The Twingo will be the last Renault of the A-segment
Following the release of its 2021-2025 Plan, Renault has announced that its rear-engine 5-door A-segment sedan, the Twingo, will not be replaced by a model using this architecture. It would be replaced in 2025 by a battery electric (BEV) B-segment sedan, based on the R5 concept presented last month.

The carmaker announced that as the Daimler group having terminated the agreement between Renault and Smart on small A-segment cars, it was no longer possible to take charge of the design and production of a new small sedan with a combustion engine, which will not exceed 100,000 sales per year.

As for Peugeot and Citroën, which will replace their small cars 108 and C1 with small battery electric vehicles, Renault has decided to replace the Twingo with a small BEV based on the CMF-EV platform already unveiled during the presentation of the future Renault Mégane electrics and Nissan Ariya and modified for B-segment cars.

The future BEV R5 will therefore be included in the Renault range in 2025, at the entry level of the brand's electric cars range, located below the Zoé(B-segment B) and e-Mégane(C-segment). It will of course be produced in the Douai plant dedicated to the production of the brand's electric cars. Other models will be added to this plant, such as the future BEV-SUV replacing the Scenic and the future BEV-SUV from Alpine. Renault could produce up to 200,000 electric cars in this plant in 2025, even if Inovev only forecasts around 130,000 units by this time.


    
 

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Global auto market shrank 14% in 2020

According to Inovev's calculations, the global vehicle market (passenger cars and heavy, medium and light utility vehicles) would have shrunk by 14% in 2020, following the coronavirus crisis. Sales volumes are not final because some countries have not yet communicated their figures, but the numbers of countries (more than 35 countries) on which Inovev is working is sufficiently representative to figure out the 2020 decline.


The most critical period was spring 2020 (from mid-March to mid-June) when many plants closed between one and two months depending on the country. The level of the world market in the second half of 2020 returned to the level of 2019, but it should be remembered that the second half of 2019 was less good than the second half of 2018, 2017 and 2016. In addition, more vehicles were sold for several months than produced, resulting in reduced stocks. In conclusion, the decline in production has been greater than the decline in the market, globally, and the year 2021 should be the year of restocking.


By country, we can observe that China has faced the Covid-19 crisis well in 2020, and therefore this country is increasing its lead over the others, its global market share having reached a record last year (33%). One in three cars sold in the world is therefore registered in China. The USA occupy a world market share of 19% and Europe (29 countries) of 18%, down sharply compared to 2019 (-23.5%). These three major markets alone represent 70% of the world market. They are well ahead of Japan (6%), India (4%), Brazil (3%), Korea (2%), Russia (2%) and Canada (2%) which together represent nearly 20% of the world market.



    
 

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With the full takeover of the Kolin plant, Toyota can produce the Yaris in this plant
Since January 1st, 2021, the TPCA plant located in Kolin (Czech Republic), formerly owned at 50% by Toyota and 50% by PSA, became fully owned by Toyota, the Japanese carmaker having bought out PSA's shares. This new development is the result of PSA’s decision to reduce its production capacities in Europe in the frame of its merger with the FCA group, which has also over capacities. This new fact will have several consequences.

Firstly, the PSA models produced at the Kolin plant (Citroën C1 and Peugeot 108) will be phased out during the next summer, without being transferred to another plant. These models will therefore not be replaced immediately, but they may be replaced in the future, by new battery electric models, the A-segment gradually switching to electric.

Secondly, Toyota will now be able to use all of the Kolin plant production capacity (300,000 vehicles per year) instead of half. Consequently, the Japanese carmaker will produce some of the Yaris at the Kolin plant from next summer, after the Citroën C1 and Peugeot 108 have shut down. Indeed, the Toyota French plant in Onnaing (capacity of 300 000 vehicles per year also) should not have sufficient capacity to produce the Toyota Yaris and the new Yaris Cross SUV (200,000 units planned per year for each of these models).

The Yaris Cross will be fully produced in Onnaing from next summer, shortly before it goes on sale. According to Inovev, the Yaris Cross is likely to bite more on the sales of the Toyota CHR than on Yaris ones. The Toyota Aygo, on its side will continue to be marketed and will continue to be produced at the Kolin site, at a rate of 100,000 units per year.


    
 

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The Indian market (PC + LUV) fell by 23% in 2020
India's automotive market of light vehicles (passenger and utility) fell 23% in 2020, to 2,937,803 units from 3,817,000 in 2019, due to the coronavirus crisis, which is a poor result as the world market fell by almost 14%.

The Indian car market is back to 2010 levels, after uninterrupted growth from 2014 to 2018. India has particularly suffered from the coronavirus crisis, unlike other Asian countries, since the country has hardly registered any vehicles in April and May 2020, due to lockdown and closure of plants.

By carmaker, the Suzuki-Maruti group remains largely the leader of the Indian market in 2020, with a 42.1% market share, its sales having fallen by 18% last year. Largely behind, the Hyundai-Kia group (19.2% market share) managed to stabilize its sales compared to 2019 (+1.4%). It is the only carmaker to achieve such a performance in India in 2020.

The Korean is ahead of the Indian group Tata Motors (12.8% market share) which posted a drop of 28.9%, this carmaker having great difficulty in establishing itself in the passenger car market, facing giants like Suzuki-Maruti and Hyundai-Kia. Tata Motors only manages to survive with its utility vehicles, which account for nearly 55% of its sales in India.

Mahindra sits in fourth place in the Indian market, with 10.1% market share as its sales collapsed in 2020 (-35.2%). Renault-Nissan get 3.1% of the Indian market, far from its 5% targets (the Datsun brand will be deleted), ahead of Toyota (2.6%) and Honda (2.4%). SUVs represent 26% of the Indian market in 2020, compared to 20% in 2019.


    
 

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The European market (PC + LUV) declined by 23.5% in 2020
The European market for passenger cars (PCs) and light utility vehicles (LUVs) declined by 23.5% in 2020 compared to 2019, to 13,745,166 units against 17,981,186 in 2019, due to the coronavirus crisis. This is a very poor result compared to the world market which dropped by almost 14%. The European market thus returned to the 2013 level, the worst year of the decade, following the financial crisis of 2008-2009 which resulted in several years of austerity with a limited demand for automobiles on this region between 2010 and 2013.

The European market was one of the regions most affected by the coronavirus in 2020, causing plants to shut down during the spring for one month to one month and a half, depending on the country and the carmaker.

However, we can observe that on one hand the light utility vehicles market suffered less than the passenger car market (-18.0% against -24.3%) and on the other hand, the European Eastern countries suffered a little less than the Western countries (-23.0% against -24.5%). But the drop remains significant in all cases.

In this context, the VW group remains the market leader in Europe, with a 25.4% market share, ahead of the PSA (14.4%) and Renault-Nissan (13.6%) groups, which are well ahead of the groups BMW (7.1%), Hyundai-Kia (7.0%), Daimler (6.4%), FCA (5.8%), Toyota (5.8%) and Ford (5.5%). SUVs represented 41% of the European passenger car market in 2020, against 38% in 2019 and 35% in 2018. Battery Electric (BEV) and plug-in hybrid (PHEV) vehicles represented 1,367,138 units in 2020, or 11,5% of the European market, against 3.5% in 2019 and 2.5% in 2018. The share of these motorisations tripled between 2019 and 2020.


    
 

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