The Brexit could lead to a significant decline in UK market
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The Brexit could lead to a significant decline in UK market
- The vote in favourof Brexit generates a series of unknowns, and its consequences remain to be defined.
These will depend on negotiations that will take place to set new rules governing trade relations between Britain and the European Union. And concluding agreements of this scale will take time. The Brexit therefore opens a period of instability and uncertainty.
These will depend on negotiations that will take place to set new rules governing trade relations between Britain and the European Union. And concluding agreements of this scale will take time. The Brexit therefore opens a period of instability and uncertainty.
- The high export British car industry (eight out of ten cars are exported) spoke for “Remain”, pointing risks of custom duties coming back. Tariffs would indeed increase the sale price of both each car assembled in Britain and each imported car in Britain.
- In the short term, the Brexit could lower economic activity in Britain, making decrease car market and local production (decline in exports). The UK market has already declined in June 2016 (-0.8%), after rising 4.1% in the first five months of the year.
- Inovev now expects, as its medium scenario, stability of the UK market in 2016 (+ 0.5% for total 2016 against Total 2015), decreases of 5.5% in 2017 and 6.0% in 2018. This drop in the British market will be the consequence of the slowdown economic growth, the depreciation of the pound and reduced buyer confidence. Nevertheless, the UK market had risen in the last four years (+ 35% between 2011 and 2015) and the level now provided by Inovev for 2017-2018 will be a level still very close to pre-crisis (2005 -2007).
- It has to be noted that scenarii that can be provided at this time are uncertain, as it is impossible to anticipate what will happen between EU and UK in next months, and the drop might be still sharper.
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Kia will increase its production capacity in China
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Kia will increase its production capacity in China
- The Korean brand Kia (in which Hyundai holds 34.6% stake) has currently three workshops in China.
- The three Chinese workshops are all located in Yancheng (Jiangsu province, East coast).
They operate, since the start of the first one in 2003, under a 50%-50% Joint Venture with the Chinese carmaker Dongfeng.
Each of these three facilities started with a production capacity of 150,000 vehicles per year, which was subsequently increased to 300 000 units per year. The first facility started in 2003 and doubled its capacity in 2008. The second one started in 2010 and doubled its capacity in 2012. The third one started in 2014 and will double its capacity in 2017 (announcement made this month by the carmaker).
They operate, since the start of the first one in 2003, under a 50%-50% Joint Venture with the Chinese carmaker Dongfeng.
Each of these three facilities started with a production capacity of 150,000 vehicles per year, which was subsequently increased to 300 000 units per year. The first facility started in 2003 and doubled its capacity in 2008. The second one started in 2010 and doubled its capacity in 2012. The third one started in 2014 and will double its capacity in 2017 (announcement made this month by the carmaker).
- Kia will therefore have next year in China an available production capacity of around 900,000 vehicles per year.
- These capacity increases are in accordance with the constant rise of Kia's sales in the Chinese market. Sales increased from 50 000 units in 2005 to 600,000 in 2016 (forecast Inovev for 2016).
- With the launch of new models, Kia expects to sell 800,000 vehicles in China in 2017.
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Subaru is the 18th world carmaker in 2015
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Subaru is the 18th world carmaker in 2015
- Automotive subsidiary of Japan's Fuji Heavy Industries (formerly Nakajima), the Subaru brand is the 18th world carmaker in 2015, behind the Indian Tata Motors and ahead of the Chinese Great Wall. The Japanese brand sold 0.94 million vehicles last year (against 0.89 million in 2014 and 0.78 million in 2013) and hopes to reach for the first time 1 million units in 2016.
- The Subaru brand has a specificity: it sells most of its production to the United States (59% in 2015). Japan accounts for only 17% of global sales, followed by China (6%), Canada (5%), Australia (4%) and Europe (4%).
- In the European market, the brand encounters real difficulties. Its sales were down 22% in 2015, while its influence was already very low, indicating that the models do not meet the market demand (Subaru has stopped sales of Impreza and Legacy). In particular, Subaru does not offer a real SUV, like most other manufacturers.
- The range of Subaru currently comprises:
1. Midgets (K vans): Pleo, Stella, Dias wagon (Daihatsu models rebadged)
2. Sedans: Impreza / WRX and Legacy / Levorg of his own design
3. Crossovers: Outback, XV and Forester his own conception
4. BRZ sports coupe developped with Toyota.
- This rather diverse range manages meets success only in United States where Subaru has a plant (Lafayette LO) with a capacity of 300,000 vehicles per year.
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The new 2016-2019 Audi product plan
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The new 2016-2019 Audi product plan
- Audi unveiled its new 2016-2019 product plan. This plan has been constructed with the objective to overpass BMW and Mercedes in terms of sales. It includes an offer of 20 different body styles in 2020.
- In the second half of 2016, the SUV Q2 (B segment) will be marketed and the new generation of Q5 (D segment) should be unveiled. It is to note that the new Q5 will be produced in the Mexican plant of the carmaker and not any more in Germany. The new A5 coupe (D segment) will also be marketed in the second half of 2016. However cabriolet and coupe versions of the A5 Sportbackwill be only released in 2017.
- It is expected that Audi then unveils:
§In 2017:the new generation of the A6 (E segment) in its sedan and station-wagon versions, the new coupe A7 Sportback(E segment) and the new A8 limousine (F segment).
§In 2018:the next generation of the A1 (B segment) and the Q3 SUV (C segment) which will now be manufactured in the Hungarian factory of the carmaker and not any more in Spain; the electric motor Q6 SUV (E segment) and a compact convertible R6 to compete with the Mercedes SLC.
§In 2019:the new generation of the A3 (C segment). The A4 which has been renewed in 2015 will not be replaced before 2022. Finally, it is not any more made reference to Q4 and coupe A9, these models are not anymore a priority .
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Great Wall is the 19th world manufacturer in 2015
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Great Wall is the 19th world manufacturer in 2015
- Chinese carmaker Great Wall is the 19th carmaker in the world in 2015 and the third 100% Chinese carmaker behind Changanand Geely. Great Wall, which sold 850 000 vehicles in 2015 (against 730 000 in 2014), has gradually become a group composed of two distinct brands, one (Haval) producing SUV, the other (Great Wall) producing sedans and pickups.
- The current range is composed of:
1. Haval SUV H1, H2, H5, H6, H7, H8 and H9 which totaled 662,500 in 2015 sales.
2. Great Wall sedans M2, M4, C30 and C50 which totaled 90,800 sales in 2015.
3. Pickup WingleWingle 5 and 6, which totaled 99,500 sales in 2015.
- It is to note that the Haval brand sales have increased by 54% in 2015, while the Great Wall sedan sales have fallen by 50% and pick-up sales by 16% over the same period.
- The Great Wall Group is therefore specializing increasingly in the SUV. It has gradually become the leading producer of SUVs in China.
- The main Great Wall Group's market in 2015 was China with 834,000 sales, representing 98% of its global sales.
The 2% left are exported toChile (3800 units), Russia (3200 units), South Africa (2500 units), Bulgaria (2300 units), Iran (2300 units), Colombia (1800 units), Uruguay (500 units) and New Zealand (400 units).
The 2% left are exported toChile (3800 units), Russia (3200 units), South Africa (2500 units), Bulgaria (2300 units), Iran (2300 units), Colombia (1800 units), Uruguay (500 units) and New Zealand (400 units).
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