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Have luxury carmakers’ hopes around GST been belied? Top honchos explain

In mid-September, the GST Council raised the cess on passenger vehicles. Although it was not as high as the expected 10 percentage points, luxury carmakers ended up with the rough end of the stick, with prices of their models going up by between Rs 1.5 lakh and Rs 4.5 lakh. The CEOs of the Indian operations of the global top 3 in automobile luxury — Audi, BMW and Mercedes-Benz — point out in pieces penned by them why their hopes around GST have been belied:

Overnight Orders Throw Business Plans out of Gear: Rahil Ansari, head, Audi India

Have luxury carmakers' hopes around GST been belied? Top honchos explain

I think nothing else has kept the luxury car industry busy this year as GST. There have been emotional ups and downs during the journey.

We felt and still believe that GST in principal is a good move to bring the country under a uniform tax regimen and reduce complexities. There had been a strong push on GST by the government and we were looking forward to the implementation. We were still studying the impact of GST to understand the final effect on the ex-showroom price, owing to the complexity of the value chain in mid-May, but were confident on the business development in the coming months.

Traditionally, April and May are slow months, implying dealers will be carrying higher stocks. The demand from customers was at a low this year because of the GST announcement. After May 19, for a whole week there was a sense of complete indecisiveness among the people but this changed in June. Apart from manufactures preloading the GST benefits in the pricing in the month of June itself, dealers were also keen to liquidate the stocks. Hence, June was one of the best of times to buy luxury cars because of good offers in the market.

Smart buyers who understood the economics knew that this was the time to buy. Audi India also rolled out measures to help dealers sell the stock.

After the initial GST announcement, the prices on most of our models were reduced and we saw a great excitement in the market. We had hoped that this will be a new and exciting phase of the luxury car business in India. The new realigned prices post-GST offered luxury carmakers a great opportunity to expand the market and widen the customer base. And then in August, the news of a possible cess hike hit us.

Luxury cars in India, while small in volumes, still contribute around 10% in value. The taxes on this industry were already very high and we expected the unfulfilled potential of this segment to increase after the implementation of GST and rationalisation of taxes. However, the proposal of further increasing the cess on the luxury car industry dampened the spirits of not only the companies, dealers and customers but also workers and employees in this industry. We estimated correctly that this proposed increase in cess will adversely impact sales. We were forced to re-evaluate our business plans in light of this development.

For me personally, it was just six months on board in Audi India and we were discussing about a second tax change. While it dampened the spirits for the industry, it was a good time for customers.

For sure, we were seeing an increase in customer footfalls as, for them, it was the best time to buy before the potential cess hike hits. Customers who were looking to buy a car during the festive season or during the next two or three months looked at immediate purchase. However, it was a temporary increase in sales as this was a preponement of purchases. Hence, it was not really positive in that sense if you see it from a larger perspective. We were wishing for a sustainable increase in sales in terms of GST implementation and long-term growth of the luxury auto segment.

The cess rate hike was announced in September. Even if the rumoured cess hike of 10% was not concluded, the prices still had to go up, which is disappointing. We expect the luxury car market to showcase a flat growth this year. Due to the developments during the year, we are expecting sales for the year to be stable. Also, we were very clear on achieving a sustainable growth, which excludes buying market share.

While we still support GST and think it will be beneficial in the long run, our worry has been the implementation of GST especially for the luxury car industry. Overnight orders throw business plans out of gear, especially because we were looking at support for that segment in order to support the economy in India through more sales. A plan to increase the cess barely after a month of an announcement is unheard of.

Where is the planning security in such a scenario? What projections do we work on when we don’t know what might happen tomorrow?

We should let go of the socialist attitude: Roland Folger, MD CEO, Mercedes-Benz India

Have luxury carmakers' hopes around GST been belied? Top honchos explain

For the automotive industry in general and luxury cars in particular, 2016 was not the best of years, as we hit more speed-breakers than expected. The implementation of the GST structure in 2017 came as a much-required boost for the luxury car industry and we hailed this as a landmark achievement, which promised to further aid the ease of doing business in India.

However, in course of the following months, GST turned out to be a mirage as the government termed the reduction in GST rates for luxury cars as an anomaly and drove fast to correct it.

The delineated positives of this new tax regime on the auto industry were beneficial; for instance, simplifying logistics, driving efficiency and reducing the overall operational and manufacturing costs.

At Mercedes-Benz, we were hopeful that with GST, the overall complex tax structure will decrease and drive higher efficiency in our operations, as the whole country would be treated as One Single Market. We were hopeful that GST implementation was going to be creating the much-required consumer demand for the luxury car industry.

In this context, and also backed by my GST experience in Malaysia, we decided that as a customer-centric measure we will pass on the GST benefits to consumers with immediate effect. We hence compensated for the difference between the current and the post GST ex-showroom prices for our entire Made in India model range. The GST measures in India ensured we took the customer into confidence and were transparent with them. This meant we passed on these benefits at our own cost and won the customer’s trust. We set the trend of being the first carmaker to pass on the actual GST benefits to the customers and not merely insurance and service packages. We are glad to see others followed us.

In the 2016 Union Budget, the tax collection at source for luxury cars was implied on vehicles above Rs 10 lakh, and we hoped the GST Council would adopt the same logic while considering the implementation of cess, if they decided to implement one. We also hoped that the council would not forego of the fact that if it chooses to set a higher price barrier for implementing the cess, it has lesser scope of optimising the tax collection overall.

Any deviation from this would seem to have been unfair and defy logic. Even a car below Rs 10 lakh would be in many ways a luxury item for many customers, then why adopt this unfair approach, which specifically seems to be aimed at luxury vehicles only.

Currently, it appears we are drifting far away from the growth projection of 80,000 units of luxury cars a year, which seemed quite achievable years back, due to the unfavourable market conditions; contributed largely by arbitrary policy decisions like continuous taxing of luxury cars, among others.

Today, we are clubbed with demerit goods and are bound to be constricted to small volumes. This is highly unfortunate, as we limit further employment opportunities and contribution to the economy simultaneously loses out in terms of potential revenue generation.

The government’s decision to increase the cess again within a month of implementation without even giving enough time for us to analyse the outcome is not a confidence evoking step and I would like to believe that it somehow overlooks the contribution we make to the auto industry and to the economy.

I am sure the government knows well that, had there been a fair taxation, the luxury industry which has so much potential in the country could have grown and contributed more to the GDP, employing more skilled people and also investing more through expansion.

I am usually optimistic, but it often appears now that the luxury car industry has been treated rather unfairly and we should let go of this socialist attitude and be more open to the contribution of luxury car makers in terms of innovation, technology, investments and jobs.

If this approach of continuously taxing the luxury cars persists, I am sure our contribution to the total passenger vehicle market in India is bound to remain constricted. In contrast, in developed economies, the contribution of luxury is on a higher side and continues to rise gradually. GST thus remained an opportunity lost for the government to course-correct the stalled growth of the luxury car industry.

Hasty policy inconsistencies derail business continuity: Vikram Pawah, president, BMW Group India

Have luxury carmakers' hopes around GST been belied? Top honchos explain

Doing business in India has become much easier with GST removing multiple layers of taxation and administrative processes.

BMW has been the fastest to offer GST benefits and well-prepared much before the roll-out took place. GST will strengthen and foster growth in the country and benefit consumers at large.

However, immediate changes and fluctuations on motor vehicles cess will adversely affect the stability and growth of the automotive industry in India.

Today, BMW India is a fast-growing luxury carmaker. We have achieved this radical growth as a result of our all-round strategy, resolute approach in its implementation and our absolute commitment to our customers and their needs. But our primary goal is to grow the size of the luxury car market in India. We believe growth is more important than anything, even more important than being No. 1.

However, hasty inconsistencies in policy such as the abrupt cess roll-out after GST implementation derail business continuity and consumer confidence. We strongly believe that long-term stability in tax reforms and regulations are of paramount importance to foster growth of any industry in the country. A right and fair tax structure in GST will provide the necessary ingredient to drive the growth of this segment and its contribution towards overall economic growth.

The global automotive industry is witnessing a paradigm shift from the conventional combustion engine to sustainable mobility solutions. This change is inevitable but will not happen overnight. Therefore, a comprehensive policy framework implemented in a phased manner is essential to nurture the development of emobility and its success in India.

Premium automotive manufacturers like BMW are already progressively taking a lead in e-mobility with radical investments in innovation and technology. Plug-in Hybrid Electric Vehicles (PHEV) is the first step towards the eventual transition to Battery Electric Vehicles (BEV).

A framework that only supports BEVs will make it difficult for effective e-mobility implementation in India. Therefore, we believe, a balanced GST framework supporting both PHEVs and BEVs is required.

Article source: https://economictimes.indiatimes.com/industry/auto/news/industry/have-luxury-carmakers-hopes-around-gst-been-belied-top-honchos-explain/articleshow/61705276.cms

Is the Entire Car Industry Really Doomed?

So auto retailing will be OK for the next 10, maybe 15 years as the auto companies make autonomous vehicles that still carry the manufacturer’s brand and are still on the highway.

Totally agree, but replace 10-15 with 30-50.

But dealerships are ultimately doomed.

YES, as we know them.

And I think Automotive News is doomed. Car and Driver is done; Road Track is done. They are all facing a finite future. They’ll be replaced by a magazine called Battery and Module read by the big fleets.

Half true. Automotive News will become Battery Module. Car and Driver will survive because there will always be an enthusiast market — albeit smaller — and they’ve made some decent attempts to address autonomous tech in recent issues. Road Track? Motor Trend? Dead. Upstart brands like Petrolicious will survive because they’re already focused on the best of the past, and need only expand their definition of classics year by year. Petrolicious may have to split into pre and post 2000 classics, but I think most of the cars sold between 2000 and Lutz’s tipping point will be unserviceable — the dark ages of electronics and all — but that’s another story.

The era of the human-driven automobile, its repair facilities, its dealerships, the media surrounding it — all will be gone in 20 years.

Fifty. And we’ll still need repair facilities. But they’ll be for modular replacements, and will most likely come from new companies whose infrastructure is radically different from current dealer models, who have no path to survival short of investing in automation and cheaper real estate in the next five years. As I said, Auto Nation will survive. (FYI, I have no stake in AutoNation.)

Today’s automakers?
The companies that can move downstream and get into value creation will do OK. But unless they develop superior technical capability, the manufacturers of the modules, the handset providers, if you will, will have their specifications set by the big transportation companies.

Mostly yes.

The fleets will say, “We want a module of a certain length, a certain weight and a certain range.”

Uh huh.

They will prescribe the mileage and the acceleration and take bids.

Transportation markets will be huge. So will traffic markets.

Automakers, if they are smart, may be able to adapt. General Motors sees the handwriting on the wall. It has created Maven and has bought into Cruise Automation and Lyft.

We’ll see. #SelfDrivingTheater is the new security theater. There’s no real evidence GM is any smarter than Daimler, Ford or Toyota, all big players who’ve also invested fortunes as a hedge against Lutz’s argument. Still, all of them blew it relative to Waymo, who just removed the safety engineers from the driver’s seats in their Phoenix deployment.

[GM] doesn’t want to be the handset provider. It wants to be the company that creates the value and captures the value, and it is making the right moves to be around when the transition occurs. I think probably everybody sees it coming, but no one wants to talk about it. They know they will be OK for a few years if they keep providing superior technology, superior design and have good software for autonomous driving.

Everyone wants to be that company, and no one sees a clear path forward. At this point it’s unclear whether Uber or even Lyft will survive as independent companies. If and when one or both are acquired, a buyer that can combine manufacturing with a TNC platform is guaranteed to become dominant under their legacy brand, which upends Lutz’s argument.

So for a while, the autonomous thing will be captured by the automobile companies. But then it’s going to flip, and the value will be captured by the big fleets.

Again, unless the fleet companies are acquired by manufacturers.

This transition will be largely complete in 20 years.

Not without mandates. This might work in fairly homogenous, socialist states where local culture aligns with broader goals, say, Norway or Sweden. American red states? Guns are the only thing people take more seriously. In this country, the suggestion that people won’t fight to retain control — and by that I mean ownership — is absurd. Lutz’s prediction requires a tough political slog. Anyone pushing to mandate self-driving cars will see the left and right subdivide, coalesce and unite around the concept of ownership of motion, which conflicts with utopian visions of “mobility”, which is no better than code for turning transportation into health insurance.

In America, that’s not a good thing.

I won’t be around to say, “I told you so,” though if I do make it to 105, I could no longer drive anyway because driving will be banned. So my timing once again is impeccable.

Actually, Lutz will be around to see some of this happen. Just not here in the United States.

In the meantime, I can’t wait for a future aftermarket shop to do a restomod of a Gen 1 Dodge Viper, but add the awesome parallel/augmented driving tech I predict will set back Lutz’s timeline by decades, and make driving great again. Those Vipers were awesome, clunky and dangerous. God bless them all, and Lutz, and whomever can build an uncrashable Viper before he dies.

“On a long enough timeline,” according to Fight Club, “the survival rate of everyone drops to zero.”

Now change “everyone” to “everything”.

By that standard, Lutz is right and wrong, by half. As in half a century.

Alex Roy is Editor-at-Large for The Drive, Host of The Autonocast, co-host of /DRIVE on NBC Sports, author of The Driver and Founder of Noho Sound, has set numerous endurance driving records in Europe the USA in the internal combustion, EV, 3-wheeler  Semi-Autonomous Classes, including the infamous Cannonball Run record. You can follow him on Facebook, Twitter and Instagram.

Article source: http://www.thedrive.com/opinion/16001/is-the-entire-car-industry-really-doomed

Why Tesla scares the rest of the car industry

The new, $200 000 Tesla Roadster

On Friday, Tesla founder and CEO Elon Musk introduced the company’s new electric-powered tractor trailer. The “Semi” goes 800km on a charge, uses Tesla’s semiautonomous driving system, with lane keeping and auto-braking. The truck has lower centre of gravity than traditional haulers, dramatically reducing rollover risk; dynamic torque distribution lowers the chance of jack-knifing. Musk promised the truck “will not break down for a million miles”.

That wasn’t the big news.

Musk, in a very Steve Jobs-like, “Oh, and one more thing” moment, introduced the Tesla Roadster. The US$200 000, all-wheel drive supercar goes 0-100km/h in a mind-blowing 1.9s, making it the fastest production car ever. Oh, and it tops out at more than 400km/h.

Why does speed matter? Car makers have been sponsoring racing teams since the beginning of the automobile. Manufacturers have seen the merit in the “Win on Sunday, Sell on Monday” marketing formula; recent studies back up those beliefs.

Fast halo cars are aspirational vehicles created for shoppers. Lots of Chevy buyers spend time gawking at the slick new Corvette in the showroom; most end up buying sport-utility vehicles or ordinary sedans. Many of the styling cues from the halo cars trickle down to the more pedestrian vehicles, as does the latest automotive technology, from antilock-braking systems to suspension improvements to aerodynamics to turbo chargers.

Two years ago, I suggested Musk create just such a halo car: “Put a sexier body on the Model S — low-slung, fat tires, gull-wing doors and steal share from Ferrari, Lamborghini, McLaren, Porsche, Bentley and Bugatti.” Minus the gull-wings, the new roadster is all that, and more.

When Musk first rolled out the Tesla Model S P100 “Ludicrous Mode” in 2015, reports noted that 100km/h in 2.8s seconds is “crazy fast”. For a fraction of the cost, the five-passenger, four-door sedan was competitive with the likes of Lamborghini, Bentley and Porsche. It was not long before videos of the Tesla Model X P90D Ludicrous — a bulbous, ungainly SUV — was shown smoking a Ferrari F430 in a drag race.

Performance advantages

Pure electric cars like the Roadster have several inherent performance advantages, most notably immediate peak torque and a single-gear transmission. That’s a large part of the reason why these cars tend beat their petrol-powered competitors in drag races.

To be fair, the $200 000 F430 was produced between 2004 and 2009, so it isn’t Ferrari’s latest, greatest speed ship. That would be the LaFerrari, the company’s $1.4m flagship. It has a 6.3l V12 engine, with an electric hybrid drive, and makes an enormous 949 horsepower. That translates into 0-100km/h in 2.6s.

In other words, LaFerrari owners pay an extra $1.2m for the opportunity to be beaten by the new Roadster.

The same day Musk was rolling out his Roadster, The Wall Street Journal reviewed the brand new 2018 Porsche 911 GT2 (price, $325 250 as tested) with the question, “Is this the fastest street-car ever?” The answer — 0-100km/h in 2.7s — was almost. But within six hours, once the Tesla Roadster was introduced, it wasn’t close. Perhaps the Porsche Mission E will prove to be more competitive.

Other supercars are suffering similar fates. The $1.3m McLaren P1 hits 100km/h in 2.7s (tweaked versions can reach 100 in 2.4s); the Porsche 918 Spyder goes 0-100 in 2.6s and costs $847 000. A six-figure upgrade shaves a few tenths of a second off that time, but not enough to beat a car that costs three-quarters of a million dollars less.

If these supercars can’t beat the Tesla, perhaps the next generation of “hypercars” can: Aston Martin’s Valkyrie and Mercedes-AMG Project One both cost about $3m. Undeniably beautiful and extremely limited in production, these spectacular cutting-edge cars in present form will both be slower than the Tesla Roadster.

The speed crown matters to car makers. Most all of the major car manufacturers have been frightened by Tesla into embracing hybrid and/or electric vehicles. How successful Tesla is as a car company is almost beside the point and is surely open to extended debate. But it has already forced the rest of the industry into following its electric lead.  — By Barry Ritholtz, (c) 2017 Bloomberg LP

Article source: https://techcentral.co.za/tesla-scares-rest-car-industry/78234/

APAC to Dominate the Automotive Transmission Dynamometer Market | Technavio

LONDON–(BUSINESS WIRE)–The latest market research report by Technavio
on the global
automotive transmission dynamometer market
predicts a CAGR of more
than 29% during the period 2017-2021.

The report segments the global automotive transmission dynamometer
market by geography, including the Americas, EMEA, and APAC. It provides
a detailed illustration of the major factors influencing the market,
including drivers, opportunities, trends, and industry-specific
challenges.

Here are some key findings of the global automotive transmission
dynamometer market, according to Technavio
automotive
researchers:

  • Increasing vehicle population and rapid growth in APAC: a major market
    driver
  • Potential increase in HEV and EV population to impact dynamometer
    testing
  • In 2016, APAC held the largest market share of close to 52%, followed
    by the Americas and EMEA
  • SuperFlow Dynamometers Flowbenches, Meidensha, HORIBA MIRA, SAKOR
    Technologies, Taylor Dynamometer, and Power Test are the key vendors

This report is available at a USD 1,000 discount for a limited time
only:
View
market snapshot before purchasing

Buy 1 Technavio report and get the second for 50% off. Buy 2
Technavio reports and get the third for free.

Market growth analysis

The automotive industry is witnessing favorable conditions across
multiple geographies. The vehicle production numbers, which include
passenger cars and commercial vehicles, stood at 94.29 million units in
2016. This is one of the major factors driving the global automotive
transmission dynamometer market
. APAC is the fastest-growing vehicle
market in terms of both production and consumption. Therefore, the
expansion of existing production facilities and the rapid additions of
production facilities in APAC will drive the market for automotive test
equipment, such as dynamometers. The rise in demand for automobile
restoration, especially in the fast-growing markets like India and
China, is expected to further drive the market for engine dynos.

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a free sample report

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sections of the report including the market size and forecast, drivers,
challenges, trends, and more.

Geographical analysis

Technavio researchers anticipate high growth for the global automotive
transmission dynamometer market
in APAC as the region serves as the
largest automotive component-manufacturing hub. Rising demand for
vehicles from countries, such as China, South Korea, and India, is
attracting global automotive manufacturers to invest in and operate from
these countries, driving the need for testing equipment. Technological
advancements, in terms of the development of engines, powertrains,
alternative fuel technologies, stringent emission norms, in addition to
the steady automobile production in the Americas and EMEA are boosting
the automotive transmission dynamometer market.

According to Neelam Barua, a lead analyst at Technavio for research on
automotive
services
, “Promising economic growth potential in emerging
countries is boosting the number of market opportunities for passenger
cars, thereby, attracting global automobile manufacturers to this
region. While market players are investing in technology to drive
innovation in engines and powertrains, they are also expanding
production facilities and setting up new facilities to cater to growing
regional demand and beyond. These factors are increasing demand for
automotive test equipment, including dynamometers.”

Competitive vendor landscape

The automotive industry increasingly demands continuous innovations in
products and manufacturing processes. Consumers highly value the
durability and reliability factors of vehicles, and these determine the
reputation of the brand. Therefore, automotive test equipment will
continue to be critical in delivering and exceeding customers’
expectations through the concept of automotive test equipment. The
dynamism in the industry is also helping in driving testing requirements
and evolving the need for high-performance equipment. This, in turn, is
generating several market opportunities for vendors operating in this
space.

Get a sample copy of the global
automotive transmission dynamometer market
report free of cost

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services
research library and find expert analysis on hundreds of
markets.

About Technavio

Technavio
is a leading global technology research and advisory company. Their
research and analysis focuses on emerging market trends and provides
actionable insights to help businesses identify market opportunities and
develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists
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Article source: http://www.businesswire.com/news/home/20171117005555/en/APAC-Dominate-Automotive-Transmission-Dynamometer-Market-Technavio

Tesla scares the rest of the auto industry

On Thursday, Tesla founder and Chief Executive Officer Elon Musk introduced the company’s new electric-powered tractor trailer. The “Semi” goes 500 miles on a charge, uses Tesla’s semiautonomous driving system, with lane keeping and autobraking. The truck has lower center of gravity than traditional haulers, dramatically reducing rollover risk; dynamic torque distribution lowers the chance of jack-knifing. Musk promised the truck “will not break down for a million miles.”

That wasn’t the big news.

Musk, in a very Steve Jobs-like, “Oh, and one more thing” moment, introduced the Tesla Roadster. The $200,000, all-wheel drive supercar goes 0-60 mph in a mind-blowing 1.9 seconds, making it the fastest production car ever. Oh, and it tops out at more than 250 mph.

Why does speed matter? Automakers have been sponsoring racing teams since the beginning of the automobile. Manufacturers have seen the merit in the “Win on Sunday, Sell on Monday” marketing formula; recent studies back up those beliefs. Fast halo cars are aspirational vehicles created for shoppers. Lots of Chevy buyers spend time gawking at the slick new Corvette in the showroom; most end up buying sport-utility vehicles or ordinary sedans. Many of the styling cues from the halo cars trickle down to the more pedestrian vehicles, as does the latest automotive technology, from antilock-braking systems to suspension improvements to aerodynamics to turbo chargers.

Two years ago, I suggested Musk create just such a halo car: “Put a sexier body on the Model S – low-slung, fat tires, gull-wing doors and steal share from Ferrari, Lamborghini, McLaren, Porsche, Bentley and Bugatti.” Minus the gull-wings, the new roadster is all that, and more.

When Musk first rolled out the Tesla Model S P100 “Ludicrous Mode” in 2015, reports noted that “sixty miles per hour in 2.8 seconds is crazy fast.” For a fraction of the cost, the five-passenger, four-door sedan was competitive with the likes of Lamborghini, Bentley and Porsche. It was not long before videos of the Tesla Model X P90D Ludicrous – a bulbous, ungainly SUV – was shown smoking a Ferrari F430 in a drag race.

Pure electric cars like the Roadster have several inherent performance advantages, most notably immediate peak torque and a single-gear transmission. That’s a large part of the reason why these cars tend beat their gasoline-powered competitors in drag races.

To be fair, the $200,000 dollar F430 was produced between 2004-09, so it isn’t Ferrari’s latest greatest speed ship. That would be the LaFerrari, the company’s $1.4 million flagship. It has a 6.3-liter V-12 engine, with an electric hybrid drive, and makes an enormous 949 horsepower. That translates into 0-60 mph in 2.6 seconds.

In other words, LaFerrari owners pay an extra $1.2 million dollars for the opportunity to be beaten by the new Roadster.

The same day Musk was rolling out his Roadster, the Wall Street Journal reviewed the brand new 2018 Porsche 911 GT2 (price, $325,250 as tested) with the question “Is this the fastest street-car ever?” The answer – 0-60 in 2.7 seconds – was almost. But within six hours, once the Tesla Roadster was introduced, it wasn’t close. Perhaps the Porsche Mission E will prove to be more competitive.

Other super cars are suffering similar fates. The $1.3 million McLaren P1 hits 60 in 2.7 seconds (tweaked versions can reach 60 in 2.4 seconds); the Porsche 918 Spyder goes 0-60 in 2.6 seconds and costs $847,000. A six-figure upgrade shaves a few tenths of a second off that time, but not enough to beat a car that costs three-quarters of a million dollars less.

If these supercars can’t beat the Tesla, perhaps the next generation of “hypercars” can: Aston Martin’s Valkyrie and Mercedes-AMG Project One both cost about $3 million. Undeniably beautiful and extremely limited in production, these spectacular cutting-edge cars in present form will both be slower than the Tesla Roadster.

The speed crown matters to automakers. As we noted earlier this week, most all of the major auto manufacturers have been frightened by Tesla into embracing hybrid and/or electric vehicles. How successful Tesla is as a car company is almost beside the point and is surely open to extended debate. But it has already forced the rest of the industry into following its electric lead.

Barry Ritholtz is chief investment officer of Ritholtz Wealth Management.

Article source: http://www.dailyrepublic.com/business/tesla-scares-the-rest-of-the-auto-industry/

Grand Auto Sales to celebrate grand opening Saturday

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Article source: http://www.theindependent.com/news/local/grand-auto-sales-to-celebrate-grand-opening-saturday/article_d2896a12-cb27-11e7-9a2c-978ddda8edb7.html

Demand from Automotive Industry to Boost the Global Tannin Market | Technavio

LONDON–(BUSINESS WIRE)–Technavio’s latest market research report on the global
tannin market
provides an analysis on the most important trends
expected to impact the market outlook from 2017-2021. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.

The growing demand for tannin from the leather manufacturing and
winemaking industries is the key driving factor for the market growth.
The growth in these industries is attributed to the rising disposable
income of consumers. In addition, the high demand for wood adhesives is
also fostering the market for tannin.

This report is available at a USD 1,000 discount for a limited time
only:
View
market snapshot before purchasing

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Technavio reports and get the third for free.

The top three emerging market trends driving the global tannin
market
according to Technavio research analysts are:

  • Development of new technologies and RD activities in automotive
    industry
  • Growing demand for wood adhesives
  • Demand from food and beverages industry

Looking for more information on this market? Request
a free sample report

Technavio’s sample reports are free of charge and contain multiple
sections of the report including the market size and forecast, drivers,
challenges, trends, and more.

Development of new technologies and RD activities in automotive
industry

The use of tannin in the automotive segment is directly proportional to
the use of leather. The high-quality leather used in the automotive
segment for car upholstery is manufactured using tannin. Therefore, the
increasing use of leather in the automotive industry augurs well for the
growth of the tannin market.

According to Mohd Shakeel Iqbal, a lead analyst at Technavio for specialty
chemicals
research, “Companies are making significant investments
in RD activities and are striving toward the development of an
environment-friendly leather manufacturing processes. The development of
new technologies which are at par with the needs of the automotive
industry is expected to foster growth in the global tanning market.”

Growing demand for wood adhesives

The global tannin market is expected to grow during the forecast period
because of the growth in the wood adhesives market. The growing number
of construction activities along with increasing consumer spending on
building refurbishment and renovation will drive the wood adhesives
market in the next five years. Tannin is used as an essential feedstock
to manufacture wood adhesives that are used in wooden furniture,
flooring, windows, doors, and in musical instruments as well.

The growing demand for wood adhesives is also attributed to the
compatibility of wood adhesives with a wide range of substrates, low
production cost, and faster curing time. The regions where the demand
for wood adhesives is growing are the Americas, APAC, and Europe. Thus,
with the growing use of wood adhesives, the consumption of tannin is
also expected to grow during the forecast period.

Demand from food and beverages industry

The demand for tannin in the food industry is growing in Europe as well
as in APAC. Tannins are extensively used in red wines. Wine is made from
the skins, seeds, and stems of grapes. Tannins are added to the wine
during the winemaking process. They help in a long and graceful aging
potential and add softer and more elegant flavor to the wine. Tannins
derived from Oak trees enhance the smell and taste of the wine by adding
unique notes of vanilla and licorice. Tannins also act as natural
preservatives and prevent oxidation and spoiling in wines.

“The increasing consumption of tannin in the food and beverages
industry is expected to fuel the growth in the global tannin market.
Apart from wine, tannin is used by several companies as food
preservatives. Companies are using new procedures to process tannin from
different sources to facilitate higher shelf life to the food products.
This is also expected to foster the demand for tannin in next five
years,”
says Shakeel.

Browse Related Reports:

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Article source: http://www.businesswire.com/news/home/20171116005638/en/Demand-Automotive-Industry-Boost-Global-Tannin-Market

IgnitionOne Releases Q3 Automotive Industry Benchmarks Report

NEW YORK, Nov. 16, 2017 (GLOBE NEWSWIRE) — IgnitionOne, a global marketing technology and data analytics provider with a focus on the auto industry, announced the release of its Automotive Industry Report, establishing key industry benchmarks for Q3 2017 that allow automotive manufacturers and their dealers to compare website performance, visitor engagement over time and lead volumes by car segment and region. 

“Understanding consumer trends based on actionable insights within millions of data points enables auto marketers to make strategic decisions on where to invest their budgets,” said Rachel Pierson, Global Director, Strategic Accounts at IgnitionOne. “Automakers can pivot around current behavioral trends to target users with personalized experiences to achieve their marketing goals. Auto brands that win harness data insights to boost engagement, increase lead volumes and ultimately sales.”

Methodology and Summary of Findings
Based on 1st party data gathered from 350+ auto manufacturers and dealer websites across more than 50 countries, the report looks at global and car segment trends including website visits, visitor engagement, buying intent signals, and cumulative leads. The proprietary IgnitionOne Score™ models and defines, in real-time, the propensity to convert a visitor to a website, exploring how engaged they are with the automotive brand’s site, car models, products and offerings that they visit.

In summary, initial findings focus on monthly and quarterly comparisons related to traffic, as well as global trends around consumer engagement. The report closely examines lead volume trends by global region and by car segment (mid-size car, SUV, full-size pickup, compact SUV, et al). “Leads” are visitors who ultimately request a quote, voucher, or test drive, and therefore, when quantified and analyzed in detail, this lead data yields highly valuable intelligence for auto manufacturers and dealers alike.

“Digital transformation is changing the way auto manufacturers and their dealers think about customer experience, sales strategies, and marketing. It is key to auto manufacturers’ success, arming them with an arsenal of consumer data intent signals they can use to refine their plans,” said Will Margiloff, CEO of IgnitionOne. “The insights we’ve seen in Q3 alone prove that OEMs and their dealers need to leverage focused, data-driven strategies that target true ‘in market’ buyers, rather than random, broad-based efforts. This data-driven approach will allow them to counter down quarters and keep ahead in a highly competitive space.”

About the IgnitionOne Auto Solution
IgnitionOne provides intelligent marketing technology solutions and services that drive real-time customer engagement helping auto manufacturers, dealers and lead aggregators by providing data intelligence and the tools required to activate data-driven marketing strategically and effectively. Powered by IgnitionOne Score™, their proprietary data solutions and methodology allow marketers to create unique, one-to-one communications with both prospects and current customers to convert highly-interested users into qualified leads. These score-powered communications can be deployed through programmatic Display, Facebook, Google, and Website Personalization.

The debut report is the first in a quarterly sequence, with the next report anticipated in January 2018. Download the Q3 report here.

About IgnitionOne
IgnitionOne offers technology and services that help marketers win. The company focuses on intelligent audience creation, real-time cross-channel scoring, and robust optimization – providing a layer for smarter marketing decisions and deeper insights, whether you use native IgnitionOne solutions such as Search, Display, Email, and Website Personalization – or the marketing technology you already have.

With a global footprint of over 450 employees in 10 countries, IgnitionOne is one of the largest independent marketing technology companies in the world, currently scoring over 300 million users monthly in 75 countries and powering more than $60 billion in revenue each year for leading brands, including General Motors, CenturyLink, La Quinta and Acer, as well as advertising agencies such as 360i, GroupM and ZenithOptimedia.

For more information, please visit http://www.ignitionone.com or follow the company on Twitter @ignitionone. 

Contact:
Kendall Allen
For IgnitionOne
kallen@witstrategy.com 

Article source: https://globenewswire.com/news-release/2017/11/16/1194336/0/en/IgnitionOne-Releases-Q3-Automotive-Industry-Benchmarks-Report.html

SCBA Pres. Thom Callahan To Speak At JD Power/NADA Auto Industry Event


  • ThomCallahan.jpg

    Thom Callahan

    SOUTHERN CALIFORNIA BROADCASTERS ASSOCIATION (SCBA) Pres. THOM CALLAHAN will be a featured speaker at the J.D. POWER/NADA automotive industry event entitled; “Automotive Conference-LA” on NOVEMBER 28th at the INTERCONTINENTAL hotel in downtown LOS ANGELES. The J.D. POWER/NADA AUTOMOTIVE CONFERENCE will attract about 400 auto industry guests including manufacturers, dealer groups, dealers, J.D. POWER and NATIONAL AUTOMOTIVE DEALER ASSOCIATION (NADA) management, and their agencies.

    “The power and value of AM/FM radio in SOUTHERN CALIFORNIA to influence and motivate new and used vehicle buyers is made crystal clear in our NIELSEN/SCBA automotive research study; “The Local Path to Automotive Purchase,” CALLAHAN said. “Our speaking engagement on 11/28 will use the compelling facts of this study to make our case for Radio’s use on a larger scale, directly to the automotive industry.

    The SCBA has been presenting their joint NIELSEN/SCBA research study; “The Local Path to Automotive Purchase” to dealers, dealer associations and their agencies throughout SOUTHERN CALIFORNIA. The automotive study can be read at www.scba.com, reveals actual vehicle buyer preferences, and what media influences their buying decisions as well as their buying patterns.

    “We are excited to be speaking directly to automotive senior management using the compelling facts of our NIELSEN/SCBA study, to not only build value, but to make radio an even larger partner to the automotive industry,” he continued.

    « see more Net News


  • Article source: https://www.allaccess.com/net-news/archive/story/171538/scba-pres-thom-callahan-to-speak-at-j-d-power-nada

    Soft Magnetic Materials Market (2017-2022): Growing Demand from Automotive Industry – Research and Markets

    DUBLIN–(BUSINESS WIRE)–The “Soft
    Magnetic Materials Market: By Material, By Application, By End-Use
    Industry By Geography – Forecast (2017- 2022)”
    report has
    been added to Research and Markets’ offering.

    Soft magnetic materials can be defined as the materials which possesses
    the properties which allows it to be magnetised and demagnetised easily
    and as and when required. Globally increasing usage of soft magnetic
    materials in automotive industries is expected to remain one of the key
    growth driver for soft magnetic materials during the period of study.

    This report identifies the global soft magnetic materials market size in
    for the year 2015-2017, and forecast of the same for year 2022. It also
    highlights the potential growth opportunities in the coming years, while
    also reviewing the market drivers, restraints, growth indicators,
    challenges, market dynamics, competitive landscape, and other key
    aspects with respect to global soft magnetic materials market.

    Geographically Asia-Pacific dominated global soft magnetic materials
    market due to higher demand of the soft magnetic materials in the region
    as result of presence of large number of established players in the
    major end-use industry especially, automotive industry which is
    predominantly driving the demand for the soft magnetic materials
    globally. Asia-Pacific was followed by Europe and North America as the
    second and third largest markets for soft magnetic materials. However,
    increasing industrial investments and establishments in Asia-Pacific and
    growing number of presence of end-use industries in the region is
    expected to result into highest growth amongst all the regional market
    in the soft magnetic materials market place.

    Companies Mentioned

    • Hitachi Metals Ltd.
    • Toshiba Materials Company Ltd.
    • GKN Sinter Metals
    • Sintex A/S
    • Mate Co. Ltd.
    • Vacuumschmelze GmbH C0. Kg
    • Steward Advanced Materials
    • SA Technologies Limited
    • Ames SA
    • Daido Steel Co. Ltd.

    Key Topics Covered:

    1. Market Overview

    2. Executive Summary

    3. Market Landscape

    4. Market Forces

    5. Strategic Analysis

    6. Soft Magnetic Materials Market, By Material Type

    7. Soft Magnetic Materials Market, By Applications

    8. Soft Magnetic Materials Market, By End-Use Industry

    9. Soft Magnetic Materials Market, By Geography

    10. Market Entropy

    11. Company Profiles

    For more information about this report visit https://www.researchandmarkets.com/research/mtfbwl/soft_magnetic

    Article source: http://www.businesswire.com/news/home/20171116005678/en/Soft-Magnetic-Materials-Market-2017-2022-Growing-Demand