Indonesian production has reached 1 million units in 2013

Indonesia’s 2013 production levels went up up 17% compared to 2012 to reach 1 million units. One main factors can explain this surge in production: the growing domestic demand alongside the LCGC (low cost green car) policy launched in September 2013 coupled with the launch of LCGC compliant vehicles by several manufacturers.

What is an LCGC vehicle? An LCGC vehicle must follow these four specifications –Priced between 50 and 85 million IDR (3 000€ to 5 000€)  –Be fuel efficient, maximum 5L/100km –Manufactured at at least 60% locally –Have a cylinder capacity of between 980 cc and 1,200 cc for spark ignition engines (Petrol) and the capacity of compression ignition engines (diesel) must not exceed 1 500 cc. Out of the 1 million vehicles produced in 2013, 53 000 vehicles produced were LCGC-compliant.

By manufacturer, the leading carmaker is Daihatsu with 488 000 units (up 15.8%) surpassing the company’s annual production capacity of 460 000 units and exceeding the previous years results by some 67 000 units. Out of these 488 000 units 41 000 were LCGC compliant vehicles (Daihatsu Ayla and Toyota Agya) followed by Suzuki 180 000 units (up 34.8%), in addition to production increase of the Eriga MPV and the Futura LCV, this volume was also helped by the LCGC-compliant Karium Wagon R. Totota followed with 163 000 units and Honda with 81 000 units, Honda rose by 46.1% to 82 000 thanks to the brisk performance of the Jazz.

 

14-21-12  


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In 2013 China’s electric vehicle market increased by 22%

China’s Hybrid and EV (electric vehicles, this segment includes plug-in hybrid and battery electric vehicles) production volumes went up 22% YOY (year on year) in 2013 to reach 20 420 units, according to the CATARC (China Automotive Technology and Research Center).


The most popular electric vehicle type is the BEV (Battery Electric Vehicle, with 13 354 units produced) followed by HEV (Hybrid Eletric Vehicle, with  6 348 units) and last but not least PHEV (Plug-In Hybrid Vehicles, with 718 units). This is partially explained by the fact that the Chinese would like to transit from Thermic Engines to 100% electric engines, without having to use hybrid technology.


By model, The leader was the Camry (GAC Toyota HEV) with 5 204 units manufactured, followed by the QQ3 (a Chery SUV) with production levels reaching 4 895 units. The Kandi EV (Zotye / Kandi from segment A) is far ahead of the E150 EV (Baic) with respectively 3 671 and 1 183 units.


The market is expected to grow in coming years and Toyota plans to launch the new Corolla and Levin  (both C segment sedans) models both equipped with a locally developed hybrid engine while Honda Motor intends to release a locally-developed HEV (Hybrid Electric Vehicle) in 2016, prompting automakers to keep an eye on the market’s reaction to HEVs.

 

14-21-13  


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Honda’s production in China reached 790 000 units in 2013

Honda Motor company’s 2013 vehicle production volume went up 26.6 percent year-on-year to 788 689 units in China. Although Sino-Japanese relations negatively affected production volumes in the first half of 2013, brisk demand coupled with the launch of fully-revamped China-exclusive models resulted in a record high production.

In order to anticipate the market expansion in China, Honda Motor aims to actively increase its production as of 2014. Current capacity is set at 870 000 units and should increase to 1.01 million units by 2015. In the first half of 2015, Guangzhou Honda is going to launch a new production line at the Zengcheng plant to increase its capacity to 120 000 units.

Looking at Honda Motor’s production in China by joint venture, Dongfeng Honda went up 14.2% to 325 842 units. Thanks to the growing demand in SUV vehicles the production of the CR-V went up 12.9% to 191 735 units. On the other hand the Spirior (segment D sedan) that has reached the end of its model cycle, dropped 38.5% to 7 561 units. The production of the Civic also declined in 2013.

Following China’s strengthened fuel consumption and emission regulations, Honda Motor is responding to rising demand to eco-friendly vehicles in the medium to long term. In 2016 the carmaker plans to start a local production of HEVs (Hybrid Electric Vehicles). Up until now all Honda Motor HEVs were imported directly from Japan, this local production will also enable the company to reduce vehicle sale price.

 

14-21-10  


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China’s vehicle demand is shifting from the East towards the West

China’s PC market, which is divided into 4 regions namely East, Central, Northeast and West, has been led up until now by East provinces. In this region, PC sales rose from 2.94 million units in 2008 to 7.68 million units in 2013. In Central and West China, where personal income has been on the rise thanks to economic growth, PC sales reached 6.25 million units in these two regions.


Whereas the strong growth of 49% in 2009 experienced in the East went down to 13.4% by 2013, which indicates a shift in market demand from East China to West China (20% growth in 2013). This phenomena was boosted by the vehicle purchase regulations established by Eastern Chinese cities such as Beijing, Shanghai, Guangzhou, Tianjin in response to worsening air pollution.


In West China, SUVs reached a high with 29.7% market share in the first quarter of 2014. A market share way higher than in other regions due to its landscape which is very well suited to SUVs.


More an more manufactures are establishing their plants in Central and West China, such as VW, Hyundai and PSA alongside increasing sales network in this region.

 

14-21-11  


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2013 ranking of models manufactured in the greatest number of plants

In order to market their vehicles worldwide, carmakers have the choice to either manufacture models in dedicated plants and export them, or they can manufacture them directly in the regions where they are sold (CBU or CKD). Which are the models whose production is the most scattered over the world?

By analysing the 15 vehicles that are produced in the greatest number of plant across the world, we can already note two trends: the strong presence of Japanese manufacturers and the lack of German manufacturers. Japanese manufacturers have a strong market share in Asia and America but also the Middle East, which leads them to establish their production sites locally. German manufacturers prefer to export their vehicles from Germany even for Chinese and American markets.

By model, the Toyota Corolla is the world's premier vehicle with a production spread over 8 plants in Japan, China, India, Turkey, the US, Canada and Brazil. The Honda CRV is also a world wide produced vehicle, since it is manufactured in 7 factories in Japan, China, India, the US, India and Mexico. It must be noted that Renault's entry-level model, the Logan, is the most global vehicle of the Renault-Nissan group, with production focused in developing countries (Brazil, Russia, India, Iran, Romania and Morocco).

Beyond the number of plants used to produce a vehicle, it is interesting to relate to production volumes. The ratio between the production volume / number of plants, shows that the Ford Focus is the model which has the highest volume (an average of 200 000).  Naturally these volumes are more driven by production in China, Germany and the US, than production in Russia and Argentina.

 

14-21-8  


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