German manufacturers are strengthening their positions in China

China is the largest trading partner of Germany in Asia, and Germany, the largest trading partner of China in Europe. In the automobile industry, Germany signed partnership agreements very early on (in the 80s) with Chinese manufacturers. Today, German carmakers (Volkswagen, BMW and Daimler) occupy 20.8% of the world's largest market, ahead of American carmakers (19.8%), Japanese (16.6%) and Korean (8.8%).


Chinese manufacturers hold 30% of the Chinese market, and this share has been stable for several years. In this context, Volkswagen, BMW and Daimler are to retain their strong position in this market, which on average increases by 10% each year.


Daimler recently bought 12% stake in BAIC and the two partners are going to increase the production capacity of their  Beijing plants.


Volkswagen and its partner SAIC are going to extend their cooperation to fuel cells and hybrid vehicles. Volkswagen is going to build a new plant with FAW another of its partners in order to increase their production capacities. Volkswagen has set a goal to acquire the necessary installations in order to produce more than 4 million vehicles a year in China by 2018. The group has produced and sold more than 3 million vehicles in the country in 2013.


In addition, an agreement has been signed in order strengthen the links between BMW and its partner Brilliance.

 

14-18-9  

 
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Japan exported 540 000 vehicles to other Asian countries in 2013

Out of the 4 675 000 vehicles exported worldwide (4 065 000 passenger cars and 610 000 commercial vehicles), Japan exported 540 000 vehicles (PC + LCV) to other Asian countries throughout 2013.

The main destination of these exports to Asia is China (184 000 units), which accounts for 4% of total exports from Japan, followed by Thailand (71 000 units), Indonesia (69 000 units), Taiwan (58 000), Malaysia (56 000 units) and the Philippines (27 000 units).

Across all Japanese exports, Asia is just behind North America (1 887 000 units), Europe (710 000 units) and the Middle East (584 000 units).

However, Asia arrives before  Oceania (407 000 units), represented mainly by Australia , Asia is also in front of South America (362 000 units) and Africa (185 000 units).

All these exports account for vehicles that haven't been transplanted, i.e. that are not yet produced outside Japan. However, the strategy of Japanese carmakers still remains to transplant more and more vehicles rather than having to export them. But transplanting 4 675 000 vehicles would be equivalent to the construction of 15 to 25 plants worldwide, excluding China, which alone would need for its own market 10 new plants every year …

 

14-18-8  

 
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In 2013 the Vietnamese market is growing again

Vietnam has one of the lowest rates of car ownership in the ASEAN region. With a significant economic boom in the early 2000s, the country experienced a strong growth in the automotive market, especially between 2006 and 2009. During this period, the Vietnamese car market tripled from 40 000 units to 120 000 units.


The Vietnamese market began to decline in 2009, from 120 000 to 80 000 units in 2012. This decline in car sales was the result of a sanitation policy introduced by the Vietnamese state that began in 2011-2012.


In 2013, the automobile market made up for half of its delay, from 80 000 to 100 000 units. Thanks to a balanced economic climate. The 2013 top five manufactures are the same as in 2012, Toyota remains the market leader with 36% market share. (Best selling models: Fortuner, Innova, Camry, Corolla, Vios), far ahead of Hyundai-Kia (18% of market), Ford (9%), GM (5%) and Honda (5%).


In the first quarter of 2014, the Vietnamese market has confirmed this positive trend with an increase in vehicle sales (PC + LCV) of 36% to 41 300 units (26 800 PC and 14 500 LCV) compared to the same period last year. Of total sales, 74% of vehicles sold in Vietnam were assembled locally (CKD) while 26% was imported (CBU).


These figures bode well for a market that could reach 125 000 units throughout 2014. In the first quarter of 2014, regarding manufacturers, Toyota remains the leader with more than 3 000 units sold (+8% ) while Ford (939 units) increased by 37%.

 

14-18-6  

 
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GM will stop selling Opel cars in China from 2015

While GM has decided to remove the Chevrolet brand in Europe (excluding Russia) in favor of Opel, the U.S. giant has decided exactly the opposite in China, by removing the Opel brand in favor of Chevrolet.

Opel is indeed much more experienced and has more retailers than Chevrolet in Europe, while it is the opposite in China.

In 2013, Opel sold 825 000 passenger cars in Europe, while Chevrolet sold 143 000. In China, that same year, Chevrolet sold 715 000 passenger cars, while Opel sold less than 10 000 vehicles that were all imported. In Russia, sales are more evenly distributed between Chevrolet (175 000 sales in 2013) and Opel (80 000 sales), whose arrival on the Russian market is much more recent. Removing one of the two brands in this country is therefore not on the current agenda.

As of 2015, the roles will be well defined between Chevrolet and Opel. In Russia, the two brands will coexist but in the EU only the Opel brand will be present while in China it will be the Chevrolet brand.

It should be noted that since the 1st January 2014, Chevrolet sales in Europe were down 34% and even 74% in April, which means that the brand is already disappearing from the European continent. Only the Corvette and Camaro could continue to be sold under this brand, but in very small quantities, like the Cadillac.

 

14-18-7  

 
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In 2013 the South African market has regained its 2006-2007 levels

The South African market (sales of PC on South African soil) set its best record in 2006, with over 470 000 units sold (against 400 000 in 2005 and 300 000 in 2004).


Severely affected by the financial crisis of 2008-2009 (the market lost 45% of its volume between 2006 and 2009), as of 2010 the South African market bounced back very well to finally exceed 350 000 units in 2012 and 450 000 units in 2013. Therefor, this market was the largest on the African continent, since Algeria with who the country  was competing for the first place in 2012, has seen its market decline in 2013 and thereby didn't reach South African figures.


By carmakers, the VW group (largest producer in South Africa) remains the market leader in 2013 with 23% market penetration, ahead of Toyota (15%) and Hyundai-Kia (15%) whose launch on this market is quite recent. These three companies occupy together 53% of the South African market in 2013.


American groups GM and Ford, once market leaders, have lost much of their influence, with respectively 8% and 6% market share in 2013 (against 9% and 7% in 2012). The seven best-selling models in 2013 were the VW Polo (segment B - 61 993 units), Toyota Etios (segment B - 24 367), Ford Figo (segment B - 15 254) Hyundai i20 (segment B - 14 420 ) which are ahead of the Mercedes C Class (segment D - 12 565), Toyota Corolla (segment C - 12 414) and BMW 3 Series (segment D - 12 116), all assembled locally.

 

14-18-5  

 
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