The Russian market could overtake the German market by 2017-2018
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- For several years now, we regularly hear that the Russian market will become the largest in the European car market, ahead of Germany, which has been the largest European market since the 60s.
- Russia is still an emerging car market, although car sales have been substantial since the arrival of the Lada brand in 1970. However, with a large population and a very low motorization rate (250 per 1 000 inhabitants, against more than 500 in Europe), and a continuous enrichment of the middle class, Russia has the potential to become the biggest European car market.
- The German market has been stagnating since 2012, partly because of a declining population and a slowing economy. The market will hardly reach the threshold of 3.3 million passenger cars from 2017 to 2018.
- Unless another case scenario appears, Russia will benefit from growth (in 2014), driven by domestic demand, from exports (including energy) and from the increase in net incomes.
- Taking into account the factors mentioned in this analysis, and despite occasional fluctuations that may impact the German or Russian market Inovev estimates that for the 2017-2018 period , Russia will permanently become the first European car market, ahead of Germany.
Read more... The Russian market could overtake the German market by 2017-2018
Chery will start its production in its Brazilian plant in July 2014
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Read more... Chery will start its production in its Brazilian plant in July 2014
Citroen unveils its new city car the C1
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Uzbekistan has a single carmaker that monopolizes the whole market
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- Uzbekistan is like Ukraine and Kazakhstan, former republics of the Soviet Union. Inhabited by 27 million people, almost two times more than Kazakhstan (16 million), but almost two times less than Ukraine (46 million), Uzbekistan has still a very low motorization rate. However, the Uzbek market has gradually increased from 118 000 units in 2011 to 158 000 in 2013. Most new vehicles sold in this market are locally produced by a single carmaker: GM Uzbekistan a joint venture established in Asaka in 1996 between the U.S. carmaker General Motors (25%) and an Uzbek assembler called Uzbek OJSC UzAvtoSanoat (75%). The manufacturer sells vehicles (segments A, B and C) under the Daewoo brand, except for the Cobalt (segment C) launched in 2012 and sold under the Chevrolet brand.
- GM Uzbekistan has always produced models under the Daewoo brand (now GM Korea): Nexia, Matiz, Damas, Spark, Lacetti, Captiva, Epica, Malibu. At first they were assembled from spare parts imported from Korea. These Models are now produced entirely on site, except for the Captiva, Epica and Malibu, supplied in smaller quantities.
- GM Uzbekistan produced 246 641 vehicles in 2013 (against 236 201 in 2012), including 157 784 sold locally, the rest is exported, mainly to Russia. Uzbekistan has a growing automobile production (multiplied by 2.5 to 8 years) and continuous growth of its car market since 2005.
Read more... Uzbekistan has a single carmaker that monopolizes the whole market
Opel is reorganizing its entry range models (segment A)
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- With the imminent end of life of the Agila (2014), Opel is reorganizing in Europe its entry range models (segment A). Opel's entry level model will no longer be a five-door hatchback with a design based on that of a Suzuki (ie the Splash), but a small three-door hatchback, the Adam. The launch of the Adam dates back to 2012, and it better matches the current market for small Premium sedans (like the Fiat 500, segment A and the Citroën DS3 segment B).
- The Adam will also soon be marketed in a soft top version (like the Fiat 500 and DS3) and in a "mini-crossover" version (like the Fiat Panda) but without AWD.
- When observing production levels of both the Opel Agila and Opel Adam sold in the same markets we can see that the two curves intersect in 2013, proof that the Agila no longer corresponds to the request of the market (this model has been declining continuously since 2009) while the Adam better corresponds to the current demand, this model is expected as of 2014 to surpass the production levels of the Agila during its best year (2008). The Agila is produced at the Suzuki plant in Hungary (Esztergom) and the Adam at the Opel plant in Germany (Eisenach).
- As for the Corsa (segment B), positioned just above the Adam in terms of range, it will be restyled next fall.
Read more... Opel is reorganizing its entry range models (segment A)