Brighter economic outlook accelerates car sales

Low interest rates and a brighter economic outlook in Vietnam sent new-vehicle sales soaring in the first half of the year.

This allayed worries of a market slowdown and set the industry up for a strong second half.

Sales in the first six months of 2014 rose 27 percent over the same period last year to 54,986 units, according to the Vietnam Automobile Manufacturers Association(VAMA).

Of the figure, cars were up 36 percent and trucks up 24 percent.

The association, which comprises country’s 21 leading auto makers, said in its monthly report on July 10 that this was the 15th consecutive month that sales had been higher.

VAMA’s Chairman Jesus Arias said with this momentum, the full year total industry forecast for 2014 was adjusted up to 130,000 units, a 18 percent growth from 2013.

Nguyen Van Dung, General Director of Northern Automobile Corporation, a prominent auto dealer in Vietnam, said incoming indicators were consistent with a rebound in the economy.

“We’ve seen good improvement in manufacturing activity. Consumer sentiment has been good, and incomes are gaining ground.” he added.

Vietnam’s economy has been stable for the first half of the year with a GDP growthrate of 5.18 percent and inflation at 1.38 percent against December last year – the lowest rise in the past 13 years.

In addition, the latest forecast from the World Bank shows that Vietnam’s economicgrowth will be around 5.5 percent this year, better than expected.

Of the VAMA’s list, Vietnamese manufacturer Truong Hai Auto Corp, which assembles trucks, buses and sedans, extends its leading position, which it gained from Toyota in May. The company, based in the central province of Quang Nam, sold 17,851 vehicles in the first half, registering a year-on-year increase of 40 percent.

Japanese invested Toyota ranked second with 16,653 units sold, up 12 per cent, followed by Ford with 5,264 units, up 54 percent.

Meanwhile, the country imported 25,000 completely built units (CBU) cars worth 500 million USD in the first half, an increase of 44.4 percent in volume and 53.9 percent in value year-on-year. About 25 percent of the imports were luxury sedans and sports utility vehicles (SUV), according to the Customs Office.-VNA

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Petrol cars set to make a comeback as demand rises sharply in last fiscal.

Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.

The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.

Petrol cars set to make a comeback as demand rises sharply in last fiscal

Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.

But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.

Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.

The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.

Petrol cars set to make a comeback as demand rises sharply in last fiscal

Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.

But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.

Shrinking gap between petrol and diesel prices have led to rise in demand for petrol engined cars in India. The abrupt hike in petrol prices few years back had led to surge in diesel powered cars, however data for FY 2013-2014 shows that there has been a sharp increase in petrol powered vehicles by 58 per cent. On the other hand sales of diesel cars dipped 14 per cent in last financial year. Demand for diesel cars could slump further if the new government approves a pending Cabinet proposal for a sharp hike in diesel price.

The overall car market saw a drop in sales by 5 per cent in FY 2013-2014. It has been observed that in urban market where sales of new cars accounts for almost 50 per cent has seen preference of petrol cars over diesel cars by the customers. Petrol cars are priced lower than diesel cars, the huge price gap between both the models is also been cited as one of the major reasons behind decline is diesel engined cars. Diesel is currently being sold in the capital of India, New Delhi at Rs 56.7, however sources close to development opine that diesel prices may shoot up by Rs 10 in coming time.

Petrol cars set to make a comeback as demand rises sharply in last fiscal

Sales of commercial vehicles have also witnessed drop over last couple of months. Regular increase in diesel rates and rupee appreciation has led to decrease in fuel subsidy. Most of the car makers had introduced diesel variants of their popular models owing to sharp demand in diesel trims.

But ever since the price gap between diesel and petrol shrank, customers started preferring petrol models more than the diesel engined cars. Of late the auto makers have also seen steep fall in diesel variants of their popular models over petrol trims.

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China in May: Market up, passenger vehicles up, commercial vehicles down, foreigners up, Chinese down, GM and Volkswagen in dead heat

Years ago, and ever since, Western prognosticators said the Chinese car market was in bubble-territory, and ready to roll over. Last month, as in the months and years before, the market ignored the negative vibes, and powered on. According to data released by China’s manufacturers’ association CAAM, sales in May were up 8.5 percent year-on-year to 1,911,200 units across all segments. For the first five months of the year, sales were up 9 percent to 9,838,100 units. The CAAM is targeting an increase of 10 percent for this year (which would bring sales to over 24 million), and the market is making valiant attempts to comply.

Passenger car sales were up a strong 13.85% to 1,590,400 units in May. Commercial sales were soft. 320,800 commercial units changed hands in the month, down 12.01 percent.

According to the association, sales of foreign-branded cars were up strongly, bringing “rapid growth to China’s top ten carmakers.” China’s smaller makers are being left behind as the market share of Chinese-branded cars continues to shrink.

Segments, May 2014
Sedans	1,008,700	7.26%
MPVs	130,300	54.03%
SUVs	319,200	40.05%
Cross	132,200	-8.15%

GM sold 1,473,484 vehicles in China in the first five months, an increase of 10.7 percent year on year. Group sales of rival Volkswagen will be announced in the coming days. Looking at data available so far, it looks like Volkswagen will deliver similar, if not slightly higher numbers for the same period, while the race for world domination continues

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Indian, Chinese SMEs to Come Together for Business, Technology

Indian and Chinese SMEs are expected to work closely in sectors like cosmetics, rubber, plastics and textiles while strengthening their manufacturing and technological abilities, as a part of the five pacts inked today between Assocham and SME Bureau China.

The trade deficit with China stands at USD 36.21 billion in 2013-14. This can be reduced to sustainable levels through more exports from India to China as well as China investing in building manufacturing capacities in India, Assocham said.

Assocham will hold a summit for Chinese companies to invest in India. Some of the major Chinese companies present were Huawei, ZTE, Haier, Sino Steel, Lenovo, Beijing Automotive Industrial Corporation, Xindia Steel and SANY, among others.

According to an Assocham study, China ranks 31st among countries contributing foreign direct investment (FDI) to India. FDI inflows from China to India currently stand at USD 0.575 billion while those from India to China reached USD 0.898 billion.

The two sides also focused on strengthening smart manufacturing, exchange of solar energy and green house technologies along with railway infrastructure, supply stations buildings and escalators for railway metro stations.

Bilateral trade between India and China reached USD 75.5 billion in 2011-12 with trade deficit of about USD 40 billion.

"With the growth in bilateral trade between India and China in the last few years, many Indian companies have started setting up Chinese operations to service both their Indian and MNC clientele in China."

"India and China will identify the business opportunities in the small and medium enterprises (SMEs) segment across wide range of sectors from agricultural products to textiles and machinery," Assocham Secretary General D S Rawat said.

The areas identified for collaboration include processed food, cosmetics, rubber, plastics, textiles, machines for garment industry, and small scale plants for a range of consumer durables among others. The MoU was signed by Rawat and Wu Xiaochun, Director General of SME Bureau China here.

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Big data reveals trend of Chinese auto market

Many cars at the ongoing Beijing auto show can momentarily seize the attention of visitors, but such scenes can hardly tell what sorts of automobile are customers' favorites.

A new report based on big-data technology, however, discloses some clues in the world's largest auto market.

Prior to the opening of the auto show, Baidu, a leading Chinese search engine, issued a report on the features and demands of Chinese car buyers, by analyzing massive search data in the past year generated by the country's 600-million-plus Internet users.

The report has been upgrading with a real-time feed of search inquiries related to the show, which kicked off on April 21 and will conclude on April 29.

One finding may get foreign investors excited is that the number of search queries for "imported cars" increases slightly year on year, up to 26.1 percent, though domestic automobiles still dominate the current Chinese vehicle market.

According to real-time results generated by Baidu Index, searchers of imported cars are mainly young people under 30 years old.

Another surprising finding shows that 42.6 percent of web users searching cars come from the fourth-tier, or very small cities, and the number is almost three times that from first-tier cities like Beijing and Shanghai, which have rolled out car-purchase restriction policies to tackle traffic congestion and air pollution.

Price-sensitive Chinese consumers are beginning to pay more attention to car's comfort and functions, as more than 50 percent of search queries are related to SUVs or compact cars, according to the report.

The report also offers a list of popular search keywords, including "most popular new models", "new-energy cars", "Top 10 traffic violations" and hot issues related to car consumption.

Though the data-based report seems only to include web users, it also reflects some changes and habits of Chinese car buyers.

"It is becoming very important for people to get information about cars online, especially in cities with very few test-drives, " said one web user.

One analyst added that the report may invoke a revolution in the auto industry, indicating that search engine marketing would be prevailing.

It is not the first time that Baidu has used big data to launch hot issue discussions. In February, it applied the real-time result to trace human migration during the Chinese Spring Festival travel rush and made a similar quantitative report on the most popular issues during the annual political sessions in March.

Baidu chairman Li Yanhong said at the sessions that the Internet is accelerating the transformation of traditional industries towards higher efficiency.

Zhang Yi, CEO of an Internet consulting company iiMedia Research, said the report is not a piece of pioneering work as many conventional industries have begun to make use of big data.

"What I am concerned more is how to use big data to solve the problem that people face every day," said Zhang, who expresses the wish that Internet giants could develop new technology to tell people traffic conditions and offer drivers smart suggestions

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JLR, auto majors zipping into China

EIJING, APRIL 20:  

Tata Motors-owned Jaguar Land Rover, General Motors, Volkswagen and other major automobile giants on Sunday left little doubt about the special importance they are according to the world’s biggest auto market by unveiling new China-specific models and announcing plans to bolster production facilities in the country.

At Sunday’s Beijing Motor Show, Jaguar Land Rover (JLR) debuted several models for the China market, including the Jaguar F-type Coupe, the Land Rover Discovery and a Range Rover Hybrid. It also revealed that its first China unit will begin manufacturing its first cars before the end of the year. Recent reports had said production would be delayed to 2015, but JLR officials here said first prototypes would soon be completed and sales expected to begin in early 2015.

Key market

Tata Sons Chairman Cyrus P. Mistry attended the opening of the auto show here. JLR China officials said the first units at its venture with China’s Chery automobiles in Changshu, in southern Jiangsu province, would be Land Rover Sports Utility Vehicles (SUVs). The plant will have a production capacity of 1.3 lakh vehicles annually.

China has emerged a key market for JLR. Sales last year grew 30 per cent, crossing 95,000 units.

Local production will allow the company to reduce prices for its popular Land Rover SUVs as well as Jaguar cars aimed at the fast-growing luxury segment by around 15 per cent, officials said.

Last year, 18 million vehicles were sold in China, making it the biggest auto market. JLR will face tight competition from the world’s biggest auto companies and a growing number of Chinese firms in grabbing a slice of an increasingly competitive market.

Germany’s Volkswagen said its group planned to sell more than 3.5 million cars in China this year — besides VW cars which are among the oldest foreign brands to be domestically manufactured here and are ubiquitous today in the streets of every Chinese medium-size city, the Audi is also widely popular in China — especially for government use — while Lamborghini and Bentley are banking on the growing luxury market here to drive their global sales.

GM to invest $12 b

General Motors said it would invest $12 billion in China in the next three years, and start construction of five plants in 2015.

One of them will only manufacture Cadillac sedans, sales of which GM expects to double this year to one lakh. A new Cadillac sedan was debuted at the motor show.

Besides JLR and GM, Fiat SpA and Chrysler also announced plans to begin production in China next year for their popular Jeep brand.

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Social networks spoil children, many parents believe.

Phan Thu Linh, 14, an eighth grader in Thu Duc District in HCM City, is one instance of a pernicious effects.

She once was an glorious and deferential student.

However, things altered after he got a laptop from relatives as a birthday present. Her scholarly achievements got worse, while she mostly used bad denunciation during conversations with adults and prefered regulating jargon words.

Tuyet, 38, Linh’s mother, was repelled when she satisfied that Facebook was a “culprit” that caused a changes to her daughter.

“She spent all of her time with her computers. She stayed in her room all day and accessed amicable networks,” Tuyet said. “When we asked what she was doing, she lied and pronounced that she was doing propagandize work. But we found out that she spent many of her time chatting with strangers”.

“I motionless to stop regulating internet services. It was too dangerous for my daughter,” she said, adding that her daughter picked adult bad habits from a practical universe on amicable networks.

Nguyen Thi Luong, 35, has been in trouble for a final several months after conference from a son’s clergyman that a boy, Tuan, had mostly “exchanged blows” with classmates recently.

A schoolgirl complained on Facebook that she was frequently teased by a boys of a subsequent class. Tuan and some classmates left comments observant that a teasers were a bad boys and should be diminished from school.

Meanwhile, a students of other classes commented that a schoolgirl deserved a provoke since she was “sour and scornful”.

As a written conflict on internet was unsettled, they motionless to accommodate any other to find who would be a winners by fighting.

In another case, Manh Hung, an bureau worker, complained that his daughter, a third grader, does not have a “happy childhood” since of Facebook.

The lady does not spend her giveaway time to play, assistance relatives with housework or go out with parents. She would rather stay during home and discuss with friends on Facebook.

“She gazes during a mechanism shade all day,” Hung complained. “She has turn shortsighted, yet she is only a third grader”.

“I can’t know what is so engaging that she finds on amicable networks. we am fearful that she will turn incommunicative, since she uses her hands some-more frequently than her mouth,” he said, adding that he considers prohibiting her from accessing amicable networks.

However, Phan Van Tu, MA, a techer during a HCM City University of Social Sciences and Humanities, pronounced commanding a anathema is not a good resolution to settle a problems.

Tu pronounced there are always dual sides of a coin. If someone can use amicable networks in a reasonable way, he would get advantages from a networks.

Bui Hong Quan from a HCM City labor dialect remarkable that it is not possibly to demarcate children to entrance a internet and amicable networks since these are a partial of a complicated life.

“What relatives can do is give recommendation to their children on how to use amicable networks in a many reasonable way,” Quan said.

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