Global automotive production increased by 3.3% in 2014
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The VW group reached second place in the 2014 global carmaker ranking
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- The Volkswagen Group reached in 2014 the second place of the global car manufacturer ranking (in terms of global sales PC + LUV). In 2013, it was third and it aims to be the first in 2015.
- The Toyota group is the leading manufacturer worldwide in 2014, with 10.23 million vehicles sold (+ 2.5%), ahead of the Volkswagen Group, with 10.14 million vehicles sold (+ 6.7%). These two manufacturers are the first to have passed in a year the threshold figure of 10 million vehicles sold.
- Third, the GM Group (formerly first) failed to overcome this figure but remains very close to its competitors (9.92 million vehicles sold, + 2.2%). The excellent performance in China of VW and GM (due to the GM-Wuling brand and minivans) are some of the vectors of growth.
- More sharply detached, the Renault-Nissan group (8.41 million vehicles sold, + 1.8%) and Hyundai-Kia (8.01 million vehicles, + 6.0%) are in fourth and fifth positions, the same positions as in 2013.
- Far behind the five leaders, the Ford group (6.32 million vehicles, + 1.1%) is in sixth place as in 2013, ahead of the FCA groups (4.75 million, + 9.2%), Honda (4.30 million, + 5.0%), PSA (2.94 million, + 4.3%), Suzuki (2.88 million, + 8.2%), BMW (2.12 million, + 10.4%) and Daimler (1.74 million, + 11.5%) who all keep the same position in the ranking.
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Suzuki production strategy in Thailand
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- 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.
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China: Zhengzhou Nissan introduces the Fengdu brand
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Korean EV Market: Sales Up 19.2 Percent in YTD Sep. 2014
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- 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 .
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Read more... Korean EV Market: Sales Up 19.2 Percent in YTD Sep. 2014





