Global production (PC + LCV) fell by 31.7% in the first half of 2020
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Global production (PC + LCV) fell by 31.7% in the first half of 2020
- Global automobile production (Passenger Cars + Light Utility Vehicles) fell by 31.7% in the first half of 2020, due to the coronavirus crisis, a drop which is stronger than the drop of the global market, showing that a significant number of sales were made from stock. The resulting destocking is estimated by Inovev at 5% of sales, ie 50% of stock at the start of the year. As a result, restocking is expected during the second half of the year, in order to recreate stocks at the start of the year, or 5% of sales. We estimate that for a year of sales, a continual safety stock of 10% is required, meaning the equivalent of about a month of sales.
- January 2020 recorded a 23.4% drop in production against a 10.0% drop in the world market.
- February 2020 recorded a 32.7% drop in production against a 21.8% drop in the world market.
- March 2020 saw a 41.5% drop in production against a 39.1% drop in the world market.
- April 2020 saw a 48.8% drop in production against a 41.4% drop in the world market.
- May 2020 recorded a 35.6% drop in production against a 29.4% drop in the world market.
- June 2020 recorded a 15.5% drop in production against a 12.9% drop in the world market.
- On the graph below, we can see that the production restart has taken place since May 2020 but that it will be necessary to wait until July to see a real recovery. The production loss from February to May will likely not be caught up.
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Read more... Global production (PC + LCV) fell by 31.7% in the first half of 2020
The VW Golf does not outrageously dominates the European market in 2020
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The VW Golf does not outrageously dominates the European market in 2020
- The Volkswagen Golf has dominated the European market for many years, but since the launch of its SUV version called Tiguan, the Golf has seen its market share in Europe significantly decreased, especially since 2015, from 4.5% in 2014 to 2, 7% in 2019. At the same time, the Tiguan went from 1.2% of the European market to 1.7%. Together, the two models occupied 5.7% of the European market in 2014 and 4.4% in 2019. In this C segment, we should also take into account the Touran model, but this model, whose sales are in declining, is doomed to disappear, like this market segment in Europe.
- The arrival of the Tiguan is therefore not the only explanation for the decline of the Golf. It also faced competition from equivalent SUV models from other brands. The 2012-2020 long generation must also have amplified the phenomenon. The Golf is indeed renewed in 2020.
- The VW Golf market share in 2019 (2.7%) is the lowest recorded for more than twenty years. The gap with the Renault Clio (2nd Best selling car in Europe) is now very small, as it achieved a market share of 2.3% in Europe in 2019.
- Adding Captur and Clio together, the gap with the Golf + Tiguan is now very small, around 0.6% (3.8% versus 4.4%). And while the Clio + Capture has remained stable since 2015, the Golf + Tiguan has declined significantly. We can presume that the Volkswagen T-Roc took a bite out of sales of the Golf and Tiguan, as this model accounting for 1.3% of the European market in 2019.
- Volkswagen, by having diversified its range in the C-segment, reduced the importance of the Golf within the carmaker. In addition, the Golf will now have to face competition from the new BEV Volkswagen ID3. This probably explains why VW sees the ID3 as the brand’s new major product, as the Beetle and Golf were when they were released.
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Read more... The VW Golf does not outrageously dominates the European market in 2020
Mitsubishi withdraws from the European market
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Mitsubishi withdraws from the European market
- Mitsubishi Motors has decided to freeze the introduction of new models on the European market. This is not a complete leaving of the market, as the Chevrolet or Infiniti may have done, but it sounds a lot like it because if sales of existing models as well as aftermarket continue, it will only be temporary. Indeed, the two SUVs planned to be launched at the end of this year are cancelled, one on the C segment (successor to the Eclipse Cross in PHEV version) and one on the D segment (successor to the Outlander PHEV).
- From 2021, only vehicles that comply with current European regulations will continue to be distributed, namely the Space Star (only until August 31, 2021) and the L200 pick-up. These two models represented 37,385 sales in 2019 while the Mitsubishi ASX, Outlander and Eclipse Cross represented on their side 97,963 sales in 2019. In 2022, with only one pick-up to offer, Mitsubishi will be the equivalent of an Isuzu in Europe.
- This withdrawal from the European market is part of a global "Small is beautiful" plan which is linked to the Renault-Nissan group’s strategy to reduce its production capacities and to focus each of the group’s brands on leading markets.
- However, Mitsubishi, which is withdrawing from the European market (where it achieved 135,348 sales in 2019, a level equivalent to 2005) and is also considering withdrawing from the American market, intends to compensate by a stronger presence in the ASEAN markets. The carmaker aims to sell 375,000 vehicles in this region in 2022 against 290,000 in 2019. Mitsubishi also intends to develop its sales in China and Japan, thanks to its very close ties with Nissan.
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Tesla will build a second assembly plant in US
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Tesla will build a second assembly plant in US
- Tesla, the world's leading producer of battery electric vehicles (367,820 sales in 2019), will build a second assembly plant in the United States, near Austin (Texas), the first being located since 2012 in California in Fremont. This brand new plant, which should start in production in 2022, will then be the fourth owned by the carmaker, as Tesla has a plant in Shanghai (China), since the start of 2020 and will have another plant in 2022, this time located in Germany, near Berlin.
- Each plant will eventually be set to produce for the local market. This is the reason why the Tesla plant in Texas will be dedicated to the production of the battery electric pickup named Cybertruck, because the pickup market is almost entirely North American.
This pick-up with a very particular design was unveiled in 2020, but is scheduled to be marketed in 2022.
This pick-up with a very particular design was unveiled in 2020, but is scheduled to be marketed in 2022.
- The plant will also produce the Semi, the first all-electric truck, scheduled for 2024. If demand was not sufficient for these two utility vehicles, the plant would produce Model 3 and Model Y, said Elon Musk, the CEO of Tesla.
- The capacities of the Texas plant, initially set at 150,000 vehicles per year, could therefore be increased to 300,000 units per year and then 450,000 units per year eventually depending on demand.
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Volkswagen leaves diesel in its B-segment models
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Volkswagen leaves diesel in its B-segment models
- We recently saw in one of our recent Auto-Analyses that carmakers were in the process of switching their A-segment cars from thermal engines to electric engines, diesel engines having disappeared for several years on this type of model.
- Today, we may be witnessing the scheduled end of diesel engines on B-segment cars.
- Volkswagen has just announced the end of production of Polo and T-Cross, in their diesel versions. These models will be available only with a 3-cylinder 1.0 TSI and a 4-cylinder 1.5 TSI petrol versions.
- Toyota has already phased out the diesel engine on its B-segment car, the Yaris, wich hybrid version is becoming the only proposition. Nissan has abandoned the diesel engine on its B-segment cars, the Micra and the Juke. Skoda had done the same with its B-segment car, the Fabia. The Honda Jazz is now available only as an hybrid version (gasoline + electric). The Hyundai i20 is available only as a petrol version, as is its for the Kia Rio. The Mazda 2 has followed the same path.
- The carmakers Renault, PSA and Ford continue for the moment to market B-segment cars equipped with a diesel engine, like BMW for its Mini, but their share is decreasing year by year, and recent Renault Clio hybrid, Peugeot 208 electric, Opel Corsa electric have been added to their product range, also with a view of a total disappearance of diesels in this segment.
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