China: Zhengzhou Nissan introduces the Fengdu brand
 
Zhengzhou Nissan Automobile Company has been following a double-brand strategy, manufacturing and selling both Nissan and Dongfeng-brand models. In 2013, Zhengzhou Nissan announced the Fengdu brand, rolling out a new brand strategy in an effort to boost sales. For the 2015-2017 period, five new models are planned to be released under the Fengdu brand. Sales target is set at 200,000 units for 2016 and 300,000 units for 2018. In order to achieve its goal, Zhengzhou Nissan is actively engaged in model launches, production capacity expansion, sales promotion and development of new-energy vehicles.

The first model of Zhengzhou Nissan's Fengdu own-brand - an SUV – was planned to be released in January 2015. The model was developed based on the old X-Trail's platform and production began in October 2014. In the next three years, Zhengzhou Nissan plans to release a total of five new SUV, Mini Vans and MPV models under the new Fengdu brand.

Regarding production facilities, Zhengzhou Nissan concluded an agreement with the Zhongmu county government in July 2014 regarding the expansion of the Zhongmu plant. After construction is completed in 2015, annual production capacity is planned to reach 180,000 units.

The automaker is expanding overseas as well. Zhengzhou Nissan set up its first overseas CKD assembly plant in Angola in April 2007. Zhengzhou Nissan had another three CKD assembly bases in Kazakhstan, Sudan and Ethiopia. Although export volume in the first 11 months of 2014 dropped 55.5 percent to 305 units, the decline is the result of the establishment of CKD assembly bases abroad according to Zhengzhou Nissan.


15-05-9  

 

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Suzuki production strategy in Thailand
 

Suzuki is positioning Thailand as an export hub of small passenger vehicles. Meanwhile, MPV and mini truck production is concentrated in Indonesia. Suzuki intends to set up a complementary supply system of manufactured models, making ASEAN operations the next revenue base after India. The automaker invested to increase annual production capacity from 50,000 units to 100,000 units. In May 2014, Suzuki began production and launched the Eco Car Phase 2 program-compliant Celerio in Thailand. Export to Europe started in September of the same year.


While Suzuki's vehicle production volume tripled in 2013 compared to 2012 going up to 53,411 units, it dropped 61.1 percent to 15,846 units in the first nine months of 2014 compared to the same period of the previous year. Failure of Eco Car sales in Thailand and weak export were given as reasons for the drop. Initially, Suzuki planned to export 21,000 units to ASEAN countries, Australia, New Zealand and elsewhere in 2013; however, only 1,077 units reached foreign markets. In the first nine months of 2014, 4,681 units were exported, registering a significant export gap compared to the original plan.


In order to inverse this trend, the emphasis is being put on the Celerio in the second half of 2014. The Celerio is a global strategic model manufactured both in Thailand and India. It went into production in Thailand in May 2014. To date, the  other city model, the A-Star was exported from India to Europe (approx. 36,000 units annually); however, after undergoing full model change, export base was changed from India to Thailand. Out of the total production of 50,000 units, 20,000-30,000 units are planned to be sold in Europe. Exports to the UK, Germany, Italy, the Netherlands and other European destinations began in September 2014.


Meanwhile, Suzuki plans to boost sales in Thailand by offering low fuel consumption and low price (engine displacement 1.0L base price from 359,000 THB); however, the local small passenger vehicle market is sluggish, creating harsh sales conditions.


15-05-10  

 

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Renault unveils a C segment SUV, the Kadjar
 

Renault has unveiled its new SUV, the C - segment Kadjar, which will be situated in the brand's SUV range the between the Captur and Koleos. The Kadjar measure 4,45m long and 1,84m wide, against 4,12m x 1,78m for the Captur and 4,52m x 1,87m for the Koleos. The Koleos could be stopped shortly after the launch of the Kadjar.


The Kadjar uses nothing from the Koleosas it is based on the common CMF platform by Renault-Nissan that already equips the Nissan Qashqai, X-Trail and Rogue, and the new Espace which will be marketed in coming weeks. This global platform will be used on the future Renault Megane that will be presented at the end of 2015.


First marketed in Europe where it will be produced in Palencia in Spain, alongside the Megane at the rate of 100 000 units per year (Renault's goal), it will then be launched in North Africa and in China, where they will be produced at the new plant in Wuhan currently under construction (at the rate of 100 000 units per year - Renault's aim).


In Europe, the main competitor of the Kadjar will of course be the Nissan Qashqai (285 110 units produced in Europe) with which it shares its platform, its engines and all-wheel drive power train, but the VW Tiguan (265 187 units produced in Europe) Hyundai iX35 (97 658 units produced in Europe), Kia Sportage (96 608 units produced in Europe), Ford Kuga (88 091 units produced in Europe) will also be competitors. The Kadjar 1.5DCI is available in two diesel versions (110hp) and 1.6DCI (130 hp / 160 hp) as well as two petrol version 1.2TCE (115hp) and 1.6TCE (163ch).


15-05-6  

 

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Korean EV Market: Sales Up 19.2 Percent in YTD Sep. 2014
 

In the first nine months of 2014, EV share of the overall automobile Korean market went up 0.2 percentage point from the previous year to 2.2 percent, remaining at a low level. Korea is pushing upward electric vehicle (EV) sales by implementing various policies . Starting from 2015, the Korean government aims to expand market scale by subsidizing hybrid-electric vehicles (HEV) which account for 97 percent of all EV sales.


Although HEV subsidies do not cover the volume-selling Hyundai Grandeur and Kia K7 models, they support the Toyota Prius, Honda Civic Hybrid, Lexus CT200h, Honda Insight, Ford Fusion, Lincoln MKZ Hybrid, Kia K5 2.0 Hybrid and Hyundai Sonata 2.0 Hybrid. Covered models must have a carbon dioxide emission level of l00g/km or less. In addition to receiving 1 million KRW in subsidies at the time of purchase, buyers are also eligible for a tax credit of up to 2.7 million KRW.


Even if automakers have stepped up HEV and battery-electric vehicle (BEV) launches, Korea's consumer awareness is different from that  of Japan where EV share exceeds 15 percent; therefore, the future direction of Korea's EV market remains murky.


In the first nine months of 2014, HEV sales were greatly impacted by the introduction of new models, increasing volume 16.2 percent from the previous year to 26,000 units. In December 2013, the Hyundai Motor Group launched the Grandeur and K7 both fitted with the same hybrid system. The Grandeur performed especially well, selling 9,768 units in the first nine months of 2014, accounting for 38.1 percent of all HEV sales. If the K7 is also added, Hyundai Motor Group's share reaches nearly half of all HEV sales .


15-05-8  

 

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Ssangyong launches a B segment SUV: the Tivoli
 
The Korean carmaker Ssangyong (a subsidiary of the Indian group Mahindra) unveiled its new B segment SUV, the smallest model ever produced by the brand. This model should confirm the revival of the Korean brand after its serious financial difficulties and its acquisition by Mahindra in 2011.

Since then, Ssangyong has given a new momentum to its business with its new C segment SUV, the Korando, launched in 2011 and restyled in 2013. But it's indeed the Tivoli that should revitalise the brand since the SUV category of B segment is growing rapidly in most parts of the world.

This category accounted for 650 000 sales in Europe in 2014 against 400 000 in 2013. The leaders in this category are currently the Renault Captur, Peugeot 2008, Opel Mokka, Nissan Juke, and new players will try to make their way to the top this year : Honda HRV, CX3 Mazda, Ford Ecosport restyled Fiat 500x and Jeep Renegade .

The new Ssangyong is based on a completely new platform that will be used by future Mahindra and Ssangyong models. It will have a 1.6 petrol engine of 126bhp and a diesel engine specifically designed for the European market but not yet revealed. The Tivoli will be produced at the Ssangyong plant in Korea (Pyongtaek) at the rate of 100 000 units annually for worldwide distribution. The capacity of this plant is 250 000 vehicles per year.


15-05-7  

 

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