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Charity launches automotive industry health survey

A CHARITY that provides support to people in the automotive industry has launched a health survey for current and past workers.

The not-for-profit organisation – which partners with Car Dealer each year for the madcap rally Bangers4Ben – is seeking insights from industry people to help shape future services and meet the needs of those in the automotive sector. It says the feedback will also ensure that its health and well-being services stay relevant to those in the industry which, in turn, will help more people deal with life’s challenges in the future.

Zara Ross

Zara Ross

By doing so, Ben says it can reduce absences, improve productivity and raise morale. The survey is confidential and anonymous.

Zara Ross, the chief executive of Ben, said: ‘If you work or have worked in the automotive industry, then we would love to hear from you. Thank you in advance for taking part in our survey.

‘Your valuable feedback will enable us to continue offering relevant health and well-being services for the industry. With your support, you’re enabling us to support even more people.’

The survey, which Ben says takes just five minutes, can be accessed here.

MORE: All aboard The Alpine Special for this year’s Bangers4Ben!

MORE: Last year’s Bangers4Ben winners revealed

MORE: B4B16 pictures now available

On SuperUnleaded.com: Audi discovers you can’t compare women to used cars without a backlash

Article source: http://cardealermagazine.co.uk/publish/charity-launches-automotive-industry-health-survey/136860

BizVibe Examines the Latest Developments and Growth …

LONDON–(BUSINESS WIRE)–The global
automotive industry
and its major segments, such as the auto
parts sector and electric car sector have experienced some major changes
over the recent years. As the production of conventional vehicles enjoys
steady growth in some countries, other factors, including E-commerce
auto parts sales and the booming electric car market, may bring new
opportunities and challenges to the global market. Details about these
latest developments and global growth opportunities in the auto industry
are some of this week’s top stories on BizVibe. BizVibe is the world’s
smartest B2B marketplace
, which allows its users to discover
high quality leads, contact prospects, and source quotes in real time.

UK Automotive Production Reaches 17-year High

A recent industry report shows that UK’s
automotive production
reached 1.73 million units in 2016,
marking the country’s highest auto production level since 1999.
Passenger cars accounted for 95% of total automotive production in the
UK and 96% of UK vehicle exports in 2016. Commercial Vehicle (CV) output
remained steady in 2016, with an output of 94,000 vans, trucks, buses
and coaches, a smaller 0.6% decline.

Despite the uncertainties caused by Brexit, the overall picture for UK
automotive production remains positive with consistently growing
automotive production and auto sales over the recent years. The UK’s
automotive industry is expected to grow
faster in the next five years than in the past five decades
, as
auto production in 2017 is predicted to reach 1.9 million units.

Connect with over 8,700
automobile companies in UK
listed on BizVibe.

Amazon Expands Its Auto Parts Business in the US

Following Amazon’s
recent entry to the auto parts industry
, the American online
retail giant has made several strong deals with some of the largest
suppliers of US auto parts. Amazon’s current selection of parts is
already selling for less than the biggest brick-and-mortar retailers
offer them for; on average, the difference is 23% less. Amazon will also
be offering same-day delivery of auto parts to 40 major US cities.

BizVibe predicts that lowered prices combined with the convenience of
delivery services that Amazon offers for its auto parts sales could put
a lot of US auto parts retailers in danger, as consumers will have
greater access to auto parts and will benefit from reduced prices and
speedy delivery, while retailers may have to struggle to attract new
customers and make sales from their physical stores.

Connect with over 54,000
auto parts companies around the
world listed on BizVibe.

How Is Booming Electric Car Market Threatening
Oil Companies?

A recent industry report suggests that the
ongoing success of the electric car market may reduce oil demand

by as much as eight million barrels a day, about 8% of the expected
global total. Oil companies around the world are beginning to treat
electric vehicles as a serious threat to their profits as awareness of
this potential outcome grows.

Industry experts point out that the growing popularity and availability
of electric cars is pushing uncertainty into the futures of oil
companies around the globe. The influence and revenue of oil companies
could ultimately suffer as a result of electric vehicle adoption, as
oversupply will likely lead to a reduction in oil prices.

Connect with over 110,000
automobiles companies around the
world listed on BizVibe

In addition to auto companies, BizVibe is home to more than seven
million companies across 700+ industries
.
Using BizVibe’s platform, users can generate leads, shortlist prospects,
network with businesses from around the world, and trade
seamlessly. The BizVibe platform allows you to discover the highest
quality leads and make meaningful connections with companies of
interest, all in real-time. Claim
your company profile for free 
and let BizVibe connect you
with potential business partners. To make things as simple as possible, use
the BizVibe Chatbot to create new business opportunities
.

About BizVibe

The single-minded focus of BizVibe’s platform is to make networking
easier. Over the years, we’ve searched far and wide to figure out how
businesses connect and enable trade. That first interaction is usually
fraught with the uncertainty of finding a potential partner vs. a
potential nightmare. With this in mind, we’ve designed a robust set of
tools to help companies generate leads, shortlist prospects, network
with businesses from around the world and trade seamlessly.

BizVibe is headquartered in Toronto, and has offices in London,
Bangalore and Beijing. For more information on the BizVibe network,
please contact
us
.

Article source: http://www.businesswire.com/news/home/20170719006308/en/BizVibe-Examines-Latest-Developments-Growth-Opportunities-Global

GST: How automotive industry fared in Q1 FY’18, Auto News, ET Auto

Domestic sales in the month of June 2017 were bogged down by liquidation of stocks at the dealers end and OEMs withholding inventory due to the upcoming GST regime from 1 July.

Q1 of 2017-18 (April-June), saw the green shoots of recovery in the passenger vehicle market led by utility vehicles while the two- wheeler segment piggy-backed on growing urbanization in cities and towns that revved up demand for scooters.

Discounts and pre-buying especially in commercial vehicles and motorcycles due to the enforcement of BS-IV emission norms from 1 April 2017, led to overall domestic auto sales being a mixed bag marked by peaks and troughs in Q1.

In the passenger vehicle segment, Honda Cars India led the growth march recording the highest sales growth at 21.09 percent followed by market leader Maruti Suzuki India with an uptick of 13.97 percent. In market share, Maruti Suzuki was a distant first with a huge chunk of the pie (50.4 percent) with Honda Cars India garnering a nominal 5.29 percent share of the market.

Passenger vehicle Market Share in Q1 FY2018

Passenger vehicle Market Share in Q1 FY2018
Passenger vehicle Market Share in Q1 FY2018


The steepest decline in growth rate was witnessed by Toyota Kirloskar Motor (TKM) that was in the red with a dip of 25.52 percent and was trailed by Renault India with sales plummeting by 23.25 percent. All other carmakers were either up or down in single digits.

A look at Q1 of 2016-17, reveals Honda Cars India nose-diving 28.35 percent while Maruti Suzuki grew in single digits of 5.45 percent. TKM grew marginally at 1.2 percent while Renault India was up 173.04 percent on the back of its Kwid hatchback. The PV segment was then just emerging from the shadows of the slowdown in the market.

Incidentally, Maruti Suzuki has upped its market share to 50.48 percent in Q1FY18 from 46.90 percent in Q1FY17 on the back of growth in its utility vehicles especially the Vitara Brezza and the Ertiga.

All its segments have grown during this period including the Mini that saw a drop in June. Only the Omni and Eeco vans have tripped marginally from 36558 units in Q1FY17 to 35,739 units in the same period in FY18.

Edelweiss Securities maintains that a few players who have established a decisive lead are set to further fortify their position over the next 3-5 years. In PVs Maruti Suzuki’s dominance will rise further with its gap with peers widening.

Passenger vehicle Market Share in Q1 FY2017

Passenger Vehicle Market share in FY17
Passenger Vehicle Market share in FY17

While the company has done a catch up on the premiumisation band wagon, competition has gone back to the drawing board to recalibrate the strategy (including exiting domestic market). It has not only increased market share (900bps in 5 years), but is also expanding its dominance across other key areas—product launch cycle (2-3 launches every year), distribution reach (trebling on a high base), margin and free cash flow cycle.

TKM, MM, VW India, Renault and Ford India have been the key losers of market share in the first quarter of FY18.

TKM was down one slot in the pecking order in Q1FY18 taking it to sixth rank. It was replaced by Honda Cars India at fifth position, up two rung’s from seventh position in Q1 of last year.

Sales of the Toyota Liva hatchback have been slipping while TKMs frontrunner Etios sedan has almost halved its sales in FY18 to 3921 units from 7234 units during the same period in FY17. Sales of another popular model the Innova have plunged to 13,300 units in FY18 from 19699 units in Q1 last fiscal.

Only the Fortuner continues to command good numbers riding on the uptick in the UV segment and customers changing preference for SUVs. It has more than doubled its sales from 1999 units to 4543 units in the current FY18.

Renault India in turn has been nudged down one slot to seventh rank by TKM. Its Kwid sales are down to 20,385 units in Q1FY18 from 24,854 units in the same quarter last fiscal. The Pulse sold just 51 units while the Duster and Dacia Duster were also on the decline in FY18. Clearly the buyers penchant for new models is visible.

Almost all Ford vehicles faced a decline in sales during Q1FY18 but the carmaker has been performing well in export markets where it has even overtaken traditional passenger vehicle exporter, Hyundai Motor India.

Similarly German carmaker VW India has fared better in exports whereas MMs Verito sold just 28 units, and its popular Scorpio, Xylo, Bolero and HT were down to 22,551 units in FY18 from 23321 units in the same quarter last fiscal in the local market. Recently, the SUV maker discontinued its automatic variant of the Scorpio that might have taken the sheen off Scorpio numbers.

Early bird catches the worm

In two-wheelers it is a case of the early bird catches the worm. The ability to carve a new category is the sole success mantra, and once a player achieves leadership, it’s difficult to dislodge him. At the current juncture, two categories are set to drive industry growth – scooters and above250cc motorcycles.

The key drivers are shift in preference, lower penetration levels and emergence of women as key demand influencers.

HMSI has garnered a market share of 57 percent up by 900bps in the past 5 years in scooters improving its margin and is now in striking distance of industry leader Hero MotoCorp both in terms of margins and market share, maintains Edelweiss Securities.

Two Wheelers Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18

In the two-wheeler market, all OEMs have slid in terms of growth rates in Q1FY18 compared to the same quarter last year except for Suzuki Motorcycle India and Piaggio Vehicles. Suzuki for instance, has catapulted from a negative 9.3 percent growth to 50.71 percent this fiscal.

Piaggio on the other hand has improved its performance from 4.65 percent in Q1 last fiscal to a phenomenal 90.97 percent in Q1FY18.

Suzuki’s Gixxer and Access 125 models are driving the numbers for Suzuki that has been witnessing a robust growth in the last few months. For example during Q1 FY18, Suzuki’s sales in Access, Lets and Swish scooters have garnered sales of 89323 units in Q1FY18 compared to 56424 units in Q1FY17. Its Gixxer model was up at 16799 units from 12072 units in Q1 last fiscal.

Two Wheelers Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18

Piaggio’s Vespa and Aprilia SR 150 scooters have mustered the numbers growing on a low base.

The steepest decline in growth rate is experienced by Bajaj Auto that is down by 22.29 percent from an uptick of 12.98 percent in Q1FY17. The biggest gainer in market share is Honda Motorcycle and Scooter India that is up from 27.24 percent in Q1FY17 to 30.19 percent in the same period in FY18.

Royal Enfield and Honda Motorcycle and Scooter India are riding a multi-year demand up-cycle in above 250cc motorcycles and scooters owing to their first-mover advantage.

Commercial vehicles face a washout

Meanwhile, the commercial vehicle segment has seen a complete wash out with all the key players facing double digit declines in domestic sales except for MM and Isuzu Motors.

Edelweiss Securities believes that the traditional auto sector valuation framework is undergoing a change, reflecting business dynamics (growth and cash flows), individual company domination and prospects, and drawing parallels with consumers facing businesses across sectors from banking to commodities.

It believes that Ashok Leyland may dethrone market leader Tata Motors in MHCVs going forward.

​ Commerical Vehicle Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18

However in Q1FY18 Tata Motors has upped its market share to 30.8 percent from 8.14 percent in the same quarter in FY17.

MM’s share is also up to 30.5 percent from 23.7 percent last fiscal while Maruti Suzuki has just opened its innings with its Super Carry LCV and has chipped in with a market share of 0.68 percent in FY18.

Commerical Vehicle Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18

Overall the domestic commercial vehicle industry ended Q1 FY 2018 with a contraction of 9 percent in unit sales primarily led by a sharp decline in sales of medium and heavy commercial vehicles (MHCV) – trucks and buses.

Rating agency ICRA maintains the contraction in sales are the result of a combination of factors including pre-buying (in Q4 FY 2017 ahead of the BS-IV roll-out), deferment by fleet operators before GST roll-out and supply disruptions because of limited availability of components for BS-IV vehicles.

According to Subrata Ray, Senior Group Vice President, ICRA,” Despite weak performance in the first quarter, the industry will find its momentum back aided by increased thrust on infrastructure and rural sectors in the recent budget, potential implementation of fleet modernization or scrappage program and higher demand from consumption-driven sectors, especially for LCVs and intermediate commercial vehicles. Given these considerations, the domestic CV industry is likely to register a growth of 6-8 percent in FY 2018.”

Another segment in the red is three-wheelers with Atul Auto alone bucking the trend by turning positive at 11.54 percent compared to a downslide of 12.1 percent in Q1 FY17. Atul Auto manufactures auto rickshaws, pick-up vans and chassis of passenger vehicles.

Scooters India has de-grown 97.51 percent that is the highest in the segment. Understandably, as it is currently in the midst of disinvestment.

Three Wheelers Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18

One of the key players Bajaj Auto has lost market share from 53.9 percent in Q1FY17 to 49.8 percent in Q1FY18. Piaggio Vehicles, Atul Auto and MM are the major gainers with a growth of 28.4 percent, 5.2 percent and 8.6 percent.

Three Wheelers Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18

The Society of Indian Automobile Manufacturers Association of India has indicated that with the economy moving on the growth path, an improvement is visible in the fortunes of the automotive industry in FY18.

Inflation is lowering that will boost market demand. CPI inflation is pegged at 4 percent during FY 2018 against 4.5 percent for 2017 as food inflation will remain in control. Hence, buyers will have money to spend on vehicle purchase.

In addition, major commodity prices are on the downward path, vehicle finance rates are also stabilizing after being on the upward trajectory for a long time.

After the turmoil that had gripped the vehicle industry on the eve of GST, prices across the spectrum have started dropping that is an indication of sales picking up soon.

Further, the rupee has strengthened against the US dollar removing currency volatility in the overseas markets. This will also give a leg up to exports.

Though manufacturing and power sectors are growing, mining is still to take off and is affecting sales of MHCVs and tractor trailers used in this business.

Exports throw a surprise

Now for a closer look at exports during Q1FY18 that throws up a surprise. Barring commercial vehicles that were in the red at 34.02 percent, PVs were surging ahead at 13.79 percent, three-wheelers at 24.67 percent and two-wheelers at 14.75 percent taking overall exports to 13.74 percent.

In PVs, Ford India was the first in the pecking order overtaking leading car exporter Hyundai Motor India with volumes of 48971 units, up 54.37 percent. In the same period last fiscal the South Korean carmaker had maintained its supremacy with volumes of 39781 units. These carmakers were followed by VW India up 20.24 percent, Maruti Suzuki growing 0.27 percent and General Motors India up 111.61 percent in FY18.

For Ford the new Figo that is sold as the Ka+ in the UK and Europe is stoking the numbers. GM India has also seen a surge in its exports, particularly of the left-hand-drive Chevrolet Beat to many countries including Mexico, Chile, Peru, Central American and Caribbean Countries, Uruguay and Argentina. Its domestic business has already downed its shutters.

For the export biggies, Hyundai Motor India and Maruti Suzuki India manufacturing capacity constraints have been the primary reason in reduced export volumes as their priority was the domestic market.

MSIL had seen many new launches of which the Baleno has been a key driver of exports. For Hyundai, the Creta has been a large volume driver along with the Grand i10.

In CVs, Tata Motors is placed highest in the pecking order marginally increasing its market share to 53.2 percent in FY18 from 50.0 percent in Q1FY17.

It is followed by Ashok Leyland that moves two rungs up to the second position from the fourth rank in Q1FY17.

Barring commercial vehicles that were in the red at 34.02 percent, PVs were surging ahead at 13.79 percent, three-wheelers at 24.67 percent and two-wheelers at 14.75 percent taking overall exports to 13.74 percent.

Ashok Leyland’s exports turned positive with a 47.21 percent YoY growth in Q1FY18 from the earlier negative 34.16 percent.

Next in line is MM that is down in both volumes (2741 units) and growth rate (-65.81 percent) slipping to the third position from the number 2 slot in Q1FY17.

In two-wheelers, Bajaj Auto has held its pole position with its export growth turning positive at 7.88 percent during the period under review from a decline of 16.89 percent in Q1FY17.

So has TVS Motor Company with a growth of 23.72 percent from a decline of 3.07 percent in Q1FY17. Third in the ranking is HMSI that has upped its volumes (81862 units) and growth sizeably (44.25 percent).

In the three-wheeler segment the front runners are Bajaj Auto, TVS Motor Company and Piaggio Vehicles respectively though Bajaj maintains a clear and distant lead compared to the others with volumes of 60065 units and a positive growth of 30.11 percent up from a downslide of 46.98 percent in Q1FY17.

Only Force Motors sees a decline of 19.15 percent with export volumes of 532 units.

But with the economic forecasters all pointing to good times ahead as the economy bumps along, days are all set to brighten further in the days to come.

(Data sourced from SIAM)

Article source: http://auto.economictimes.indiatimes.com/news/industry/how-automotive-industry-fared-in-q1-fy18/59659189

Automotive industry to benefit from TRAIN

MANILA, July 18 – Contrary to claims that the proposed Tax Reform for Acceleration and Inclusion Act (TRAIN) will hurt the local automotive industry, the Department of Transportation (DOTr) said the bill will even benefit vehicle and car parts manufacturers given the projected high demand for alternative public utility vehicles under the jeep modernization program outlined in the tax reform package.

DOTR Assistant Secretary Mark Richmund de Leon said his Department is now in talks with the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Board of Investments to iron out an incentives program for the local car industry to help the government  modernize the country’s aging fleet of 200,000 to  300,000 public utility jeepneys (PUJs) nationwide.

De Leon disclosed this development as he expressed his support, along with officials of the Department of Energy (DOE) and the Land Transport Franchising and Regulatory Board (LTFRB) for the proposed adjustments in automobile excise taxes under the TRAIN.

“The DOTr fully supports the proposed excise tax reform package for the automotive industry. And again, we laud the effort and the noble intentions of the bill to propose the earmarking of the collections of the excise tax to support our “Build, Build,Build” Program of the DOTr, including earmarking certain portions of the collections to our public transport reform program, again to address the concerns of our two stakeholders: the car manufacturers and even the car users,” De Leon said at a recent hearing of the Senate ways and means committee.

The “Build, Build, Build Program pertains to the Duterte administration’s P8.4 trillion infrastructure buildup over the next five years.  The program aims to strengthen the country’s infrastructure backbone through the construction of new road networks, airports, seaports and mass transport systems nationwide and the deployment of rapid bus transit systems in Metro Manila, among other initiatives.

“For the car manufacturers, we’re telling the group that there’s a demand for public transportation vehicles. So we’re saying that we are replacing the public transport fleet: 200,000 to 300,000 jeepneys will be modernized, the buses will be  upgraded to low-floor buses, similar to what they have in Singapore, in Korea, and other progressive cities. There’s a huge demand for new vehicles, which the industry — the CAMPI, the parts manufacturers — will also benefit from,” de Leon said.

De Leon said the DOTr’s goal to reform the public transport system aims to help decongest traffic in Metro Manila’s main thoroughfares by encouraging car users to take public transport.

“In fact, in Alabang, the route from Alabang Town Center to Makati, we’ve done numerous surveys and they show that, in fact, 40 percent of the users there are previously car users, De Leon said.  “In order for people to really patronize public transportation, we just need to really reform the routes and even the public transport vehicles for it to be more attractive to this car-riding public.”

Augustine Vestil Jr. of the LTFRB agreed with De Leon’s statements. “So as far as the LTFRB is concerned, we fully support the position of the Department of Finance. At the same time, we hope that the PUV modernization will also be supported by the other stakeholders,” he said.

Director Patrick Aquino of the DOE’s Energy Utilization and Management Bureau lauded the government’s initiatives to encourage the manufacture of hybrid and alternatively fueled vehicles and also reiterated his Department’s support for TRAIN.

“We join the government in lauding the initiatives towards encouraging the manufacture of alternatively-fueled vehicles. We support the tax reform program,” he said.

The DOF has assured senators that subcompact sedans such as the Mitsubishi Mirage and compact multipurpose vehicles such as the Toyota Innova models will remain affordable to middle-class families despite the proposed automobile excise tax increases under the tax reform bill because they are bound to get significant personal income tax rate (PIT) cuts that will more than offset the slight price markups on these cars.

DOF Undersecretary Karl Kendrick Chua said the reforms in the excise tax system for automobiles under the TRAIN, will, however, impact luxury vehicles such as the Land Cruiser, given that the objective of tax reform is to make the system more progressive by imposing stiffer consumption taxes on the wealthy, or those who can well afford to pay these high rates.

The House of Representatives approved TRAIN or House Bill No. 5636—by an overwhelming majority before the Congress’ sine die adjournment. TRAIN is the first package of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).

This bill, which had consolidated the DOF’s endorsed proposal—HB 4774 filed by Quirino Rep. Dakila Carlo Cua—with 54 other tax-related measures, seeks to make the country’s tax system simpler, fairer and more efficient by slashing personal income tax rates and, to fill up the consequent revenue loss, by adjusting excise taxes on certain products and broadening the Value Added Tax (VAT) base.

Finance Secretary Carlos Dominguez III has said he hopes the Senate would act swiftly on the bill when the Congress opens its second regular session in July and retain the original features of TRAIN outlined in HB 4774. ”We can live” HB5636, “but of course it’s better if we get more,” he said. (DOF)

Article source: http://pia.gov.ph/news/articles/3441500275418

How automotive industry fared in Q1 FY’18

Domestic sales in the month of June 2017 were bogged down by liquidation of stocks at the dealers end and OEMs withholding inventory due to the upcoming GST regime from 1 July. Q1 of 2017-18 (April-June), saw the green shoots of recovery in the passenger vehicle market led by utility vehicles while the two- wheeler segment piggy-backed on growing urbanization in cities and towns that revved up demand for scooters.

Discounts and pre-buying especially in commercial vehicles and motorcycles due to the enforcement of BS-IV emission norms from 1 April 2017, led to overall domestic auto sales being a mixed bag marked by peaks and troughs in Q1.

In the passenger vehicle segment, Honda Cars India led the growth march recording the highest sales growth at 21.09 percent followed by market leader Maruti Suzuki India with an uptick of 13.97 percent. In market share, Maruti Suzuki was a distant first with a huge chunk of the pie (50.4 percent) with Honda Cars India garnering a nominal 5.29 percent share of the market.

Passenger vehicle Market Share in Q1 FY2018

Passenger vehicle Market Share in Q1 FY2018
Passenger vehicle Market Share in Q1 FY2018

The steepest decline in growth rate was witnessed by Toyota Kirloskar Motor (TKM) that was in the red with a dip of 25.52 percent and was trailed by Renault India with sales plummeting by 23.25 percent. All other carmakers were either up or down in single digits.

A look at Q1 of 2016-17, reveals Honda Cars India nose-diving 28.35 percent while Maruti Suzuki grew in single digits of 5.45 percent. TKM grew marginally at 1.2 percent while Renault India was up 173.04 percent on the back of its Kwid hatchback. The PV segment was then just emerging from the shadows of the slowdown in the market.

Incidentally, Maruti Suzuki has upped its market share to 50.48 percent in Q1FY18 from 46.90 percent in Q1FY17 on the back of growth in its utility vehicles especially the Vitara Brezza and the Ertiga.

All its segments have grown during this period including the Mini that saw a drop in June. Only the Omni and Eeco vans have tripped marginally from 36558 units in Q1FY17 to 35,739 units in the same period in FY18.

Edelweiss Securities maintains that a few players who have established a decisive lead are set to further fortify their position over the next 3-5 years. In PVs Maruti Suzuki’s dominance will rise further with its gap with peers widening.

Passenger vehicle Market Share in Q1 FY2017

Passenger Vehicle Market share in FY17
Passenger Vehicle Market share in FY17

While the company has done a catch up on the premiumisation band wagon, competition has gone back to the drawing board to recalibrate the strategy (including exiting domestic market). It has not only increased market share (900bps in 5 years), but is also expanding its dominance across other key areas—product launch cycle (2-3 launches every year), distribution reach (trebling on a high base), margin and free cash flow cycle.

TKM, MM, VW India, Renault and Ford India have been the key losers of market share in the first quarter of FY18.

TKM was down one slot in the pecking order in Q1FY18 taking it to sixth rank. It was replaced by Honda Cars India at fifth position, up two rung’s from seventh position in Q1 of last year.

Sales of the Toyota Liva hatchback have been slipping while TKMs frontrunner Etios sedan has almost halved its sales in FY18 to 3921 units from 7234 units during the same period in FY17. Sales of another popular model the Innova have plunged to 13,300 units in FY18 from 19699 units in Q1 last fiscal.

Only the Fortuner continues to command good numbers riding on the uptick in the UV segment and customers changing preference for SUVs. It has more than doubled its sales from 1999 units to 4543 units in the current FY18.
How automotive industry fared in Q1 FY’18
Renault India in turn has been nudged down one slot to seventh rank by TKM. Its Kwid sales are down to 20,385 units in Q1FY18 from 24,854 units in the same quarter last fiscal. The Pulse sold just 51 units while the Duster and Dacia Duster were also on the decline in FY18. Clearly the buyers penchant for new models is visible.

Almost all Ford vehicles faced a decline in sales during Q1FY18 but the carmaker has been performing well in export markets where it has even overtaken traditional passenger vehicle exporter, Hyundai Motor India.

Similarly German carmaker VW India has fared better in exports whereas MMs Verito sold just 28 units, and its popular Scorpio, Xylo, Bolero and HT were down to 22,551 units in FY18 from 23321 units in the same quarter last fiscal in the local market. Recently, the SUV maker discontinued its automatic variant of the Scorpio that might have taken the sheen off Scorpio numbers.

Early bird catches the worm

In two-wheelers it is a case of the early bird catches the worm. The ability to carve a new category is the sole success mantra, and once a player achieves leadership, it’s difficult to dislodge him. At the current juncture, two categories are set to drive industry growth – scooters and above250cc motorcycles.

The key drivers are shift in preference, lower penetration levels and emergence of women as key demand influencers.

HMSI has garnered a market share of 57 percent up by 900bps in the past 5 years in scooters improving its margin and is now in striking distance of industry leader Hero MotoCorp both in terms of margins and market share, maintains Edelweiss Securities.

Two Wheelers Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18

In the two-wheeler market, all OEMs have slid in terms of growth rates in Q1FY18 compared to the same quarter last year except for Suzuki Motorcycle India and Piaggio Vehicles. Suzuki for instance, has catapulted from a negative 9.3 percent growth to 50.71 percent this fiscal.

Piaggio on the other hand has improved its performance from 4.65 percent in Q1 last fiscal to a phenomenal 90.97 percent in Q1FY18.

Suzuki’s Gixxer and Access 125 models are driving the numbers for Suzuki that has been witnessing a robust growth in the last few months. For example during Q1 FY18, Suzuki’s sales in Access, Lets and Swish scooters have garnered sales of 89323 units in Q1FY18 compared to 56424 units in Q1FY17. Its Gixxer model was up at 16799 units from 12072 units in Q1 last fiscal.

Two Wheelers Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18
Piaggio’s Vespa and Aprilia SR 150 scooters have mustered the numbers growing on a low base.

The steepest decline in growth rate is experienced by Bajaj Auto that is down by 22.29 percent from an uptick of 12.98 percent in Q1FY17. The biggest gainer in market share is Honda Motorcycle and Scooter India that is up from 27.24 percent in Q1FY17 to 30.19 percent in the same period in FY18.
How automotive industry fared in Q1 FY’18
Royal Enfield and Honda Motorcycle and Scooter India are riding a multi-year demand up-cycle in above 250cc motorcycles and scooters owing to their first-mover advantage.

Commercial vehicles face a washout

Meanwhile, the commercial vehicle segment has seen a complete wash out with all the key players facing double digit declines in domestic sales except for MM and Isuzu Motors.

Edelweiss Securities believes that the traditional auto sector valuation framework is undergoing a change, reflecting business dynamics (growth and cash flows), individual company domination and prospects, and drawing parallels with consumers facing businesses across sectors from banking to commodities.

It believes that Ashok Leyland may dethrone market leader Tata Motors in MHCVs going forward.

Commerical Vehicle Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18
However in Q1FY18 Tata Motors has upped its market share to 30.8 percent from 8.14 percent in the same quarter in FY17. MM’s share is also up to 30.5 percent from 23.7 percent last fiscal while Maruti Suzuki has just opened its innings with its Super Carry LCV and has chipped in with a market share of 0.68 percent in FY18.

Commerical Vehicle Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18

Overall the domestic commercial vehicle industry ended Q1 FY 2018 with a contraction of 9 percent in unit sales primarily led by a sharp decline in sales of medium and heavy commercial vehicles (MHCV) – trucks and buses.
How automotive industry fared in Q1 FY’18
Rating agency ICRA maintains the contraction in sales are the result of a combination of factors including pre-buying (in Q4 FY 2017 ahead of the BS-IV roll-out), deferment by fleet operators before GST roll-out and supply disruptions because of limited availability of components for BS-IV vehicles.

According to Subrata Ray, Senior Group Vice President, ICRA,” Despite weak performance in the first quarter, the industry will find its momentum back aided by increased thrust on infrastructure and rural sectors in the recent budget, potential implementation of fleet modernization or scrappage program and higher demand from consumption-driven sectors, especially for LCVs and intermediate commercial vehicles. Given these considerations, the domestic CV industry is likely to register a growth of 6-8 percent in FY 2018.”

Another segment in the red is three-wheelers with Atul Auto alone bucking the trend by turning positive at 11.54 percent compared to a downslide of 12.1 percent in Q1 FY17. Atul Auto manufactures auto rickshaws, pick-up vans and chassis of passenger vehicles.

Scooters India has de-grown 97.51 percent that is the highest in the segment. Understandably, as it is currently in the midst of disinvestment.

Three Wheelers Market Share in Q1 FY2018
How automotive industry fared in Q1 FY’18

One of the key players Bajaj Auto has lost market share from 53.9 percent in Q1FY17 to 49.8 percent in Q1FY18. Piaggio Vehicles, Atul Auto and MM are the major gainers with a growth of 28.4 percent, 5.2 percent and 8.6 percent.

Three Wheelers Market Share in Q1 FY2017
How automotive industry fared in Q1 FY’18

The Society of Indian Automobile Manufacturers Association of India has indicated that with the economy moving on the growth path, an improvement is visible in the fortunes of the automotive industry in FY18.

Inflation is lowering that will boost market demand. CPI inflation is pegged at 4 percent during FY 2018 against 4.5 percent for 2017 as food inflation will remain in control. Hence, buyers will have money to spend on vehicle purchase.
How automotive industry fared in Q1 FY’18
In addition, major commodity prices are on the downward path, vehicle finance rates are also stabilizing after being on the upward trajectory for a long time.

After the turmoil that had gripped the vehicle industry on the eve of GST, prices across the spectrum have started dropping that is an indication of sales picking up soon.

Further, the rupee has strengthened against the US dollar removing currency volatility in the overseas markets. This will also give a leg up to exports.

Though manufacturing and power sectors are growing, mining is still to take off and is affecting sales of MHCVs and tractor trailers used in this business.

Exports throw a surprise

Now for a closer look at exports during Q1FY18 that throws up a surprise. Barring commercial vehicles that were in the red at 34.02 percent, PVs were surging ahead at 13.79 percent, three-wheelers at 24.67 percent and two-wheelers at 14.75 percent taking overall exports to 13.74 percent.
How automotive industry fared in Q1 FY’18
In PVs, Ford India was the first in the pecking order overtaking leading car exporter Hyundai Motor India with volumes of 48971 units, up 54.37 percent. In the same period last fiscal the South Korean carmaker had maintained its supremacy with volumes of 39781 units. These carmakers were followed by VW India up 20.24 percent, Maruti Suzuki growing 0.27 percent and General Motors India up 111.61 percent in FY18.

For Ford the new Figo that is sold as the Ka+ in the UK and Europe is stoking the numbers. GM India has also seen a surge in its exports, particularly of the left-hand-drive Chevrolet Beat to many countries including Mexico, Chile, Peru, Central American and Caribbean Countries, Uruguay and Argentina. Its domestic business has already downed its shutters.

For the export biggies, Hyundai Motor India and Maruti Suzuki India manufacturing capacity constraints have been the primary reason in reduced export volumes as their priority was the domestic market.

MSIL had seen many new launches of which the Baleno has been a key driver of exports. For Hyundai, the Creta has been a large volume driver along with the Grand i10.

In CVs, Tata Motors is placed highest in the pecking order marginally increasing its market share to 53.2 percent in FY18 from 50.0 percent in Q1FY17.
How automotive industry fared in Q1 FY’18
It is followed by Ashok Leyland that moves two rungs up to the second position from the fourth rank in Q1FY17.

Barring commercial vehicles that were in the red at 34.02 percent, PVs were surging ahead at 13.79 percent, three-wheelers at 24.67 percent and two-wheelers at 14.75 percent taking overall exports to 13.74 percent.

Ashok Leyland’s exports turned positive with a 47.21 percent YoY growth in Q1FY18 from the earlier negative 34.16 percent.

Next in line is MM that is down in both volumes (2741 units) and growth rate (-65.81 percent) slipping to the third position from the number 2 slot in Q1FY17.

In two-wheelers, Bajaj Auto has held its pole position with its export growth turning positive at 7.88 percent during the period under review from a decline of 16.89 percent in Q1FY17.
How automotive industry fared in Q1 FY’18
So has TVS Motor Company with a growth of 23.72 percent from a decline of 3.07 percent in Q1FY17. Third in the ranking is HMSI that has upped its volumes (81862 units) and growth sizeably (44.25 percent).

In the three-wheeler segment the front runners are Bajaj Auto, TVS Motor Company and Piaggio Vehicles respectively though Bajaj maintains a clear and distant lead compared to the others with volumes of 60065 units and a positive growth of 30.11 percent up from a downslide of 46.98 percent in Q1FY17.

How automotive industry fared in Q1 FY’18

Only Force Motors sees a decline of 19.15 percent with export volumes of 532 units.
But with the economic forecasters all pointing to good times ahead as the economy bumps along, days are all set to brighten further in the days to come.

Article source: http://auto.economictimes.indiatimes.com/news/industry/how-automotive-industry-fared-in-q1-fy18/59659189

Turkish automotive industry approaches all-time exports record

The automotive industry, which had eclipsed $23.8 billion in exports last year, is marching toward an all-time high this year, possibly surpassing its record of $24.7 billion it set in 2008.

Automotive Industry Exporters’ Association (OIB) Chairman Orhan Sabuncu told Anadolu Agency that the automotive industry increased its exports by 22.4 percent from $11.7 billion in the first half of last year to $14.4 billion in the same period of this year.

Sabuncu said the automotive industry had an increase of 16.4 percent in exports in June, amounting to $2.5 billion, and that the sector, reached average exports of $2.4 billion on a monthly basis in the first half of the year.

He also said the automotive industry, which constituted 18.8 percent of Turkey’s total exports in the first half of the year, has maintained its place with this result.

‘We aim to break the all-time export record’

Recalling that the export record for the automotive industry was broken in 2008 with $24.7 billion, Sabuncu said the last quarter of the record year was adversely affected by the global economic crisis.

Sabuncu stated that the industry has gained a good momentum this year, pointing out that the economic crisis, which started in the last quarter of 2008, caused export figures to fall sharply in the last three months.

“Having achieved an average export volume of $2.3 billion on a monthly basis until September in 2008, the sector could only realize an average of $1.3 billion in the last three months,” he continued. “This year, there will be no change like this. Therefore, with a stable performance until the end of the year, we aim to break the all-time export record by reaching an export figure of over $27 billion.”

Article source: https://www.dailysabah.com/automotive/2017/07/18/turkish-automotive-industry-approaches-all-time-exports-record

Automotive Hall of Fame to induct former GM VP of Global Design Edward Welburn

By Alisha Dixon

The Automotive Hall of Fame will hold its 2017 Induction and Awards Gala Ceremony on Thursday at Cobo Center to recognize four global automotive leaders for their contributions to the automotive industry. The award is the industry’s highest honor. This year’s inductees include Albert Bombassei, August Fruehauf, Jack Roush and Edward Welburn, recently retired General Motors Vice-President of Global Design.

“I was excited initially, but it has really grown from that. I don’t think anyone could understand how much of an impact this is having on me. The passion I’ve had for automobiles since my childhood is based on the cars I saw while growing up. These legendary cars were designed by designers who are now in the Hall of Fame. It’s those designers that have been my heroes since my childhood,” Welburn said about being inducted into the Automotive Hall of Fame.

“Now, I’ll be listed along with my heroes. It’s unbelievable the impact it’s having on me.”

Referred to as “the man who brought beauty back to GM,” Welburn is the highest-ranking African American in the global automotive industry. During his 44-year

Career, Welburn rose through General Motors’ ranks beginning as GM’s first ever African American designer to becoming the first African American to lead GM’s global design division, a position he held from 2003-2016.

“I was the first African American designer hired by GM and it wasn’t something that I thought about at the time. I just wanted to design cars,” said Welburn.

As head of GM Design, Welburn was GM’s sixth head of design and the first to lead the company’s design division on a global level. Welburn managed the designs of the latest Corvette, Camaro, Malibu, Buick LaCrosse and Enclave and Cadillac CTS and numerous concepts that include the Buick Invicta and Avista and Cadillac Ciel.

Born in Philadelphia, Welburn’s love for cars began during his childhood. A trip to the 1958 Philadelphia International Auto Show, he revealed, was a pivotal moment for the then 8 year-old.

“I’ve been drawing cars since I was 2 1/2. At age 8, I was at the auto show with my parents and I saw a concept car that just totally blew my mind and I told my parents right there, at age 8, that when I grow up I’m going to design cars for that company. It was the Cadillac Cyclone concept,” the former GM VP said about deciding to become a designer.

“By age 11, I figured out where that car and other GM cars were designed and I wrote a letter to GM Design asking for guidance in becoming a designer and they encouraged me to keep sketching cars and to study design.”

That guidance inspired Welburn to study product design and sculpture at Howard University’s College of Fine Arts where he earned a bachelor of fine arts degree in 1972.

After graduating from Howard, he was hired by General Motors as a junior designer before becoming GM’s head of Global Design.

“When you are in the same category as Henry Ford, Alfred Sloan at General Motors, Walter P. Chrysler, Mr. Honda, Mr. Toyota, Karl Benz… Those are obviously enormous names in the car business and from the Automotive Hall of Fame’s perspective, this year’s inductees are comparable to those names,” William Chapin, president, Automotive Hall of Fame said about Welburn’s induction.

“For Ed Welburn, there is no question that his leadership at General Motors Design and the things that he accomplished, not only the products that he designed, but his responsibility for design at General Motors had a huge impact on our decision to induct him.”

 

 

 

 

 

 

Article source: https://michronicleonline.com/2017/07/17/automotive-hall-of-fame-to-induct-former-gm-head-of-global-design-edward-welburn/

Automotive supplier expanding, adding jobs in Madison

MADISON, Miss. —

An automotive supplier to Nissan’s Canton plant announced plans for an expansion that will create 98 new jobs in Madison.

Calsonic Kansei officials were joined Monday by Gov. Phil Bryant to announce the company’s $16.33 million corporate investment.

“Mississippi’s outstanding reputation in the automotive industry is known worldwide,” Bryant said. “Calsonic Kansei’s addition of so many new jobs in Madison once again puts our state on the global stage. The expansion proves we have the workforce and business climate to ensure industry leaders like Calsonic enjoy years of success in Mississippi.”

The company employs more than 500 at the Nissan location, with 42 employees relocating from the Nissan Supplier Park to the new facility. With limited space on the Canton campus, Calsonic is leasing and upgrading a former warehouse in the Madison County Economic Development Authority’s Central Mississippi Industrial Center, in Gluckstadt, to accommodate the company’s growth.

“We are very excited about the new Calsonic Kansei North America Canton facility,” said Calsonic Kansei North America Vice President Nancy Rice. “Manufacturing began in May and we have plans to increase the volume shipping from this site over the next year.”
The location becomes the 79th manufacturing plant in all of CK, Rice said. The new facility is already operating, with phase 2 expected to be completed in 2018.

The Mississippi Development Authority provided assistance for building and infrastructure improvements. Madison County Economic Development Authority and Entergy provided assistance for building, infrastructure and public improvements with the project.

Article source: http://www.wapt.com/article/automotive-supplier-expanding-adding-jobs-in-madison/10318174

CEE’s automotive wage growth revs up pressure

With the automotive workforce in Central Europe becoming more expensive, Hungary saw a 10% growth in salaries in the first half of the year, compared to the same period in 2016, according to data from international salary survey platform Paylab. The wage growth in the region appears to be increasing pressure on the industry.

Hungary’s growth is the most significant according to the international Paylab salary portal, followed by Croatia (+6%), Slovakia (+5%) and Czech Republic (+4%). Wages grew least in Slovenia and Serbia, with a respective increase of around 1%. 

Czech Republic and Slovakia are the two largest motor vehicle producers in the region, with an annual output exceeding one million in each country, Paylab notes, while neighboring Poland and Hungary have half of that output.

In terms of wages, salaries in the CEE region are comparable: according to Paylab data the gross average monthly salary in the automotive industry ranges from EUR 656 in Serbia, to EUR 1,013 in Croatia, EUR 1,209 in Hungary, EUR 1,218 in Slovakia, EUR 1,293 in Czech Republic, and EUR 1,545 in Slovenia. 

Central Europe, which has recently become an engine of the automotive industry, offers a cheaper workforce, and therefore pressure on wage growth is becoming evident, Paylab says, as countries individually rely highly on the sector.

“Standards of living are growing, unemployment rates are decreasing every year, and the countries are slowly catching up with [more] developed EU countries. Nevertheless, skilled workers in the region are still significantly cheaper than similarly qualified personnel in Western Europe,” the Paylab press statement says.

“However, automotive employers are beginning to feel the lack of qualified personnel in the labor market, and employees at some production facilities are beginning to demand wage increases at the individual and trade union level,” it adds.

Automotive industry associations from Slovakia, Czech Republic, Hungary and Poland strive to cooperate in order to retain regional competitiveness for the automotive industry, Paylab notes. Such associations have called on governments to reform education systems by focusing more on maths and science to better prepare workers for the automotive industry’s future needs. Until then, greater support for the mobility of domestic and international workers could cover the shortfall in the labor market, these association say, according to Paylab.

  • cee
  • central eastern europe
  • hungary
  • wage
  • salary
  • automotive
  • industry
  • sector

 

 

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Article source: https://bbj.hu/analysis/cees-automotive-wage-growth-revs-up-pressure_135922

Germany Asked To Use Afghanistan’s Lithium In Automotive Industry …

President Ashraf Ghani in a meeting with German President Frank-Walter Steinmeier at the Presidential Palace on Thursday discussed Afghanistan’s security, peace and economy.

The German president arrived in Kabul with a high ranking delegation on Thursday. 

Pointing to the importance of Afghanistan’s mineral resources, Ghani suggested that German automobile companies should use the country’s lithium in their automotive industry, a press release issued by the Presidential Palace said. 

“Afghanistan’s mineral resources requires proper management. The quality of Helmand’s lithium is very high and it can be used in the automotive industry,” Ghani said.

In response to this, the German president said they will work on the use of Afghanistan’s lithium by Dutch companies.

He said Germany will continue its support to different sectors in Afghanistan.

Steinmeier said his country supports the Afghan peace talks process adding that he met with German troops in Balkh where they said the Afghan forces are becoming more capable. 

Ghani said the Afghan government continues its efforts to bring basic reforms particularly in the ministries of interior and defense. 

He said the ministries will be made professional and apolitical.

The two sides also discussed the upcoming parliamentary elections. 

He welcomed Germany’s technical support to the process and said the elections will be held in a transparent environment.

Article source: http://www.tolonews.com/business/germany-asked-use-afghanistan%E2%80%99s-lithium-automotive-industry