Vietnam aims to produce 1.53 million vehicles (PC+LCV) in 2035

Details
Vietnam aims to produce 1.53 million vehicles (PC+LCV) in 2035
 
- In July 2014, the Vietnamese government approved the country’s long-term automotive industry strategy. Since the automotive industry is positioned as one of the country’s key sectors, support to this industry is to be strengthened. Vehicle production target is set at 228 000 units for 2020 (including 20 000 units for export), 466 000 units in 2025 (37 000 units for export) and 1,53 million units in 2035 (90 000 units for export).

- Vehicle types (segment or body) that will be primarily developed are light utility vehicles (LUV), short/medium buses, fuel-efficient small passenger cars (A and B segments), and special purpose vehicles (SPV).

- The different ministries involved in this plan (Ministry of Industry and Trade, Ministry of Planning and Investment, Ministry of Science and Technology) are planning a policy system to attract foreign investment (incentives and taxes, technology foundations for local vehicle production). But today, the Vietnamese government is focused on ensuring tax revenues, restricting trade deficit and easing congestion in cities without dismissing the plan for active industry development.

- Concrete measures to realise the long-term goal are yet to be announced. In order to face the increasing competition from Thailand, Indonesia, Malaysia and other ASEAN countries, Vietnam must reduce value-added tax, special consumption tax, and registration tax among other burdens on locally-made models, introduction of incentives to attract foreign investors and select strategic vehicles more thoroughly.

- Although, Vietnam has a strong potential for becoming an important vehicle market, the current poor competitiveness of local production plants calls for support measures from the government.
 

14-31-4  


Contact us: info@inovev.com 

In June 2014, China had 23 348 passenger cars dealerships

Details
In June 2014, China had 23 348 passenger cars dealerships
 

- According to the results of a study conducted by an Inovev partner in China, the Chinese mainland had in June 2014, 23 348 passenger cars dealerships. This result, is to be compared to the 21 756 counted in July 2013, shows an increase in the number of dealers in China.


- However, this figure hides differences based on carmaker strategies. Indeed, due to the large number of small local carmakers, dealers selling domestic brand vehicles account for nearly half of the retaillers (11 299 dealership). However, the sales efficiency (volumes of monthly sales per dealership) is below 48 units. Moreover, the declining sales of local Chinese carmakers in 2014, suggests that the rate of sales will further decline  in the second half of this year.


- Behind Chinese brand dealerships, Japanese brands come next with 4 603 dealerships, European brands had 4 313 dealerships, American brands had 1 937 dealerships and finally Korean brands had 1 196 dealerships. By group, VW is most present in the country with 2 122 dealerships.


- Wuling, VW and Audi are the brands with the most significant sales efficiency rate (respectively with 277 units, 171 units and 144 units), followed by BMW (83 units) and Mercedes (77 units). Japanese brands are less efficient with a sales efficiency of 64 units, less than half of the efficient obtained by Korean brands (122 units), while there was 4 times more Japanese dealerships than Korean ones.


- Finally, the coastal provinces of Shandong, Guangdong, Jiangsu and Zhejiang are the ones who opened the most dealerships in recent years. However, dealerships should now be opening more and more in inland cities and medium-sized cities, following the  sales growth in these areas.

 

14-31-5  


Contact us: info@inovev.com 

Hyundai to manufacture LCVs in Europe for the local market

Details
Hyundai to manufacture LCVs in Europe for the local market
 

- In a European market where the share of LCVs was up by 10% in 2014 (compared to 2013), the production of 3.5 ton vehicles reached 650 000 units in 2014 (against 600 000 units in 2013). The leaders in this category are the Ford Transit (200 000 units), followed by the Mercedes Sprinter (125 000 units) and the Fiat Ducato (100 000 units).


- Up until now the Korean carmaker Hyundai-Kia occupied only a very small share of the market for light commercial vehicles (H1 model imported from Korea). Today, the manufacturer is going to establish itself in this market with a new model, the H350, it will be competing with the Renault Master, Ford Transit, Fiat Ducato, Mercedes Sprinter and Volkswagen Crafter).


- The name of the vehicle is related to its weight and allows us to anticipate the launch of future light commercial vehicles by the Korean carmaker. These new models could be named H250 (competing with the Renault Trafic, Opel Vivaro, Ford Transit Custom, Mercedes Vito, Volkswagen Transporter) and H150 (competing with the Renault Kangoo, Opel Combo, Fiat Doblo, Ford Transit Connect, Mercedes Citan, Volkswagen Caddy) ...


- This model will be produced in the Turkish assembly plant ran by Karsan located in Bursa which already manufactures the Fiat Ducato and the Peugeot Boxer for the local market. For now, the H350 will be available in two lengths (5.50m and 6.20m) and two engines (2.5 diesel available in 170 hp or 150 hp ). Hyundai has not provided production targets, but for a newcomer, we can estimate a volume of 50 000 annual units as being a possible target and also be close to the volumes of the Citroën Jumper and Peugeot Boxer.

 

14-31-1  


Contact us: info@inovev.com 

PSA redefines production targets for European plants in 2017

Details
PSA redefines production targets for European plants in 2017
 

- PSA (Peugeot-Citroën) has updated and communicated the new production targets for European plants by 2017.


- Firstly, the Group confirms its commitment to produce 1 million vehicles in France in 2017, a slightly larger amount than the levels produced in 2014 (950 000 according to PSA and 1 million units according to Inovev) but the volumes will still remain a lot lower than those of 2007 (1.5 million units).


- According to Inovev the volume of production in 2017 (a volume already reached in 2014), is easily achievable, especially given the volume of the European market by this deadline and the arrival of new models.


- By plant, the group’s plans for 2017  are (compared to 2014) :

- Sochaux: a volume of 385 000 vehicles, an increase in production of 20% due to the success of the 308, to the arrival of the Opel Zafira and the new 3008 (despite the transfer of the 5008 to Rennes).

- Rennes: a production volume of 110 000 vehicles (against less than 70 000 in 2014), thanks to the arrival of the 5008.

- Mulhouse: a volume of 300 000 vehicles (against 280 000 in 2014), a slight increase (thanks to the new C4 and DS).

- Valenciennes: a volume of 65 000 vehicles (against 75 000 in 2014), a slight decrease (end of the Fiat Scudo).

- Poissy: a volume of 140 000 vehicles (against 260 000 in 2014), representing a decrease of 45% due to the transfer of the C3 and 208 to Trnava whose volume should reach 340 000 vehicles in 2017.

- Vigo, Villaverde, Mangualde : volumes up by 12%, 46% and 26% respectively, due to the increasing sales pace of the C4 Cactus, the future Berlingo, Partner and the arrival of future Opel Combo.

 

14-31-3  


Contact us: info@inovev.com 

Production and market volumes of Kazakhstan in 2014

Details
Production and market volumes of Kazakhstan in 2014
 
- Automobile production in Kazakhstan should end the year 2014 at about 40 000 vehicles (against 37 469 vehicles in 2013). The levels are quite far from the 60 000 units targeted by the local government. One of the main reasons for the slow growth in automotive production is the difficulty of exporting vehicles to target markets around Kazakhstan, namely Russia and Belarus. This difficulty is not only due to the decline of the Russian market but also to import taxes imposed by Russia on vehicles produced in Kazakhstan. This tax established only recently being the result of the entry of Russia into the World Trade Organization. This organisation considered that the absence of fees for Kazakh producers was a disloyal advantage that other countries couldn't benefit from.

- Thus, over the first eight months of 2014, Kazakhstan produced 23 228 vehicles against 21 918 units in the first eight months of 2013. Let us recall that the main assembler of Kazakhstan (Asia Auto) produces licensed cars (Lada, Skoda, Chevrolet, Kia) from segments B and C.

- This situation does not prevent the Kazakh government from being optimistic for years to come by announcing a target of 190 000 vehicles produced per year in 2019.

- The domestic market has increased by 7.5% over the first 8 months of 2014, representing a volume of 99 407 units (against 92 472 in the first eight months of 2013). We should end the year at about 160 000 units (against 153 665 in 2013). Over this period, Kazakhstan imported 57 000 vehicles from Russia (57% of registrations) and 20 000 from other countries (20% of registrations). Lada is the best selling brand (30% market share), followed by Kia (12%), Hyundai (9%), Chevrolet (8%), Toyota (7%), Daewoo (6%), Renault (5 %), Nissan (4%) and Skoda (3%).
 

14-31-2  


Contact us: info@inovev.com 

  1. Hyundai-Kia declined in Korea but grew in emerging markets
  2. Ford USA Product Plan (2014-2017)
  3. Lexus is expected to increase its market share with its new SUV: the NX
  4. Current leaders of China's automobile production
Inovev platforms  >
Not yet registered ?
By keeping on browsing, on this site, you accept the use of cookies and TCU (Terms and Conditions of Use) of Inovev site (www.inovev.com)
Ok