The Indian auto industry, whose market is only 19 per cent as big as that in China, has an edge in exports.
Suzuki, Hyundai and Nissan are making India a hub for overseas sales of minicars, as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labour and a surging local market, India this year over-ttok China in auto exports and is challenging Thailand and South Korea as an alternative production centre in Asia.
"There is a worldwide shift toward fuel-efficient, compact cars," said Jayesh Shroff, who helps to manage assets worth about US$7 billion (Bt239 billion), including carmakers' shares, at SBI Asset Management in Mumbai.
"This offers a huge potential for India and it can emerge as a leader in the small-car segment."
Maruti Suzuki India's exports have more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March 2010, 86-per-cent more than last year, said chairman RC Bhargava.
Maruti Suzuki sold a monthly record of 14,847 vehicles overseas in August. India's exports of minicars and hatchbacks gained 44 per cent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vechicles and trucks, rose 18 per cent to 229,809. Cars are exported to more than 100 countries, not including the US or Japan.
In contrast, China's exports slumped 60 per cent to 164,800 vehicles between January and July, according to government data. Vehicles produced in Thailand for export declined 43 per cent to 263,768, according to the Federation of Thai Industries' Automotive Club.
South Korean exports dropped 31 per cent to 1.12 million units, according to the Korea Automobile Manufacturers' Association. Japan, the world's largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts.
Besides the attraction of serving a market where three of four cars bought are compact, auto-makers will favour India to set up an export base because China requires companies to form local joint ventures and India does not, said London- based managing director of Intelligence Automotive Asia, Ashvin Chotai.
"It makes companies more comfortable to have an export strategy when they have full control," he said. "They don't have to give up some part of the profits to their partner."
Wednesday, September 9, 2009
Tuesday, September 8, 2009
India enjoys big increase in car sales
Car sales in India raced an annual 26% in August, rising for a seventh month, and demand is seen picking up in October when annual bonuses are paid in much of the country.
The government is also set to give out 180 billion rupees ($3.7 billion) in backpay to workers next month, the second instalment of a wage pact agreed last year.
Industry body the Society of Indian Automobile Manufacturers (Siam) said yesterday companies sold 120,669 cars in August against 96,082 in the same month last year.
Sales in the first five months of the fiscal year that began in April have risen 13%, with the pace of growth in July the fastest at an annual 31%, after rising just 1.3% in the year to March 2009.
"Some further growth is anticipated.Definitely some build up is happening for the festive season. The last instalment of the sixth pay commission is also expected to boost demand," Sugato Sen,a senior director at Siam said.
He said Siam, which had projected in April full-year sales growth at 5% in 2009/10, would revise upwards its forecast after September sales are known.
Car sales are a leading gauge of consumer sentiment in India, in the absence of other indices and the country is one of the few markets in the world where demand has been picking up though volumes are much lower than in China.
China's passenger cars sales in August rose 90% from a year earlier to 858,300,the China Association of Automobile Manufacturers said yesterday. Overall vehicle sales, including trucks and busses,rose 82% to 1.14 million. Commercialvehicle sales climbed 60% to 280,200 units.
In the first eight months, China's vehicle sales rose 29% to 8.33 million, with passenger-car sales growing 37% to 6.22 million. Commercial-vehicle sales rose 11% to 2.1 million.
In India, Maruti Suzuki, a unit of Japan's Suzuki Motor Corp, led the growth posting an annual 42% jump in August sales at 84,808 units.
The company, which produces every second car sold in India, is building a new factory to upgrade its production facilities to meet demand.
Sales of trucks and buses, a barometer of economic activity, rose 18.5% from a year earlier to 40,624 units, their second straight rise after falling continuously since July last year.
Sen said a rise in the sales of medium and heavy commercial vehicles was a healthy sign and indicated economic activities were picking up.
Motorcycle sales rose 26% to 611,173 units from a year ago.
The government is also set to give out 180 billion rupees ($3.7 billion) in backpay to workers next month, the second instalment of a wage pact agreed last year.
Industry body the Society of Indian Automobile Manufacturers (Siam) said yesterday companies sold 120,669 cars in August against 96,082 in the same month last year.
Sales in the first five months of the fiscal year that began in April have risen 13%, with the pace of growth in July the fastest at an annual 31%, after rising just 1.3% in the year to March 2009.
"Some further growth is anticipated.Definitely some build up is happening for the festive season. The last instalment of the sixth pay commission is also expected to boost demand," Sugato Sen,a senior director at Siam said.
He said Siam, which had projected in April full-year sales growth at 5% in 2009/10, would revise upwards its forecast after September sales are known.
Car sales are a leading gauge of consumer sentiment in India, in the absence of other indices and the country is one of the few markets in the world where demand has been picking up though volumes are much lower than in China.
China's passenger cars sales in August rose 90% from a year earlier to 858,300,the China Association of Automobile Manufacturers said yesterday. Overall vehicle sales, including trucks and busses,rose 82% to 1.14 million. Commercialvehicle sales climbed 60% to 280,200 units.
In the first eight months, China's vehicle sales rose 29% to 8.33 million, with passenger-car sales growing 37% to 6.22 million. Commercial-vehicle sales rose 11% to 2.1 million.
In India, Maruti Suzuki, a unit of Japan's Suzuki Motor Corp, led the growth posting an annual 42% jump in August sales at 84,808 units.
The company, which produces every second car sold in India, is building a new factory to upgrade its production facilities to meet demand.
Sales of trucks and buses, a barometer of economic activity, rose 18.5% from a year earlier to 40,624 units, their second straight rise after falling continuously since July last year.
Sen said a rise in the sales of medium and heavy commercial vehicles was a healthy sign and indicated economic activities were picking up.
Motorcycle sales rose 26% to 611,173 units from a year ago.
Monday, September 7, 2009
Asian domination of American market expected to intensify
The Asian domination of US auto sales is set to intensify despite dramatic improvements and painful restructuring at the Detroit Three.
Asian automakers captured 52.3% of US sales in August - the first time they controlled more than half the market and the culmination of decades of steady growth at the expense of General Motors,Ford and Chrysler.
The five-point jump from a year earlier was attributed largely to a governmentfunded "Cash for Clunkers" programme.
"Longer-term, with certain brands being divested it's going to hurt the market share of the American brands so that would give another advantage to Asian automakers," said Efraim Levy,an analyst with Standard & Poor's Equity Research.
"While it won't be as easy for Japan's Toyota and Honda to expand at the same pace because they have now entered most segments, they are still well positioned to grow," Levy said.
Korean automakers Hyundai and Kia are also making major inroads as they expand their offerings and take advantage of their price advantage and some savvy marketing.
"The recession has been quite the opportunity for the Korean automakers,"said Jessica Caldwell, a senior analyst at Edmunds.com.
Toyota and Honda first began making inroads during the oil crises and reces-sions of the 1970's when consumers switched from Detroit's muscle cars to their affordable, fuel efficient models.
The Detroit Three shot themselves in the foot in the 1980's with poorly designed vehicles and a reputation for shoddy quality which became entrenched in the minds of US consumers.
However the introduction of minivans and sport utility vehicles kept Detroit afloat until the late 1990's, when fuel prices started to rise and they failed to respond to Toyota and Honda's smaller and easier to handle SUVs.
After slowly drifting from 76.9% market share in 1980 to 69.6% in 1998, the Detroit Three saw their share plunge to 58.2 by 2005, when the latest round of plant closures and restructuring began.
They ended 2008 at 47.5%- a nearly ten point drop in three years - and are currently at 43.9% for the year to date.
Asian brands stand at 48.0% for the year to date, while European brands account for 8.1%, according to Autodata.
"Yet there is an opportunity for the Detroit Three to turn their fortunes around," said analyst Rebecca Lindland of IHS Global Insight.
"With the new, more cost efficient structures that the Big Three have they should be able to start - especially at GM - to focus their engineering and marketing budgets on fewer, better brands," she said."All is not lost, but it is based on getting product in that excites consumers."
"The problem is that it takes years to develop new vehicles and major brands are being dropped in the coming months," said Standard and Poor's Levy.
"They're not going to keep all those customers," he said in a telephone interview."While those potential benefits are there, it's not guaranteed and that investment will take time to be reaped."
"Ford has some very promising product plans and GM also has some good offerings in the mix," Caldwell said.
"I don't see anything new or interesting at Chrysler," she added.
While GM continues to hold onto first place in sales in the United States after losing the title to Toyota globally last year, the upcoming elimination of brands like Pontiac and Saturn is certain to undermine its market share, which is at 19.4% so far this year.
Ford - the only one of the Detroit Three to escape bankruptcy - has a strong product portfolio which helped it post gains in July and August for the first time since November 2007 and boost its share to 15.2% for the year to date.
But it has been unable to regain second place from Toyota, which is at 16.6% for the year to date.
Chrysler - which has slid to 9.2% so far this year - is currently competing with Nissan (7.4%) for sixth place after being surpassed by Honda (11.4%) for fifth.
Meanwhile, Korea's Hyundai is breaking records as it climbs to a 4.4% share and Kia is up 0.9 points at 3.1% for the year to date.
Asian automakers captured 52.3% of US sales in August - the first time they controlled more than half the market and the culmination of decades of steady growth at the expense of General Motors,Ford and Chrysler.
The five-point jump from a year earlier was attributed largely to a governmentfunded "Cash for Clunkers" programme.
"Longer-term, with certain brands being divested it's going to hurt the market share of the American brands so that would give another advantage to Asian automakers," said Efraim Levy,an analyst with Standard & Poor's Equity Research.
"While it won't be as easy for Japan's Toyota and Honda to expand at the same pace because they have now entered most segments, they are still well positioned to grow," Levy said.
Korean automakers Hyundai and Kia are also making major inroads as they expand their offerings and take advantage of their price advantage and some savvy marketing.
"The recession has been quite the opportunity for the Korean automakers,"said Jessica Caldwell, a senior analyst at Edmunds.com.
Toyota and Honda first began making inroads during the oil crises and reces-sions of the 1970's when consumers switched from Detroit's muscle cars to their affordable, fuel efficient models.
The Detroit Three shot themselves in the foot in the 1980's with poorly designed vehicles and a reputation for shoddy quality which became entrenched in the minds of US consumers.
However the introduction of minivans and sport utility vehicles kept Detroit afloat until the late 1990's, when fuel prices started to rise and they failed to respond to Toyota and Honda's smaller and easier to handle SUVs.
After slowly drifting from 76.9% market share in 1980 to 69.6% in 1998, the Detroit Three saw their share plunge to 58.2 by 2005, when the latest round of plant closures and restructuring began.
They ended 2008 at 47.5%- a nearly ten point drop in three years - and are currently at 43.9% for the year to date.
Asian brands stand at 48.0% for the year to date, while European brands account for 8.1%, according to Autodata.
"Yet there is an opportunity for the Detroit Three to turn their fortunes around," said analyst Rebecca Lindland of IHS Global Insight.
"With the new, more cost efficient structures that the Big Three have they should be able to start - especially at GM - to focus their engineering and marketing budgets on fewer, better brands," she said."All is not lost, but it is based on getting product in that excites consumers."
"The problem is that it takes years to develop new vehicles and major brands are being dropped in the coming months," said Standard and Poor's Levy.
"They're not going to keep all those customers," he said in a telephone interview."While those potential benefits are there, it's not guaranteed and that investment will take time to be reaped."
"Ford has some very promising product plans and GM also has some good offerings in the mix," Caldwell said.
"I don't see anything new or interesting at Chrysler," she added.
While GM continues to hold onto first place in sales in the United States after losing the title to Toyota globally last year, the upcoming elimination of brands like Pontiac and Saturn is certain to undermine its market share, which is at 19.4% so far this year.
Ford - the only one of the Detroit Three to escape bankruptcy - has a strong product portfolio which helped it post gains in July and August for the first time since November 2007 and boost its share to 15.2% for the year to date.
But it has been unable to regain second place from Toyota, which is at 16.6% for the year to date.
Chrysler - which has slid to 9.2% so far this year - is currently competing with Nissan (7.4%) for sixth place after being surpassed by Honda (11.4%) for fifth.
Meanwhile, Korea's Hyundai is breaking records as it climbs to a 4.4% share and Kia is up 0.9 points at 3.1% for the year to date.
Sunday, September 6, 2009
SUZUKI MOVES TO BUILD NEW INDIA PLANT
Japan's Suzuki Motor plans to build a new plant in India in 2011 in a bid to meet growing demand for cars in the country, a newspaper reported yesterday.
The manufacturer of small cars and motorcycles plans to invest about 30 billion yen (Bt1 billion) in construction of a plant with annual production capacity of 300,000 vehicles, the Nikkei business daily said. The firm will build the plant near its production base in manesar near New Delhi, where Suzuki has already been producing some 300,000 units a year with its Indian partner, according to the daily's evening edition.
Vehicle manufacturers see huge potential in countries such as India and China, with their billion-plus populations. In July, Indian car sales jumped for a sixth straight month, climbing an annual 31 per cent. India is one of thw world's least penetrated car markets with just seven autos per 1,000 people compared with 850 cars per 1,000 people in the United States.
Immediate confirmation of the report was not available.
Meanwhile Italian car company Fiat is planning to source components worth US$1 billion (Bt34 billion) from India by 2010 for its global operations, a news report said.
"Our target is to make India an important sourcing hub," Fiat Group purchasing vice-president, Franco Cavallotti, was quoted by the PTI news agency as saying.
The manufacturer of small cars and motorcycles plans to invest about 30 billion yen (Bt1 billion) in construction of a plant with annual production capacity of 300,000 vehicles, the Nikkei business daily said. The firm will build the plant near its production base in manesar near New Delhi, where Suzuki has already been producing some 300,000 units a year with its Indian partner, according to the daily's evening edition.
Vehicle manufacturers see huge potential in countries such as India and China, with their billion-plus populations. In July, Indian car sales jumped for a sixth straight month, climbing an annual 31 per cent. India is one of thw world's least penetrated car markets with just seven autos per 1,000 people compared with 850 cars per 1,000 people in the United States.
Immediate confirmation of the report was not available.
Meanwhile Italian car company Fiat is planning to source components worth US$1 billion (Bt34 billion) from India by 2010 for its global operations, a news report said.
"Our target is to make India an important sourcing hub," Fiat Group purchasing vice-president, Franco Cavallotti, was quoted by the PTI news agency as saying.
Thursday, September 3, 2009
"HIS CHOICE OF CAR"
Lamborghini is becoming pretty good in maximising the business case of its models, that is, using every bit of what's available till the last drop.
Take the Murcie'lago flagship as an example. When it passed mid-life, its appeal was boosted by specialities like the Roadster, LP670, Reventon and SV. And this month in Frankfurt, Lamborghini is set to unveil a roadster version of the Reventon.
The same goes for the smaller Gallardo which has reached maturity with an array of special models made over the years including Spyder, Superleggera and LP560. Just recently, the LP550 has been added to the list.
But this LP550 is a little more special than the other Gallardos by being a limited production series made to honour its ex-chief tester (see sidebar). Even though he retired two years ago, the LP550 was only launched this year.
You begin to wonder whether the LP550 is the result of paying genuine homage or whether it is a sheer marketing ploy to maintain the Gallardo's attraction during hard times like these. Whatever the reason, it's hard to resist the temptation of measuring the LP550's calibre on paper.
When you hear that the LP550 is RWD - explaining the additional -2 (say dash two in Lambo speak) on its badge like the 4WD LP560-4 - you immediately think of this Gallardo being lighter and more hardcore than any other sibling bar the Superleggera.
It's like Porsche's formula of ditching 4WD in the Turbo and adding a few more ponies to transform it into the GT2, the fastest and hairiest 911. But that isn't exactly the case for the Gallardo.
If you look at the accompanying graphic, the LP550 is 30kg lighter than the LP560 due to the removal of the front drive shaft and other petty weight-saving measures. And despite a 10hp deficiency (Lambo says 550hp is optimal for RWD), the LP550 has power-to-weight and torque-to-weight advantages of nearly 2hp and 10Nm per tonne accordingly.
White stripes also adorn the seats inside.
But why is the LP550 still slower to 100kph than the LP560? There's no official word from Lamborghini, although one chap told us that four-wheel drive of the LP560 still gives superior traction when accelerating from standstill.
But you shouldn't really be concerned about outright performance because Motoring's experience with the LP550 at the Sepang race circuit in Malaysia last week simply revealed that there's hardly any noticeable difference between the LP550 and LP560 when it comes to perceptive feel of the power on tap.
Even the driving chaperones from Lamborghini were eager to point out that both Gallardos basically have the same level of performance. Where you can feel a slight advantage in the LP560 is when accelerating away from slow corners where there seems to be no loss of power when transferred to the tarmac.
Like in the LP560, the LP550 goes sensationally and yells gloriously loud when the V10 goes beyond 6,500rpm before automatically shifting up at 8,500rpm if you are not using the Corsa mode of the e-gear F1-style gearbox.
Lambo’s engine sounds great on the redline.
But just because the outputs are achieved at high revs doesn't mean there is enough flexibility lower down. Make it like this: it's safe to say that current owners of the LP560 will find real-world drivability practically the same in the LP550.
Most buyers in this part of the world don't like dipping the clutch with their left foot, but the e-gear automated manual has its shortcomings just like other F1-style 'boxes like BMW's SMG or Alfa's Selespeed. Rolling off from idle or shifting gears at relaxed engine speeds reveal the usual jerkiness.
Look at the supercar competition from a broader perspective and you'll note why Porsche has taken to the smoother dual-clutch automatic route. The same goes for Ferrari which has abandoned F1-inspired gearbox for that dual-clutch which so many other brands are now using.
Since the LP550 and LP560 are barely any different in performance terms, the brakes are identical. Our test sample came with ordinary steel brakes (carbon ceramic is an option) which felt mushy, lacked progressive action and only started to really bite hard once you apply a good amount of pressure onto it.
The 5.2-litre V10 has been detuned by 10hp to 550.
Since the LP550 is a small series production model, it would have been great if Lamborghini made CC brakes standard. Even Ferrari has already made it a policy that such stoppers are now standard across its model range.
What really sets the LP550 apart from the LP560 is that drivetrain. By driving only the real wheels and having a rear diff that allows slip of up to 45%, the LP550 is for those who like looking through the side windows when driving.
Although there wasn't the opportunity to do controlled sideway drifts due to the limited time with the car, the LP550 lets its end loose far easier than the LP560 when you provoke it.
Driving in some of Sepang's fast corners just reveals how sharp the handling is, in contrast to the LP560 that vainly grips to the tarmac via all four wheels and sort of disguises the natural flair of mid-engined sports car like the Gallardo.
And that what makes the LP550 special; it's for aficionados, just like the notable tester Valentino Balboni. That's why you can still opt for a traditional stickshift.
Steel brakes could have worked better.
And just to make sure that owners will feel rewarded for the B3m or so premium the B27.5m LP550 commands over the LP560, there are special strokes like a white stripe running on the middle of the car, as well as on the seats inside where you will also find a plaque bearing Balboni's signature.
Lamborghini insists the LP550 is not marking a return of RWD Lambos, adding that 4WD still gives driving security for most supercar owners. In fact, the Italians said that since the Gallardo was launched in 2004, global sales grew dramatically because the car offered superior driving confidence over its intended rivals.
Which, in the end, means that the LP560 will still remain the Gallardo of choice for most buyers. But for those lucky ones who have managed to secure an LP550 are certainly treated with a Lambo that has always been what it should have: a touch frantic but genuine and fun.
Take the Murcie'lago flagship as an example. When it passed mid-life, its appeal was boosted by specialities like the Roadster, LP670, Reventon and SV. And this month in Frankfurt, Lamborghini is set to unveil a roadster version of the Reventon.
The same goes for the smaller Gallardo which has reached maturity with an array of special models made over the years including Spyder, Superleggera and LP560. Just recently, the LP550 has been added to the list.
But this LP550 is a little more special than the other Gallardos by being a limited production series made to honour its ex-chief tester (see sidebar). Even though he retired two years ago, the LP550 was only launched this year.
You begin to wonder whether the LP550 is the result of paying genuine homage or whether it is a sheer marketing ploy to maintain the Gallardo's attraction during hard times like these. Whatever the reason, it's hard to resist the temptation of measuring the LP550's calibre on paper.
When you hear that the LP550 is RWD - explaining the additional -2 (say dash two in Lambo speak) on its badge like the 4WD LP560-4 - you immediately think of this Gallardo being lighter and more hardcore than any other sibling bar the Superleggera.
It's like Porsche's formula of ditching 4WD in the Turbo and adding a few more ponies to transform it into the GT2, the fastest and hairiest 911. But that isn't exactly the case for the Gallardo.
If you look at the accompanying graphic, the LP550 is 30kg lighter than the LP560 due to the removal of the front drive shaft and other petty weight-saving measures. And despite a 10hp deficiency (Lambo says 550hp is optimal for RWD), the LP550 has power-to-weight and torque-to-weight advantages of nearly 2hp and 10Nm per tonne accordingly.
White stripes also adorn the seats inside.
But why is the LP550 still slower to 100kph than the LP560? There's no official word from Lamborghini, although one chap told us that four-wheel drive of the LP560 still gives superior traction when accelerating from standstill.
But you shouldn't really be concerned about outright performance because Motoring's experience with the LP550 at the Sepang race circuit in Malaysia last week simply revealed that there's hardly any noticeable difference between the LP550 and LP560 when it comes to perceptive feel of the power on tap.
Even the driving chaperones from Lamborghini were eager to point out that both Gallardos basically have the same level of performance. Where you can feel a slight advantage in the LP560 is when accelerating away from slow corners where there seems to be no loss of power when transferred to the tarmac.
Like in the LP560, the LP550 goes sensationally and yells gloriously loud when the V10 goes beyond 6,500rpm before automatically shifting up at 8,500rpm if you are not using the Corsa mode of the e-gear F1-style gearbox.
Lambo’s engine sounds great on the redline.
But just because the outputs are achieved at high revs doesn't mean there is enough flexibility lower down. Make it like this: it's safe to say that current owners of the LP560 will find real-world drivability practically the same in the LP550.
Most buyers in this part of the world don't like dipping the clutch with their left foot, but the e-gear automated manual has its shortcomings just like other F1-style 'boxes like BMW's SMG or Alfa's Selespeed. Rolling off from idle or shifting gears at relaxed engine speeds reveal the usual jerkiness.
Look at the supercar competition from a broader perspective and you'll note why Porsche has taken to the smoother dual-clutch automatic route. The same goes for Ferrari which has abandoned F1-inspired gearbox for that dual-clutch which so many other brands are now using.
Since the LP550 and LP560 are barely any different in performance terms, the brakes are identical. Our test sample came with ordinary steel brakes (carbon ceramic is an option) which felt mushy, lacked progressive action and only started to really bite hard once you apply a good amount of pressure onto it.
The 5.2-litre V10 has been detuned by 10hp to 550.
Since the LP550 is a small series production model, it would have been great if Lamborghini made CC brakes standard. Even Ferrari has already made it a policy that such stoppers are now standard across its model range.
What really sets the LP550 apart from the LP560 is that drivetrain. By driving only the real wheels and having a rear diff that allows slip of up to 45%, the LP550 is for those who like looking through the side windows when driving.
Although there wasn't the opportunity to do controlled sideway drifts due to the limited time with the car, the LP550 lets its end loose far easier than the LP560 when you provoke it.
Driving in some of Sepang's fast corners just reveals how sharp the handling is, in contrast to the LP560 that vainly grips to the tarmac via all four wheels and sort of disguises the natural flair of mid-engined sports car like the Gallardo.
And that what makes the LP550 special; it's for aficionados, just like the notable tester Valentino Balboni. That's why you can still opt for a traditional stickshift.
Steel brakes could have worked better.
And just to make sure that owners will feel rewarded for the B3m or so premium the B27.5m LP550 commands over the LP560, there are special strokes like a white stripe running on the middle of the car, as well as on the seats inside where you will also find a plaque bearing Balboni's signature.
Lamborghini insists the LP550 is not marking a return of RWD Lambos, adding that 4WD still gives driving security for most supercar owners. In fact, the Italians said that since the Gallardo was launched in 2004, global sales grew dramatically because the car offered superior driving confidence over its intended rivals.
Which, in the end, means that the LP560 will still remain the Gallardo of choice for most buyers. But for those lucky ones who have managed to secure an LP550 are certainly treated with a Lambo that has always been what it should have: a touch frantic but genuine and fun.
Wednesday, September 2, 2009
FORD, HONDA, TOYOTA REPORT BIG SALES
Boosted by the wildly popular "Cash for Clunkers" pro-gramme in the US, Ford has reported a 17-per-cent year-on-year increase in August sales, but Detroit rivals Chrysler and General Motors have both posted lower results for the month.
Chrsyler said its August sales fell 15 per cent compared with a year earlier, to 93,222 vehicles, despite the "Cash for Clunkers" programme. Chrysler said how inventories of several popular Chrysler, Jeep and Dodge models contributed to the shortfall. GM said it sold 246,479 cars and light trucks last month, down 20 per cent from a year ago.
The sales declines exceeded those posted by both auto-makers in July, when GM said its year-on-year sales fell 19 per cent and Chrysler reported a 9.4-per-cent decline in sales compared with July 2008.
Despite the fall, GM executives described Augusnt as an "excellent" month, saying the auto-maker maintained its market share. They pointed out that the comparison with August 2008 was a tough one because sales were then juiced to their highest level of the year by a special pricing promotion tied to the company's 100th anniversary.
For Ford, it was the seconds straight month of higher sales and the first year-on-year monthly sales increase since October 2007.
"Back-to-back sales increases has a nice ring to it," said Ford sales analyst George Pipas.
Many major auto-makers are expected to report improved sales for August, a month that provided thr first blue skies for an industry that has been in slump for almost two years.
Honda, riding the strong sales of its Civic and Fit (Jazz) compacts, siad it sold 161,439 vehicles in August, up 14.2 per cent compared with a year ago. The Japanese auto-maker said the clunkers programme pushed buyers to fuel-efficient vehicles, which helped Honda.
"Honda's August sales speak of the attributes customers were looking for under [the programme] and will continue to look for as the economic recovery take shape," said American Honda Motor's executive vice president John Mendel. "The challenge will be maintaining this momentum going forward."
Toyota, which captured the largest percentage of clunkers sales, said it sold 225,088 vehicles in August, up by 10.5 per cent over a year ago.
Ford said sales of its Ford, Lincoln and Mercury brands were up an even more robust 21 per cent when sales to rental car companies and corporate fleets were excluded. In all, Ford sold 176,323 vehicles last month.
The increases was driven by strong sales of Ford"s Focus, Fusion, Escape Edge, Flaex and Mercury Mariner.
Ford also sold more Ranger and F-150 pickups, which posted year-on-year sales increases of 57 per cent and 13 per cnet, respectively. Pickup sales are considered a positive sign for the construction industry because many of tehm are purchased by contractors.
German auto-makemr Volksagen has credited the "Cash for Clunkers" programme with boosting its August sale,s by 11.4 per cent compared with a year ago, giving the company itms best sales month in the US since December 2005.
The clunkers programme, which began on July 24 and ran for one month, was designed to kick-start auto sales by rewarding consumers for turning in older cars and trucks for more fuel-efficient new vehicles. Buyers received taxpayer-funded rebates of $3,500 or $4,500 (Bt119,000 or Bt153,000), depending on the gain in fuel economy.
The programme was an unexpected hit with consumers, who responded with such enthusiasm that the government nearly burned through the programme's initial $1 billion in the first week. An extra $2 billion kept it going.
In all, dealers submitted 690,000 clunker deals to the government, seeking rebates of $2.88 billion.
The question now facing auto-makers is how much of that sales momentum will ecarry on, and how much expired with the clunkers programme.
"Now that 'Cash for Clunkers' is over, we believe that the debate will centre on the impact of a potential 'pull forward' effect on auto sales in the next few months," Barclay's auto analyst Brian Johnson said.
Although GM initially grabbed the biggest share of clunker sales, by the end, Toyota, with its popular Corolla and Prius, finished first with a 19.4-per-cent share. GM was second with 17.6 per cent.
GM, Ford and Chrysler pulled in a smaller share of clunker sales than their overall share of the US auto market in the first seven months of the year.
Chrsyler said its August sales fell 15 per cent compared with a year earlier, to 93,222 vehicles, despite the "Cash for Clunkers" programme. Chrysler said how inventories of several popular Chrysler, Jeep and Dodge models contributed to the shortfall. GM said it sold 246,479 cars and light trucks last month, down 20 per cent from a year ago.
The sales declines exceeded those posted by both auto-makers in July, when GM said its year-on-year sales fell 19 per cent and Chrysler reported a 9.4-per-cent decline in sales compared with July 2008.
Despite the fall, GM executives described Augusnt as an "excellent" month, saying the auto-maker maintained its market share. They pointed out that the comparison with August 2008 was a tough one because sales were then juiced to their highest level of the year by a special pricing promotion tied to the company's 100th anniversary.
For Ford, it was the seconds straight month of higher sales and the first year-on-year monthly sales increase since October 2007.
"Back-to-back sales increases has a nice ring to it," said Ford sales analyst George Pipas.
Many major auto-makers are expected to report improved sales for August, a month that provided thr first blue skies for an industry that has been in slump for almost two years.
Honda, riding the strong sales of its Civic and Fit (Jazz) compacts, siad it sold 161,439 vehicles in August, up 14.2 per cent compared with a year ago. The Japanese auto-maker said the clunkers programme pushed buyers to fuel-efficient vehicles, which helped Honda.
"Honda's August sales speak of the attributes customers were looking for under [the programme] and will continue to look for as the economic recovery take shape," said American Honda Motor's executive vice president John Mendel. "The challenge will be maintaining this momentum going forward."
Toyota, which captured the largest percentage of clunkers sales, said it sold 225,088 vehicles in August, up by 10.5 per cent over a year ago.
Ford said sales of its Ford, Lincoln and Mercury brands were up an even more robust 21 per cent when sales to rental car companies and corporate fleets were excluded. In all, Ford sold 176,323 vehicles last month.
The increases was driven by strong sales of Ford"s Focus, Fusion, Escape Edge, Flaex and Mercury Mariner.
Ford also sold more Ranger and F-150 pickups, which posted year-on-year sales increases of 57 per cent and 13 per cnet, respectively. Pickup sales are considered a positive sign for the construction industry because many of tehm are purchased by contractors.
German auto-makemr Volksagen has credited the "Cash for Clunkers" programme with boosting its August sale,s by 11.4 per cent compared with a year ago, giving the company itms best sales month in the US since December 2005.
The clunkers programme, which began on July 24 and ran for one month, was designed to kick-start auto sales by rewarding consumers for turning in older cars and trucks for more fuel-efficient new vehicles. Buyers received taxpayer-funded rebates of $3,500 or $4,500 (Bt119,000 or Bt153,000), depending on the gain in fuel economy.
The programme was an unexpected hit with consumers, who responded with such enthusiasm that the government nearly burned through the programme's initial $1 billion in the first week. An extra $2 billion kept it going.
In all, dealers submitted 690,000 clunker deals to the government, seeking rebates of $2.88 billion.
The question now facing auto-makers is how much of that sales momentum will ecarry on, and how much expired with the clunkers programme.
"Now that 'Cash for Clunkers' is over, we believe that the debate will centre on the impact of a potential 'pull forward' effect on auto sales in the next few months," Barclay's auto analyst Brian Johnson said.
Although GM initially grabbed the biggest share of clunker sales, by the end, Toyota, with its popular Corolla and Prius, finished first with a 19.4-per-cent share. GM was second with 17.6 per cent.
GM, Ford and Chrysler pulled in a smaller share of clunker sales than their overall share of the US auto market in the first seven months of the year.
Tuesday, September 1, 2009
NEW BMW MODELS SET TO BE UNVEILED AT SHOW
BMW Thailand will introduce two upgraded models at BMW Xpo 20098, which opens at Central World on September 10.
They are the 520d Sport + DVD + Navigator and the 320d + DVD + Navigator, priced at Bt2.89 million and Bt3.79 million, respectively. These prices will be offered only until the end of this month.
Sales and marketing director Karl Ruediger said the two new models featured the BMW Navigation System Professional, an advanced hard-disk-based navigation system first introduced in the BMW7 Series early this year.
The system runs on an 80-Gigabit hard disk capable of storing three-dimensional maps in the future, as well as leaving 12Gb of space for entertainment purposes. Songs from audio CDs can be "ripped" into MP3 format and stored on the hard disc.
"The offer of Navigation + DVD in all segments, including the 3 Series, 5 Series and 7 Series, signifies BMW's step ahead of the competition in the premium market," Ruediger said.
"Apart from performance, efficiency and environmental friendliness, BMW cars also offer other luxuries with the Car Infotainment Computer system, which is a package of navigation system, car control systems, Bluetooth mobile phone connection and entertainment systems such as DVD and iPod USB connector," he said.
The Car Infotainment Computer, which operates through the cars' iDrive system, acts as a command and control centre for various functions, including on-board computer, car settings (such as central locking, follow-me-home light and turning indicators), as well as navigation, communications and entertainment functions.
Both the 320d Sport and 520d Sport are powered by a 4-cylinder diesel engine featuring third-generation common-rail technology and piezo injectors. The maker claims a maximum output of 177 horsepower at 4,000rpm and maximum torque of 350Nm from 1,750-3,000rpm.
The 520d Sport also comes with an M Aerodynamic kit, 18-inch M alloy wheels and an M-Sport steering wheel.
They are the 520d Sport + DVD + Navigator and the 320d + DVD + Navigator, priced at Bt2.89 million and Bt3.79 million, respectively. These prices will be offered only until the end of this month.
Sales and marketing director Karl Ruediger said the two new models featured the BMW Navigation System Professional, an advanced hard-disk-based navigation system first introduced in the BMW7 Series early this year.
The system runs on an 80-Gigabit hard disk capable of storing three-dimensional maps in the future, as well as leaving 12Gb of space for entertainment purposes. Songs from audio CDs can be "ripped" into MP3 format and stored on the hard disc.
"The offer of Navigation + DVD in all segments, including the 3 Series, 5 Series and 7 Series, signifies BMW's step ahead of the competition in the premium market," Ruediger said.
"Apart from performance, efficiency and environmental friendliness, BMW cars also offer other luxuries with the Car Infotainment Computer system, which is a package of navigation system, car control systems, Bluetooth mobile phone connection and entertainment systems such as DVD and iPod USB connector," he said.
The Car Infotainment Computer, which operates through the cars' iDrive system, acts as a command and control centre for various functions, including on-board computer, car settings (such as central locking, follow-me-home light and turning indicators), as well as navigation, communications and entertainment functions.
Both the 320d Sport and 520d Sport are powered by a 4-cylinder diesel engine featuring third-generation common-rail technology and piezo injectors. The maker claims a maximum output of 177 horsepower at 4,000rpm and maximum torque of 350Nm from 1,750-3,000rpm.
The 520d Sport also comes with an M Aerodynamic kit, 18-inch M alloy wheels and an M-Sport steering wheel.
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