Mitsubishi is going to supply cars for Dodge in Mexico

Segments A and B are among the most significant segments in Mexico since they represent an annual volume of almost 300 000 sales, namely 27,5% of the global market.

For 14 years, Dodge (FCA group) locally sold a rebadged Hyundai, the Dodge Attitude (Hyundai Accent) and a Hyundai i10 (not renamed) both from segment A and B.

The FCA group decided to end its partnership with Hyundai in favour of Mitsubishi that will provide the model currently manufactured in Thailand and sold in South East Asia, the Attrage. This model will be rebadged under the Dodge name for the Mexican market and will be imported from Thailand.

Dodge sold 14 250 Hyundai i10 in Mexico in 2013, while the Dodge Attitude is no longer sold since the end of 2012 (7 703 units sold in 2012).

With this new partnership, we can estimate that the objective of Dodge is selling at least 15 000 Attrage in order to compensate for the loss of the i10. The Thai plant that will produce the Mitsubishi Attrage had a capacity of 200 000 units in 2013. Up until now it produced 155 000 Space Star (segment A) and thus could produce 15 000 Attrage for Mexico and at least 30 000 units for the South Asian market.

 

14-21-6  


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Top 10 European models (first 5 months of 2014)

In the first five months of 2014, the 10 best-selling passenger cars in Europe accounted for 21% of the total market, i.e. 1% less than last year, while the European market as a whole grew by 6 %.


Nevertheless, the overall volume of registrations in the Top 10 in 2014 increased compared to last year. This means that the 10 best selling vehicles benefited the least from the growth of the European market.


Segments B and C are still the most represented in the Top 10, while we can note the loss of a D-segment model from a premium brand (BMW 3 Series) in favour of a segment D model from a generalist brand (Skoda Octavia).


Is also must be noted that the only "Premium" vehicle is the Audi A3, which was not in last year's Top 10 , this confirms the healthy state of its sales after its launch in 2013.


Finally, and this is a habit, Volkswagen is the most present manufacturer in the Top 10 with the Golf and Polo, ahead of Ford (Fiesta and Focus) while Renault is now present with only a single model, the Clio.

 

14-21-7  


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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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Hybrid sales are growing sluggish in Japan

With 15% of the hybrid passenger car market, Japan has the highest rate in the world of hybrid vehicles (plug-in and non plug-in), and this ever since 2012. The strong presence of these vehicles is the solution that Japanese manufactures have found regarding fuel consumption and the protection of the environment. This rate must be compared to that of the U.S. (3%) and Europe (2%).


The hybrid vehicle market took off in Japan in the 2000s, thanks to Toyota and the Prius model (the first mass produced hybrid car in the world). 100 000 annual sales were reached in 2008. Gradually, as more and more models were launched  (especially Toyota models), the Japanese hybrid market has also developed from 400 000 units in 2010 to 700 000 in 2012.


Since 2012, there has been a stagnation of the market. Two facts can explain this situation: first, the Japanese market as a whole has been sluggish for several years, and secondly, the supply of hybrid models reached a threshold. With an almost complete range (17 models), Toyota markets almost every model available on the market. Honda has a deliberately limited offer while waiting for the imminent arrival of a new technology (48 volts?). Other manufacturers (including Nissan) have very little presence on the hybrid market.


Despite the apparent stagnating of the hybrid market, the Japanese government remains optimistic about the progress of this energy in the future. The most optimistic objectives of the METI (Ministry of Economy, Trade and Industry) announced a market share of 20-30% in 2020 for hybrid vehicles and 30 to 40% in 2030.

 

14-21-5  


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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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