Japanese Car Makers Decreasing Production for Chinese Market

No, it is not for economic recession or any decrease in the Chinese market. The top 3 Japanese automakers have decided to cut back on production in China because of growing tension between the two countries. Anti-Japan feeling is growing in China and as a result, some groups have called for boycotting Japanese products. This event has become a blessing for Korean car producers as the demand for Korean cars is increasing in China.

Chicago Tribune wrote:

Japan's Toyota Motor Corp , Nissan Motor Co and Honda Motor Co plan to slash production in China by roughly half, the Nikkei newspaper reported on Monday, as a territorial row between Asia's two largest economies cuts sales of Japanese cars in the world's biggest auto market.

 Sales have plunged at Japanese car makers since violent protests and calls for boycotts of Japanese products broke out across China in mid-September over the Japanese government's purchase of a group of disputed islands in the East China Sea from their private owner.

This event shows how political problem can affect economic ties in Asia. Sadly, most of the Asian countries are at odds with their neighbors for various reasons and often it causes a negative impact on economic ties. Asian countries need to work for closer cooperation and increase internal trade or else they will always fall behind their European and American competitors. 

Honda Operating Profit Increased by 90%

Honda Motor Co. has seen huge operating profit in the last financial year. A Nikkei report revealed that the Japanese automaker almost doubled its operating profit in the year ending to March as its yearly profit increased by 90% to 360 billion yen which is even more than company’s expected profit of 320 billion yen. Honda saw excellent success in the emerging markets like India and China and it is now planning to grab more market shares in those markets. Honda is also getting huge response for its hybrid cars in the US.

While Honda is going through a good time, its domestic rival Toyota is facing a tough time. Toyota is all set for a huge recall leading to its share falling down. Naturally, Honda would like to capitalize on its huge demand in the emerging markets, while under pressure Toyota would have to find out ways to get out of the tough situation and regain its shares in the market.

Related article:

AFP

No hope for Common Asian Currency

Asian countries have immense potential and they have more than 50 percent of the total population in the world. However, the main problem of Asian countries is that they do not have good relation with each other. So, although European countries could even make a single currency called Euro, there is still many years before we can even dram of a common Asian currency. The main problem as I said is the bad relationship between the political leaders and a lot of mistrust and suspicion among neighboring country.

I just wish that there was some kind of union association like European Union in Asia. Asian countries have two things and one of them is SAARC and other is Asian. However, the sad part is that China is not a part of any of them. So, without China you can not imagine of any successful union or association in Asia. 

After Recession Asian Countries Should Sit Together

As the recession is finishing in United States, the economies of Asian countries are also gradually coming out of the recession. This is good news and hopefully the Asian countries will be able to export more and more people will get job. Major Asian countries like Japan, China, Korea and India suffered a lot from the impact of recession because they are too much depended on US economy. It is perhaps time that Asian sit together and try to increase inter trade among themselves. China, India, Indonesia, Bangladesh, Japan and Pakistan have more than two 2.7 billion population among themselves. This can be huge market but these countries do not have good relationships with each other and they do not try to actively increase relationships in the business sector. Thus, they are heavily depended on Europe and America for their products.

Years of bad relationship and mistrust are not easy to overcome suddenly. However, they must sit together annually and there should be the dream of something like Asian union in the form of European Union. These countries should actively encourage the business people to do more business.

One of the main problems that I can see is that there is a lack of organizations among Asian companies. For example, in the computer field there is something called ASSOCIO. However, in other fields, I don’t see any notable Pan Asian organization. 

Toyota to Showcase New Concept and Hybrid Vehicles in Delhi Auto Expo

Japanese automaker Toyota is going to unveil its low-cost small car in the upcoming Auto Expo in New Delhi. Besides the small car, the car maker would also showcase some other 13 products including concept and hybrid cars. These products will also feature the company upcoming technologies. So, Indian car enthusiasts will have a good chance to see what products Toyota is planning to roll out over the next few years. The compact car that Toyota is planning to unveil at the Auto Expo is specially designed for Indian car market.

The small car will be produced by a joint venture between Toyota and Kirloskar group and the production will be started from December 2010 at the Bangalore plant.

Business Standard reported:

The compact car project is Toyota's most ambitious venture in the country in its 11-year existence and the company is betting big on this in its bid to become a volume player in the domestic market.

It is supposed to showcase both the hatchback and sedan versions of the vehicle during the Expo. Toyota also has plans to roll out 70,000 units of the proposed compact car in the first year of production.

No doubt, Toyota is trying to capitalize on the price sensitive car market of India. Tata Motors experienced huge response for its Nano car which is priced a little more than 1 lakh. So, it seems that Toyota is going to follow Tata’s footstep by launching a small low-cost car which could help Toyota gain a significant chunk of market share in India.

Price of 2010 Nissan Rogue S Krom Models Revealed

You already know that Nissan is going to roll out 2010 Rogue S Krom in two models: one is front-wheel and another is all-wheel. The price of the two new models has been revealed. The front-wheel model would come with a starting price of $24,740, while the all-wheel model would cost at least $25,940.

There are some improvements seen in the two new models compared to its predecessor.

Motortrend reported:

What the extra cash gets Krom customers is a bevy of aesthetic upgrades like 17-in. wheels, a unique body kit, body colored side mirrors, bespoke grille, emblems, and a Lamborghini Murcielago-esque central exhaust. The Rogue S’s standard 170-hp 2.5-liter four-cylinder with a CVT remains untouched in Krom mode.

Considering the added features, it seems that the two new models of 2010 Nissan Rogue S Krom could help Nissan make some quick cash in. The pricing seems to be pretty much competitive too.

Auto Sales Growth in Japan Continued in November

Auto market in Japan is gradually getting over the recession and is now in its way to retain the market strength. The market has seen sales growth in November which has been the fourth straight rise in sales. Incentives by Japanese government helped the domestic auto market regain its strength as demand has been increased significantly since August. Demands fell in Japanese market last year after the collapse of Lehman Brothers Holdings Inc. in September 2008. Naturally, the last few months of the last year was largely affected by global economic recession. So, the year-on-year performance of the same period this year seems to be better now. However, it is also true that government subsidies were instrumental behind the sales growth of the Japanese market.

Bloomberg reported:

Sales of cars, trucks and buses, excluding minicars, rose 36 percent to 293,410 vehicles in November from a year earlier, the Japan Automobile Dealers Association said in a statement today. Toyota sold 147,513 units, excluding Lexus-brand cars, up 39 percent.

November sales jumped 73 percent at Honda, while Nissan Motor Co., the nation’s third-largest automaker, sold 33 percent more vehicles.

Well, it is good news for the Japanese automakers. Global auto market has struggled a lot when economic recession was rife and demand fell significantly leading many companies to yearly loss. US government also provided some incentives to help the auto market as did the Chinese government. Overall, it seems that global auto market is gradually getting over the recession.

Automakers Looking for a Steady Growth in Chinese Market in 2010

Global auto industry is currently going though a recovery phase after economic recession is over now. China is one of the fastest growing auto markets in the world and its government is now trying to make it world’s biggest auto market replacing US market. To make this happen, China has taken up some measures like government stimulus and cutting tax. Overall, it is expected that car market of China could see a 10 percent growth in 2010.

So, automakers, both global and local, are determined to grab a significant chunk of the market share next year. Due to economic recession, automakers had to go through a tough time and now they are looking to retain their market strength and return to profit again. Naturally, Chinese market has now become a lucrative destination for the car makers. Well, India also has a big auto market and Indian government should also try to attract the global auto makers by taking some measures.

Related article:
Reuters

Japanese Automakers Facing Tough Time due to Dollar Fall against Yen

Japanese automakers are facing a tough time ahead as dollar is struggling against yen over the last few months. Among the automakers, Toyota is thought to be the worst sufferer. Dollar fell down to a record low (in 14 years) of 86.29 yen recently and this indicates that the situation could be deteriorated in future. Euro is comparatively in strong position and this could be a positive sign for the automakers.

Reuters reported:

Toyota lost 1.2 percent, slightly more than falls of 1.1 percent in Honda and 0.5 percent in Nissan, but better than Mazda Motor Corp (7261.T), which fell 2.1 percent. The transport sector subindex .ITEQP.T lost 1.2 percent.

Global auto market is gradually improving since last quarter as economic recession is almost over and government stimulus also helped few automakers. However, now it seems that bad days of Japanese automakers have not gone yet. Reports also have it that dollar rate against yen could decrease further next year. So, companies like Nissan, Honda and Toyota could face a tougher time in the months to come.

Toyota Reappointed 275 Workers in Georgetown Plant

Toyota has recently announced that it has marked profit in the July-September quarter and it was a big relief for the automaker because the profit came after experiencing only losses in the previous three quarters. The recession-hit auto-market is gradually getting recovered and the car makers are also getting their strength back. Honda and Nissan also experienced success in the last quarter.

Toyota has now reappointed 275 workers in its Georgetown plant in Kentucky. These temporary workers were laid off last year due to poor sales in the wake of economic recession. Production is going on in full swing with the workers working overtime in Saturday. This is another one of the indications that the Japanese automaker is gradually recovering its business with the help of government stimulus as well as increasing demand in the emerging car markets like China.

Related article:

Freep.com

Nissan Unveils NV200 Electric Commercial Van Image

Nissan has unveiled the first image of its concept electric commercial van. The Japanese automaker earlier announced that it would come up with an electric version of NV200 gasoline-run commercial van which was released in 2009. Now that the company has resealed the image of the NV200 electric commercial van, you can expect that Nissan would very soon step into the commercial van market with a all-electric vehicle.

Meanwhile, the company is now planning to release its electric passenger vehicle NV200 EV in 2011. It is expected that the passenger car would make a strong challenge for Toyota’s highly popular Prius hybrid car. By releasing the image of NV200 commercial van, Nissan has indicated that the company has taken up hybrid market very seriously as it aims to release a zero-emission van in future.

Related article:

independent

GM and Ford Saw Increase in October Sales in the US

As the economic recession is almost over, the automobile market in the US is gradually recovering. Leading automakers like General Motors (GM) and Ford experienced year on year increase in October. Though overall sales in October were not very promising, the market was better than the previous month. Chrysler Group, however, could not match the success of fellow automakers like GM and Ford as the company’s October sales were 30% down compared to the same period last year.

Autodata Corp has estimated the total sales of October 2009 at 838,052, just 104 units fewer than the same month of the last year. However, the October sales were 12% up from the total sales volume of September. So, it is pretty much clear that the market is in a recovery process and automakers have a good phase of time ahead of them.

Related article:

Wall Street Journal

Honda Revealed the Pricing of 2010 Accord Crosstour

Honda has revealed that November 20 would be the launching date of 2010 Honda Accord Crosstour. Price would start at $29,670 and $710 would be added to the price as the destination and handling charge of the vehicle. The car features 3.5-liter V-6 engine besides the automaker’s fuel-saving technology.

Thecarconnection reported:

The vehicle is set to debut on November 20 with a manufacturer's suggested retail price starting at $29,670, plus a destination and handling charge of $710. The Honda’s closest rival, the Toyota Venza, has been on the market for about a year now and is priced from just $25,975 so the Honda will definitely have its work cut out for it.

Accord Crosstour comes in two models: EX and EX-L. EX model features dual-zone air conditioning, a stereo system featuring seven speakers and it also has a moonroof as well as chrome detailing. Among the features of EX-L include leather trim, Kevlar cone speakers, USB audio interface as well as optional satellite navigation.

Honda to Launch CR-Z Hybrid Car in 2010 Detroit Auto Show

Japanese automaker Honda is planning to introduce the concept model of CR-Z hybrid car in the Tokyo Motor Show 2009 this month. However, Honda has also declared that it would bring out the North American Production model of CR-Z car in Detroit Auto Show 2010 due to take place in January.

The only difference between the concept and the production model is that Honda CR-Z model does not feature any rear seat, and thus, accommodating only 2 persons. The North American production model has a sporty look and its six-speed manual transmission will allow the riders feel comfortable ride.

Related article:

motorcrave

Ford Trying to Strengthen its Hold in Hybrid Car Market in the US

You know that Hybrid car has been very successful over the last one year in the US mainly because US consumers have become more conscious about fuel economy and environment friendly vehicles. Specially, the economic recession struck heavily in US economy has led people to take hybrid cars very seriously. At the same time, environmentalists have been able to create a consciousness about emission and its impact on environment. Overall, hybrid car market is getting stronger day by day.

You know that Toyota is leading the market with big margin, while fellow Japanese car maker Honda takes the second place in the hybrid car market in the US. However, now it seems that Ford is trying heart and soul to overtake Honda to clinch the second spot in the hybrid market. Ford marked huge growth in its hybrid sales in the first three quarters of the year. The company sold 26,016 hybrid cars in the first three quarters, 73 percent year-on-year increase. For the same period, Honda observed only 8 percent year-on-year growth in the US, selling 29,958 hybrid vehicles in the first nine months of the year.

It is pretty much clear that Honda is going to face some strong challenge from Ford in the near future and there is every possibility Ford could overtake Honda at the second place in the hybrid car market. However, Toyota does not need to worry a lot yet as the Japanese automaker still has a very strong foothold in the hybrid market, but Toyota should remember the fact that hybrid market is still in its infancy and has not been explored fully yet. So, it would continue growing in the years to come. So, other automakers have lot of rooms to grow their share in the hybrid car market.

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CNET

Electric Cars Less Likely for Mass Production in Near Future

You may have heard many good things about electric cars and its benefits. Well, it is true that electric cars are going to be the next big thing in automobile market, but it is less likely that electric car would grab a significant portion of the global car market in the near future. Ahead of Tokyo Motor Show, Japanese automakers like Toyota, Honda, Nissan, Mitsubishi etc. are preparing to introduce their concept electric cars. However, there is less possibility that the companies would bring these models into large scale production in the near future.

Electric cars are really environment friendly with zero-emission, but the analysts believe that electric car market is still in its infancy and it would take time to see electric cars going into mass production for global market.

Among the Japanese car makers, who are going to take part in the Tokyo show, only Nissan and Mitsubishi are planning to unveil their electric cars next year, while Daimler AG will reportedly start the commercial production of electric cars in 2012. Toyota has said that it would launch an electric car by 2012, but it will only be available for the US market. Honda is planning to do the same by launching an electric car in the US as well as in Japan, not for global market.

So, it is pretty much certain that for environment friendly cars people would have to rely on hybrid options in the near future.

Related article:

The Wall Street Journal

Toyota to Display 2 Concept Cars at Tokyo Show

Japanese car maker Toyota is going to show two concept car models at the upcoming Tokyo Motor Show that is due to be organized later in October. The two concept cars are: FT-86 and FT-EV II. FT-86 is a sports car featuring a front-mounted two-litre engine and the car is driven by rear wheel. The design is pretty much catchy and fashion conscious users would like to own it.

FT-EV II is the other concept model that Toyota is going to showcase in the Tokyo Motor Show. The city car can accommodate four persons, even though it is smaller than the Toyota’s previous model iQ. It would be interesting to see how the model manages to allow four persons inside it, but the possible reason is that FT-EV II does not feature any pedal or steering wheel. It features a joystick which has all the controls needed while driving. It is an electric car and at a full charge it can run about 50 miles. Highest speed it has is 60 miles per hour. The city car has two sliding doors.

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carkeys

Toyota Recalling 3.8 million Cars over Floor Mat Issue

Toyota Motor Corporation has now recalled 3.8 million vehicles on floor-mat complication. This is reportedly the Toyota’s biggest recall in the United States to date and the company has also apologized for this complication that already caused a number of accidents across the country.

Suujournal.com reported:

Models recalled include the 2007-2010 Toyota Camry, 2005-2010 Avalon, 2004-2009 Prius, 2005-2010 Tacoma, 2007-2010 Tundra, 2007-2010 Lexus ES 350, 2006-2010 IS 250 and IS 350.

The problem is that the floor mats in these cars can cause an abrupt acceleration in speed that the derivers may not be able to stop, and thus, leading to a big accident. So, Toyota is now urging the car owners to return their cars to Toyota and get the problems fixed.

Well, I think, Toyota should handle this issue smartly if they want to solve it without losing much of its goodwill.

Maruti Suzuki Expecting about 30% up in September Sales

Maruti Suzuki has been experiencing huge domestic sales in September, the month of festival. Eid and Durga Puja, two most significant religious festivals in India, were celebrated in September. So, it is natural that the demand would be high. However, the demand was even beyond the expectation of the car maker. Maruti Suzuki had to struggle to contend with the demand. In fact, the domestic demand of the company in September could be around 70,000- 71,000 units.

The largest carmaker of India, Maruti Suzu, is now thinking about increasing its 10-lakh yearly production. However, the strong domestic demand could be halted by a likely increase in interest rates on bank loan for cars.

India has a one of the fastest growing car market in the world, but the market went through a tough phase during the recent economic recession. However, now it seems that the market looks pretty much lucrative with a number of foreign car makers entering into the low-cost small car segment of Indian car market.

Related article:

Business Standard

Tata Nano: The People’s Car Shown at Delhi Auto Expo

The much-awaited Tata Nano has been unveiled earlier this year in India. Dubbed as 1-lakh car in India, the passenger car which Tata Motors claims world’s cheapest car has been showcased at the New Delhi auto expo. Tata Group chairman Ratan Tata drove the car himself on the stage in front of hundreds of car enthusiasts.

Ratan Tata announced to introduce a small car priced 1 lakh four years back in 2005 and the car came into appearance in earlier this year. Tata has already received lots of pre-orders for the car and it is expected that the company will start delivering the cars later this year. Here, I am quoting some lines from Alibaba about the specifications of Tata Nano:

At the Auto Expo in New Delhi, Ratan Tata drove the Nano, which the company calls the People's Car, onto the stage and said it would still have the price tag of 100,000 (approximately $2,500) rupees promised four years ago, though commodity prices have since risen. "That's because a promise is a promise." In India, it's called the 1-lakh car ("lakh" being the Indian equivalent of 100,000).

So, you can see that Tata Nano has all the reasons to rock the Indian car market in the next few years. Because of its price point, the two-wheeler market will also be affected in India. Though it seems that Tata would make huge money through this model, the problem is that profit margin for Tata Nano will be very small.