Tag: automotive

  • Thai electric car rolls out

    Thai electric car rolls out

    Thailand’s first electric car brand has made its debut amid scepticism from an industry expert about its commercial viability. Vera Automotive, founded on Oct 7, 2015 by five Thai engineers from King Mongkut’s Institute of Technology Ladkrabang (KMITL), yesterday introduced the Vera V1 battery electric vehicle (BEV), powered with a battery capacity of 22 kilowatts per hour, which can be registered with the Land Transport Department as a passenger car.

    The maximum speed of the Vera V1 is up to 105 kilometres an hour. It can run up to 180km per charge, which takes six hours to complete.

    Co-founder Wanchai Meesiri said all Vera cars are designed by Thai engineers under the Thai brand, but the company has hired the Chinese carmaker Geely Automotive to produce the BEVs. The company imports the cars as completely built-up (CBU) vehicles to Thailand.

    Vera V1 is subject to all related taxes similar to other imported vehicles, including an 80% import duty, a 10% excise tax for all types of electric vehicles, a 10% interior tax and a 7% value-added tax.

    Yossapong Laoonual, chairman of the Electric Vehicle Association of Thailand (Evat), said it’s a good sign for the country to create its own electric vehicles, even if the vehicles are made by foreign firms.

    A retail price below 1 million baht is affordable for Thai customers, he said.

    But Asst Prof Yossapong warned that any startup that is selling electric vehicles has to plan its marketing strategy carefully, as the Thai car market has many dimensions for consumers to consider, including brand, service and trust.

    “Electric vehicles for Thailand remain very new, and they’re unlikely to become popular or proliferate in the short term,” he said. “If you are a new company or brand, the best solution is to sell electric vehicles as a fleet to other agencies, which are easier to provide after-sales services for.”

    Mr Wanchai said the primary purpose for establishing Vera Automotive is to make Thai BEVs for the local market.

    Managing director and co-founder Werachet Khan-ngern said Vera vehicles aim to capture only a niche market.

    He expects to sell about 100 units of Vera this year.

    “We hope in the foreseeable future the government will come up with clearer policies and supporting measures once the number of electric vehicles increases,” Mr Werachet said.

    He said the firm will provide after-sales services at its head office on Ladprakao Road.

  • All Nippon Airways’ cargo arm is taking aim at the Asia-US and automotive markets

    All Nippon Airways’ cargo arm is taking aim at the Asia-US and automotive markets

    All Nippon Airways’ cargo arm is taking aim at the Asia-US and automotive markets as a way to differentiate itself and to strengthen its overall competitiveness.

    “The market situation is not so easy right now,” says Toshiaki Toyama, president of ANA Cargo. “In order to maintain profitability or minimize loss, we need to adjust our freighter capacity in accordance with the market situation. As a combination carrier, we handle a lot of transit cargo between Europe or the US and Asia. We’re looking carefully at the role of each freighter flight and we’re planning to reduce some capacity for the winter season.”

    Transit traffic between Asia and the US will increasingly be a major focus of ANA Cargo’s strategy going forward. This was given a large boost in July 2016, when the carrier launched its trans-Pacific joint venture with United Cargo.

    “Frankly, we’ve been a little bit surprised because the response has been even better than we expected,” Toyama says. “In particular, we have a lot of manufacturer customers in Kyushu connecting to United’s San Francisco flight at Haneda and they seem to be very satisfied with the shorter lead times.”

    The first phase of the joint venture began on July 5, covering eastbound cargo from Japan to Canada and the US.

    “From the number of cross bookings between UA and us, we can see that the customers are very supportive of this programme,” says Toyama. “We’re preparing for the next phase for westbound traffic, which is scheduled to be early next year. Phase three will include the rest of Asia.”

    Another opportunity exists in the expanded slot arrangement at Haneda Airport. In February 2016, the Japanese and US authorities agreed to give the two countries five day-time slot pairs and one evening slot pair each at Haneda, as opposed to the four evening slot pairs each country used to have. As a result, ANA has already decided to shift a New York and a Chicago flight from Narita to Haneda from late October 2016.

    “From Japan to New York and Chicago, more than 50% of the total volume is transit cargo,” says Toyama. “The timing of the two flights enables morning connections at Haneda of about four hours from Shanghai, Singapore, Bangkok, Jakarta, Seoul, Taipei and Hong Kong.”

    ANA is the only airline to operate its own cargo facility at Haneda, with an 8,800-square-metre warehouse next to the larger Tokyo International Air Cargo Terminal.

    “We actually use TIACT too,” Toyama says. “I think it’s sufficient for now, because there’s a lot of vacant space at TIACT. We also want to minimize costs – Haneda is incredibly expensive and probably one of the most expensive [airports] in the world.”

    He adds that ANA is in discussions with Japan Airlines and Nippon Cargo Airlines to jointly develop an e-cargo programme, and that he hopes that project to be at 100% by 2020.

    Network expansion on the passenger side will also contribute positively to the cargo business. The airline launched Wuhan in April 2016, Phnom Penh this month, and is due to launch Mexico City in February 2017.

    “These destinations are very attractive for the cargo business too,” says Toyama. “Mexico is an automobile manufacturing centre and Japanese manufacturers like Nissan and Honda have factories there. The supply chain doesn’t just include Japan but also major Asian points such as Tianjin, Guangzhou and Bangkok. We still have a few months until the launch but we’ve already received a lot of enquiries from automobile companies and forwarders.”

    According to Toyama, Wuhan is an important target area for the carrier because of the Chinese government’s decision to shift development from the coast to inland areas.

    “I think it’s a reasonable base but I’m not satisfied yet,” he says. “I expect we’ll be able to gradually increase our load to and from Wuhan. Nissan and a lot of semiconductor companies are there, so we’re talking with them and with forwarders about utilizing our network.”

    Not wanting to lose out on growing e-commerce demand to mainland China, ANA Holdings invested in a young Japanese IT company called ACD in June to provide total logistics solutions including special customs clearance services into China. The service started in September. The first phase of the service is targeted at Japanese retailers and began in September, with plans to expand that to Taiwan, Korea and the US.

    ANA Cargo’s fleet consists of 12 Boeing 767 freighters, which Toyama says is enough for now.

    “In our mid-term strategy, we have plans in place to increase the fleet to 13 or 14 if we need to, depending on the market situation,” he says. “The advantage of the 767 is it allows us to access smaller and medium-sized markets such as Cambodia and Myanmar. Wuhan is also a candidate for the 767F, but it’s not yet at a level that requires a regular freighter. Our 767F network is designed around automobile-related demand. That’s why we’re operating it to Tianjin, Shanghai, Guangzhou, Jakarta and Bangkok.”

    The range of the 767F restricts it predominantly to Asia. According to Toyama, ANA is looking carefully at the possibility of operating larger and longer-range freighters, particularly to the US.

    “The passenger side is planning network expansion but they’re more aggressive on Asian routes,” Toyama says. “In order to achieve network balance in terms of cargo demand, we need more capacity to and from the US. The JV with United is one of the solutions, but if we can’t cover all the demand we will need to think about trans-Pacific freighters.”

    One shouldn’t expect to see ANA Cargo’s blue and white livery on a 747-8F or 777F anytime soon though. And even if the carrier decides to go down the trans-Pacific road, it wouldn’t necessarily have to acquire and operate its own aircraft, with options such as charters or ACMI available.

    “Of course, having a large-sized freighter is a dream for us,” says. “But I think we need to be realistic.”

  • Daimler Trucks to increase its sales activities in core market Indonesia

    Daimler Trucks to increase its sales activities in core market Indonesia

    Daimler Trucks, the world’s leading truck manufacturer with a strong foothold in Asia, is enhancing its position in commercial vehicles in its core market Indonesia. The Daimler Trucks subsidiary FUSO (Mitsubishi Fuso Truck and Bus Corporation, MFTBC), Mitsubishi Corporation (MC), Mitsubishi Motors Corporation (MMC), and the Indonesian company PT Krama Yudha (KY) have signed a respective framework agreement. As part of this agreement, the Indonesian trade and sales partner PT Krama Yudha Tiga Berlian Motors (KTB) will focus exclusively on selling FUSO brand commercial vehicles. KTB’s passenger car business will be transferred to an independent legal entity. At the same time, FUSO will increase its stake in the newly structured company KTB from 18 to 30 percent.

    Dr. Wolfgang Bernhard, Member of the Board of Management of Daimler AG for Daimler Trucks & Buses: “By increasing our stake in our partner KTB, we are underlining the importance of the Indonesian market and can be even more active locally. Concentrating our sales activities completely on the commercial vehicle market fits perfectly into our Daimler Trucks strategy of consistently focusing on the needs of our customers. With this shift, we as market leader are positioning ourselves in order to continue to tap market potential in Indonesia in the best way possible.”

    Marc Llistosella, President and CEO of Mitsubishi Fuso Truck and Bus Corporation and Head of Daimler Trucks Asia: “With our FUSO brand we have been the clear market leader in Indonesia for over 40 years. By increasing our stake in KTB, we can expand on our position even further.”

    With a current market share of about 47 percent, FUSO has been leading the Indonesian market for 46 years in a row since 1970. The country is the largest export market for the FUSO brand. The light duty truck Fuso Canter, which is sold under the name FUSO Colt Diesel, is the absolute top-seller in Indonesia.

    The current restructuring of KTB results in the following shareholder composition: FUSO (MFTBC) holds 30 percent, Krama Yudha (KY) 40 percent and Mitsubishi Corporation (MC) 30 percent. The overall transaction is subject to customary conditions precedent including merger control clearances.

    KTB will serve as dedicated wholesaler and distributor of FUSO vehicles in the Indonesian market and will continue to hold its stake in the related production business, which is responsible for vehicle assembly in Indonesia.

    For Daimler Trucks, this transaction is another important step forward in implementing its strategy of global and consistent orientation towards the requirements of commercial vehicle customers. To this end, Daimler Trucks is partially repositioning its sales and service organizations around the world with a clear focus on the commercial vehicle business. Daimler Trucks is thereby putting regional and national customer orientation at the center of its operations.

    Indonesia has a population of about 250 million people, of which 70 percent are under the age of 40. In 2016, the annual GDP growth rate is at 5.1 percent. The middle class is forecasted to expand to more than 140 million people by the year 2020. Indonesia is the world’s fourth most populous country with growth prospects, which are expected to be supported by a large number of infrastructure projects in the near future. It can be assumed that the infrastructure sector will expand further and result in an increasing demand for commercial vehicles.

  • Japan’s Murata aims to boost automotive revenue with Sony battery buy

    Japan’s Murata aims to boost automotive revenue with Sony battery buy

    Japanese electronics components supplier Murata Manufacturing Co Ltd wants its enlarged battery business to help double automotive-related revenue when the years of rapid expansion in the smartphone market have passed, its chief executive said.

    Murata is adding to its small battery operations after agreeing in July to buy most of Sony Corp’s battery division by the end of March 2017 for an undisclosed amount. In the business year through March 2016, that division generated sales of about 160 billion yen ($1.56 billion).

    “We want to enter the automotive battery business through the acquisition,” Tsuneo Murata said in an interview on Tuesday.

    Components makers have seen profits soar in recent years due to the rise of smartphones. Murata, which earns about 60 percent of revenue from smartphone parts, expects operating profit to have grown six times over the four years through March, helped by business from customers such as smartphone leaders Apple Inc and Samsung Electronics Co Ltd.

    The company is currently benefiting from a trend toward higher-performance smartphones that use more of its components, such as capacitors and frequency filters. But to guard against any future slump, it aims to boost other sources of income.

    “I believe batteries will be a powerful weapon,” said Murata, one of the sons of the founder of the Kyoto-based firm.

    The CEO said he wants batteries to help the automotive proportion of revenue to reach 20 to 30 percent in about 10 years, from 13 percent in the year ended March.

    In the Sony deal, Murata has bought the division responsible for selling the world’s first lithium-ion battery in 1991, but which Sony said in a July earnings briefing was losing money partly because it could not supply a major smartphone maker.

    Murata intends to apply Sony’s battery technology to automobiles, the CEO said.

    “South Korean battery makers may look dominant in the market right now,” Murata said. “But there are many purposes in the automotive industry alone and I think various battery makers will grow by focusing.”

  • Apollo Tyres expands operations to Malaysia, targets big share of the replacement tyre market

    Apollo Tyres expands operations to Malaysia, targets big share of the replacement tyre market

    After making its presence felt in Thailand and Indonesia, Apollo Tyres announced the setting-up of its office in the third largest automotive market in the ASEAN region, Malaysia. Satish Sharma, President, Asia Pacific, Middle East & Africa (APMEA region), Apollo Tyres Ltd inaugurated the company’s Malaysian office in the presence of select Business Partners and company officials.

    Apollo-Tyres-inaugurates-Malaysia-office-1

    Subsequent to setting-up its sales and distribution hub in Bangkok for the ASEAN region, Apollo Tyres has been increasingly focusing on expanding its footprint in South East Asia. The company is targeting a bigger share of the pie in the Malaysian replacement tyre market, which has an annual capacity of 580,000 truck-bus radials and 9.5 million passenger car tyres.

     

    Malaysia has above 90% radialisation levels in the commercial vehicle segment. Apollo Tyres, with its Apollo Endurace range of truck-bus radials, has already received high acceptance from Malaysian customers. The tyre maker is keen to further establish the Apollo brand at the top tier of the truck-bus radials market. Similarly, Apollo’s passenger car tyres portfolio is capable of servicing nearly 90% of the Malaysian car tyre market, which is currently, one of the largest in the ASEAN region.Apollo Tyres inaugurates Malaysia office (2)

    Satish Sharma, President, Asia Pacific, Middle East & Africa, Apollo Tyres said that over the past two-three years, Apollo Tyres has been making steady inroads into the Malaysian market as this is a pivotal market for the company’s growth in the region. The product range fits well with the Malaysian consumer requirements and with the support of its key distribution and retail partners in Malaysia, Apollo Tyres has been able to penetrate most of the key replacement tyre market segments.

  • Porsche launches digital business division for premium segment

    Porsche launches digital business division for premium segment

    Porsche AG, the sportscar unit of Volkswagen, launched Porsche Digital GmbH, a division dedicated to developing digital services for the premium segment.

    Porsche Digital GmbH will become a competence centre and an incubator to help find ideas which can be turned into businesses and services, the company said on Friday.

    The division will be based in Ludwigsburg near Stuttgart, and have offices in Berlin, Silicon Valley and China.

    It will be headed by Thilo Koslowski, a former digital mobility analyst at consulting firm Gartner.

  • Mercedes puts up fight in China

    Mercedes puts up fight in China

     

    BMW and Mercedes — China’s No. 2 and No. 3 luxury brands — were virtually dead-even in that market last month, selling roughly 35,000 vehicles apiece.

    But Mercedes sales jumped 32 percent year on year, while BMW deliveries fell more than 7 percent. Audi, China’s top-selling luxury brand, boosted sales 9 percent to 49,576 vehicles.

    Mercedes has been on a tear in China since 2013, when it shook up management and consolidated its two warring distribution channels.

    BMW is feeling the heat. In April, the company replaced its China sales chief, and now it’s hustling to introduce new models. BMW is introducing a long-wheelbase X1 in China to compete with the Audi Q3 and Mercedes GLA.

    Those three models are battling for share in China’s red-hot market for compact crossovers.

    For the first four months, Audi remained on top, with sales of 189,611 vehicles, while BMW delivered 162,221 units. Mercedes is still No. 3, with sales of 142,266, but it is steadily closing the gap.

    We suspect BMW realizes that objects in its rearview mirror are closer than they appear.

  • Ford Malaysia notches up 650 units in sales in March

    Ford Malaysia notches up 650 units in sales in March

    Ford Malaysia has announced its retail sales figures in the country for the month of March 2016, which grew 24% from the previous month to 650 units. In February, the company managed to shift 524 units.

    The sales performance was largely contributed to by the Ranger. While 432 units of the pick-up truck were sold in February, the month of March saw a 19% increase to 513 units. Even discounting the Ranger, Ford’s sales of the rest of the line-up rose from 92 units in February to 137.

    Ford Focus 1.5L EcoBoost quick drive 3

    “As the most capable, most powerful and smartest truck in the market today, the Ranger stays true to ourBuilt Ford Tough heritage, and we’re pleased that demand continues to grow across both Peninsula and East Malaysia,” said David Westerman, managing director, Malaysia and Asia Pacific Emerging Markets, Ford Motor Company.

    As for the remaining units sold in March, they are represented by the other models in the line-up, including the recently-introduced Focus facelift with its 1.5 litre EcoBoost engine. We already had a go in the C-segment model, where we praised the car’s revised dynamics and easy-to-use assisted parking features.

  • Government to boost export of automotive components to Eurasia

    Government to boost export of automotive components to Eurasia

    The Indonesian Ministry of Trade is working to boost the export of products such as automotives, components and accessories to markets in Europe and Asia (Eurasia) in a bid to strengthen non-oil exports.

    “Through the largest exhibition of products of components, automotives and accessories, Indonesia is determined to penetrate Eurasia. This is a big opportunity for us,” Director General of the National Export Development of the Trade Ministry, Nus Nuzulia Ishak, stated here on Tuesday.

    Ishak said his side is targeting the European and Asian markets, especially Turkey, by bringing seven companies through Automechanika Istanbul 2016 event, scheduled for April 7 to 10 in Tuyap Convention and Congress Center, Istanbul, Turkey.
    The Ministry of Trade expressed the hope that the exhibition will enable big time purchase of various products, especially vehicle batteries, oil filters and vehicle tires.

  • Bridgestone to establish auto parts JV in Indonesia

    Bridgestone to establish auto parts JV in Indonesia

    Bridgestone Corp. plans to establish a joint venture company to produce anti-vibration rubber products for automotive vehicles in Indonesia.

    The agreement was concluded on July 2 with PT Astra Otoparts Tbk, which manufactures and sells automotive parts in Indonesia.

    The JV is to build a manufacturing plant of anti-vibration rubber products, which is set to start operations in January 2016, according to a Bridgestone statement. The total amount of the investment by Bridgestone and Astra Otoparts will be $13 million.

    Bridgestone has seven facilities in five countries to manufacture automotive anti-vibration components. To achieve further global expansion, the firm said it needed a manufacturing base in Indonesia, a major car making state in the ASEAN region.

  • After terrible year, Thailand’s auto sector is expecting 2015 recovery

    After terrible year, Thailand’s auto sector is expecting 2015 recovery

    The Thai auto industry may have suffered a terrible year, with domestic sales plummeting by almost 40 percent during the first 10 months, but many believe the worst has passed and that 2015 will be a year of recovery.

  • Peugeot and China Changan Automotive in joint venture

    Peugeot and China Changan Automotive in joint venture

    French car giant Peugeot has agreed a new joint venture to manufacture light commercial vehicles and cars in China.

    Peugeot has signed an initial agreement with domestic carmaker China Changan Automotive Group. If it goes ahead, the deal will give Peugeot a bigger foothold in the fast-growing Chinese car market.

  • More room to develop for Thai automotive sector

    More room to develop for Thai automotive sector

    The automotive industry is on a roll, particularly in Thailand, which recorded a 47-month high domestic automobile sales last November. With the economic recovery and increasing purchasing power of consumers, the automobile market have been registering high growth and this in turn give rise to the need for adequate level of aftermarket service care.

    According to the latest findings of market research company GfK, there are a total of 3,200 shops in the country selling passenger car tires in the aftermarket. While tire specialist shops are uniformly spread out across the country, fast fit outlets make up a third of all shops and are more commonly found in Bangkok and vicinity area where demand tends to be higher compared to the other regions. Within the central region alone, more than one in two tire specialist shops are fast fitters.

    The 160 exhibitors from 40 countries in this year’s Tyrexpo Asia exhibition make it the largest in its 15 year history, attesting to the vibrancy of the automotive sector, according to the event organiser ECI International.

    Some other key automotive trends were uncovered by GfK Thailand’s automotive retail audit, such as the dominance of six main starter battery brands, which contribute nearly 95 percent of the total market sales. In addition, GfK findings reveal that conventional lead-acid batteries still take up the lion’s share of 80 percent sales in the replacement market as compared to maintenance-free batteries which form the remaining 20 percent.

    “The Thai automotive sector is already thriving, but looking at the current market situation, there is definitely still more room for development; to allow for more players to enter the field. Having said this, automotive is big business in Thailand, and there is no doubt that the industry will remain very competitive and continue its upward growth trend for many years to come,” said Wichit Purepong, general manager of GfK Thailand.