Mitsubishi is going to build a plant in Indonesia

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Mitsubishi is going to build a plant in Indonesia
 
- Mitsubishi currently has one plant in Indonesia, at Pulogadong. This plant has a production capacity of 80 000 units and produced 60 000 vehicles in 2014 : The ASX (segment B, SUV), the Outlander (segment D, SUV), the Colt (segment B, saloon) and the L 200 (Pick-up).

- Over the first 6 months of 2014, the Mitsubishi make accounted for 7% of the Indonesian market, a market up by 6,7% (6 months 2014/ 6 months 2013). It seems that the current production capacity of the Pulogadong plant is not sufficient to follow the growth in demand (the market should reach 1.3 million units in 2014).  Following this fact, Mitsubishi has decided to open a new plant in this country.

- Located in Bekasi (In the suburbs of Jakarta) the plant should be operational in the first half of  2017. The initial production capacity will reach 160 000 units per year. But could be extended to 240 000 units. In this plant, Mitsubishi will manufacture small MPVs (passenger minivans and commercial ones) and the Colt an urban vehicle. Manufactured for the local market and for a few countries in that region, namely Thailand, Malaysia, Philippines and Vietnam.

- The vehicles answer two market needs : The need for small MPVs, one of the largest segments in this market and the need for more « LCGC » vehicles (Low Cost Green Car), promoted by local authorities.

14-29-6  


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Renault-Nissan to produce the Lodgy MPV in Russia and India

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Renault-Nissan to produce the Lodgy MPV in Russia and India
 
- Nowadays, the sales of the Dacia Lodgy, an MPV from segment C does not exceed 30 000 units per year (the Tangier plant having a capacity of 150 000 units), while the Dacia Logan, Sandero and Duster sell ten times more than the Lodgy (between 300 000 and 400 000 units for each model).

- To revive the sales of the Lodgy MPV, the Renault-Nissan group has announced it would launch the model under the Renault brand in India in 2015 and in Russia in 2016. In India, the introduction of Lodgy seems logical in a market where minivans account for 20% of total sales in 2014.

- This model will be competing against the Suzuki-Maruti Ertiga and the Honda Mobilio . The marketing of the Lodgy on the Russian market is more surprising since minivans represented only 1% of the market in 2014.

- The objective is to optimize the use of the Lodgy's current production plant situated in Tangier (Morocco), and to assemble (CKD) the Lodgy in India and Russia. In India, assembly will start as of January 2015 at the Chennai plant, and it will start in 2016 in the Moscow plant in Russia. In the Russian plant, that same year (2016), the production of a Renault Captur inspired crossover will also be launched.

14-29-4  


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Evolution of plant utilisation rate in Europe (EU + Turkey) in 2014

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Evolution of plant utilisation rate in Europe (EU + Turkey) in 2014
 

- The utilisation rate of European plants declined last year (from 69% in 2012 to 68% in 2013) but is expected to increase in 2014 due to two key factors: the recovery of the European car market (+5.7 % over 8 months) and strong exports. The closure of the PSA plant at Aulnay in late 2013 also impacted the improved utilisation rate in Europe in 2014.


- The utilisation rate of European plants in 2014 should be between 70% and 72% depending on the growth rate of the European market that is currently slowing down (up 8% in the first quarter of 2014, up 4% in the second, up 3 % expected in the third) and the effects of falling exports to Russia (after the Ukrainian crisis). English and German factories (major exporters to Russia) could be the most impacted.


- Germany and the UK still remain the two countries whose factories have the highest utilisation rate (88% and 85%) whereas Italy is suffering, since it depends on the Fiat group, whose sales are at a low level currently.


- It is expected that during the year 2015 the progress of plant utilisation rates observed in 2014 will be consolidated with the expected growth of the European market (up 3% according to Inovev) and the arrival of new models in plants with overcapacity (Renault Twingo / Smart Forfour in Slovenia, Jeep Renegade / Fiat 500X in Italy), which could be exported outside Europe (Jaguar XE, Land Rover Discovery Sport…).


14-29-3  


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Nissan is going to produce the new Pathfinder in Russia

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Nissan is going to produce the new Pathfinder in Russia
 

- While the Nissan Pathfinder produced in Barcelona (Spain) will definitely not be replaced in Europe, the Japanese manufacturer has decided to start the production of the new generation in Russia, the production should start early 2015 at the plant in St. Petersburg, and the Pathfinder will only be marketed for the local market.


- The Pathfinder was sold at nearly 6 000 units in Russia in 2014, the Renault-Nissan group considers that this volume justifies local assembly (CKD), while its sales potential in Europe now seems limited (less than 2 000 sales in 2014).


- The new generation Nissan Pathfinder is already manufactured in the United States (in Smyrna) and marketed in North America, as well as a few exports to South America, to Europe and to Russia. Its US annual production is on average of 100 000 units per year, the United States remains an large market for large SUVs.


- In Russia like in the United States, Nissan will market the Pathfinder with a 3.5 litter petrol engine or a hybrid (gasoline-electric) powertrain, the hybrid version of the Pathfinder being the first mass market hybrid vehicle ever produced in Russia.


- Nissan is thus expanding its range of models produced in Russia. The new Pathfinder will add on to the models already manufactured: Teana (St Petersburg), X-Trail (St Petersburg), Almera (Togliatti), Terrano (Moscow). The Qashqai will also be manufactured in Russia as of the first half of 2015.


14-29-5  


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Sales growth by make in Europe between 2008 and 2013

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Sales growth by make in Europe between 2008 and 2013
 
- Between 2008 and 2013, the European market was down 22%, but some makes have managed to stabilise and even increase their sales in the past five years, while other makes have collapsed altogether.

- Among the makes on the rise, Dacia had the strongest growth with a 50% increase in sales in Europe between 2008 and 2013, thanks to the pursuit of its low price strategy, the arrival of the Duster SUVs  and the renewal of their high-volume products (the Logan and Sandero). Premium brands such as Land Rover (+40%) and Porsche (+15%) took advantage of their range expansion (Range Rover Evoque, Porsche Cayenne).

- The Korean manufactures, Hyundai (+31%) and Kia (+33%) have taken market share from mainstream and Japanese manufacturers. Finally, Nissan (+15%) benefited from the success of its Qashqai and Juke SUVs. German Premium carmakers, Audi, BMW and Mercedes, as well as Volvo and Volkswagen have reduced their decrease by expanding their range.

- Other makes have all  declined (-20% and -50% decrease). Mainstream European brands as well as most Japanese and American brands have been the most heavily impacted by the fall in the European market and the change of its structure (growth of SUVs, decrease in minivans and sedans…).

14-29-2  


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