Volkswagen unveils the new Passat

Volkswagen has unveiled the eighth generation Passat (segment D), based on the " MQB platform”. According to the manufacturer, this generation is lighter than the previous generation by nearly 90 Kg.


The model will be powered by a petrol 1.4 TSI (122 or 150 hp), 1.8 TSI (180 hp) and 2.0 TSI (220 or 280 hp) and two diesel engines, the 2.0 TDI (150 or 190 hp) and the 2.0 TDI Biturbo (240 hp). A 1.6 TDI (120 hp) will be launched later on. A plug-in hybrid powertraincombining a 1.4 TSI 156 hp and an electric engine of 80 kW / 109 hp is also going to be produced.


In Europe, its biggest market, the Volkswagen Passat is the leading segment D vehicle among mainstream manufacturers. However, it is also suffering from the decline in this segment because of premium brands (BMW, Mercedes and Audi) and the growth of other bodies (such as SUVs ). Thus, between 2006 (the year it reached record high sales) and 2013, the Passat has lost 50% of its sales volume, going from 300 000 to 150 000 units.


To compensate for this loss, Volkswagen is counting on the U.S. and Chinese markets, where the Passat is already present in various specific versions of the European model. The German manufacturer has announced a target of annual sales of 250 000 units in Europe, 150 000 in North America and 250 000 in China.


In Europe, the Passat is still produced in Emden (Germany). In China, it will be produced in Shanghai (SAIC).

 

 

14-22-1  


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Indonesian production has reached 1 million units in 2013

Indonesia’s 2013 production levels went up up 17% compared to 2012 to reach 1 million units. One main factors can explain this surge in production: the growing domestic demand alongside the LCGC (low cost green car) policy launched in September 2013 coupled with the launch of LCGC compliant vehicles by several manufacturers.

What is an LCGC vehicle? An LCGC vehicle must follow these four specifications –Priced between 50 and 85 million IDR (3 000€ to 5 000€)  –Be fuel efficient, maximum 5L/100km –Manufactured at at least 60% locally –Have a cylinder capacity of between 980 cc and 1,200 cc for spark ignition engines (Petrol) and the capacity of compression ignition engines (diesel) must not exceed 1 500 cc. Out of the 1 million vehicles produced in 2013, 53 000 vehicles produced were LCGC-compliant.

By manufacturer, the leading carmaker is Daihatsu with 488 000 units (up 15.8%) surpassing the company’s annual production capacity of 460 000 units and exceeding the previous years results by some 67 000 units. Out of these 488 000 units 41 000 were LCGC compliant vehicles (Daihatsu Ayla and Toyota Agya) followed by Suzuki 180 000 units (up 34.8%), in addition to production increase of the Eriga MPV and the Futura LCV, this volume was also helped by the LCGC-compliant Karium Wagon R. Totota followed with 163 000 units and Honda with 81 000 units, Honda rose by 46.1% to 82 000 thanks to the brisk performance of the Jazz.

 

14-21-12  


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China’s vehicle demand is shifting from the East towards the West

China’s PC market, which is divided into 4 regions namely East, Central, Northeast and West, has been led up until now by East provinces. In this region, PC sales rose from 2.94 million units in 2008 to 7.68 million units in 2013. In Central and West China, where personal income has been on the rise thanks to economic growth, PC sales reached 6.25 million units in these two regions.


Whereas the strong growth of 49% in 2009 experienced in the East went down to 13.4% by 2013, which indicates a shift in market demand from East China to West China (20% growth in 2013). This phenomena was boosted by the vehicle purchase regulations established by Eastern Chinese cities such as Beijing, Shanghai, Guangzhou, Tianjin in response to worsening air pollution.


In West China, SUVs reached a high with 29.7% market share in the first quarter of 2014. A market share way higher than in other regions due to its landscape which is very well suited to SUVs.


More an more manufactures are establishing their plants in Central and West China, such as VW, Hyundai and PSA alongside increasing sales network in this region.

 

14-21-11  


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In 2013 China’s electric vehicle market increased by 22%

China’s Hybrid and EV (electric vehicles, this segment includes plug-in hybrid and battery electric vehicles) production volumes went up 22% YOY (year on year) in 2013 to reach 20 420 units, according to the CATARC (China Automotive Technology and Research Center).


The most popular electric vehicle type is the BEV (Battery Electric Vehicle, with 13 354 units produced) followed by HEV (Hybrid Eletric Vehicle, with  6 348 units) and last but not least PHEV (Plug-In Hybrid Vehicles, with 718 units). This is partially explained by the fact that the Chinese would like to transit from Thermic Engines to 100% electric engines, without having to use hybrid technology.


By model, The leader was the Camry (GAC Toyota HEV) with 5 204 units manufactured, followed by the QQ3 (a Chery SUV) with production levels reaching 4 895 units. The Kandi EV (Zotye / Kandi from segment A) is far ahead of the E150 EV (Baic) with respectively 3 671 and 1 183 units.


The market is expected to grow in coming years and Toyota plans to launch the new Corolla and Levin  (both C segment sedans) models both equipped with a locally developed hybrid engine while Honda Motor intends to release a locally-developed HEV (Hybrid Electric Vehicle) in 2016, prompting automakers to keep an eye on the market’s reaction to HEVs.

 

14-21-13  


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Honda’s production in China reached 790 000 units in 2013

Honda Motor company’s 2013 vehicle production volume went up 26.6 percent year-on-year to 788 689 units in China. Although Sino-Japanese relations negatively affected production volumes in the first half of 2013, brisk demand coupled with the launch of fully-revamped China-exclusive models resulted in a record high production.

In order to anticipate the market expansion in China, Honda Motor aims to actively increase its production as of 2014. Current capacity is set at 870 000 units and should increase to 1.01 million units by 2015. In the first half of 2015, Guangzhou Honda is going to launch a new production line at the Zengcheng plant to increase its capacity to 120 000 units.

Looking at Honda Motor’s production in China by joint venture, Dongfeng Honda went up 14.2% to 325 842 units. Thanks to the growing demand in SUV vehicles the production of the CR-V went up 12.9% to 191 735 units. On the other hand the Spirior (segment D sedan) that has reached the end of its model cycle, dropped 38.5% to 7 561 units. The production of the Civic also declined in 2013.

Following China’s strengthened fuel consumption and emission regulations, Honda Motor is responding to rising demand to eco-friendly vehicles in the medium to long term. In 2016 the carmaker plans to start a local production of HEVs (Hybrid Electric Vehicles). Up until now all Honda Motor HEVs were imported directly from Japan, this local production will also enable the company to reduce vehicle sale price.

 

14-21-10  


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