VW will launch its low price brand with FAW
 
Volkswagen said it would launch its low-priced brand with a Chinese carmaker, and that Chinese partner would be FAW and not SAIC. This future brand should be released over the next three years. Eventually, several models are expected to be launched in China and India and the entire South-East Asia region.

Martin Winterkorn, Chairman of the Volkswagen Group, said the group wanted to launch a first cheap model for the Chinese market at a price between 6000 and 7000 euros, i.e. a comparable price that of Dacia Logan in Europe, which is not sold in China.

With this new model, Volkswagen wants to compete with the vehicles offered by the Chinese joint ventures working with other international carmakers as well as those offered by independent Chinese brands.

This announcement is interesting for several reasons: 1 - Volkswagen will not conceive alone its future low price models , unlike Renault who designed the Logan and Sandero alone. 2 / Volkswagen will not sell its low-cost models under its own brand, as Renault did with Dacia. 3 / Volkswagen think there is a market for cheap cars in China as the market is currently more focused on the mid-range and premium segments. 4 / FAW is already present on the cheap car market (Xiali) with limited success, such as the Chery QQ already on the market.

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 Data source: File #55 - Registrations in the World by makes 

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Increase the European passenger car market in April 2013
 
Over the four cumulative months of 2013, the European passenger car market (27 countries) further decreased (-6.7%) to 4,180,137 units. This decrease is small compared to the cumulative 3 months (-9.5%), and even compared to the 4 months of 2012 where we recorded a decrease of 7.8% compared to 4 months of 2011.

 

However, and for the first time since September 2011, the European market grew in April 2013 (2.1%) compared to April 2012, to 1,085,547 units.

It seems that the European market is picking up at the beginning of second quarter of 2013, instead of the second half as expected and this thanks to rebooting of the car market in Germany and Spain

Four carmakers perform well given the decline of 6.7% of the market: BMW Group (-1.1%), Hyundai-Kia Group (-0.4%), Daimler Group (2.8%) Tata Group (12.7%). The new Class A very successful in Europe boosted the sales of the Mercedes brand. Renault-Nissan and Volkswagen manage a loss inferior to that of the market as a whole. They therefore managed to increase their market share.

At the current pace, the European market could in the coming months approach the figures recorded in 2012, which certainly are poorer than those of 2011, but let us recall that some manufacturers forecasts expected a decline of 5% market share in 2013 compared to 2012.

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 Data source: File #55 - Registrations in the World by makes 

Contact us: info@inovev.com 

 

Japanese carmakers have still to catch up their delay in China
 

Following the diplomatic conflict between China and Japan concerning the bordering territories of the two countries, The sales of Japanese carmakers in China have been boycotted by a portion of their customers. Their production volume therefore collapsed between September 2012 and March 2013, but since January 2013 the collapse is tending to slow down.


Let us recall that the production of Japanese carmakers in China is intended only for the local market (except for a few Honda Jazz that traveled to Europe) and therefore could not offset the collapse through exports.


The four major Japanese carmakers manufacturing in China (Toyota, Nissan, Honda and Mazda) had not yet caught up with their delayed production by March 2013, but since April 2013 three of them (Toyota , Nissan and Honda) have managed to catch up on their loss. But the production lost between September 2012 and March 2013 is permanently lost, because the customers that left during this period are now customers of the competition (Hyundai, Kia, GM, Volkswagen and PSA). 100% Chinese carmakers do not seem to have benefited greatly from the momentary weakness of the Japanese.


This six months production loss is a deadweight loss for Toyota, Nissan, Honda and Mazda who however had a good 2012 year in terms of global sales. Their normal rate of production in China is expected to be regained in the coming months.

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 Data source: File #55 - Registrations in the World by makes 

Contact us: info@inovev.com 

 

Toyota remains the world number one in the first quarter of 2013
 
- Toyota remains the world leader in terms of sales in the first quarter of 2013, with 2.43 million vehicles sold (- 2.2%), followed by General Motors (2.36 million units sold, +3.6 %) and Volkswagen (2.27 million, +5.1%).

 - Toyota has been severely affected by the diplomatic conflict between Tokyo and Beijing last year as well as by the end of subsidies for the purchase of "eco-friendly" cars in Japan. Its sales in China have declined by 13% in the first quarter of 2013 (compared to the first quarter of 2012), and those in Japan by 15%. In Europe, Toyota saw its sales decline by 13.7% in the first quarter of 2013. In the United States, Toyota has however increased by 7% in the first quarter of 2013. In other parts of the world, Toyota saw its sales increase overall, which has allowed the world's leading carmaker to globally limit its decline in sales to 2.2%.

 - Nevertheless, given that GM and VW sales have increased in the first quarter of 2013, the gap with Toyota was significantly reduced compared to the recorded full-year 2012 results. It has been observed that last year, the Toyota Group sold 9.70 million vehicles, the GM group 9.29 million and VW group 9.07 million. In these circumstances, it is impossible to say who will be the leader in worldwide sales over the entire year 2013. Indeed, at the current rate, the three groups would be side by side at the end of the year with each of them selling 9.50 million vehicles.

13-20-10

 

Dongfeng buyouts 40% of Fujian Auto in order to own the Souest brand
 

The Chinese government has repeatedly urged Chinese carmakers to come together in order to fight against the world's leading carmakers such as Toyota, GM, Volkswagen, Renault-Nissan and Hyundai-Kia (see "The Chinese groups' multi-brand strategy called into question"). Currently, China has a hundred different carmakers, some of which include a number of specific brands.


A few years ago, we saw Nanjing MG come under the control of SAIC, but the Chinese are still few groups, each carmaker trying to preserve its own prerogatives in a growing market that has not yet fixed the sale volume per brand. Each brand is trying to be among the most widespread, before even considering the purchase of a smaller company or other Sino-Chinese partnerships.


Today, Dongfeng (the third Chinese automaker including the JV with foreign carmakers) took the initiative to buy 40% of Fujian Motor, the owner of Souest. Souest sold 80,000 cars in China last year and could sell 100,000 this year (35,000 in the first four months of 2013). Its market share is less than 1% of the whole Chinese market. The Dongfeng carmaker sold 370,000 cars under its own brand in 2012 (2.5% market share) and over 2 million cars thanks to a partnership with Nissan, Kia, Honda and PSA.


With Soueast, Dongfeng could approach 5% market share in China while having a new plant with a capacity of 150,000 vehicles per year.

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