Iranian production recovered strongly in 2014

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Iranian production recovered strongly in 2014
 

- Iranian car production began to restart in 2014 by reaching more than to 1 million of units, thanks to the reduction of economic sanctions against Iran, and also through supplies of parts from China which allowed the assembly of 320 000 Peugeot cars (Peugeot 405 and 206), while the French manufacturer hasn’t provided Iran with any parts since leaving the Iranian market in 2012 (as a result of its agreements with GM). It is the high demand from the local market which prompted the Iranian manufacturer Khodro to proceed in this manner, thereby working around the embargo on auto parts.


- Iranian production is indeed sold locally, and there are very few exports. It once again reached the million vehicles produced threshold  in 2014, representing an increase of 60% compared to 2013 (the Iranian market reached 954 000 units in 2014, representing an increase of 33.3% compared to 2013).


- The levels reached in 2014, are still far from the record levels of 2010 and 2011 when Iranian production reached 1.6 million units per year. One can think that with the announced return of Renault and PSA to Iran thanks to the easing of economic sanctions against Iran, local production should continue to grow and gradually return to the levels of 2009 i.e. 1.4 million units that may be reached in 2015 or 2016. PSA is willing to sign an agreement with the Iranian company Khodro to locally produce the 301, 208, 2008 instead of the former 405 and 206.


15-09-9  

 

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Moroccan production reached a new record in 2014

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Moroccan production reached a new record in 2014
 
- Moroccan car production reached a new record in 2014, 228 000 units divided between Tangier (175 000 units) in the Renault plant and Casablanca  (53 000 units) in the Somaca plant.

- The Tangier plant produces the Dacia Lodgy, Dokker and has started producing the Sandero in more recent years, while the Casablanca plant assembles the Dacia Logan and Renault Kangoo (whose manufacturing was suspended in July 2014).

- On the Tangiers site, the arrival of the Sandero enabled better use of underutilized capacity (80 000 Lodgy and Dokker in 2014) on a site running with capacities of 170 000 units per year, which were doubled to 340 000 units recently while relieving the Romanian Pitesti site that operated until saturating its capacities. The Sandero was produced at 95 000 units in Tangier in 2014, against 45 000 in Pitesti.

- A new program to establish a new model in Tangier is being studied by the management of Renault-Nissan. To our knowledge, it will not be the Kangoo as its production was stopped in Casablanca in July 2014 and transferred to Maubeuge (France), neither the Logan since a rebadged Renault version is assembled in Oran (Algeria) since November 2014, but most likely the Duster pick-up part of which will also be manufactured in Curitiba, Brazil. Africa has great potential for the pick-up category and Renault announced a major marketing push on that continent.

15-09-10  

 

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Venezuelan production has reached an all time low in 2014

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Venezuelan production has reached an all time low in 2014
 
- Venezuelan car production has been collapsing since 2012, when restrictions were put in place by the local government on the importation of vehicles but also the import of spare parts that are essential for local carmakers to assemble their vehicles (since Venezuela has only CKD plants).

- In 2014, production fell to its lowest level in decades (20 000 vehicles). Toyota and FCA have almost stopped their production by the end of the year, while Ford, GM and Mitsubishi elapsed a very low volume of manufactured cars.

- In 2006 and 2007, Venezuelan car production reached 170 000 units per year, under the Chavez government (1999-2013). The government that followed Chavez has failed to halt the collapse of the car market and car production in Venezuela. Instead, the collapse has worsened.

- As for Australia but for other reasons, the automotive industry in Venezuela is now seriously endangered. The figures for the first months of 2015 show no improvement when compared to 2014 figures.

- This country is the only country in Latin America with Colombia, and more recently Ecuador and Uruguay, producing vehicles in CKD, Chile having abandoned this type of production in the early 2000s (closure of the Chilean PSA plant).

15-09-8  

 

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Ukrainian production has fallen to its lowest level since 1991

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Ukrainian production has fallen to its lowest level since 1991
 

- The Ukrainian car production that started falling in 2009 has failed ever since that date to reach the 100 000 unit thereshold. Let us recall that it had exceeded 400 000 units in 2007 and 2008.


- After 2011, Ukrainian production continued to decline to very low levels (less than 100 000 units), due to a very bad economic situation and the political situation (diplomatic problems with Russia and the beginning of Ukrainian civil war between pro-Russian and pro-Europeans).


- In 2014, car production has thus fallen to its lowest level since the collapse of the USSR in 1991 (26 000 units). The four manufacturers (ZAZ, Bogdan, Krasz, Eurocar) were similarly affected.


- Early 2015, no improvement has been observed. Most manufacturers have even ceased local production. Only Eurocar continues at very low rates assembling models from spare parts from the Czech Republic.


- The Ukrainian car market that was consuming nearly the majority of local production suffered the same collapse in 2009. From 623 000 sales, the market declined to 162 000 units in 2009 and 96 000 in 2014. This means that the last year, Ukraine imported 70 000 vehicles, representing 73% of the local market. The forecast for 2015 remains pessimistic since Inovev expects under 50 000 sales in Ukraine this year. 


15-09-7  

 

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Russian production fell by 14% in 2014

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Russian production fell by 14% in 2014
 
- Russian car production in 2014 suffered from the decline of the Russian market of which it is still very reliant. It decreased by 14% compared to 2013 (1.88 million units), while the market fell by 10.3%. The fall in production in 2015 will be even bigger since the market is expected to decline by about 25% (according to the latest forecasts by Inovev), even with the help of a new  scrappage scheme. This would place the Russian car production at about 1.4 million units, the level reached in 2005.

- According to Inovev’s calculations, Russian exports reached approximately 300 000 units in 2014, mainly to the former Soviet Union and Ukraine. This is one of the lowest export rates among producing countries in the world: less than 16%. As for the US, vehicles manufactured in Russia are mainly designed for the local market.

- Manufacturers operating in Russia are more or less affected by the fall of the Russian market. In 2014, the highest production decrease rates were observed among Cadillac (-64%), Geely (-54%), Peugeot (-53%), Lifan (-50%), Ford (-45%) Chevrolet (-36%), Citroën (-31%), Opel (-25%), Lada (-24%) and BMW (-18%). On the other hand, other brands have continued to increase production in 2014: Mazda (+ 86%), Mitsubishi (+ 41%), Nissan (+ 38%), Renault (+ 7%) and Toyota (+ 4%). Lada still represents almost a quarter of the Russian car production of PC + LUV in 2014.

15-09-6  

 

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  1. Belgian production has lost 50% of its volume since 2005
  2. Turkish production rose  by 23% in 2014
  3. Argentine production fell by 21.7% in 2014
  4. Thai production fell by 23.7% in 2014
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