FAW. At this time the FAW group struggled to sell his luxury cars, and identified an opportunity to produce Audi vehicles under license. Gradually, the Chinese government officials gave up the FAW Hongqiand replaced it with the Audi 100. Then the Chinese well-off customers (including entrepreneurs) started to buy Audi cars.
- Sales of Audi increased from 5,000 annual units in the years 90 to 100 000 in 2008, 200,000 in 2010, 400,000 in 2012 and about 600 000 in 2014.
- Since 2011, however, Audi had to face a rising competition from BMW and Mercedes.
In 2016, Audi will sell 570,000 vehicles, while BMW and Mercedes will sell respectively 450 000 and 440 000 units. Compared with 2014, Audi sales fell down by 1.5%, those of BMW by 1.5% as well. Conversely sales of Mercedes (the last to arrive on the market) increased by 56% (taking advantage of a more recent range).
In 2016, Audi will sell 570,000 vehicles, while BMW and Mercedes will sell respectively 450 000 and 440 000 units. Compared with 2014, Audi sales fell down by 1.5%, those of BMW by 1.5% as well. Conversely sales of Mercedes (the last to arrive on the market) increased by 56% (taking advantage of a more recent range).
- At this pace and based on the upcoming launches planned, Mercedes could catch up BMW in 2017 and Audi in 2019, and become the first premium carmaker in China in terms of sales.
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Volkswagen is launching the second generation of the Crafter
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Volkswagen is launching the second generation of the Crafter
- Above the light utility Caddy (segment N1-1) and Transporter (N1-2 segment), recently restyled, Volkswagen traditionally had a larger model (segment N1-3) aiming to compete with the Ford Transit, Mercedes Sprinter, Fiat Ducato, Renault Master and Iveco Daily. This is the Crafter (formerly LT).
- The first generation Crafter, launched in 2006 (successor of LT launched in 1996), was based on the Mercedes Sprinter (rebadged version of the Sprinter). Consequently, the Crafter has been produced so far in the factory Mercedes in Düsseldorf, alongside the Sprinter.
- The new generation of the Crafter launched in 2016 no longer shares any components with the Mercedes Sprinter and has been designed in partnership with MAN, subsidiary of the Volkswagen Group (which could launch its own version). Consequently, the new Crafter is manufactured in a new plant in Wrzesnia, Poland, about fifty kilometers from the Volkswagen plant in Poznan where the Caddy is manufactured.
- Like its competitors, the new Crafter will be available in three lengths and three heights. Similarly, it will be available in FWD (Front Wheel drive), RWD (Rear Wheel Drive) and 4WD (4 Wheel Drive). Its engine will be a diesel 2.0 TDI available in four powers (102ch, 122ch, and 177ch 140hp). Inovev expects 40,000 annual sales of the new Crafter, between 2016 and 2026.
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Honda will build a third assembly plant in China with DFM
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Honda will build a third assembly plant in China with DFM
- Honda will revive with Dongfeng (DFM) its project to build a third Chinese car assembly plant.
The project was first announced in July 2013 but frozen in December 2014 due to forecasted sales in the Chinese market downgraded. But since this freezing time the Joint Venture Dongfeng-Honda launched new models and consequently sales rose significantly (+ 24% in 2015 and + 25% in first half 2016).
The project was first announced in July 2013 but frozen in December 2014 due to forecasted sales in the Chinese market downgraded. But since this freezing time the Joint Venture Dongfeng-Honda launched new models and consequently sales rose significantly (+ 24% in 2015 and + 25% in first half 2016).
- The new plant will be built in 2017 alongside the first two ones, in Wuhan (Hebei Province) and will start its activity in 2018.
- It will have a production capacity of 240 000 vehicles per year, which will be added to the 480,000 units produced in 2015 in the other two factories in Wuhan. These two plants currently produce the CRV, Civic, Stream, Spirior, Elysion, Jade.
- It is to be noted that Honda has another partnership, this time with the Chinese manufacturer GAC, which has three factories of 240 000 vehicles capacity each. These three plants located in Guangzhou, currently produce the Accord, Odyssey, City, Jazz, and Crosstour Crider (560,000 vehicles produced in 2015).
- In total, therefore, Honda capacity in China is 1.2 million vehicles in China in 2016 and will reach 1.44 million units in 2018. Honda for the first time sold more than one million vehicles in China in 2016.
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