MarketLine Blog

Posts about Automotive

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

Can Toyota retain dominance in US hybrid and electric car market?

MarketLine

Although the US hybrid and electric car market has grown strongly in recent years leading player Toyota Motor Corporation (Toyota) is facing pressure the dominance of under the challenge of other manufacturers, such as Ford Motor Company (Ford). Sales volumes of electric and hybrid cars have been fluctuating in the US over the past few years, with the market being hit hard by the economic downturn from 2008 onwards. However, sales picked up in 2012, as the country’s economy stabilized and governmental legislation shifted in further favor of high-efficiency vehicles…. Read more

TESLA: A unique company being punished by US legislators

MarketLine

Tesla Motors is a producer of automobiles with unique qualities and it is a company with a vision to change the automotive industry completely. Its vehicles are entirely battery powered, producing no emissions. This in itself is not new, but what is a radical change is that Tesla has been able to produce a battery which can completely outperform traditional batteries, producing vehicles with much higher ranges and performance data, even in advance of its petroleum powered counter parts. This technology has seen Tesla leapfrog the traditional giants in the… Read more

Motorcycles sales stuck in neutral

MarketLine

After a brief recovery in 2011, the global motorcycles market contracted again in 2012-13, with the European region showing the steepest decline. According to the Motorcycle Industry European Association (ACEM), the European market has now hit rock bottom and 2014 should see a slightly more positive sales performance. In addition to general weak economic conditions, motorcycle distributors blamed poor climate, especially the long lasting winter in 2013, for negatively impacting on sales. In the UK, the market for motorcycles is taking longer to recover than the car market, as the… Read more

Dacia-The budget car company taking the UK by storm

MarketLine

Renault, the French automotive manufacturer, has done well in recent years and has weathered the storm of the on-going recession period better than some of its US or Japanese counterparts, with good revenue growth in both 2010 and 2011 for the group. Despite a marginal drop in overall revenues in 2012, the company produced double digit revenue growth in 2010 and 2011, a sign that its business has continued to push new revenue streams even in periods of difficulty. Renault has been successful, not only in its traditional markets in… Read more

Car sharing industry – beginning of the end?

MarketLine

Zipcar, Inc. operates a car sharing network, providing self-service vehicles, conveniently located in reserved parking spaces, by the hour or by the day. The company offers its solutions to individuals, universities, businesses, and government agencies. It is present in North America and Europe. Zipcar’s way of doing business is particularly appealing to young city dwellers, who do not own their own cars, but walk, bike and use public transportation instead, most of the time. They usually like the cool cars  that Zipcar provides, such as Mini Coopers, or Toyota Prius,… Read more

Truck Manufacturing market continues to fluctuate

MarketLine

Introduction The global truck manufacturing market produced fairly low growth in 2012. However the market has been fluctuating in recent years and this growth perhaps indicates that the market is beginning to move out of the economic difficulties seen recently. This is not the case world-wide with some markets producing more reliable growth than others. The truck manufacturing market is heavily reliant on commodity prices, and increases seen in the cost of products such as aluminum can have a direct impact on the cost price of finished truck products. Figures… Read more