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AUTO SECTOR
MONITOR
2016 Q2 Issue
Page 2 of 21
CONTENTS
About Us
Automotive Industry Overview
Whats in the news?
Europe Cars to get lighter
Page 3 of 21
Page 4 of 21
BREXIT IMPACT ON
AUTOMOTIVE
INDUSTRY
STEERING BASED
DRIVER ASSISTANCE
SYSTEMS ARE HERE
Is 2016 any
different from
2015?
Automotive industry during 2015
could be defined as the low sales in
developing markets, balanced with
strong sales in the United States of
America. The entire year was more
or less stable with reduced
prospects for the players across the
supply chain. 2015 witnessed higher emphasis by the automakers on prototypes for connected and
autonomous cars. R&D activities were targeted towards intelligent car systems, where technology
takes over the wheel in reducing driver-error related road accidents. Electric parking brakes,
automatic cruise control, self-parking, collision detection systems, lane departure warning and
electronically operated power steering are some of the major trends witnessed in the new vehicles
launched during 2015. Worsening of the global economic conditions actually backfired the OEM
and supplier strategy of chasing the sales growth and improving the returns by leveraging
distributions across multiple regions.
The automotive sales reached record levels in the United States of America
in 2015. The total sales stood at 17.48 million in 2015, surpassing the
previous high of 17.4 million in 2000. Similar growth trends were observed
in Mexico, where the sales in 2015 grew to over 1.3 million, as compared to
1.13 million in 2014. The present trend of investment in new production
facilities is expected to continue over the next 6 years in Mexico.
Automotive sales in Canada peaked at 1.93 million during 2015, contrary to
the 1.4 million during 2009.
The global
automotive sales in
2016 are expected
to touch 75 million
mark
Page 5 of 21
Though the European automotive sales grew from 18.5 million in 2014 to 19.04 million in 2015, the
overall growth of the industry became vulnerable owing to the local economies that are at the verge
of recession. France, Spain, Italy and Portugal gave a hard time to their residing automakers, due
to ineffective models, lower profits and highly fragmented market scenario. United Kingdom
registered over 3.06 million sales in 2015, while Italy witnessed over 1.7 million as contrary to the
1.49 million in 2014. Cross overs and SUVs witnessed growing popularity in the region over the
past 3 years. Emphasis on these vehicle types and effective management of production and demand
would help the automakers in the region to incur if not high, decent profits.
China auto sales slowed down and touched 24.59 million in 2015 from
23.49 million in 2014. This decline in growth could be largely accounted to
controversial restriction policies on the new car ownerships in the large
cities of the country. Post the irregularities since 2012, the auto sales in
India stabilised with 3.4 million sales in 2015, compared to the 3.17 million
in 2014. Brazil witnessed a decline of over 26% in sales during 2015, as
Russian
government to
ramp up the
support measures
for slowing down
the sales decline
Germany
USA
Japan
India
Russia
22.5
15
7.5
0
2013
2014
2015
Source: Mordor Intelligence Analysis
Page 6 of 21
BREXIT becomes
official with 52%
votes in favour
Impact of BREXIT on UK
Automotive Industry
In recent years, automotive industry in United Kingdom has
received huge investments in luxury brands from global
automakers. The Europe referendum vote now arises a question
whether UKs automotive industry will continue with good
growth rates. Despite the BREXIT vote, United Kingdom will
retain many advantages that have attracted the automotive
industry, such as efficient production facilities, flexible labor and
high quality operation. On the down side, UK has lost its free
trade status with all other countries and will have general market
disruption, due to slow-down in economic activity that arises in
UK and across Europe as a result of Brexit. Significant financial
implications and volatility in exchange rates will continue.
Components that are required to build a car must be imported
and therefore will become more expensive. As a whole, every
decision that is taken to shift the production of a new model to a
factory will have significant impact on UKs automotive industry
owing to Brexit.
Page 7 of 21
Modi Meets
Musk
Narendra Modi, the Prime
Minister of India, visited
Tesla Motors HQ near San
Francisco in the United
States on October 6th
2015. Sources say that the
Prime Minister discussed
the possibility of a more
affordable car from Tesla
for Indian market.
Pan-India SCN
network on
cards?
India to attain
National Fuel
Security plan
Piyush Goyal, the minister
for power, coal, new and
renewable energy has
announced an ambitious
plan to make India travel
100% on the electric cars
by 2030. This statement
was made in the light of
making the National
electric mobility mission
plan 2020 a success. This
plan aims to achieve sales
of over 7 million electric
vehicle units in the
country, aiding the Indian
automotive industry
towards National Fuel
Security.
Fremont Facility, Elon Musk finally cleared the fog from the
question Weather Tesla will consider India as a potential
market? Beginning of 2016 Q2 saw some great news for the
Indians planning to purchase new cars. Tesla accounted that
the Model 3 will be soon launched in India. With a pre booking
price of USD 1,000 and a nominal price tag of USD 35,000, this
perfect blend of luxury vehicle with great safety and driving
features would be seen in India as soon as first quarter of 2018.
Apart from India, the Model 3 will also be launched in
emerging markets like Brazil, South Africa, South Korea, New
Zealand and Ireland thus increasing Teslas foot prints in
developing economies.
The launch of Teslas model 3 will be preceded by the
installation and expansion of the super charger network and
start of production plants for new Tesla from the Indian facility
itself. Within a week of Teslas announcement in India, the car
received country wide bookings. Currently, a lot of
developments in terms of regulations and clearances from the
Indian government would slow down the entry of model 3 into
the country.
Page 8 of 21
Conventional systems
can fail in special cases as
founder of Guttersberg
Automotive.
signals.
Page 9 of 21
With growing protests from the public pertaining to road safety, the governments are put
under immense pressure. As a result, of these concerns, the governments are trying to
make the road regulations more stringent. This is a major opening for the sensor
manufacturers to come up with better sensing systems. Further, advancements in the
sensor technologies and reduction in the production costs, created a major opportunity for
the steering sensors market. Mordor Intelligence in its recent report on the Steering
sensors stated that the market for these sensors would grow at a CAGR of 13.65% till 2020.
BEI Sensors, Guttersberg Automotive, Kraus Messtechnik GmbH, Hella KGaA Hueck &
Co, Honeywell, Mountz Incorporated, TE Connectivity Ltd., Continental AG, MTS Systems
Corporation and Sensor Developments Inc. were identified as some of the most active
players in the sector.
Page 10 of 21
13000
9750
6500
3250
0
2015
2017
2019
2021
Page 11 of 21
14%
47%
39%
Hardware
Software
Connectivity
Page 12 of 21
Tire
manufacturers
moving aggressive
to engage in new
partnerships
Changing trends in
Automotive tires sector
Yokohama had manufactured comprehensive eco-racing
tires for the FIA WTCC series. The eco-racing tires use a
revised mixture of orange oils, replacing low PCA and
rubber. The mixture of orange oil and natural rubber, which
leads to the formation a new compound called SNPR,
reduces the usage of petroleum in the manufacturing
process, without compromising the tire performance.
On November 9, 2015,
Trelleborg signed an
agreement to acquire GS
holding and its main
subsidiaries Mitas,
Rubena and Savatech.
This acquisition with give
Trelleborg a leading
position in the global
polymer solutions,
agricultural and speciality
Page 13 of 21
The global leaders in the car rental services are expected to retain their competitive
advantage over the regional players, by getting involved in the strategic alliances
with airlines and hotels. There is an observed high per capita spending on car rental
in the developing markets of Brazil, Australia, and India, which is mainly due to the
lack of availability of an organised public transport network and large number of
tourist destinations.
Toronto says NO to surge pricing!
Companies including Beck, City, Co-op, Crown, Diamond and Maple Leaf are of
the opinion to reject the concept of surge pricing after council voted last week
on new regulations which loosened rules for taxis a movement meant to allow
them to compete with companies like Uber.
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LCV
2015
2016
2017
2018
2019
Camera +
Radar Combo?
Others
Drive eye
monitoring
2020
Page 15 of 21
FUTURE OF
DRIVERLESS CARS
MEGADOLLAR
CENTENARY
BIRTHDAY GIFT
HONDA TO RELY ON
NSX HALO IN EUROPE
MARUTI CLAIMS A
SUCCESS IN INDIA
WITH BALENO
Page 16 of 21
Companies like Google, Apple, Intel and Baidu Inc., are currently working towards
producing an autonomous car. Even though not a completely autonomous car,
companies like BMW, General Motors, Volkswagen, Mercedes, Tesla Motors and
Ford are working towards producing semi-autonomous cars that can park
themselves and have enhanced autopilot features. Software is going to play a crucial
role and would become a competitive differentiator in autonomous car market.
Software and big data giants like Google and IBM are going to hold an advantage
with their technology and expertise. Even mapping companies like Nokia and
connectivity companies like Cisco have entered into the market with an aim to
design high-resolution maps and advanced control systems. Experts at Mordor
believe that Level 4/5 automation will be completely adopted by 2060.
On May 25, 2016, Uber announced to
start its driverless car testing, which
the company believes to be a huge
step forward across the driverless car
industries.
Page 17 of 21
Celebrating 100
years of Ferruccio
Lamborghini
Megadollar Centenario
birthday gift!
To mark the 100th birthday of Ferruccio Lamborghini,
Lamborghini built a limited-edition supercar as a tribute to the
companys founder Lamborghini Centenario joined the
limited-edition segment of the company, which currently
include Reventn, Sesto Elemento and Veneno.
Lamborghini Centenarios powerful V-12 engine exactly
matches the dynamic potential of the car. It is bumped up with
759 horsepower, 19 more than Aventador Superveloce, making
it the most powerful production engine ever built by
Lamborghini. The redline has also been raised by 100 rpm, to
8600 from 8500 in this beast. Lamborghini Centenario hits 62
mph in 2.8 seconds; keep the throttle propelled and you could
see 186 mph in just 23.5 seconds.
The car is entirely contracted with carbon fibre monocoque
with an aluminum front. The Centenarios culture is clear, with
smooth silhouette, hexagonal side glass, and horizontally
positioned headlamps recalling the brands current bulls. The
On March 1, 2016,
Lamborghini unveiled its
creation Centenario, which
was designed to celebrate
the 100th birthday of the
companys founder
Ferruccio Lamborghini.
This beast was first
showcased at the Motor
Show held at Geneva.
Lamborghini built only 40
of these limited edition
cars and the sources say
that the 40 limited edition
marvels have already been
sold out.
Page 18 of 21
groove-like air intakes rising from the rocker fascia to the roof on each side of the car are
particularly bold and they join the other holes, grills and flaps on the car to take the
Centenarios design from dramatic to beast like. Staggering, Y-shaped tail lamps are
allocated across the back, a few inches below the Centenarios extendable rear spoiler,
which is adjustable by an angle unto 15 degrees and can even be extended nearly by six
inches.
The Centenario is the first Lambo to get a touchscreen, which calculates to 10.1 inches
diagonally, and has many added connectivity functions. Drivers can connect to internet
radio, browse the web, , check social media,access email, and perform any of the features
available through Apple Car Play. This infotainment system also displays telemetry
information such as pedal position, oil pressure, rpm, real-time power usage,, speed, lap,
current gear,sprint times, and lateral g forces. Two optional interior cameras allows the
drivers experience to be recorded every moment. This recorded information can be
downloaded through a USB stick and analysed to improve lap times.
Technical Specifications
Engine
Dimensions
Wheelbase: 2,700 mm
Performance
Drivetrain
Standard: AMT
Page 19 of 21
Hondas NSX lineage started off in 1990 with the company establishing a new concept in
the sports car value. The company succeeded to penetrate into the sports car market with a
middle-weight, 3-liter normally-aspirated engine and an all aluminium body construction.
The 2016 Honda NSX was first revealed at the 2015 Geneva motor show and witnessed its
recent public appearance at the 2016 Goodwood Festival of Speed. The new model will
feature a petrol-electric hybrid powertrain and a new multi-material structure with an
ultra-stiff carbon fibre floor. 2016 NSX hosts a twin-turbocharged V6, driving a nine-speed
dual-clutch automatic gearbox, boasting of a 550bhp output at 7500rpm and a torque
rated at 406lb ft.
Honda plans to bring the NSX into European markets with a sticker price of 137,950
during this autumn. Market experts say that the new
sports car is sold out for the next three years already,
in 2012.
Page 20 of 21
Maruti Suzuki
sales up by 10.7
percent
In June 2016, Maruti Suzuki
reports a 10.7% increase in
domestic car sales at
1,13,612 unites, owing to
strong demand for the new
launches including Brezza
and Baleno. Though the
sales of small cars WagonR
and Alto fell by 5.6% to
33,105 units, those of
compact cars including
Dzire, Ritz, Celery and
Baleno spiked by 11% to
46.554 units. Sales of Ertiga,
Vitara Brezza and Gypsy
doubled as compared to
2015, reaching 13,596 units
during May 2016.
Steps to ramp-up
production
With the huge success and
long waiting periods for the
Vitara Brezza and Baleno
models, Maruti is now
planning to spike the
production of these two
cars at its Manesar and
Gurugram facilities until the
Gujrat plant becomes
operational.
Expanding Nexa
Maruti is expected to
expand its Nexa network to
over 250 outlets front he
current 127 by the end of
2016. The company also
plans to make its upcoming
Ignis and Baleno RS models
through Nexa outlets.
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Phone: +1 661-210-4568
Website: www.mordorintelligence.com
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