Suzuki plans to double its sales in Europe

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Suzuki plans to double its sales in Europe

- In 2013, Suzuki produced 2.85 million vehicles worldwide (of which 2.66 million were sold) in 29 production sites scattered in twenty countries, but it is ultimately very dependent of two major markets : Japan (700 000 sales) and India (1 065 000 sales), which together account for two-thirds of its global sales. Suzuki therefore thinks that an extended decline of the Japanese and Indian markets could be risky for all of its activities.


- On the other hand, Suzuki withdrew itself deliberately in 2012 from U.S. and Canadian markets, as its range of small cars did not meet the demand of these markets. It must be noted that Japanese manufacturers are present mainly in segments A (62% of its production) and B (34% of its production), segments that are not popular with American clients nor with Chinese clients (for now).


- Suzuki has thus strengthen its position in Europe, where cars from segments A and B represent over a third of the market.
The Japanese carmaker aims 300 000 sales in the market by 2017, against 150 000 in 2013 and 290 000 in 2007.


- To achieve this goal, Suzuki plans to develop its range by focusing on growth segments such as SUVs and urban crossovers.
The increase in sales of Suzuki of 18% in Europe in the first four months of 2014 is mainly thanks to the recent SX4 crossover that has been an undeniable success.

 

14-21-3  


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Diesel sales in the U.S. in 2014

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Diesel sales in the U.S. in 2014

- The share of diesel-powered passenger cars has always been low in the USA. In the first  quarter of 2014, it did not exceed 1% of the market (against 0.76% in 2013). Across all vehicle types (PC + LCV), its share did not exceed 3% in 2013. The passenger car market is dominated by petrol engines (95% of the market), while hybrid and electric vehicles represent 3, 5% of the market.

- It should however be noted that the share of diesel engines has been growing positively in the first quarter of 2014 compared to the first quarter of 2013, reaching 48 783 units (against 37 683 in 2013). In 2014, sales of diesel cars in the US could reach 150 (against 137 000 in 2013).

- Over 95% of diesel sales currently belong to three German manufacturers : Volkswagen, BMW and Mercedes. Volkswagen alone accounts for nearly 75% of the U.S. diesel PC market .

- GM (through Chevrolet) and Chrysler (through Jeep) market only one diesel vehicle while Ford is totally absent from this market, but well established on the diesel LCV market (pick-up F250/350/450 and Transit).

- Japanese and Korean manufacturers do not offer diesel vehicles in the U.S, but are present on the hybrid market and on the electric vehicle market that German manufactures have forsaken until now .

- Although manufacturers are developing their supply, the forecasts of some OEMs (10% of the car market in 2018) seems slightly too optimistic for the moment.

 

14-21-4  


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Toyota may not renew the Avensis in Europe

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Toyota may not renew the Avensis in Europe

- While it was thought that Toyota was going to introduce the new generation Avensis at the upcoming Paris Motor Show, it seems that the segment D sedan won’t be presented after all.

- The registrations of this model produced in Britain for the European market have been declining continuously since 2004 (130 000 sales) and its replacement in 2008 did not stop this trend: 80 000 sales in 2009, 50 000 in 2012 and only 30 000 units in 2013. This model has suffered from the loss of interest of segment D sedans in Europe. This market share is benefiting to models of other manufacturers (It must be noted that Honda, Nissan and Mitsubishi no longer offer sedans from segment D in Europe).

- In addition, Toyota has in its range another segment D sedan which benefits from better broadcasting : the Toyota Prius (24 000 sales in 2013).

- Toyota's strategy to offer hybrid versions of every model in its range will no longer apply to the Toyota Avensis, which supports the assumption of its non-renewal. For example, the hybrid version of the Toyota Auris (segment C) represents more than 50% of its 105 000 sales in Europe.

- No official announcement has confirmed the model's withdrawal but the above factors lead us to believe that this model will not have any progeny. It could however benefit from a very last restyling in order to end its life cycle smoothly.

 

14-20-10  


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Renault has started the production of the Logan II and Sandero II in Togliatti

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Renault has started the production of the Logan II and Sandero II in Togliatti

- So far Renault has been producing  the Logan, Sandero and Duster for the Russian market in the Avtoframos plant of Moscow (ex Moskvitch plant).

- This plant reached saturation in 2014 (240 000 vehicles per year), and  the Renault-Nissan group's plant of AvtoVAZ inTogliatti had unused capacity (due to the weak sales of Lada) Renault was able to expand its range sold in Russia by assigning the production of the Logan II and Sandero II to the Togliatti plant. 

- These two models launched in September 2012 in Europe will be officially launched on the Russian market at the Moscow Motor Show in late August this year. The Logan II and Sandero II produced in Togliatti are solely intended for the local market.

- The two generations of the Logan and the Sandero (I and II) should therefore coexist during a few years in the Russian market, following the method used by various manufacturers on this market, such as AvtoVAZ with the Lada.

- The Duster (first generation) will continue to be produced in Moscow, but the second generation (Duster II) which should be released in 2017, will undoubtedly also be produced in Togliatti.

- Currently, the site of Togliatti works at only 58% of its capacity (against 66% in 2013 and 77% in 2012), despite the arrival of Nissan models on its assembly lines.

 

14-21-2  


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The Ford Edge will be marketed in Europe in 2015

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The Ford Edge will be marketed in Europe in 2015

- Previously limited to the U.S. market where this model is a great success (130 000 sales in 2013), the Ford Edge will also be marketed in Europe in 2015, at the same time as the new Ford Mondeo and Ford S-Max models. If this launch is the result of the One Ford program, which aims to market the same model on the largest possible number of markets, it is also the result of a pragmatic approach, conscious of the growing global success of SUVs.


- With this new 4.70 m long model, Ford will compete with European D segment SUVs, like the Nissan Murano, Hyundai Santa Fe and Kia Sorento. The Ford Edge (Based on the Ford Mondeo ) is bigger than the segment C Kuga (based on the Ford Focus) it will be imported from Canada (Oakville), but will offer a 4-cylinder diesel 2000 CC engine (an engine not so popular in North America). This engine is already assembled on other D segment models of Ford of Europe.


- Ford not only wants to target SUVs from generalist manufacturers but also those of Premium manufacturers. The Ford version was preferred to the Lincoln version because on the one hand the Lincoln brand (Premium brand competing with Cadillac) is totally unknown in Europe and on the other, U.S. Premium brands have struggled to establish themselves in Europe.
Ford may also market this model on the Chinese market in a near future.


- It should be noted that in 2013, Ford sold 60 000 SUVs in the European Union (against 63 000 in 2012 and 67 000 in 2011).

 

14-21-1  


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