BYD plans to build a plant for electric buses in Europe
 

The Chinese carmaker BYD plans to build an electrical bus plant in Europe, perhaps in France, after several field trials conducted in different markets. "We need to sell a hundred units of electric buses to justify the construction of a plant and we believe that we can quickly reach this volume," said the manufacturer. BYD is currently building at the same time an assembly plant in the United States (Lancaster / California).


BYD however, did not specify in which European country this future plant would be established, but the carmaker believes that some countries have advantages or are more advanced in terms of electric vehicle fleets and cheaper sources of electricity supply, such as France.


So far, the Amsterdam airport has ordered 35 electric buses from the Chinese carmaker and a Dutch island also has an electric bus fleet.


Furthermore, BYD has conducted tests in the cities of Paris, Bremen, Bonn, Madrid, Barcelona, Salzburg, Warsaw, Amsterdam, Brussels and Budapest. Additional testing should be performed in London. The BYD electric bus would have a range of 250 km.


It is to be noted that BYD has become the largest manufacturer of electric buses in the world.

 
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Daimler is building a new plant in Brazil
 

Daimler's Brazilian plant (located in São Paulo) is expected to produce 20 000 vehicles per year from 2015/2016. The models manufactured there will be the new generation of C-Class, CLA and GLA for the local market. The carmaker's objective is to become the leader in the premium car segment in Brazil by 2020.


According to the carmaker, the Brazilian market is expected to grow by 50% between 2013 and 2020, becoming the fourth largest worldwide market by 2020 (behind China, Europe and the United States), with significant growth of the Premium segment.


Currently, Brazil is already the world's fifth largest market (behind China, Europe, USA and Japan), with 3.8 million vehicles sold last year (2.85 million PC and 0.95 million commercial vehicles).


The Sao Paulo plant will be Daimler's third plant in Brazil. Its two other plants  produce trucks and buses.


The return of Daimler's in the production of passenger cars in Brazil has been accelerated by the tax rate (raised by 30% since 2011) on vehicles manufactured outside the Mercosur.


Daimler produced in the past the Mercedes Class A (1999 to 2005) and the Class C (2008 to 2010) in small quantities.

 
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Would an « Electric » branch in Renault-Nissan group make sense?
 

The Renault -Nissan group is present in the field of electric car with Nissan Leaf, Renault Zoe, Renault Fluence ZE, Kangoo ZE, Twizy and now Samsung SM3 ZE,  i.e. under three different brands, which will soon become four with the arrival of Infinity.


The Renault-Nissan group has sold  altogether nearly 120,000 electric cars in three years ( 83 000 Nissan models  and 36 500 Renault models), from September 2010 to September 2013 .


The French-Japanese group has set a target of 400,000 sales for 2015.


The creation of a specific electric vehicle branch could be an efficient way  to reach such an ambitious target, taking advantage of:

• A differentiation of  images:  combustion vehicles with a “classic” image  and electric vehicles with an "innovative" image.

• The concentration, under one direction, of resources dedicated to research, production and distribution of these vehicles.


In China, big potential market for electric vehicles, several carmakers have recently created new brands exclusively dedicated to electric cars: Zinoro (Joint Venture between BMW and Brilliance ), Huaqi (JV between Dongfeng and Kia), Denza (JV between Daimler and BYD), and Venucia (JV between Dongfeng and Nissan )

 
 
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Brand comparison between Toyota-Lexus / Nissan-Infiniti in major markets
 
Globally, Toyota is traditionally ahead of its rival Nissan. In 2012, for example, Toyota-Lexus sold 9 million vehicles while Nissan-Infiniti sold 5 million.

When we observe the four major world markets (Europe, China, NAFTA and Japan), the situation is more diverse. It is thus found that in Europe and China, the two manufacturers are side by side:

In Europe, since 2007 the approximation of sales volumes of the two manufacturers is explained by the fact that Nissan is better suited to the demand, especially for SUVs and crossovers with two big hits, the Qashqai and the Juke. Toyota on the over hand (allthough it was a pioneer with the RAV4) did not develop itself to fit the needs of the demand.

In the Chinese market, Nissan arrived ahead of Toyota, but it has only got a small head start .

On the contrary, in Japan and the NAFTA region Toyota is well ahead of Nissan, although between 2007 and 2011, Nissan has moved closer to its rival in the United States with a range of models that became stronger competitors.

In Japan, Toyota has a privileged position, since it traditionally accounts for nearly half of the market. Nissan still remains at a level of sales two times lower that Toyota. 
 
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What growth opportunities for carmakers?
 
Currently, mature markets are replacement markets and emerging markets are initial equipment markets. If they want to maintain their global growth, carmakers must turn to new emerging countries over the coming years. In the BRIC (Brazil, Russia, India, China), key positions have already been allocated.

In saturated and low developing markets, growth opportunities are therefore in new emerging countries, i.e. countries which have developped after the BRIC countries such as Thailand, Indonesia, Malaysia, Turkey, Saudi Arabia, South Africa, South America (excluding Brazil).

- These new markets, although smaller than those of BRIC countries,  are expected to rise at an annual growth rate of over 10% per year  in next years.
They should represent nearly 20% of global sales by 2020 (
ie. about 20 million vehicles in 2020), against 15% in 2013.

In addition, BRIC countries are currently showing a weaker growth momentum: the Russian market declined by 6.4% since the beginning of the year, India declined by 7.7%, Brazil declined by 2.8%. Only China prances with sales up by 14% since the beginning of the year.

Although the BRIC countries still reserve significant potential growth over the next decade, medium term growth lays elsewhere.
 
 
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