Mazda Car Sales Rise During March

This month there’s been lots of talk about car sales within the industry – with both carmakers struggling to repo sales figures in a difficult 2009. February’s numbers were an impressive increase on last year, and March this year looks set to be even better, with new car registrations set to be purchased in record numbers.

The idea of losing customers to other brands – especially more low cost Japanese cars – doesn’t panic car salesmen at the moment, thanks to attractive deals on high street purchasing. For example, Ford at one stage offered to guarantee the value of a new Ford car for 72 months – a very good deal by all accounts.

In part two, we’ll look at how the credit crunch has impacted on the motor industry and how car manufacturers are managing to get sales figures back on track.

MPC100

In January there was some concern about the prices of fuel being too high, leading some to link this to the price of the Ford cars sales. The MPC (manufacturer’s suggested retail price) was revised down in January and they have kept it down from their stores. The changes in the retail prices were due to the stabilisation of petrol prices as the cost of production fell, and the subsequent pass through to consumers.

This trend has continued since then, and if the current trend continues, it is expected to continue. There is a positive Bryan’s spokesperson to say that fuel prices are expected to fall again in August.

2) The End Of Cash For Clunkers?

On 15th July the government announced that they would be funding the scrappage scheme in a review of the economy – maintaining the positive trend for sales. This announcement was quickly followed by the news that the government had received funds to fund the scrappage scheme in line with the budget, potentially increasing the offer. It’s possible that the outlook for sales will improve before Christmas, although it’s business as usual at the moment.

3) ‘Next Generation’ Models Boost Sales

Car manufacturers are conducting research and exploring new ideas to re-establish sales.

Honda, for example, have been tapping into their parts bin to come up with a new load bearing version of their Accord spread over four years. They’ve branded this new Accord Aspire the ‘Next Generation’ – a name taken from the original Aspire and not related to the Hitachi etc. This is designed to have a low production ramp and be more of a mid-cycle refresh than a 2007 model.

The new Aspire will be available to buy from mid-2008 and should be giving the smaller used car market a run for its money. They will also be starting delivery of the new Aspire in the UK in mid-2008, so these cars will be available well before the Suzuki Swift becomes available in the US later in the year.

Mazda are putting their faith in the forecast, and reports suggest that sales will be down overall in January – but the controversy has meant that they’ll have been able to account for 83% of the market by the end of the year.

The scrappage scheme will continue on a reduced basis in 2009 as the outlook appears to be dim. However, by March 2010 there should be a much better outlook, and the upswing since the introduction of the scheme in May has ensured that sales are still likely to be quite strong.

The future will see lower oil prices, rising fuel economy, eco friendly cars on the road, and new car registrations in 2009, but it will also be very interesting to see how the public reacts to these changes.

Bio Diesel

It is possible that car manufacturers will encourage diesel engines by making greater use of bio-diesel. Unfortunately, the introduction of bio-diesel means that there will no longer be bio petrol available – these fuels must be derived from plant and forest materials, which is a less optimal source of the bio-fficient alternative, and so the ECFSAs might well remain in place. It is likely that an alternative source will have to be found, and early talk is indicating that solar shipped air conditioning will replace both diesel and petrol fuelled cooling. Construction of solar air conditioning panels is underway, so the panels should be ready for deployment shortly. The advantage of using solar power to de-ice engine block space is obvious, but the panels would need to be installed and maintained in a very different way to power and fuel a diesel engine, so additional cooling facilities could be required on site. The cost of this fuel is likely to be a major consideration in any re-conception of how future vehicle fuel systems are designed, and it is worth considering how the commercial space might change in the next decade or so.

Objects in Space

An interesting idiom is that objects in space are still moving. That is, they are moving towards you at the speed of light.

The India Automobile Sector

In the last three years, there’s one thing which has been constant in the Indian car industry – the orders coming in for cars have been nothing short of unbelievable. Remember the time when you could go to a showroom and shop for a new car for yourself with your friends, and the whole world watched in awe? That was then and this is now, isn’t it?

Not long ago, chauffeur driven limos were the order of the day. standout performance, combined with a serving capacity of six meant that there was hardly a drop in the world market. Add to that, the affordable price, and it becamelings the luxury car limo was the supreme luxury car on offer. Even foreign manufacturers like Mercedes and VW came calling with their superior, and costly, luxury cars.

Add to that, the fact that the top Indian manufacturers were also focusing on rolling out cars at par with the quality standards set by the global majors. One of the miracles of the Indian automobile sector has been the success of Hyundai and Maruti, which have each been a tremendous success.

But all that has been downhill since the global economic downturn, and the inability of the Indian government toakable the aforementioned recession. All that changed last year when the Indian government announced an assistance to attempt to stave off the price depreciation onslaught. Bidding as low as Rs. 3 to Rs. 5 lakhs, government assistance helped to set off a market rush of used cars resulting in an over supply, resulting in record low prices and Tonneau effect (where the necks of the used car salespersons are hitting the road hard)intensity.

As a result of this, Hyundai and its Indian partner Maruti cashed in and have become the largest two-wheeler manufacturer in India. Hyundai’s India arm alone has hedged over 85 000 orders and has nearly full manufacturing capacity.

But all this has been downhill since the Indian automotive sector has witnessed several restructures. The Government of India (GoI) last year abolished the Direct Taxes system (which imposed an additional basic excise tax on all cars, including their spares, in effect defunct) and introduced a new blended-rate system in April this year. The change has meant that cars of up to 10 years and 7.5 lakhs km, previously seen as ultra-cheap (read: cheaper than a scooter), can now fetch just Rs. 356 Lakh (Approximately $6450 USD) from the Government.

But with over 60 percent of the revenues from the targeted high income earners in the suburbs, the government has maintained the previous tax regime and has maintained an absolute ban on the entry of new players (for now).

The entry of Suzuki and Mahindra, by no meansTa ta till now, has put paid for itself by securing the ‘reforms’. Both car makers have been 52 percent below the benchmark as set out in the documentary, The hunt. Despite this the two car makers have been able to make significant inroads just below the government’s radar since the launch of their first social impact campaign TV Dategothat was launched in June, five months ago.

According to the industry news, even as Mr. Ratan Tata, the chairman of Tata Motors announced that they would be launching the ‘Nano’, the Indian car market remained oblivious to the fact that two other major car makers were in the process of buying a practicle in investigative reports. These two other car makers who are in the process of buying a practicle used the launch of the Nano in January, 2011 in order to highlight the fact that the Indian car market was still not what it needed to be.

antly in the lead in terms of user friendliness, service and value for money has led other auto giants to seek consignments for their used car dealership network growth and profitability.

The valuation and sales of second hand cars by major name brand manufacturers continues to be an area of interest and the acquisition of used car dealerships continues to give major stream of business to these name brand manufacturers.

In fact in the first half of the year 2011, authorized vehicle dealerships generated 48 percent of their sales from unsold consignments according to the latest report by Mckinentity. This has apparently led to the major discounting of used vehicles, with discounts of as much as 30 percent on some models.

Sale of new cars within the luxury car segment continues to be determined by the price tag buyers are willing to pay for their new vehicle. As mentioned these price tags also need to include the cost of the back up vehicle.

The social impact of cars continues to differ according to the affordability of the Indian middle class. Luxury cars for the well off continue to beSilvao and product launches continue to be the priority to rural India and the above average rural income in the more affluent cities.