Auto sales growth will continue in 2013

Automotive Dealer ; Auto sales growth will continue in 2013, although at a slower rate than in recent years. Edmunds.com forecasts sales of 15 million light vehicles in 2013, an increase of 4 percent over the 14.4 million expected in 2012. This would make 2013 the first year of non-double-digit sales growth since the recovery began. Economic uncertainty due to unresolved fiscal issues at home and (actual and feared) spillover effects from slowing economies abroad will continue to slow the pace of American economic growth, including car sales.

india new car sales march 2012

Automotive Dealer - india new car sales march 2012, Maruti Suzuki India car sales march 2012, Hyundai car sales march 2012 ; India’s top car makers posted higher March auto sales as customers bought in anticipation of this month’s price increases and as demand for diesel vehicles continued to grow.

Several auto makers have recently increased vehicle prices after Finance Minister Pranab Mukherjee on March 16 raised the base excise tax on most Indian-made goods, including automobiles, to 12% from 10%.

Sales at Maruti Suzuki India Ltd. gained for a third straight month, touching 125,952 vehicles, up 3% from a year earlier. Local sales for India’s biggest car maker by sales increased 2% to 112,724 units and exports jumped 15% to 13,228 vehicles.

It was the auto maker’s best-ever monthly sales performance, thanks to demand for models such as the Ritz and Swift hatchbacks and the Swift DZire sedan, which are also available in diesel variants. Sales of gasoline cars such as the Alto and WagonR fell.

Consumer preference is shifting toward diesel vehicles as prices of the fuel are regulated by the government, making it cheaper than gasoline. Overall demand has been hit by rising interest rates and fuel prices.

Maruti anticipates a 6% fall in sales of gasoline models in the new fiscal year that started on April 1, its chairman R.C. Bhargava said on March 24.

Hyundai Motor Co., the second-ranked car maker in India, sold 59,229 vehicles in March, up 7% from a year earlier.

Local sales grew 23% to 31,882 units. But exports fell 16% to 23,730 units as more production facilities were utilized for the domestic market, said Arvind Saxena, director of marketing and sales at Hyundai’s local unit, which makes car models such as the i10, i20 and Verna.

Ford Motor Co.’s local unit, which makes the Figo small car and Fiesta sedan, said it posted its highest-ever monthly volume of 12,148 units in March.

The local unit of General Motors Co., meanwhile, recorded a 13% increase in March sales to 10,588 vehicles, helped by robust sales of its Chevrolet Beat hatchback and the Tavera utility vehicle.

Sunday, Tata Motors Ltd. said it sold 100,414 vehicles in March, up 20%, while Mahindra & Mahindra Ltd., India’s biggest sport-utility vehicle maker sold 47,001 units, up 25%.

In the two-wheeler segment, sales of market leader Hero MotoCorp Ltd. rose 2.4% in March to 528,290 vehicles.

Pawan Munjal, Hero MotoCorp’s managing director and chief executive, said the company is set to start exports to markets in Africa, Latin and Central America in a few months.

He also said the company is expanding capacity at its plants to make 7.0 million vehicles a year and will also announce plans later this year about building new factories.

Two- and three-wheeler maker TVS Motor Co. Monday said sales fell 4% to 182,527 vehicles.

Honda will build a new auto assembly in Mexico 2014

Automotive Dealer Honda will build a new auto assembly in Mexico 2014 ; Honda Motor Co (7267.T) (HMC.N) will build a new auto assembly plant in Mexico to contain costs and meet expected demand for small cars once the U.S. market returns to pre-recession levels.

The $800 million plant marks the second major investment in Mexico by a Japanese automaker in as many months at a time when the industry in Japan is suffering from a strong yen, uncertainty about energy supply, and disruption to auto parts delivery after the March earthquake.

Honda said the plant will open in 2014, with the capacity to produce 200,000 vehicles annually. It will employ 3,200 workers in the central Mexican state of Guanajuato, the same region where Mazda Motor Corp (7261.T) plans to build a new assembly plant.

Honda declined to say whether the production would add to the company's global capacity or displace production from Japan. It sells the Honda Fit, a subcompact imported from Japan, in the North American market.

The auto plant will be Honda's eighth in North America, and adds to its current production in Mexico of about 60,000 vehicles a year. Honda's North American production will rise to 1.83 million vehicles in 2014 from a current annual rate of 1.63 million, the company said.

The plant will meet the growing need for fuel-efficient subcompact vehicles made in North America for the region, American Honda President Tetsuo Iwamura said.

In 2010, 87 percent of Honda vehicles sold in the United States, Mexico and Canada, including its luxury brand Acura, were made in those three countries.

The move comes at a challenging time for Honda. Sales in its most important market, the United States, fell 10 percent this year, in part because of the impact of the March earthquake in Japan.

Honda also is dealing with recent bad news on the quality front as Consumer Reports recently gave the automaker's Civic a negative review and the automaker recalled 2.5 million cars, small SUVs and minivans globally, including its popular Accord sedan, to repair a software problem.

Honda ranks No. 5 by sales in the U.S. market, and No. 3 in its home Japan market.

Honda is a leader in fuel efficiency in the U.S. market, where fuel economy standards are set to become much more demanding by 2016 and then again by 2025.

The U.S. small car market is expected to boom as the fuel economy standards come into force and gasoline prices continue to rise.

Sales of cars and trucks have sputtered in the U.S. market so far this year but a fuller recovery from recessionary sales levels is expected over the next few years. U.S. auto sales are expected to be near 13 million this year, major automakers have said.

In 2009, U.S. sales hit a low of 10.4 million vehicles after averaging nearly 17 million vehicles for 10 years ending in 2007.

With the new plant, Honda's investment in North America, would total $21 billion, it said. Honda has 33,000 employees in the continent.

Peugeot Citroen assemble cars in Indonesia 2012

Automotive Dealer -  Peugeot Citroen assemble cars in Indonesia 2012 ; Constantinus Herlijoso, the CEO of PT Astra International-Peugeot, the authorized distributor of Peugeot cars, said on Friday that the firm would assemble complete knock down (CKD) cars at the production facility of Astra’s subsidiary, PT Gaya Motor, in Sunter, North Jakarta, We expect that the assembly process can start in 2012 and we can start selling locally-assembled cars in 2013.

Peugeot’s market share in the domestic market is still very small, less than 1 percent. By assembling the cars in Indonesia, we expect to grab more shares.

Currently, PT Astra International-Peugeot imports completely built up (CBU) cars, primarily from France, with a smaller quantity coming from Malaysia.

In Asia, Peugeot operates a plant in China, besides Malaysia, which serves as a regional assembly base.

Peugeot domestically assembled its 206 model from 2003. However, in 2005, it ceased operations due to the skyrocketing value of the euro, which pushed up prices and triggered a drop in its annual sales from 2,000 units to 85 units in 2009, which last year increased to 203 units due to an overall growth of Indonesia’s car market, which topped 744,895 units.

The Indonesian Automotive Industry Association (Gaikindo) has projected that automobile sales for 2011 will top 800,000 units, which would be a historic new figure in Southeast Asia’s largest economy.

Stellar economic performance, an improved investment climate and a rising middle class in Indonesia has boosted the confidence of automakers to increase investment in the country.

Major automakers, such as Toyota Motor Manufacturing Indonesia, Nissan, and BMW, have recently unveiled plans to continue investing in Indonesia, while Japanese car maker, PT Astra Daihatsu Motor, is due to construct a new factory in East Karawang, West Java, estimated to cost Rp 2.1 trillion (US$245.7 million).

automotive market prediction

automotive market prediction : Automobile industry body SIAM today lowered its vehicle sales growth forecast for FY'12 to 11-13% from 12-15% announced three months earlier, mainly due to higher interest rates and rising fuel prices.

The Society of Indian Automobile Manufacturers (SIAM) also predicted a lower growth of 10-12% during 2011-12, as against 16-18% announced earlier. It, however, said India became the top growing passenger car market in the world during the January-June period this year, overtaking the US, which grew at 14.40%.

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Pendragon launches £75m cash call

Automotive Dealer : Pendragon launches £75m cash call ; Car dealership group Pendragon is looking to reduce is debts through a £75 million rights issue.

Money raised from the issue of new shares will help the firm shore up its finances. Securing the funds is a condition set by the banks that must be fulfilled before they agree on a three-year loan.

The company is based in Nottingham and operates more than 300 dealerships around the UK under the Evans Halshaw and Stratstone brands.

It posted underlying pre-tax profits of £9 million for the five months to May 31 - up £1.1 million from the same period last year.

Pendragon markets cars from manufacturers including Ford, Vauxhall and Fiat, as well as luxury brands such as Mercedes Benz and Maserati through its Stratstone dealership

The premium car division is planning to unveil new models this autumn and Pendragon said the timing issues related to this had affected its performance.

Commenting on the latest cash call, chairman Mike Davies said it signified "an important step in the evolution of Pendragon".