MarketLine Blog

Posts tagged to Automotive

Nissan $9.5bn China investment: Scale of spending required to stay relevant in world’s largest car market


Whilst Nissan is not regarded as being a member of the top-tier car manufacturers – the likes of Volkswagen Group and Mercedes Benz are much larger – that has not stopped the company from pumping $9.5bn into car manufacturing in China. Such investments are now essential, particularly for the less popular global brands. The move represents significant ambition from the Japanese car maker: Toyota, recently the second largest player in the Chinese market, is declining in China and an opportunity exists for Nissan to climb up the hierarchy. Large investments… Read more

Takata: Exploding end to a scandalous journey


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

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


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

Self-driving to the future


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

Volkswagen: Diesel duping scandal


Car manufacturing giant, Volkswagen, has admitted that approximately 11 million vehicles worldwide are effected by the recent scandal involving the rigging of car emissions test results. The discovery was initially made public by the Environmental Protection Agency (EPA) in the US which led to the US government ordering the recall of around 500,000 vehicles. This then led to the admission from Volkswagen that this issue is far more widespread and not limited to the US, but is a global issue. Volkswagen is now in a state of panic and is… Read more

Hero MotoCorp: Promising rise of future transnational manufacturer


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


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


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?


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


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

Keep on trucking; global truck market demonstrates resilience


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

Market unimpressed by Peugeot Citroen recovery plan


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

Dacia-The budget car company taking the UK by storm


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

Truck Manufacturing market continues to fluctuate


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

Global car manufacturing continues to motor


The global car manufacturing industry exhibited strong growth in 2012, although it should be noted that the situation differed greatly from country to country. Some of this growth was encouraged by certain government schemes to encourage the domestic manufacture and purchase of cars. One such example was the increase of import tax for cars in Brazil. In 2012, the levy imposed on cars produced outside of Brazil was increased from 25% to 55%, meaning that a Toyota Corolla that sells for $16,230 in the US costs the equivalent of $29,000… Read more

Global motorcycle manufacturing declined in 2012 but not in India


Persisting economic difficulties have had an impact on motorcycle manufacturers globally, particularly in Western Europe. An exception to this has been India, where motorcycle manufacturing has continued to grow rapidly despite difficult global economic conditions. The global motorcycle manufacturing industry declined by 5.8% in 2012, to reach a value of $62.1bn representing a compound annual rate of change of -0.1% for the period spanning 2008-2012. Europe, Asia-Pacific, North America and North America all experienced a decline in industry value in 2012, with on-going financial difficulties affecting global manufacture. India’s continued… Read more

Embraer targets the US


There is widespread disappointment with the recovery of the US economy, but the American economic stimulus is rendering more fruits then the fiscal consolidation packages undertaken by European governments. This is reflected in the difference in new business opportunities currently presenting themselves on either side of the Atlantic. During the economic free-fall of the developed world, the European and the American market shared a comparable decline in the Gross Domestic Product (GDP). However, the GDP in the US is showing a more robust increase than many European countries, with the… Read more

Embraer in the US market


According to the International Air Transport Association’s (IATA) financial monitor, airlines share prices were 3% higher than the FTSE Global All Cap in the first 4 months of 2013. Its share prices are outperforming the market as investors are optimistic about the short-term recovery of the industry. The recovery of the share price is particularly strong in the US. It has risen by 35% this year following the improved financial performance of the American airline companies after the implementation of restructuring plans. The combined net profit of the American airlines… Read more

Jaguar Land Rover releases the Jaguar F-Type


The latest model to bear the Jaguar marque is beginning to roll out of the factories and into the showrooms.  The model is called the Jaguar F-Type and fits into the two-seater luxury sports car category. It has so far been suggested that the model is designed to put pressure on some of the biggest players in this section of the market. Some of the F-Type’s key rivals are suspected to be the BMW Z4, Mercedes SLK and the Audi TT. It is also believed that the model is expected… Read more

Automotive Manufacturing: All eyes on Brazil


According to data published by the OICA, 2,623,704 cars rolled off Brazilian production lines in 2012 making the country the seventh largest producer of cars worldwide. This represented year-on-year volume growth of 4.1%, continuing a trend that has seen production almost double since the year 2000. Brazil is now home to some of the world’s largest automakers and Fiat, Ford, GM, Honda, Hyundai, Nissan, Peugeot, Renault, Toyota, and Volkswagen are all opening new factories or expanding existing ones. Such investment is expected to increase Brazil’s annual production capacity by 1.5… Read more

How did Tata Motors Made Feasible to Launch World’s Cheapest Car?


Tata Motors is a major player in the Indian automotive industry. In 2008, it launched the Tata Nano, the world’s cheapest car’. Tata judged that it would be ideal for India’s growing middle class. This report considers how successful this decision turned out to be. The Tata Nano was conceived, designed, and marketed with a near-exclusive focus on cost reduction. As a result, the basic model sold for about half the price of the next-cheapest competitor produce. It was received with strong initial order volumes, and awards from the automotive… Read more

Rising Demand for Urban Transport


Europe’s transport markets are liberalizing, and as incumbent operators anticipate increased competition in domestic markets they are looking for opportunities abroad. In 2011, French urban transport company RATP began operating a bus company in London, and acquired the light rail contract for Manchester, UK. This article will examine its strategic motivations and the outlook for its UK operations. RATP, like other European transport players, is expanding outside its domestic market. As European Union rules allow competitors to access their domestic markets, incumbent transport companies are looking to compensate by diversifying their… Read more

Hydrogen-Powered Cars Seem to Be the Future of the Motoring World.


Honda Motor is one of the leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company also provides a range of financial services to its customers and dealers. The company has 390 subsidiaries and 102 affiliates all over the world. Since 1999 Honda has worked on fuel cell vehicle prototypes, with FCX-V1 becoming the first mass produced hydrogen-powered car. The future of cars powered by hydrogen is an exciting prospect. First of all, hydrogen as a fuel produces zero CO2 emissions. In addition, the development… Read more

Toyota Prius: Innovative Technology and New Power Source


One of the world’s biggest car manufacturers, Toyota launched the first mass produced hybrid car in Japan in 1997. Since then the technology has been improved and other manufacturers have started following Toyota’s lead, creating more advanced cars. The Toyota Prius is sold in more than 70 countries worldwide and the total number of hybrid cars sold as of April 2011 exceeded two million. The Prius third generation model was launched in 2009 and its popularity was expressed by sales in excess of one million by September 2011. Toyota introduced… Read more

Texas Instruments Case Study: National Semiconductor is TI’s Latest Strategic Acquisition


In September 2011, Texas Instruments (TI) acquired National Semiconductor (NatSemi), a leading manufacturer of analog semiconductors. The deal significantly increases TI’s share of the buoyant and highly profitable analog market. It is also the latest in a series of acquisitions and divestments that over the course of more than a decade have helped transform TI from a diversified technology company into one highly focused on semiconductor manufacturing. TI has been using acquisitions and divestments to focus on its core competence of semiconductor device manufacturing. In 2011, TI acquired NatSemi, a… Read more

Global Car Manufacturing Industry Grew By 4.8% in 2011

  The global car manufacturers industry grew at a strong rate in 2011. Some of this growth was encouraged by certain government schemes to encourage purchase of cars which shows that the market is seen as vital to the economic wellbeing of many different countries. This is both in terms of manufacturing and consumer markets. It also allows certain countries to strengthen their export markets as many cars manufactured in regions such as Asia-Pacific are shipped globally with some brands having a large presence across the globe. The global car… Read more

Developing Countries Propping up the Truck Manufacturing Industry

  Because of on-going financial difficulties being experienced in many nations around the world, truck manufacturers in a myriad of countries have suffered. However, developing countries such as India and China have propped up the industry, allowing the global value to increase despite weak economic conditions in Western countries. The global truck manufacturers industry grew by 8.3% in 2011, to reach a value of $558.6 billion, representing a compound annual growth rate of 4.5% for the period spanning 2007-2011. Growth was primarily driven by demand in South America and Asia-Pacific,… Read more

Strong Growth in South American and Eastern European Automotive Manufacturing Industries

  Weak economic conditions and on-going financial difficulties in North America and Western Europe resulted in low market expansion in these regions, which was negated at a global level by strong growth in the South American and Eastern European automotive manufacturing industries. The global automotive manufacturing industry grew by 6.3% in 2011 to reach a value of $1,435.5 billion, representing a compound annual growth rate (CAGR) of 2.5% for the period 2007-2011. Volumes also increased in 2011, growing by 4.3% to reach a volume of 136,589.6 thousand cars, representing a… Read more

Automotive Manufacturing Top 5 Emerging Markets – China leading the way

The top 5 emerging countries in the automotive manufacturing industry comprise the key emerging economies in the world: Brazil, China, India, Mexico and South Africa. According to MarketLine’s new ‘Automotive Manufacturing – Top 5 Emerging Markets Industry Guide’ the top 5 emerging countries contributed $332,800.2 million to the global automotive manufacturing industry in 2010, with a compound annual growth rate (CAGR) of 11.1% between 2006 and 2010. The report reveals that China is the leading country among the top 5 emerging nations, with market revenues of $174,000 million in 2010…. Read more