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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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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Overview of PC + UV Sales in 10 Asian countries

In the first quarter of 2014, sales of PC and UV 10 Asian countries (Thailand, Indonesia, Malaysia, Philippines, Singapore, Vietnam, Korea, Taiwan, India, Pakistan) declined by 8.7% compared to Q1 2013 reaching 2 156 000 units.

If we breakdown these figures, the Thai market fell by 45.8% (224 000 units). Two factors explain this decline: the end of the premiums for the purchase of new vehicles (car schemes) and political instability.

Indonesia has seen its sales increase to 328 000 units, a rise of 11% compared to last year. Honda took advantage of this market by increasing its sales by 34.8% (36 000 units), thanks to the Mobilio.

In Malaysia and the Philippines, the strong economic growth in both countries boosted the market with increases of respectively +1.4% (159 000 units) and +22.9% (52 000 units).

Sales in Korea increased by 6.6% compared to Q1 2013 (382 000 units), although supplies were reduced as a result of walkouts. The sales of locally produced vehicles increased by only 4.6% while sales of imported vehicles increased by 27.1%.

Finally, India fell by 11.1% (to 838 000 units). Tata's sales decreased by 36.3% (to 118 000 units sold) and it seems that there is no improvement in sight.

 

14-20-8  


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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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In 2014 the Argentinian PC market is declining

Since 2003 Argentina has experienced an almost continuous rise in vehicle registrations (apart from the decline in 2009, which affected all markets). The passenger car market increased from 110 000 in 2003 to 730 000 PC in 2013.


However, the characteristics of the market did not meet the expectations of the Argentine government. Indeed, in 2013, nearly 63% of registered vehicles were produced outside of Argentina. In the government’s point of view, local production failed to take advantage of the growing market.


To promote local production, at the beginning of 2014, the government introduced  a new 30% tax on vehicles whose retail price was greater than 170 000 pesos (15 000 Euros) and a tax of 50% for those sold above 18 000 Euros.


This new tax has had two effects:

1.An artificial market growth at the end of 2013. Buyers bought vehicles before the end of the year (well before their re-purchase date) and took advantage of the good exchange rate between the dollar and the peso. In fact at the introduction of this tax, the value of the purchased vehicle was calculated on the basis of 1 dollar for 6.20 pesos while on the black market 1 dollar was worth 10 pesos. For the Argentine buyer, buying an expensive vehicle while benefiting from the exchange rate was a good deal.

2.For the Argentine government this measure had a real boomerang effect, indeed we can observe a noticeable decrease in the market since early 2014 : -6% in February and -32% in March? -33% in April and -38% in May. Over five months, the decrease exceeded 12%.

 

14-20-9  


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