Honda has stopped marketing its hybrid models in Europe

Honda will stop marketing its Insight hybrid and CRZ hybrid models in Europe due to insufficient sales. The manufacturer sold only 1 242 Insight models in the European market in 2013, down 62% compared to 2012, and only 695 CRZ, down 66%. Since 1999, when the first hybrid models from Honda were launched in Europe, the carmaker sold just over 102 000 vehicles of this type in Europe.


Its direct competitor, Toyota, sold over 480 000 hybrid vehicles in Europe over the same period (including 377 000 under the Toyota brand and 106 000 under the Lexus brand).


The failure of Honda hybrid models versus Toyota may be explained by several reasons:

Toyota launched its first hybrid model in 1997 thanks to a car positioned on a segment with a large volume of potential sales : C segment. Honda launched its hybrid two years later on a niche segment, the segment of small coupes.

The Prius was then renewed in 2004 with upgraded amenities (segment D) while the Honda Insight was renewed in 2009 by a C-segment sedan, a completely new model.

The Prius "Fashion" launched thanks to the second generation of the car, was particularly strong in the U.S., which boosted the image of the vehicle.

The diversification of the Prius range (Prius, Prius +, Prius C) while Honda was limited to two vehicles (Insight and CRZ).


In fact, Toyota invested heavily in hybrid technology and acquired a near monopoly position in this segment, which was not the case of Honda, that is currently designing a new line of hybrid cars.


14-09-9  

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The status of Chinese carmakers on the outskirts of Europe

In 2013, Chinese carmakers sold only 3 450 vehicles (PC + LCV) in the European Union (mainly Great Wall vehicles assembled in Bulgaria and MGs assembled in England), on a market of nearly 14 million units (PC + LCV). However, their situation is not the same on the outskirts of Europe: Russia, Ukraine, Belarus, the Middle East and Algeria.

In Russia, Chinese manufacturers account for nearly 4% of the market (101 384 units sold), up 13% compared to 2012. In Ukraine, they have a market share of 9.5% (20 330 units), down nearly 33% compared to 2012. In Belarus, they have a  market share of nearly 10% (2 490 units) while they were not present in this country in 2012.

In the Middle East nearly 130 000 Chinese vehicles were sold (4% market share), while 238 000 units were sold in 2012 (-45%). This sharp decline was especially present in Iraq and Iran.

In Algeria, the market share of Chinese manufacturers is the largest among all analysed areas in this study. More than 140 000 Chinese vehicles were sold, 25% of the market with a fairly stable situation compared to 2012.

14-09-8  

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Chery will start its production in its Brazilian plant in July 2014

The Chinese carmaker Chery will start its production in the Brazilian assembly plant of Jacarei, near Sao Paulo in July 2014. The site will eventually have a production capacity of 150 000 vehicles per year.

The Jacarei plant will host the production of the Chery QQ (segment A) and the Chery Celer (segment B) models, the latter being the hatchback version of the model sold in China under the name Fulwin2 also sold in Ukraine under the Forza name.

Accordingly, Chery has stopped importing its electric car the S-18 (segment A) and its sedan Cielo (segment B) as they are much more expensive than the two models that will replace them and that will be produced in the Jacarei plant. Indeed, the Chinese manufacturer had to pay significant taxes on imports (up sharply over the past three years), which had the effect of dividing sales by 2 in 2013 compared to 2012.

In 2013, Chery sold less than 10 000 cars in Brazil (against more than 20 000 units in 2012), but the carmaker expect to sell 40 000 units in 2014 thanks to its Jacarei plant and 73 000 units in 2015. The manufacturer expects 100 000 sales in 2016 or at the latest in 2017.

The Brazilian plant will also be used as a Chery export base for the entire South American market, which should accelerate and eventually saturate its production rates in the medium term.


14-09-7  

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The Russian market could overtake the German market by 2017-2018

For several years now, we regularly hear that the Russian market will become the largest in the European car market, ahead of Germany, which has been the largest European market since the 60s.


Russia is still an emerging car market, although car sales have been substantial since the arrival of the Lada brand in 1970. However, with a large population and a very low motorization rate (250 per 1 000 inhabitants, against more than 500 in Europe), and a continuous enrichment of the middle class, Russia has the potential to become the biggest European car market.


The German market has been stagnating since 2012, partly because of a declining population and a slowing economy. The market will hardly reach the threshold of 3.3 million passenger cars from 2017 to 2018.


Unless another case scenario appears, Russia will benefit from growth (in 2014), driven by domestic demand, from exports (including energy) and from the increase in net incomes.


Taking into account the factors mentioned in this analysis, and despite occasional fluctuations that may impact the German or Russian market Inovev estimates that for the 2017-2018 period , Russia will permanently become the first European car market, ahead of Germany.

14-09-1  

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Uzbekistan has a single carmaker that monopolizes the whole market

Uzbekistan is like Ukraine and Kazakhstan, former republics of the Soviet Union. Inhabited by 27 million people, almost two times more than Kazakhstan (16 million), but almost two times less than Ukraine (46 million), Uzbekistan has still a very low motorization rate. However, the Uzbek market has gradually increased from 118 000 units in 2011 to 158 000 in 2013. Most new vehicles sold in this market are locally produced by a single carmaker: GM Uzbekistan a joint venture established in Asaka in 1996 between the U.S. carmaker General Motors (25%) and an Uzbek assembler called Uzbek OJSC UzAvtoSanoat (75%). The manufacturer sells vehicles (segments A, B and C) under the Daewoo brand, except for the Cobalt (segment C) launched in 2012 and sold under the Chevrolet brand.


GM Uzbekistan has always produced models under the Daewoo brand (now GM Korea): Nexia, Matiz, Damas, Spark, Lacetti, Captiva, Epica, Malibu. At first they were assembled from spare parts imported from Korea. These Models are now produced entirely on site, except for the Captiva, Epica and Malibu, supplied in smaller quantities.


GM Uzbekistan produced 246 641 vehicles in 2013 (against 236 201 in 2012), including 157 784 sold locally, the rest is exported, mainly to Russia. Uzbekistan has a growing automobile production (multiplied by 2.5 to 8 years) and continuous growth of its car market since 2005.

14-09-6  

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