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Category: Automotive

Retail News Asia is committed to providing both local and global retailers with the latest Auto and Car news throughout the Asian market. This on a daily base.

  • Vietnam loosens regulations for car imports

    Vietnam loosens regulations for car imports

    Vietnam has scrapped the requirement for vehicle type approval certificates for car imports and eased customs clearance procedures.

    On February 5 the government amended provisions of Decree 116, which had imposed stringent conditions on the assembly, import and maintenance of automobiles since 2018.

    Importers no longer need to produce vehicle type approval certificates (VTAs) issued by authorities in the country of origin. VTAs, which confirm that production samples of a design meet specified performance standards, had been made compulsory by Decree 116.

    Besides, imported cars no longer need to undergo rigorous quality tests if they are identical to previously imported vehicles that had been tested in the last 36 months.

    Decree 116 had required each individual batch, without exception, to be tested at the time of import.

    “Decree 116 was enacted to tighten quality control of imported cars,” the owner of a Japanese car dealership said. “But once it has fulfilled its mission to get businesses in line with Vietnam’s quality standards, VTAs and other such certificates become redundant.”

    Immediately after Decree 116 came into effect on January 1, 2018, car imports plummeted 85 percent year-on-year in the first quarter as importers scrambled to procure the document.

    Governments in Vietnam’s major car supplying countries such as Thailand and Indonesia, which had never issued this type of document before, had to start doing so to prevent losing exports.

    According to industry insiders, Decree 116 was enacted as a non-tariff barrier to protect the domestic industry against a potential flood of car imports as a result of zero tariffs under the ASEAN Free Trade Agreement in 2018.

    Businesses quickly adapted to the new regulations, and car imports picked up again in the second half of the year, and have been rising until now.

    Unlike importers of Japanese vehicles, who took a lot of time to get VTAs, German carmakers such as Mercedes, Porsche, Truong Hai (BMW), Volkswagen, and Audi were not affected much since their country already issued the document.

    However, stricter customs clearance procedures did slow down luxury car imports from Europe, and dealers had to delay delivery to customers.

    “The removal of the VTA requirement and other customs procedures will not affect us too much other than reducing the time it takes to get our cars cleared by customs,” a German car dealer said.

    The new regulation only applies to the import of unused cars, and Decree 116 still applies in full to second-hand imports.

    According to the Vietnam Automobile Manufacturers Association (VAMA), 4,281 completely built-up (CBU) cars worth $111 million were imported in January this year, down 35.4 percent year-on-year.

    Overall car sales were down 52 percent from the previous month and 53 percent year-on-year to 15,787 units.

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  • Tesla Gets Court Approval To Clear Forest For German Gigafactory

    Tesla Gets Court Approval To Clear Forest For German Gigafactory

    Tesla got approval from a German court on Thursday to continue to cut down forest near the capital Berlin to build its first European car and battery factory, in a defeat for local environmental activists.

    The court said in a statement it had rejected urgent applications to stop the land being cleared of trees from several environmental groups, adding its ruling was final. It had temporarily halted the tree felling earlier this month.

    The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg that surrounds Berlin, a decision that was initially lauded as a vote of confidence in Germany.

    However, local and national lawmakers were caught out by the strength of opposition to the Gigafactory, with hundreds of demonstrators protesting over what they say is the threat it poses to local wildlife and water supplies.

    Lawmakers from Germany’s pro-business Christian Democrat and Free Democrat parties had warned that the legal battle waged against the Gigafactory would inflict serious damage on Germany’s image as a place to do business.

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  • Daimler Slims Down Mercedes Management In Efficiency Drive

    Daimler Slims Down Mercedes Management In Efficiency Drive

    German cars and trucks maker Daimler said it would revamp the management of its finance, production and development portfolios to remove duplicate layers between Mercedes-Benz and Daimler AG.

    As a result, Daimler’s Chief Financial Officer Harald Wilhelm will take over responsibility as finance chief at Mercedes-Benz AG from April 1 and Mercedes-Benz Chief Financial Officer Frank Lindenberg will leave, the company said.

    Wolf-Dieter Kurz will take on responsibility for product strategy and steering at Mercedes-Benz Cars. He is currently responsible for the business cases of product projects.

    Daimler Chief Executive Ola Kaellenius will take over responsibility for Mercedes Vans from Wilfried Porth, who retains his role as head of human resources, Daimler said.

    Markus Schaefer, currently a management board member for Research and Mercedes-Benz Cars development, will become a chief operating officer at Daimler AG, the Stuttgart-based company said.

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  • Great Wall Motor To Purchase GM’s Thailand Manufacturing Plant

    Great Wall Motor To Purchase GM’s Thailand Manufacturing Plant

    Great Wall Motor announced that it has signed an agreement for the purchase of General Motors’ manufacturing facility in Rayong, Thailand. This announcement is subject to government and regulatory approvals. Under a signed binding term sheet, GM Thailand and GM Powertrain Thailand legal entities, which include the Rayong vehicle assembly and powertrain facilities, will transfer to GWM. GM and GWM are targeting the end of 2020 to close the deal and hand over the site.

    The acquisition of GM’s Thai Rayong plant will help the business development of Great Wall Motor in Thailand and the ASEAN market. Great Wall Motor will expand through the entire ASEAN region with Thailand as the center, and export its products to other ASEAN countries as well as Australia. Great Wall Motors’ investment will create more jobs in the local area, including direct and indirect employment and further enhance skill development in the automotive industry. GWM will also promote the development of the local supply chain, R&D and related industries, plus contribute more to the exchequer of both the local Rayong and Thailand governments.

    Parker Shi, Vice President, GWM India said, “This agreement marks an important milestone in the overall scheme of things for Great Wall Motor in the ASEAN Region and is a testimony of our global expansion strategy that is now focused on South East Asia including India.”

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  • Beijing Auto Show Delayed Due To Coronavirus

    Beijing Auto Show Delayed Due To Coronavirus

    Organizers of Beijing auto show, which is scheduled to be held in late-April, said on Monday the event will be delayed event due to the coronavirus outbreak.

    Across mainland China, officials said the total number of coronavirus cases rose by 2,048 to 70,548, with 1,770 deaths.

  • Nissan’s New CEO Says Willing To Be Fired If No Turnaround

    Nissan’s New CEO Says Willing To Be Fired If No Turnaround

    Nissan’s worsening performance has heaped pressure on Uchida, formerly Nissan’s China chief who became its third CEO since September, to come up with aggressive steps to revive the company. On Tuesday, Uchida, who was repeatedly heckled by shareholders, said he was ready to face dismissal if he failed to improve profitability at the company, which is on course to post its worst annual operating profit in 11 years.

    “We will make sure that we steer the company in an effective way so that it is visible in the eyes of viewers. I will commit to this: if the circumstances remain uncertain you can fire me immediately,” he said.

    Uchida, 53, did not give a timeframe for improving Nissan’s performance. The new boss must prove to the board he can accelerate cost-cutting and rebuild profits at the 86-year-old Japanese giant, and that he has the right strategy to repair its partnership with France’s Renault, sources have told Reuters.

    Uchida pleaded with shareholders to be patient while he comes up with a plan by May to recover from crumbling profits and a corporate shake-up following Ghosn’s arrest in Japan in late 2018 over financial misconduct charges.

    “If you can be patient a little bit longer, on a day-to-day basis you will be able to sense we are changing,” he said.

    Ahead of the meeting, some shareholders demanded more clarity about Uchida’s plan.

    “I just want to know what the plan for recovery is. At the moment, the share price has dropped again, and the value of the company has plummeted,” said a 70-year-old former employee who owns shares in the company.

    “If this is the situation, part of me thinks that we would be better off with Ghosn … If we don’t get a clearer vision of the path the company is taking, it will be a worry.”

    Nissan’s shares are trading around their lowest level in more than a decade following its latest earnings.

    Last week, Nissan cut its dividend outlook to its lowest since the 2011 financial year, after dwindling car sales drove the company to post its first quarterly net loss in nearly a decade.

    Shareholders gathered at the extraordinary meeting in Yokohama to vote in new directors including Uchida and Chief Operating Officer Ashwani Gupta.

    Their appointments highlight a changing of the guard at Nissan, as shareholders were also voting on motions for former company stalwarts, CEO Hiroto Saikawa and COO Yashuhiro Yamauchi, to leave their board director positions.

  • Auto sales plummets in January

    Auto sales plummets in January

    January automobile sales fell by 52 percent over the previous month and 53 percent year-on-year, according to the Vietnam Automobile Manufacturers Association (VAMA).

    A total of 15,787 vehicles were sold last month, including 12,807 passenger cars, 2,757 commercial vehicles and 223 special multi-purpose vehicles.

    The sales figures were compiled by VAMA, an association of all auto manufacturers in Vietnam except Hyundai TC. The 5,944 units sold by Huyndai TC last month would take the total to 21,731.

    VAMA attributed the decline in sales to the Lunar New Year (Tet) holiday, when the country took a week off (January 23-29). The holiday is usually a quiet period for the car market, it noted, adding that people tend to buy cars at the end of the year, about a month before the Tet holiday, and sales in the days leading up to the break would usually fall.

    Of the vehicles sold, domestically assembled cars still accounted for nearly two-thirds of sales, reaching 9,599 units, down 51 percent over the previous month. Imported completely-built-up (CBU) cars made up the remaining 6,188 units, down 54 percent over December last year.

    Domestic carmaker Truong Hai Auto (Thaco) retained the top spot in January, accounting for over 33 percent of sales by all VAMA members. Trucks and sedans made up most of its sales.

    Toyota Motor Corp. retained its second spot at 25.8 percent, followed by Honda and Mitsubishi, with 12.6 percent and 11 percent, respectively.

    Vietnam saw car sales of 322,322 in 2019, up 11.7 percent year-on-year, according to VAMA.

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  • Tesla Seeks Approval To Build Longer Range Model 3 Cars In China

    Tesla Seeks Approval To Build Longer Range Model 3 Cars In China

    Tesla Inc is seeking approval from Chinese regulators to offer a new China-made Model 3 variant, a government document shows.

    The variant would have a longer driving range, a source familiar with the matter said.

    Tesla shares overvalued: strategist

    National Securities’ Art Hogan says don’t buy Tesla at current levels because the stock has “gotten ahead of itself.

    Like the current China-made Model 3, which has a standard driving range of more than 400 kilometers, it would be a rear-wheel-drive vehicle, the source said, who was not authorized to talk about the matter and declined to be identified.

    Tesla, which started delivering cars in December from its $2 billion Shanghai factory, also sells longer-range imported Model 3s with an all-wheel-drive in China.

    The electric vehicle maker restarted production in Shanghai on Monday after the government ended an extended holiday that had been put in place due to the new coronavirus outbreak.

  • Mitsubishi Motors Delays Factory Restart In China Due To Coronavirus

    Mitsubishi Motors Delays Factory Restart In China Due To Coronavirus

    Mitsubishi Motors is postponing the restart of its factory with Guangzhou Automobile Group in Hunan province until 27 due to the coronavirus outbreak, the Japanese automaker said on Friday.

    Spectacular sculptures at Harbin’s Ice and Snow Festival

    Drone footage of giant frozen castles and ice sculptures at one of the world’s largest ice and snow festivals in Harbin, in China’s northeast Heilongjiang province, which draws millions of visitors each year.

    It had previously planned to resume operations as early as Feb. 17.

    Mitsubishi has also delayed the restart of its engine plant with Shenyang Aerospace in Liaoning province and another with Dongan Automotive Engine Manufacturing in Heilongjiang province following Lunar New Year holidays.

  • Volkswagen’s Group Deliveries In China Fall 11.3% In January 2020

    Volkswagen’s Group Deliveries In China Fall 11.3% In January 2020

    Volkswagen, one of the world’s biggest carmakers, on Friday said deliveries in China declined by 11.3% in January as the auto sector feels the effects of the coronavirus outbreak.

    The German company said the group, which includes brands like Volkswagen and Audi, delivered 343,400 vehicles in China and Hong Kong. The country is VW’s biggest market.

    Worldwide, group deliveries dropped by 5.2% to 836,800 vehicles, Volkswagen added.

    The China Association of Automobile Manufacturers said on Thursday that the country’s vehicle sales likely fell by almost a fifth in January, marking a 19th consecutive month of decline, hurt by Lunar New Year holidays that started earlier than last year and by the coronavirus outbreak.

  • Maserati Announces Plans To Develop Its Electric Range

    Maserati Announces Plans To Develop Its Electric Range

    Maserati announced that it will develop, engineer and build its cars in Italy, and will adopt hybrid and battery electric propulsion systems. Following on from the announcement of testing of the new full-electric powerplants to be installed on future Maserati models, the development and production plans for the Trident Brand’s electrified range are now presented. Maserati’s electrification program starts this year, and the first hybrid car to be built will be the new Maserati Ghibli.

    Production of the new Maserati GranTurismo and GranCabrio, will commence in 2021. Maserati has decided to build the GranTurismo and GranCabrio at the Mirafiori production hub, with an investment of 800 million Euros.

    However, Maserati’s heart is still in Modena, where it has its Headquarters, where the cars in its range are developed and tested, and where the new super sports car is to be built. For Maserati, Modena is the place where extraordinary cars have been produced for over 80 years, all outstanding in their luxury, elegance, style, performance, and quality, and which are sold in over 70 markets.

    Also upcoming is a new Maserati utility vehicle, to be built at Cassino and intended to play a leading role for the Brand, thanks to its innovative technologies. About 800 million Euros will be invested in the construction of the new production line, scheduled to begin at the end of the first quarter of 2020. The first pre-production cars are expected to come off the line by 2021.

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  • Skoda’s First Electric SUV To Be Called Enyaq

    Skoda’s First Electric SUV To Be Called Enyaq

    Skoda Auto today revealed that its first electric SUV will be presented soon. It, in fact, let out what it will be called. Skoda will call it the Enyaq and yes even we want to know where that name comes from. According to the company, the name Enyaq is based in the Irish language and expresses the vehicle’s dynamism and efficiency. The Enyaq then opens a new chapter in the 125-year history of the Skoda brand. It will be Skoda’s first electric car which will be built on the MEB platform, and will also launch a new family of model names. Of course, Skoda already has an electric car to its name, the Citigo iV and so it’s not new to the EV space, however, the all-electric SUV will definitely ind it a wider appeal

    Skoda SUVs have traditionally had names ending in the letter Q, and the new Enyaq follows this tradition just like the Kamiq, Kodiaq and the Karoq. But the new model’s first letter shows that this tradition is merging with the eMobility era, referenced by the letter E at the beginning of the name. The name, Enyaq, is derived from the Irish name Enya, which means ‘source of life’,

    We’ll know more about the electric SUV very soon, but it’s clear why the company wants to start its journey in the electric mobility space with an SUV. Well, the clear trendsetters now are the SUVs globally and so this decision does not come as a surprise. As to which markets the Enyaq will be introduced? Well, there’s no clarity on that yet and we’ll know more very soon.

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  • Daimler’s Mercedes Sales Drive Higher But Charges Put Brakes On Profit

    Daimler’s Mercedes Sales Drive Higher But Charges Put Brakes On Profit

    Daimler reported its biggest drop in annual profit in a decade on Tuesday, a 64% fall reflecting more than 5 billion euros in charges as well as an investment as Mercedes-Benz pushes into electric and hybrid vehicles. Mercedes saw record sales to retain its title as the world’s top-selling premium automaker but net profit fell to 2.7 billion euros from 7.6 billion hurt by 4.2 billion euros in charges related to diesel-related probes and legal proceedings. To offset its extra costs Daimler is restructuring, scrapping its Mercedes-Benz X-Class pick-up truck and downsizing its mobility services unit last year, meaning further charges of 828 million and 405 million euros, respectively.

    Alongside the hefty charges, the company slashed its dividend by 72% to 0.90 euros per share. The earnings had been flagged in preliminary figures on Jan. 22. Kaellenius said restructuring at the vans division would deliver results this year but cautioned Daimler’s passenger car operations face a tough couple of years as the company launches electric and hybrid vehicles.

    “We are going to restore the financial health of this company and take the measures we have to take to get back on track,” Kaellenius said. “Yes, it will take some time on some of the issues. There are no quick fixes.”

    The 50-year-old Swede, formerly the company’s research and development chief, took over as CEO last May.

    He said the carmaker was offering staff buyouts and working on next-generation models that will be less complex to produce.

    Kaellenius is tasked with safeguarding Daimler’s success as the industry undergoes sweeping changes including tougher environmental rules and a costly shift to electric power.

    That challenge is seen in Daimler’s share performance: its stock is down 12% year to date versus an 84% rise in electric car producer Tesla, Refinitiv Eikon data shows.

    “There is very little scope for optimism at Daimler. It will take years until margins recover to levels worthy of a premium manufacturer,” said Michael Muders, fund manager at Union Investment.

    Mercedes-Benz is readying a major push into electric and hybrid cars, with the proportion of electrified vehicles in its fleet set to jump to 9% from 2% in 2020 with a production of an electric A-Class, electric van and electric SUV.

    Pressure is mounting on carmakers to build low emission vehicles to avert heavy European Union (EU) pollution fines as customers gravitate towards buying larger and heavier sports utility vehicles.

    Mercedes-Benz’s push into electric and hybrid cars will see the proportion of electrified vehicles in its fleet jump to 9% from 2% in 2020 with the launch an electric A-Class and an electric van.

    “In the medium term I am confident. 2020 and 2021 will be a challenge,” Kaellenius said about the prospect of EU fines.

    Mercedes-Benz is also working on developing its own software vehicle operating system, a project that will require significant investment and take up to four years to go into production, Kaellenius said.

    The company said it aims to keep property, plants and equipment and R&D spending at roughly the same level as last year.

    It will look for savings of more than 1.4 billion euros by the end of 2022 through cuts in administrative and personnel costs and expects a significant rise in operating profit and free cash flow this year.

    “Our goal is to ensure solid net liquidity to protect the necessary investments, and at the same time to pay attractive dividends,” Chief Financial Officer Harald Wilhelm said.

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  • Harley-Davidson Global Annual Sales Fall In 2019

    Harley-Davidson Global Annual Sales Fall In 2019

    Harley-Davidson has announced annual results, and the sales numbers for 2019 aren’t very encouraging. The American motorcycle brand’s worldwide sales declined 4.3 percent with a total of 2,18,273 units sold worldwide. Even more worrying is the sales slowdown in Harley-Davidson’s home market, the US. The Bar & Shield brand’s sales in the USA fell by 5.2 percent to 1,25,960 units in 2019, from 1,32,868 units in 2018, while international sales fell 3 percent to 92,313 units in 2019, from 95,183 units a year ago. Harley-Davidson’s 2019 sales in almost all global geographies are in the red, with the Asia Pacific region showing a slight glimmer of hope with 2.7 percent growth.

    With 29,513 units sold in 2019 in the Asia-Pacific region, this is now Harley-Davidson’s third most important geography in terms of sales, after the US market, as well as Europe, Middle East and Africa (EMEA). Sales in EMEA fell 5.4 percent in 2019, down from 46,602 units in 2018 to 44,086 units in 2019. The Latin American geography also ended the year in the red, declining 3.9 percent from 10,167 units in 2018 to 9,768 units in 2019. Harley-Davidson’s sales declined the most in Canada, falling 7.7 percent from 9,690 units in 2018 to 8,946 units in 2019.

    On the financial side of things, Harley-Davidson reported annual revenue growth of 5.5 percent in 2019, up from $ 7,48,229 in 2018 to $ 7,89,111 in 2019. As part of the company’s More Roads To Harley-Davidson program, the American brand intends to introduce a whole new range of motorcycles over the next few years, to generate a new generation of customers, both in US, and more importantly, in newer markets abroad, like the Asia-Pacific.

    Later in 2020, Harley-Davidson is expected to introduce the Bronx Street Fighter, in a completely new segment, which is a departure from the company’s traditional cruiser-styled motorcycles. The Harley-Davidson Pan America will be the brand’s first adventure touring bike, and will be the brand’s first foray into the segment. More important though, will be a new small motorcycle, developed with Chinese partner Qianjiang Motorcycle. The 338 cc Harley-Davidson will be based on the Benelli 302 platform and will be manufactured in China, to be targeted at Asian markets.

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  • Porsche Taycan Electric Sports Car Will Come To India By Late 2020

    Porsche Taycan Electric Sports Car Will Come To India By Late 2020

    The all-new Porsche Taycan electric sports car will be introduced in India by late 2020. Pavan Shetty, Director Porsche India confirmed the 4-door electric car’s arrival while addressing the Indian media today the Skoda Auto Volkswagen India’s first-ever media night. The Taycan is the first fully electric sedan from the Stuttgart-based luxury/sports car maker and it was first revealed at the 2019 Frankfurt Motor Show.

    Based on the Porsche Mission E Concept that was showcased in 2015, the electric sports car is touted as a huge technological step for the company and forms a new direction for Porsche in the EV space. The new Porsche Taycan will sport two permanently excited synchronous electric motors that can churn out a maximum of 600 bhp and will a range of over 500 km thanks to its high voltage lithium-ion batteries. The electric car will get 800-volt chargers with fast charging capability, which can offer a 400 km range in 15 minutes of charge time. It can go from 0-100 kmph in under 3.5 seconds.

    The Porsche Taycan comes with quad-LED headlamps, sculpted bonnet and muscular front bumper. The rear too looks very elegant with the very slim wraparound LED tail-lamp and muscular haunches. With a Cd value from 0.22, the aerodynamically optimized basic shape makes a significant contribution to low energy consumption resulting in a long-range.

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