FCA opened its new plant dedicated to Jeep in Goiania, Brazil

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FCA opened its new plant dedicated to Jeep in Goiania, Brazil

 

- The Fiat-Chrysler group (FCA) has launched its new plant in Brazil, located in Goiania and dedicated to various Jeep models. This is the first plant opened by FCA since the merger of Fiat and Chrysler was formalised in October 2014. At the beginning, the plant will have a capacity of 250 000 units per year.


- This plant will supply all Latin American markets, which we know, have an  increasing demand in SUV and pickups, essentially compact or midsize vehicles. Thus the first model produced in this new plant is the Jeep Renegade (SUV- from B segment), whose production originally started in Italy last year.


- This Jeep will be joined by other models in coming years. It is likely that the replacement for the Jeep Compass (segment C) and the Jeep Cherokee (segment D) will be selected to be produced in this plant. For now, no announcement has been made about this topic. The Jeep Wrangler and a pickup that would be based on the Wrangler could also be produced on these assembly lines.


- In 2014, for the first time the Jeep brand exceeded one million units produced worldwide (1.1 million units against 0.8 million in 2013). With the expansion of its range of SUVs through the Renegade and its place of production being in an area with  high potential for medium to long term sales, FCA's aim to produce 1.5 million Jeep annually is feasible.

 

15-14-2  

 

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Malaysia 2014 Automobile (PC+UV) Sales: Up 1.6 % to 670,000 Units

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Malaysia 2014 Automobile (PC+UV) Sales: Up 1.6 % to 670,000 Units

 

- Malaysia's automobile sales volume in 2014 increased 1.6 percent from the previous year to 666,000 units. Sales volume grew for the third consecutive year, reaching an historic high. Passenger vehicles went up 2 percent to 588,000 units. Two new models the Toyota Vios and the Honda City drove up the car segment which account for 68.7 percent of all automobile sales. SUVs performed well in 2014 thanks to brisk sales of the Mazda CX-5 and other models from Ford, Mitsubishi and others. On the other hand, commercial vehicles dropped 1.3 percent to 78,000 units. Although pickup truck sales were on par with the previous year's level, trucks fell 8.1 percent.

- Malaysia's leading automaker Perodua dropped 0.3 percent to 196,000 units, maintaining the previous year's level. Although the new Axia hatchback, which was launched in September 2014, received many orders, slow product supply negatively affected sales, preventing the automaker to recover market share to the pre-2013 level of over 30 percent. Second-placed Proton dropped 16.6 percent to 116,000 units. The automaker's market share declined 3.8pp (percentage points) to 17.4 percent, falling below the 20 percent level for the first time. Even the release of the lriz in September 2014 did not boost sales. Toyota (third carmaker in Malaysia) went up 11.9 percent to 102,000 units, posting a share of 15 percent. Next in line was Honda which realized a great leap upward, up 50.3 percent to 77,000 units. The automaker's market share rose 3.8pp to 11.6 percent. Great performance is credited to the fully-remodeled City whose price has been reduced by thorough localization.

- Regarding market conditions in 2015, MAA is forecasting a modest two percent increase to 680,000 units compared to 2014. 

 

15-13-9  

 

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Automobile Registration Restriction: Shenzhen Becomes Seventh City to Regulate Ownership Volume

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Automobile Registration Restriction: Shenzhen Becomes Seventh City to Regulate Ownership Volume

 

- In China, automobile ownership volume rose to 145 million units in 2014, causing worsening air pollution and traffic congestion. For this reason, after Shanghai, Beijing, Guiyang, Guangzhou and Tianjin, in 2014 two additional cities Hangzhou and Shenzhen introduced registration restriction on automobiles. The number of cities which introduced such regulation grew to seven.

- Beijing and Guiyang implemented only the license plate lottery system, while Shanghai has been using only the auction system. The other four cities use a combination of lottery and auction for distributing license plates. Out of the four cities, Shenzhen adopted a 2:4:4 distribution ratio, of which license plates for 20,000 electric vehicles and 40,000 ICE (internal combustion engine) vehicles may be obtained through lottery, and 40,000 ICE vehicle license plates through auction in 2015 (compared to 2014's registration volume of around 500,000 units).

- Another method which is expected to resolve air pollution is the introduction of NEVs (new-energy vehicles). For this reason, NEVs enjoy various types of preferential measures in these seven cities. For instance, Beijing allocated 30,000 plates out of the total of 150,000 plates available in 2015 for NEVs (excluding PHEVs). That figure will rise to 60,000 plates annually in 2016 and 2017. In Shanghai, NEVs may receive a special license plate free of charge, while in Tianjin, Guangzhou and Hangzhou, NEVs may be purchased directly without going through the lottery or auction system.

- Apart from the said seven cities, among cities which are rumored to introduce registration restriction when ownership volume surpassed 2 million units. The seven cities introduced restrictions after ownership volume exceeded 2 million units, Moreover, Taiyuan intends  to limit ownership volume to 1.1 million units by the end of 2015; however, volume already stood at 895,000 units in 2013 and the increase for the following two years was expected to exceed 205,000 units; therefore, the city may have to launch its own registration restriction as well.

 

 

15-13-7  

 

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Japan: HEV/PHEV/BEV Passenger Vehicle Sales Volume increased 13,9 percent

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Japan: HEV/PHEV/BEV Passenger Vehicle Sales Volume increased 13,9 percent

 

- Overall: In Japan in 2014, HEV/PHEV/BEV Passenger Vehicle Sales Volume up 13,9 percent to 982,483 Units. Sales volume of HEV/PHEVs went up 13.9 percent compared to the same period of 2013 to 966.020 units, BEVs increased 11.6 percent to 16 463 units.


- Toyota/Lexus: HEV/PHEV sales volume increased 1,3 percent to 683,955 units. For the Toyota brand, increased sales of the Corolla and Camry, offset declining sales of other hybrid vehicles, including Aqua, Prius and Prius+. Looking at the Lexus brand, only the CT200h increased its sales, while two new models (NX300h et RC300h) were launched onto the market during the second half of 2014 year.


- Honda: HEV/PHEV sales volume increased 64.5 percent to 239,743 units thanks to brisk sales of the Fit (Jazz in Europe) and Vezel (HR-V in Europe) models. 


- In the BEV market, Nissan, only real player in this market (with 86 percent of the EV market share), increased 8,9 percent to 14,177 units, thanks to the Leaf.

 

15-13-10  

 

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Indonesia 2014 Automobile (PC+UV) Sales: Down 1.8 Percent

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Indonesia 2014 Automobile (PC+UV) Sales: Down 1.8 Percent

 

- Indonesia's automobile sales volume in 2014 dropped 1.8 percent from the previous year to 1.2 million units. Although sales surpassed 1 million units for the third consecutive year, volume fell below compared to the previous year's level for the first time in five years. Decline in demand is attributed to three factors; 1. market slowdown as a result of rising prices due to the weakening national currency against the US dollar, 2. the government's plan, put forth in October 2014, to gradually decrease fuel subsidies which have been putting pressure on finances, and 3.30 percent increase in fuel prices, implemented in November 2014.


- Looking at results by type, passenger vehicle volume of 879,000 units was  on par with that of the previous year. LCGCs (Low Cost Green Cars), which began to enter the market in September 2013, pushed up sales, enabling passenger vehicles to maintain the previous year's level. LCGCs sold 172,000 units, increasing their share within the passenger vehicle sector to 19.6 percent. As LCGCs seized a greater portion of the market, sedans (down 36.8 percent) and non-sedans (down 13.7 percent) declined across the board. Meanwhile, impacted by market slowdown, commercial vehicles fell 6.2 percent to 329,000 units.


- Looking at results by brand, top brand Toyota dropped 8.1 percent to 400,000 units, seeing a decline in share to 33 percent, down 2.3pp (percentage points). Toyota's best-selling model the Avanza went down 24.1 percent due to the launch of the Honda Mobilio. Brisk sales of the Mobilio drove up Honda's sales volume 73.9 percent to 159,000 units, enabling the automaker to surpass Suzuki and take third place. Apart from Honda and Ford, all other brands of the top 10 group declined.


- As for 2015, although fuel prices have settled down thanks to declining crude oil prices, it is very likely that prices will continue to increase driven up by the weak national currency. Indonesia's automotiveindustryassociation projects that sales volume in 2015 will remain on the 2014 level.

 

15-13-8  

 

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