Presentation on theme: "Supermini Car Market Project Chelsea Hans Richard Garin."— Presentation transcript:
Supermini Car Market Project Chelsea Hans Richard Garin
Supermini car larger than a city car but smaller than a small family car.city carsmall family car Overall in 2008, of the fifteen best selling types of car in Europe, seven were superminis. Estimate that more than 50% cars sale in the UK are Supermini car BEST SELLERS (UK,July,2009) Ford Fiesta - 8,976 Ford Focus - 7,934 Vauxhall Corsa - 5,920 Vauxhall Astra - 5,705 Volkswagen Golf - 4,101 Peugeot 207 - 3,957 Vauxhall Insignia - 3,340 BMW 3 Series - 3,292 Hyundai i10 - 3,084 Renault Clio - 2,837
China Car Market Background 13.6M units (2009 sales volume). Volkswagen, GM, Toyota, Honda, Nissan, PSA, Hyundai, Ford, Daimler, BMW, Chery, Geely, BYD, Brilliance(29.7% China brand) Estimate that 40% cars sale in China are Supermini car Best sellers China 2009 AutomakerModelVolume BYDF3291K GMNubira241.1K HyundaiElantra II239.4K VolkswagenJetta224.9K VolkswagenSantana205.6K HondaAccord175.4K HyundaiElantra171.6K CheryQQ169.9K ToyotaCorolla157.5K ToyotaCamry156.2K Amount2.0326M
A typical supermini car in China Market, Geely Panda 3598×1680×1495 1.0 / 1.3L Petrol 110K Units/year 54MPG Petrol £ 4K - 6K C-NCAP 5 stars Euro IV Emission 330K Units (2009 Brand sales)
A typical supermini car in the UK Market, Ka 3620×1658×1702 1.2/ 1.3 Petrol / Diesel 55.4MPG Petrol / 67.3MPG Diesel £ 9K – 10K Manufactured by Ford Co2 119 G/KM
The analysis of the UK car market Market Value The United Kingdom new cars market shrank by 12% in 2009 to reach a value of $42.9 billion. Market Value Forecast In 2014, the United Kingdom new cars market is forecast to have a value of $56.3 billion, an increase of 31.1% since 2009. Market Volume The United Kingdom new cars market shrank by 13.3% in 2009 to reach a volume of 1.8 million units. Market Volume Forecast In 2014, the United Kingdom new cars market is forecast to have a volume of 2.5 million units, an increase of 36.1% since 2009. The compound annual growth rate of the market in the period 2009-2014 is predicted to be 5.6%. Market Share Ford accounts for 17.9% of the United Kingdom new cars market's volume.
Background of the Market Recession Fluctuation of fuel Encouragement of developing and purchasing Low carbon (electric and plug in hybrid) cars 130g/KM co2 emission target (+ Co2 Tax, -- Allowance) Scrappage Incentive Schemes
The barrier for the new player Brand strength and reputation are highly important, therefore relatively difficult for new players to directly enter a particular country's market. High capital requirements for a manufacturing facility of feasible scale, new start-up companies are rare. Have left relatively few players in this market. Competitive rivalry is likely to intensify over the next few years, as major players contend for their share of declining markets. Key inputs like steel, whose price may be difficult for manufacturers to control, as well as more differentiated products, such as fabricated components, and labor. Used cars and public transport are likely to offer a very strong threat to car makers.
Factors Influencing the Likelihood of New Entrants in the New Cars Market in the United Kingdom, 2009 Likelihood of new entrants Weak Strong Low-cost switching 5 Market growth 4 Undifferentiated product 3 2 Weak brands 1 Scale unimportant 0 Little IP involved Low fixed costs Suppliers accessible Little regulation Distribution accessible Incumbents acquiescent Scores: 1= weak driver...5=strong driver Source: D A T A M O N I T O R
Some successful cases Korean Car Cheap Service Guarantee Japanese Car Efficient Quality
Why China ’ s Cars can not be exported to the UK market Brand reputation Dealers network Financial support Emission standard
Change people ’ s minds China's Geely Automobile recently have confirmed that they had made agreements with Ford on all important commercial issues of the sale of Volvo Car Corporation. Ford believes they will sign the contract with Geely at the first quarter of this year, and will finish the deal before the second quarter of this year. Volvo doesn ’ t make any small model car, in contrast, Geely is well known for its small car(500K unit export/year). We won ’ t be surprise if the Geely small car exported to the UK market with Volvo brand.
Yes, I do Swedish brand (safety, quality) relatively Low costs of procession and maintenance Environmental friendly (Plug in Hybrid, fuel cell vehicle) Advanced technology (Regenerative braking technology, light weighting etc.) Worldwide components, assembly close to end-user Chinese capital
MG6, British life, British Car Brand. Britain ’ s ever best-loved sports car Heritage. New face of MG comfortably familiar, Exciting new developments. remains true to the heritage and history. Local. New MGs have been designed and engineered here in the UK. They plan to commence production of MG6 at the Birmingham plant before the end of 2010. Dealers network Rechargeable Hybrid Car