Dongfeng Kia will open a third plant in China
 
Dongfeng Motor is a Chinese group that has its own brand (Dongfeng) as well as subsidiaries in Joint Venture (JV) with foreign brands: Japanese (Nissan and Honda), French (Peugeot and Citroen) and Korean (Kia) brands. The vehicles produced by the JV are sometimes labeled by analysts as Dongfeng Motor vehicles and sometimes as Renault-Nissan, Honda, Hyundai-Kia and PSA vehicles.
 
As its production capacity became insufficient in view of the its sales growth in the Chinese market, the JV Dongfeng-Kia will open its third assembly plant in February 2014, a few months ahead of schedule. The third plant will be located in the same city as the other two existing plants: Yancheng (Jiangsu Province, East China, not so far from Shanghai).
 
The new plant (300,000 vehicles per year) will bring the capacity of the Dongfeng Kia joint venture in China from 430 000 vehicles per year at present to 730,000 units, corresponding to the volume of sales that the manufacturer intends to achieve in 2015.
 
Dongfeng Kia, which offers a dozen models on the Chinese market, sold 480,000 vehicles in 2012, out of which 432,000 were produced in Yangcheng. In the first quarter of 2013, sales totaled 137,567 vehicles, up 25.6% compared to the first quarter of 2012.
 
At this rate, Dongfeng Kia could sell between 550,000 and 600,000 vehicles in China in 2013, while the current production capacity does not exceed 430,000 vehicles per year. In order to be in position to meet the demand, Dongfeng Kia has taken the decision to accelerate the opening of its third plant in Yancheng and will start it as as soon as February 2014.

 

13-16-8

 

Slovakia is the largest producer of cars in relation to its population
 

Slovakia became in 2012 the largest car producer in the world relative to its population(171 vehicles produced per 1000 inhabitants), arriving well before the Czech Republic and South Korea. Slovak automotive industry (assembly and equipment) employs around 75,000 people.

 

Slovakia has increased its position to 7th position in Europe in terms of production (behind the Czech Republic), while the country is in 19th place in Europe in terms of population.

 

Three carmakers operate now in Slovakia: the Volkswagen group (Bratislava) which manufactures Volkswagen (Up, Touareg), Audi (Q7), Seat (Mii) and Skoda (Citigo) vehicles, the Hyundai-Kia  group (Zilina) which manufactures Kia (Cee'd, Sportage, Venga) vehicles, the PSA group (Trnava) which manufactures Peugeot (208) and Citroën (C3 Picasso) vehicles.

 

The annual current installed capacity is 400 000 vehicles for the Volkswagen group, 300 000 vehicles for the Hyundai-Kia group and 300,000 vehicles for the PSA group, i.e. altogether one million vehicles per year. The BMW Group is also planning to move to Slovakia and Hungary over the next few years.


Vehicles produced in Slovakia are mainly destined for the European Union, but other markets are growing in importance, such as North America or Russia.

13-16-9

 

Japanese luxury brands are struggling to establish themselves in a global market
 

- To respond to  the American market very demanding of luxury cars, the three largest Japanese carmakers Toyota, Nissan and Honda had launched specific brands in this segment in 1989, respectively: the Lexus, the Infiniti and the Acura.


- These brands were in competition not only with the American brands Cadillac and Lincoln, but also and more to the point German brands such as Audi, BMW and Mercedes.


- The three Japanese luxury brands will gradually be set as equals in the U.S. market with two American brands and the three German brands. However, worldwide, the volume of their total sales never exceed 730 000 units per year (a record achieved in 2007), against 3 to 4 million units annually for the three German brands.

 

- Their distribution is restricted in Europe, by a market attached to traditional and historical brands. On the other hand, the three Japanese luxury brands are not so present on all markets (particularly in Asia), unlike Audi, BMW and Mercedes.


- In 2012, these three brands sold 660,000 vehicles worldwide, three-quarters of which in the U.S. Lexus remains the most international brand with 30% of its sales outside the U.S.. Infiniti sells only 20% of its car models outside the U.S. and Acura only 2%.

13-16-5

 

Few hybrid and electric vehicles in China in 2012
 

Despite a series of recommendations from the Chinese government urging motorists and manufacturers to turn to low-emission vehicles, only 7,748 hybrid and electric vehicles were sold in China in the first quarter of 2013, of which 4033 hybrid "classic" , 2874 301 electric vehicles and plug-in hybrids.


Such a low level of sales is achieved even though  buyers of plug-in electric and electric vehicles are eligible for a bonus of 60,000 Yuan (7,420 euros) and 50,000 Yuan (6,180 euros), respectively. In contrast, Chinese motorists acquiring a "classic" hybrid model receive a premium of only 3,000 Yuan (370 euros).


In comparison, Japan has purchased 154,234 hybrid and electric vehicles in the first quarter of 2013. Europe bought on its side15,000 such vehicles in the same period and the USA 150,000 vehicles.


Despite the high premium level offered, hybrid and electric vehicles are on low demand in China. An immature market (equipment market and not renewal) market,  a non adequate product offer, and prices too high (in comparison with combustion engine  vehicles) may explain the poor sales of such vehicles in China.


The environmental plan of the Chinese government, however, could help boost sales in the coming years.

13-16-7

 

Toyota and GM leaders on the African continent in 2012
 
Vehicle sales in Africa are expected to increase by nearly 20% over the next two years (2014 and 2015), to reach two million vehicles, says the CEO of General Motors for the Africa region.

The American carmaker, which has overpassed 180,000 vehicles in Africa in 2012, has the objective to maintain its 10% market share, and even increase it slightly. General Motors is the second largest carmaker on the African automotive market, behind Toyota  (237,000 vehicles sold in 2012), which occupies 13% of the market. It is to be noted that Toyota and GM are also the first two carmakers by number of sold vehicles in 2012 at worldwide level.
 
The most popular vehicles on African market are pickups and SUVs, which are numerous in GM and Toyota brands. Bad quality infrastructure as well as severe usage conditions (heat, dust, …) push a growing  number of customer to move towards this type of vehicle.
 
The first two markets in Africa in 2012 were South Africa and Algeria, located at both ends of the continent. Out of the 1.8 million new vehicles (passenger cars and light utility vehicles) sold in Africa last year, 1.06 million were distributed in both countries (623,000 and 437,000 vehicles respectively), i.e. slightly more than 60% of all sales on the African continent. With regard to passenger cars only, this proportion reached 57%.

13-16-6

 

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