Future AvtoVaz models should use Renault-Nissan platforms and engines

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Future AvtoVaz models should use Renault-Nissan platforms and engines
 

- AvtoVAZ (Lada) began producing cars in Russia in 1970. The first models were derived from the Fiat 124 that was manufactured in Italy from 1966 to 1974 . Known in Europe under the name Jigouli, over 17 million units of these models were produced until its extinction in December 2012. Then AvtoVAZ expanded its range by launching the Niva (a compact SUV) in the 70s, the Samara (segment C sedan) in the 80s. More recently it started producing the Priora (segment C sedan), the Kalina (segment B sedan) and the Granta (segment C sedan).The Russian manufacturer will cease to produce the Lada Samara five-door hatchback by December 2013. This model will be replaced by the LadaGranta hatchback.


- Since its acquisition by the Renault-Nissan group, AvtoVAZ pursues the industrial agenda set by its new owner.The agenda states that the carmaker must renew all its current models by 2020 and they must all be based on the engines and platforms of the group. This is why in 2012, AvtoVAZ launched the Largus estate based on the first generation of Dacia Logan estate.


- Future AvtoVAZ models should be based on existing Dacia models and will use Dacia platforms and engines. In terms of engines, AvtoVAZ has began producing K4 engines from the Renault brand: 300 000 units should be assembled in 2014. Currently, these engines are imported from Romania. As AvtoVAZ production rate increases in Russia, deliveries from Romania will be reduced.
K4 engines manufactured by AvtoVAZ will equip almost all B0 vehicles (the code name for the Entry family)
assembled by AvtoVAZand Renault Avtoframos in Moscow. 


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Porsche unveils the Macan

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Porsche unveils the Macan
 
- Since the relocation of its spider Boxster and Cayman coupe from  Finland to Germany in 2011, Porsche produces now all its vehicles (five different models) in Germany.

- The Porsche 911, which continues a dynasty begun in 1963, is made in the mother plant of the company in Stuttgart.  The all-terrain Cayenne and the Panamera sedan - arrived more recently on the market - are manufactured in Leipzig.

- The Boxster and Cayman ( entry-level range of the carmaker) are manufactured in Osnabrück (formerly the Karman’s site).

- Porsche has unveiled its sixth model, which will also be produced in Germany (Leipzig). It is a compact all-terrain, Macan, less imposing than the Cayenne. However we can not really talk about an entry-level SUV Porsche since this model will be proposed at prices very similar  to those of Cayenne.

- For this new model, Porsche has used the platform of the Audi Q5 (Audi and Porsche are part of Volkswagen group), while the Cayenne was based on that of the Audi Q7 ( and Volkswagen Touareg).

- Porsche expects to sell  50,000 Macan annually while the Cayenne sales reached 80,000 in 2012 and 60,000 in 2013. It is possible that these objectives are underestimated because with European, Chinese and American markets combined, the Macan could become the most produced model of the brand (70 000 to 80 000 units per year).


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Honda unveils its mini SUV, the Vezel

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Honda unveils its mini SUV, the Vezel
 

- The success of the mini-SUV Nissan Juke has given food for thought to many manufacturers. Opel and Chevrolet with the twin models Mokka and Trax waited two years before launching their models to compete with the Juke (which was launched in 2012). In 2013, Renault (with the Captur model) and Peugeot (with the 2008 model) entered this market that has great growth potential.


- The mini-SUV market (segment B) has made SUVs very popular. SUVs were first marketed in mid-range and premium segments (segments D and E), they were then launched in the compact car segment (segment C).


- The trend for SUVs having been real for ten years now (almost 16.5% of the market in 2013 against 7.8% in 2008), it was clear that the mini-SUV category would experience the same success as the standard SUV category.


- Some carmakers such as Volkswagen, Ford or Toyota (which was already present on this market in the 90s’ with the first versions of RAV4) have been reluctant to enter the market,as it was deemed unprofitable and too small. Fiat missed the market with its Sedici model which was not quite adapted to the market. The Italian manufacturer had experienced the same issue with the Multipla model in the minivan market . The 500X should hopefully be more successful.


- Today, Honda is preparing to launch a competitor to the Nissan Juke. The Vezel unveiled at Tokyo should be launched in Europe in 2014. It should be produced in Swindon (England) alongside the CRV, Civic and Jazz.


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Insight of the Indian market over the 10 months 2013

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Insight of the Indian market over the 10 months 2013
 
- India is the third largest car market in Asia (behind China and Japan), with nearly 2.17 million vehicles (cars + LUVs ) sold in the first 10 months of 2013.

- In a particularly dynamic continent (thanks to China, Korea and the ASEAN countries ), the Indian market yet experienced a decline in registrations compared to 2012 (-7.4 %).This market suffers from cumulative effects of a slowing economy, high interest rates that plague consumption, but also competition from two and three wheels.

- In a country with rising urbanization with megacities, the car market is dominated at 80%  by the small city car segment: 61 % of the market is segment A and 19% segment B.

- It is therefore natural to see the market being dominated by specialist manufacturers of small cars such as Maruti Suzuki - (41.2 % market share), Hyundai (14.7 % market share), Mahindra (10.7 % market share) and Tata (9 % market share).

- The analysis by body type highlights the predominance of sedan bodies (71% of bodies), followed by MPV (20%, typical of developing countries) and SUV (8%, two times less than in China or Europe).

- As for models, Maruti Suzuki monopolize the top four places and display eight cars in the top 20.


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New game of musical chairs in the PSA plant

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New game of musical chairs in the PSA plant
 
- PSA decided to allocate the production of future compact MPV 5008 (to be launched in 2016 ) in Rennes plant while the current generation 5008 is manufactured in Sochaux plant.

- Indeed, the arrival of the  mini -SUV Peugeot 2008 on the site of Mulhouse in early 2013 led to the departure of Peugeot 308 Mulhouse to Sochaux. The Peugeot 308 was previously manufactured both in Sochaux and Mulhouse ( 60% and 40 % of production respectively).

- The success of 2008 ( PSA forecast: 140,000 units to be  produced in 2014 in Mulhouse) accredits the decision to concentrate the production of 308 (sedan and estate) on the site of Sochaux.

- The Sochaux plant, which now produces all sedans 308 "new generation", but also 3008, 5008 and DS5, may be saturated in 2015, shortly after the arrival of the "new generation“ 308 estate ( in 2014) .

- The crucial point is the transfer of the Opel Zafira from the Rüsselsheim plant to the Sochaux plant in 2016.
This is what seems to have motivated the decision to transfer  in the same year the future 5008 in Rennes.

- The Rennes site will be dedicated to high-end models of PSA, even though 3008 and DS5 are produced in Sochaux. All models manufactured in Rennes in 2016 will be based on the EMP2 platform  (C and D segments).


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