China is driving growth in global passenger car sales in the first quarter of 2013
 
The growth in sales of passenger cars in the world was driven in the first quarter of 2013 by China:
 
Compared to the first quarter of 2012:
The Chinesemarket grew by 17.2% in the first quarter of 2013.
The European market (27 countries) declined by 9.4% in the first quarter of 2013.
The U.S. market grew by 6.4% in the first quarter of 2013.
The Brazilianmarket grew by 2.0% in the first quarter of 2013.
The Japanese market declined by 7.2% in the first quarter of 2013.
The Indian market declined by 10.8% in the first quarter of 2013.

13-16-10

 

BYD is going to set up a production plant in the US
 

BYD, China's largest carmaker of electrically powered vehicles, announced it would build an assembly plant for electric vehicles in Lancaster (California), in the United States. Work will begin on May 1, 2013.


- The future plant will produce electric buses for public transport companies in North America and South America. The carmaker stated that the vehicles produced in Lancaster will respect the specific emission standards of California.

 

- BYD intends to assemble in this plant fifty electric buses in 2013 and a hundred a year from 2014. Approved to be driven on U.S. roads since March, the BYD K9 electric bus has been tested by Hertz (car rental company) to transport passengers between the airport and its own rental sites. The first specimens of this particular electric bus should be supplied to the airport of Los Angeles, Stanford University and at the headquarters of the Apple computer company.

 

- The announcement was given just weeks after the creation of a joint venture in Europe for the establishment of a similar assembly plant in Bulgaria. To date, BYD has sold more than 300 electric buses worldwide and has received in 2013 orders for more than 1,300 buses making it the largest manufacturer of electric buses in the world.

13-17-1

 

Slovakia is the largest producer of cars in relation to its population
 

Slovakia became in 2012 the largest car producer in the world relative to its population(171 vehicles produced per 1000 inhabitants), arriving well before the Czech Republic and South Korea. Slovak automotive industry (assembly and equipment) employs around 75,000 people.

 

Slovakia has increased its position to 7th position in Europe in terms of production (behind the Czech Republic), while the country is in 19th place in Europe in terms of population.

 

Three carmakers operate now in Slovakia: the Volkswagen group (Bratislava) which manufactures Volkswagen (Up, Touareg), Audi (Q7), Seat (Mii) and Skoda (Citigo) vehicles, the Hyundai-Kia  group (Zilina) which manufactures Kia (Cee'd, Sportage, Venga) vehicles, the PSA group (Trnava) which manufactures Peugeot (208) and Citroën (C3 Picasso) vehicles.

 

The annual current installed capacity is 400 000 vehicles for the Volkswagen group, 300 000 vehicles for the Hyundai-Kia group and 300,000 vehicles for the PSA group, i.e. altogether one million vehicles per year. The BMW Group is also planning to move to Slovakia and Hungary over the next few years.


Vehicles produced in Slovakia are mainly destined for the European Union, but other markets are growing in importance, such as North America or Russia.

13-16-9

 

Dongfeng Kia will open a third plant in China
 
Dongfeng Motor is a Chinese group that has its own brand (Dongfeng) as well as subsidiaries in Joint Venture (JV) with foreign brands: Japanese (Nissan and Honda), French (Peugeot and Citroen) and Korean (Kia) brands. The vehicles produced by the JV are sometimes labeled by analysts as Dongfeng Motor vehicles and sometimes as Renault-Nissan, Honda, Hyundai-Kia and PSA vehicles.
 
As its production capacity became insufficient in view of the its sales growth in the Chinese market, the JV Dongfeng-Kia will open its third assembly plant in February 2014, a few months ahead of schedule. The third plant will be located in the same city as the other two existing plants: Yancheng (Jiangsu Province, East China, not so far from Shanghai).
 
The new plant (300,000 vehicles per year) will bring the capacity of the Dongfeng Kia joint venture in China from 430 000 vehicles per year at present to 730,000 units, corresponding to the volume of sales that the manufacturer intends to achieve in 2015.
 
Dongfeng Kia, which offers a dozen models on the Chinese market, sold 480,000 vehicles in 2012, out of which 432,000 were produced in Yangcheng. In the first quarter of 2013, sales totaled 137,567 vehicles, up 25.6% compared to the first quarter of 2012.
 
At this rate, Dongfeng Kia could sell between 550,000 and 600,000 vehicles in China in 2013, while the current production capacity does not exceed 430,000 vehicles per year. In order to be in position to meet the demand, Dongfeng Kia has taken the decision to accelerate the opening of its third plant in Yancheng and will start it as as soon as February 2014.

 

13-16-8

 

Few hybrid and electric vehicles in China in 2012
 

Despite a series of recommendations from the Chinese government urging motorists and manufacturers to turn to low-emission vehicles, only 7,748 hybrid and electric vehicles were sold in China in the first quarter of 2013, of which 4033 hybrid "classic" , 2874 301 electric vehicles and plug-in hybrids.


Such a low level of sales is achieved even though  buyers of plug-in electric and electric vehicles are eligible for a bonus of 60,000 Yuan (7,420 euros) and 50,000 Yuan (6,180 euros), respectively. In contrast, Chinese motorists acquiring a "classic" hybrid model receive a premium of only 3,000 Yuan (370 euros).


In comparison, Japan has purchased 154,234 hybrid and electric vehicles in the first quarter of 2013. Europe bought on its side15,000 such vehicles in the same period and the USA 150,000 vehicles.


Despite the high premium level offered, hybrid and electric vehicles are on low demand in China. An immature market (equipment market and not renewal) market,  a non adequate product offer, and prices too high (in comparison with combustion engine  vehicles) may explain the poor sales of such vehicles in China.


The environmental plan of the Chinese government, however, could help boost sales in the coming years.

13-16-7

 

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