MarketLine Blog

Posts about Automotive

INEOS Automotive: Chemical giant stepping into the automotive manufacturing space

MarketLine

INEOS is a private multinational chemical company operating out of the UK, with annual revenues of over $4bn. The company grabbed headlines in 2016 when it announced a serious intention to find some way to continue to produce the iconic British vehicle, the Land Rover Defender. Land Rover had announced the winding down of the long running Defender, citing emissions regulations and the old design of the vehicle as the primary reason and is widely expected to announce a new version of the vehicle in the coming years. However, INEOS… Read more

Takata: Exploding end to a scandalous journey

MarketLine

Takata started out as a textile manufacturer more than 80 years ago and in 1960 expanded into the car parts manufacturing business, riding the wave of industrial expansion in Japan. After teaming up with Honda it became a leader in auto safety systems that also served overseas clients. In the late 80s, the company became the subject of an official investigation due to a reported failure of its seatbelts installed in many Takata-equipped Honda vehicles. The investigation led to the second largest safety recall in US history, affecting 8.9 million… Read more

Governments to ban the sale of petrol and diesel cars: Regular fueled vehicles not to be sold from 2040 onwards

MarketLine

Following recent announcements to ban the sale of regular fueled (Petrol & Diesel) vehicles (RFVs) in France by 2040, the UK’s Secretary of State for Environment, Food and Rural Affairs has announced plans to achieve the same goal by the same date. The UK has become heavily polluted over the years, especially in some areas in London such as Brixton, where levels of pollution are borderline illegal. There has been a greater push for the use of electric vehicles (EVs) over recent years, through financial incentives which aim to drive… Read more

Car Loan Debt: Consumer debt getting out of control and risky betting on subprime loans

MarketLine

There are worries of a financial bubble forming in the car finance industry. Both in the UK and USA there has been a growing prevalence for dealers and manufacturers to offer PCP finance deals and this has led to a culture of consumers viewing vehicle ownership as direct debit agreements. This has rapidly increased new car registrations and thereby the amount of consumer credit and house debt that buyers are taking on because the amount of new vehicle sales that are funded by finance options is above 80%. Worryingly many… Read more

The Sky is the Limit: How Uber’s dominance of a market allows it to chase next-gen dreams

MarketLine

Uber released financial data to Bloomberg on April 14, 2017, something it is in no way obliged to do. The image it presented was one of rapid growth and expansion, skyrocketing revenues and incredible levels of spending. One would hope to see this level of performance; private investment in the company has grown consistently since its launch in 2009 as UberCab, generating nearly $10bn from investment firms since then, and it has managed to spend more than $8bn investing in its own growth. Private investment growth will need to continue… Read more

Car manufacturing sector booming in the UK: Weaker pound boosts exports, yet Brexit worries persist

MarketLine

2017 has been a good year for the UK car manufacturing sector as far as production levels are concerned, with the country manufacturing cars in March 2017 at a level last seen in the year 2000. Manufacturing levels have been boosted by a strong rise in exports of cars, which has come about due to the weak pound, low crude oil prices and rising demand for British cars in the Asia-Pacific region, as well as in the United States. However all of this has been happening among the backdrop of… Read more

Iran Transport: Accelerating forward to the future

MarketLine

Iran is a growing hub for transportation, acting as a critical connection point between India and Russia/ Europe. Until recently, the Suez Canal served as the quickest transport route between India and Russia however with Iran undergoing rail infrastructure upgrades and also building part of the North-South corridor, Iran is set to become a key part of the ongoing development of transport links using the rail network. The North-South corridor has the potential to cut the transport time by around 50% and is sure to disrupt the naval transportation market…. Read more

Jaguar Land Rover: JLR breaks its own sales records but company has some large problems looming

MarketLine

In 2016 Jaguar Land Rover reached its highest ever volume of sales. Already Britain’s largest vehicle manufacturer, the company hit sales of 584,313 vehicles in 2016 up by a fifth over the previous year. The company’s strength has always been its Range Rover marque, which is a prestige vehicle commanding high list prices but also high demand and Jaguar has largely been supported by its Range Rover bigger brother. But recently Jaguars steady process of modernization has helped bolster the group’s sales. The group has ambitious plans but also a… Read more

Renault Car Emissions: New allegations threatens French car manufacturer

MarketLine

The accusations against Renault published in the French press follow on from a 2015 report detailing cars which exceeded environmental rules by over 300%. Stretching back to 1990, the hierarchy at Renault is said to have known about and been involved with cheating emissions tests. The influence of the French government, and therefore the French taxpayer, will be important given the upcoming presidential election and shareholding. If reports of nearly one million cars being sold with devices used to distort the results of emission testing, the scandal could involve the… Read more

LiDAR self-driving technology. A case of calculated theft?

MarketLine

Google and Uber started off as friends with Google parent Alphabet investing $258m in Uber in 2013. They then became competitors, as Uber started experimenting with its fleet of self-driving cars in 2016. Finally, in 2017, both companies ended as adversaries in court, engaging in a bitter legal fight to control the future of transportation. The suit details the lengths Waymo goes to in order to protect its trade secrets, including purchasing LiDAR components from numerous vendors and completing assembly in-house to prevent any single vendor from knowing everything about… Read more

From GM to PSA: Why the sale of Vauxhall Opel is good for shareholders but bad for workers

MarketLine

US-based General Motors is the world’s third largest automobile manufacturer by sales, and second largest by revenues. French-owned Groupe PSA, which sold nearly 3.2 million vehicles and had revenues of €54bn ($57bn), is a fairly small player in comparison. GM’s ownership and continued management of Vauxhall Opel is at odds with the rest of its portfolio – the company primarily operates in the US and Asia, selling brands including Chevrolet, Buick, Holden and Wuling – while PSA operate Peugeot, Citroen and DS Automobiles primarily out of Europe. The sale of… Read more

GM & Ford: Trump threats to enforce higher border tax to car manufacturers

MarketLine

During Trump’s campaign, there was definite tension alongside his controversial expression towards Mexico and his immigration policies that led to talk of a Mexican wall at the border. Well as it turns out, it is not just Mexican immigrants he is attempting to restrict from entering the US, but also vehicles that are manufactured in the neighbouring country, unless the manufacturer pays high border tax. Trump’s intentions were clear during his campaign, and any possibility to build and retain jobs in America seemed to be an important aim of his,… Read more

Nissan: Positive economy growth leads to future production of new models in the UK

MarketLine

With the third quarter GDP growth rate proving to be better than predicted at 0.5% (0.2% higher than estimated), Nissan has decided to remain in the UK, agreeing to invest further in its Sunderland manufacturing plant in North East England. Even though car manufacturing was down 1%, there have been signs of positivity for Nissan that has led to this decision. Exports for the manufacturer will become cheaper due to the falling exchange rate with the European Union possessing the UK motor industry’s biggest export market (57.3% of UK car… Read more

Global sales for new cars to exceed 73 million units by 2020, as market momentum slows, says MarketLine

MarketLine

Sales of new cars globally will increase from around 62.5 million units in 2015 to over 73 million units by the end of 2020, representing a compound annual growth rate of 3.2%, according to data from research company MarketLine. The company’s latest report states that this steady rise can be attributed to the improving performance of the European market, which is offsetting slow growth in the large markets of Asia-Pacific (APAC) and the United States. Indeed, the recent slowdown in Brazil and Russia, as well as slower growth in China… Read more

Volkswagen scandal refuses to go away

MarketLine

The VW emissions scandal shows little sign of slowing – affected consumers must be compensated whatever the cost if the scandal is to be finally concluded. Volkswagen owners in the US received $20,000 per case in compensation; European owners received a mere software update. However, this could be about to change after courts in Germany ruled a pilot case filed against the company by investors could go ahead. Efforts are underway to circumvent European Union laws and bring about similar cases in other European countries too. It follows a raft… Read more

Self-driving to the future

MarketLine

The line between the auto and tech industries is rapidly blurring, with the pursuit of autonomous driving and a shift from car ownership towards car sharing and ride sharing. China is widely viewed as the next frontier for growth and many market players are looking to establish a foothold in this country, which requires significant investment. To keep up with changing market trends, most major auto makers are investing in their own driverless-car technology, which is less costly if done in cooperation with high-tech companies, like Google or Apple. The… Read more

Billions of test miles to prove driverless tech

MarketLine

As of April 2016, Google is running 23 converted Lexus SUVs and 34 prototype vehicles in autonomous mode on public roads across Kirkland, Mountain View, Phoenix and Austin in the US. It has driven its vehicles a total of 1,564,981 miles in autonomous mode to date, averaging weekly miles of between 10 and 15 thousand. On May 3rd 2016, it was announced that Fiat Chrysler Automobiles and Google will be joining forces to integrate autonomous driving technology into 100 Chrysler Pacifica Minivans, marking the first time that Google has partnered… Read more

Tesla Model 3: Highly anticipated affordable vehicle, likely to see off competition

MarketLine

The enormous success and media interest that Tesla’s previous models have had and the influence and following of its charismatic engineer CEO, meant that the announcement of the new Model 3 in early April 2016 became very highly anticipated. Its Model S premium Sedan has been a triumph for the company with sales of the vehicle trumping sales of comparable sedans from the world’s great auto makers in many key markets. The next move for Tesla was to develop an affordable mass market vehicle which could make a significant impact… Read more

Hero MotoCorp: Promising rise of future transnational manufacturer

MarketLine

Hero MotoCorp (HMC – formerly Hero Honda Motors), based in India, is one of the world’s largest motorcycle manufacturers and is setting itself up to expand globally following the dissolution of its partnership agreement with Honda Motor Co. Ltd. in 2010 and the expiration of licensing contracts for Honda technologies in 2014. The first stage of this expansion has been to target developing markets, an approach that indicates an intention to sell existing style products to similar markets in order to leverage the know-how that HMC has already developed, particularly… Read more

Driverless Cars: The coming insurrection

MarketLine

The technology required to produce an autonomous vehicle already exists in specific circumstances. The challenge is to make self-driving cars viable in all locations, all conditions and all situations. Incumbent automotive manufacturers, together with major suppliers to the industry, are well along the road towards commercial production having already implemented a number of more basic autonomous driving features. Yet there remain significant barriers to the adoption of autonomous driving, not least of which will be consumer perception. Some of the key concerns in this regard will be skepticism around the… Read more

Jaguar Land Rover: Five years of successive growth under Tata’s leadership

MarketLine

Jaguar Land Rover has now reached five consecutive years of growth in 2015, which has been achieved under Tata Motors ownership and investment. This success has emboldened the company to invest in itself and Jaguar land Rover now produces its own engines, has plants in Brazil and China and has brought the Jaguar range right up to date, making the company one of the most important and successful prestige car companies and one of the most recognizable British manufacturers. The company has managed to do this on the back of… Read more

The F-150: Ford to pick-up where they left off?

MarketLine

The Ford F-150 is a car that has achieved iconic status for the Ford Motor Company. The Ford F-Series has been in production by Ford since 1948 and has been a firm American favorite for years. It has been the number one selling truck in the US for 38 years straight and the saw the latest iteration released in 2014. The latest version has attempted to revolutionize sports utility vehicles and trucks by using an aluminum body with a steel frame, which has allowed the truck to shed approximately 750… Read more

UK motor insurance industry recognises dashboard cameras

MarketLine

UK Insurers are now accepting dashboard cameras as supporting evidence in cases where the parties involved do not agree on the cause of a road traffic incident and sales of the devices have increased almost tenfold in the last 12 months. Dashboard cameras are commonplace in countries where driving conditions can at times be particularly treacherous such as Russia and Taiwan. Dashboard cameras are forward-facing cameras mounted on a dashboard or windscreen. They are powered through a car’s cigarette lighter or in more modern cars, through a USB port. They… Read more

The New Cars Market in 2015

MarketLine

In the international spectrum China will remain the main driver for a global growth in the sales of new passenger cars. The forecast for automotive industry is still optimistic despite the slowdown in the major European markets, such as France and Italy. The second place on the podium is occupied by, dethroned a few years ago, the USA. Americans bought 7.7m of new passenger cars in 2014. In order to maintain a sustainable growth, manufacturers will have to look for new customers in rural areas of developing countries like China… Read more

Toyota follows Tesla down the royalty-free rabbit hole

MarketLine

Toyota has revealed that it intends to allow royalty free access to 5,680 of its hydrogen fuel cell technology patents. This is the same technique that Tesla employed last year to release its battery patents to its competitors. The point of such a move is that in order to kick start new technology on such a massive scale as would be required to replace traditional automobiles; a number of the biggest automotive manufacturers need to heavily invest. This is for a number of reasons but principally consumers need confidence to… Read more

Motorcycle manufacturing shifting to low-cost production areas

MarketLine

Recent economic difficulties have had an impact on motorcycle manufacturers in some parts of the world, particularly Western Europe and some countries in Asia. However, other areas such as the US and India are an exception to this. India in particular is seeing huge growth in motorcycle manufacturing, perhaps indicative of the inclination of companies to locate their manufacturing facilities in low-cost production areas. The global motorcycle manufacturing industry grew by 3.3% in 2013, to reach a value of $61.5bn representing a compound annual growth rate of 5.8% for the… Read more

Global car manufacturing industry continues to motor along

MarketLine

The global car manufacturing industry exhibited strong growth in 2013, although it should be noted that the situation differed greatly from country to country. Some of this country specific growth was encouraged by government schemes to encourage the domestic manufacture and purchase of cars. One such example was the increase of import tax for cars in Brazil, introduced in 2012. The industry stabilized in Western Europe following a sharp contraction in 2012, as countries such as the UK continued to perform well. Globally, the industry grew by 4.3% in terms… Read more

Keep on trucking; global truck market demonstrates resilience

MarketLine

The global truck market experienced strong growth during 2009-2013, fuelled by the Americas as the US’ economic recovery and South America’s dynamic economies continue to gather strength, and the Asia-Pacific region as China and India continue to show strong growth. With Western Europe also finally showing signs of sustainable recovery, the short term future for the truck market looks promising. The global truck industry (which includes light commercial vehicles, light buses and coaches, commercial vehicles, buses and coaches, heavy commercial vehicles, and heavy buses and coaches in this research) grew… Read more

The global medium & heavy trucks industry posts strong growth in 2013

MarketLine

Despite the on-going financial difficulties being experienced in many nations around the world, demand for medium & heavy trucks has continued to grow, with strong growth experienced in 2013. The global medium & heavy trucks industry grew by 7.5% in 2011, to reach a value of $209.8 billion, representing a compound annual growth rate of 9.9% for the period spanning 2009-2013. Stronger growth was experienced in the smaller markets – the Americas and the Middle East and Africa, although growth was strong in the largest market, the Asia-Pacific. Growth was… Read more

Market unimpressed by Peugeot Citroen recovery plan

MarketLine

The French auto group Peugeot Citroen gave little comfort to investors despite presenting a global recovery strategy aimed at building a money-making culture within the business. Having made net losses of €7.2 billion ($10.0 billion) in the last two years, the group released a strategic plan titled “Back in the Race”, and emphasized ambitions to grow in China and South-East Asia. Traders were less than impressed with the changes however which they saw as too little too late and this was reflected in PSA Peugeot Citroen share price which ended… Read more