The European market (VP) in the first quarter of 2020
The European car market will suffer a terrible shock in 2020, due to the coronavirus crisis, a shock which could be even more violent than those caused by the first oil shock (1974 sales down 12% compared to 1973) , by the economic crisis of 1993 (1993 sales down 15% compared to 1992) or by the financial crisis of 2008 (2008 sales down 8% compared to 2007) even if it had repercussions for several years (2013 sales down 27% compared to 2007). Before the epidemic arrived in Europe, the European market had already fallen by 7.4% in January 2020 and by 7.1% in February 2020. With the closure of most factories and concessions in Europe to From mid-March 2020, the European market is likely to fall by 40% to 50% in March 2020 and therefore by around 25% in the first quarter.

But the hard part is yet to come. With a total containment of people and a total shutdown of factories and European concessions in April, it is likely that the European market in April will be close to zero. May is likely to be comparable if containment measures are extended until June 1. If containment measures are halted or relaxed in May, the market could slowly recover. It is especially from June that we could witness a real recovery in the market, but the balance sheet for the second quarter of 2020 will be the worst since the end of the Second World War, with a possible drop of 50%. at 60%. Given these factors, the year 2020 could end with a drop of around 40% in the European passenger car market if the various European governments do not introduce massive aid to revive the market.


20-9-10
    
 

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BMW Group sold 2.52 million vehicles worldwide in 2019
The BMW group (BMW, Mini, Rolls-Royce) sold 2.52 million vehicles, which represents an increase of 1.2% compared to 2018. BMW remains the eleventh world manufacturer of light vehicles (VP + LCV) , behind PSA and Suzuki, but in front of Daimler and Geely. Thanks to the merger of PSA with FCA, the BMW group could gain a place in 2020 and become the tenth global manufacturer.

The BMW group's global sales in 2019 break down as follows:

1. Europe is its largest market, with 1,050,000 vehicles, or 42% of its world sales.
2. China is its second market, with 740,000 vehicles, or 29% of its world sales.
3. The United States is its third market, with 360,000 vehicles, or 14% of its world sales.

These three markets represent 85% of the BMW group's global sales in 2019, which is divided into 2.17 million BMW brand vehicles (+ 2.1%), 362,000 Mini brand vehicles (-2.8%) and 5,152 Rolls-Royce brand vehicles (+ 25%).

The BMW group's best-selling models in 2019 are the Series 3 (438,000 units), Series 5 (335,000 units), Mini (320,000 units) and BMW X1 (267,000 units).

By group, BMW remains the world's leading manufacturer in the Premium category in 2019, but by brand it is Mercedes, with 2.34 million light vehicles. Audi is third with 1.85 million units.


20-9-10
    
 

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GM will remove Holden brand
A few weeks ago, Inovev indicated that the Holden brand (a subsidiary of the GM group) was threatened because its sales had collapsed in the only market where it was still present, namely the Australian market. The GM group has just announced that it will supress its Holden brand in 2020 because its low diffusion no longer justify its existence.

The Australian brand Holden was bought by the American group GM in 1931. It only produced and sold its models for the demand of the Australian and New Zealand markets. For several years, Holden was one of the two most important carmakers in Australia and New Zealand, with Ford, and this lasted until 2014.

The brand's most legendary model was the Commodore, the best-selling upper mid-range sedan (D segment) until 2014, originally derived from the Opel Rekord and Commodore, but which continued its own life long after GM stopped to market on the European market.

The Holden factory in Australia closed in 2017. Following the closure, Holden fell from second to sixth place in 2018 and then to tenth in 2019, with only 4% of the market and 43,000 sales (against 178,000 in 2004 ). It was obvious that with such a disaffection, the brand could not continue to survive and the GM group made a logical decision. This decision follows a process which see 7 brands stopped in less than ten years: Opel, Vauxhall, Pontiac, Saturn, Saab, Hummer and today Holden.


    
 

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Daimler Group sold 2.46 million vehicles worldwide in 2019
The Daimler group (Mercedes, Smart) sold 2.46 million vehicles (excluding heavy goods vehicles), which represents an increase of 0.8% compared to 2018. Daimler remains the twelfth manufacturer of light vehicles in the world, behind BMW and in front of Geely. Including heavy goods vehicles (490,000 units), Daimler is the eleventh largest manufacturer in the world, behind Suzuki and ahead of BMW.

Thanks to the merger of PSA with FCA, the Daimler group could gain a place in 2020 and become the eleventh manufacturer in the world without heavy goods vehicles and the tenth with heavy goods vehicles.

Daimler group's global sales in 2019 break down as follows:

1. Europe is its largest market, with 1,020,000 vehicles, or 41% of its world sales.
2. China is its second market, with 750,000 vehicles, or 30% of its world sales.
3. The United States is its third market, with 360,000 vehicles, or 15% of its world sales.

These three markets represent 86% of the Daimler group's global sales in 2019, which are divided into 2.34 million Mercedes brand vehicles (+ 1.3%) and 116,000 Smart brand vehicles (-10.8%).

The Daimler group's best-selling models in 2019 are the C-Class (455,000 units), E-Class (390,000 units) and GLC (407,000 units). The segment C models (Class A, Class B, CLA, GLA) exceeded 620,000 sales.

The Mercedes brand remains the first Premium global brand in terms of sales, ahead of BMW and Audi.


20-9-10
    
 

Contact us: info@inovev.com 

Inovev forecast 15,000 units per year of the new DS 9
The brand DS (premium brand of the PSA group) has unveiled its new model, the DS 9, a sedan positioned between the D and E segments by its dimensions. Actually, the DS 9 is 4.93m long while a Mercedes C-Class is 4.68m and a Mercedes E-Class is 4.92m. This latest DS model is based on the EMP2 platform (also used by the Peugeot 508) but stretched out by about twenty centimetres. 

Today DS portfolio is only composed of two SUVs DS 3 Crossback(launched in 2018) and DS 7 Crossback(launched in 2017) as the DS 3 sedan was ended at the end of last year, after the DS 4 and DS 5. The DS product range is undergoing reconstruction and should be enriched with new models in 2021 and 2022.

The DS 9 will be produced only in China, with Dongfeng, probably because China is supposed to become the first market for this car.

The DS 9 will initially be powered by plug-in hybrid engines, branded “E-Tense”, using the thermal four-cylinder 1.6 petrol engine mounted on the Peugeot 508, 3008 and 5008, and DS 7 Crossback. In addition, the electric power will deliver various power (225hp, 250hp or 360hp) according to the configuration. In the most powerful specification, the DS 9 becomes an all-wheel drive.

According to Inovev, the DS 9 could be sold at 15,000 units worldwide, 2/3 in China and 1/3 in Europe. Certainly a low volume but a more realistic tentative to exist in an hyper competitive premium market.

Note: this analysis and the related forecast have been constructed before the COVID-19 crisis.
The objective is to provide objective information regarding the activities of carmakers.


    
 

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