The European market for light utility vehicles increased by 10.7% in 2014
 
The European market (29 countries) for LUV (less than 3.5 tonnes) increased by 10.7% in 2014, to 1 593 558 units (against 1 439 889 in 2013) of which 1 478 789 units in the Western Europe (17 countries) and 114 769 units in Eastern Europe (12 countries).
It
is (slightly) improving economic conditions in Europe that favoured the revival of the LUV market.

This positive result enabled the market to reach its 2011 levels once again, as the market had declined in 2012 and 2013, but this result remains well below the figures achieved before 2009 which were around 2 million units per year (peak of 2007: 2.3 million units).

According to Inovev the European LUV market should continue to make up for a portion of the volume lost since 2009 and will grow slowly until 2017, at a rate of 3.5% per year on average. The result achieved in 2017 will be less than 1.8 million units, still quite far from levels achieved before 2009.

By country, France is the leading European LUV market (370 000 sales), thanks to vehicles of category N (PC models transformed into LUV) such as the Renault Clio and Peugeot 208 from Company, that accounted for nearly 80 000 sales in 2014.
The
United Kingdom (320 000 sales), driven by favourable economic conditions, is the second largest market behind France. Followed by Germany (230 000 sales), that buys heavier and larger vehicles, followed far behind by Italy (120 000 sales) and Spain (115 000 sales). These five countries account for 72% of the European LUV market in 2014.


15-05-1  

 

Contact us: info@inovev.com 

B-segment cars recorded the highest growth in 2014 in Europe
 

B-segment cars continue to grow in 2014 in the European market, thanks to the good performance of traditional models like the Ford Fiesta, Renault Clio, Volkswagen Polo or Opel Corsa, and partly due to strong growth in the SUV body B - segment with the Renault Captur, Opel Mokka and Peugeot 2008. This body already accounts for 16% of B-segment vehicle sales in 2014.


B segment SUVs (body initiated by the Nissan Juke) will make further progress in the years 2015 and 2016, since Fiat has just launched the 500X (derived from the recent Jeep Renegade), Honda will launch its new HRV (derived from the Japanese Vezel version), next year Toyota will launch a competitor to the Honda HRV, Hyundai and Kia also announced new SUVs in segment B and finally Ford has decided to make changes to the Ecosport SUV imported from India to Europe and to make this model increasingly competitive compared to the to other vehicles available on the same market.


The gap is closing between B - segment (33% of the European market) and C  - segment (38% of the European market).
All
other segments are down. The D - segment has gradually decreased from 19% of the market in 2000 to 13% in 2014, the A segment after the sales boost caused by scrappage schemes (2008-2009-2010) fell in 2014 to its year 2000 level, finally E segment decreased by half (from 10% in2000 to §% in 2014).


15-05-2  

 

Contact us: info@inovev.com 

The Fiat 500 is the best selling segment A vehicle in Europe in 2014
 

The Fiat 500 is the best selling car of the A segment in Europe in 2014, as in 2013. Between 2004 and 2012 the market leader was the Fiat Panda and before that the Renault Twingo ruled between 1995 and 2003. Its important to see that currently the Fiat 500 and the Fiat Panda are competing on the same market but aren't poaching each other’s market share.


A-segment, which is currently the 4th largest segment behind segments C, B and D vehicles. It accounts for 9% of European sales, against 38% for segment C, 33% for segment B and 13% for segment D. For years A segment usually accounts for one out of ten sales, on the other hand this is no longer true when the government implements scrappage schemes, that benefit A segment the most.


In 2014, the Fiat 500 holds 1,2% of the European market, but 13,6% of sales in segment A. It was originally launched in a 3 door version and later on a 5 door version (500 L, launched in 2012). After that a 5 door SUV version was launched  in 2014 (The fiat 500 X) but, both 500L and 500X are large and should be integrated in the B segment.


The Fiat 500’s main competitors are the Fiat Panda (13,4% of segment A), Volkswagen Up (10,9% of segment A), Renault Twingo (7,3% of segment A), Hyundai i10 (7,1% of segment A), Toyota Aygo (6,0% of segment A), Peugeot 107/108 (5% of segment A), Opel Adam (4,9% of segment A) et Citroën C1 (4,8% of segment A).


15-04-10  

 

Contact us: info@inovev.com 

VW Production Policy in ASEAN
 
Volkswagen Group has started its ASEAN strategy by the planned setup of a self-owned manufacturing plant in ASEAN where the automaker lacks a mass-production plant. While VW is a latecomer in ASEAN where the automaker controls less than 1 percent of the market, it is indispensable for VW to capture a larger share if it wants to surpass Toyota Motor and become top automobile manufacturer of the world.

VW has already tried to increase its presence several times in the past; however, it always failed to get on track. (as with Proton in 2004 In Malaysia). In 2011, VW announced a plan to establish a self-owned plant in Indonesia which is yet to be realized. Presently, VW is entrusting assembly to local companies in Malaysia and Indonesia with a small-scale volume of around 5,000 units; however, so far the automaker failed to launch full-scale operations in ASEAN.

Since 2013, VW has again stepped up effort to commence large-scale production. In Malaysia, the Jetta went into production at the end of 2013, boosting VW's local model line up. In Indonesia, the automaker increased the existing plant's annual production capacity to 5,000 units in 2013 and a new plant is scheduled to start operation by 2017. The new facility's annual production capacity is intended to be 20,000-30,000 units in the initial phase; however, volume may be increased to 100,000 units in the medium to long term. In Thailand, VW applied for the Eco Car Phase 2 program. A plant with annual production capacity of over 100,000 units is scheduled to start operation by 2019. 


15-04-9  

 

Contact us: info@inovev.com 

Toyota Production Policy in Vietnam
 

Toyota Motor Corporation, which controls around 30 percent of the Vietnamese automotive market, is maintaining its leading position in the country. In the first 10 months of 2014, automobile sales volume went up 20.3 percent from the previous year to 32,000 units. The Vios, whose fully-remodeled version was launched in March 2014, increased 67.4 percent to 7,147 units, taking top position by surpassing the Fortuner. After the release of the fully-remodeled Corolla Altis in September 2014, the Fortuner, Innova and Hilux are also scheduled to undergo full-model change between the second half of 2015 and the beginning of 2016.


As of November 2014, Toyota Motor's local sales network consisted of 38 shops of which nine were in Hanoi and 10 in Ho Chi Minh City, accounting for half of the automaker's entire sales network in Vietnam. Along with the increase in consumers in cities, Toyota Motor is increasingly facing insufficient sales network.


Looking at production, the automaker is developing a mechanism for human resources training and quality assurance and explores new suppliers. Additionally, before the abolition of tariff in 2018 on automobiles imported from  other ASEAN  countries,  Toyota Motor is considering revising its local production system. Automobiles imported from Thailand are calculated to be 20 percent cheaper than locally-made products. For this reason, Toyota Motor is asking the Vietnamese government to introduce support policies for local production. If not, Toyota Motor is threatening to discontinue local assembly. As of November 2014, the Vietnamese government did not take any concrete steps toward resolving this issue. If the current situation continues, it is likely that the automaker will not increase local investment and gradually decrease the number of locally-made models, replacing them with imported products.


15-04-8  

 

Contact us: info@inovev.com 

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