Supermini Car Market Project

ChelseaHansRichardGarin

Supermini car

larger than a city car but smaller than a small family car. Overall in 2008, of the fifteen best selling types of car in Europe, seven were superminis. Estimate that more than 50% cars sale in the UK are Supermini car

BEST SELLERS (UK,July,2009)

Ford Fiesta - 8,976Ford Focus - 7,934

Vauxhall Corsa - 5,920Vauxhall Astra - 5,705

Volkswagen Golf - 4,101Peugeot 207 - 3,957

Vauxhall Insignia - 3,340BMW 3 Series - 3,292

Hyundai i10 - 3,084Renault Clio - 2,837

China Car Market Background

13.6M units (2009 sales volume). Volkswagen, GM, Toyota, Honda, Nissan, PSA, Hyundai, Ford, Daimler, BMW, Chery, Geely, BYD, Brilliance(29.7% China brand) Estimate that 40% cars sale in China are Supermini car

Best sellers China 2009

Automaker Model Volume

BYD F3 291K

GM Nubira 241.1K

Hyundai Elantra II 239.4K

Volkswagen Jetta 224.9K

Volkswagen Santana 205.6K

Honda Accord 175.4K

Hyundai Elantra 171.6K

Chery QQ 169.9K

Toyota Corolla 157.5K

Toyota Camry 156.2K

Amount 2.0326M

A typical supermini car in China Market, Geely Panda

3598×1680×14951.0 / 1.3L Petrol110K Units/year54MPG Petrol£ 4K - 6KC-NCAP 5 starsEuro IV Emission

330K Units (2009 Brand sales)

A typical supermini car in the UK Market, Ka

3620×1658×17021.2/ 1.3 Petrol / Diesel55.4MPG Petrol / 67.3MPG Diesel £ 9K – 10KManufactured by FordCo2 119 G/KM

The analysis of the UK car market

Market ValueThe United Kingdom new cars market shrank by 12% in 2009 to reach a value of $42.9 billion.Market Value ForecastIn 2014, the United Kingdom new cars market is forecast to have a value of $56.3 billion, an increase of 31.1% since 2009.Market VolumeThe United Kingdom new cars market shrank by 13.3% in 2009 to reach a volume of 1.8 million units.Market Volume ForecastIn 2014, the United Kingdom new cars market is forecast to have a volume of 2.5 million units, an increase of 36.1% since 2009. The compound annual growth rate of the market in the period 2009-2014 is predicted to be 5.6%. Market ShareFord accounts for 17.9% of the United Kingdom new cars market's volume.

Background of the Market

Recession Fluctuation of fuel Encouragement of developing and purchasing Low carbon (electric and plug in hybrid) cars 130g/KM co2 emission target (+ Co2 Tax, -- Allowance) Scrappage Incentive Schemes

The barrier for the new player

Brand strength and reputation are highly important, therefore relatively difficult for new players to directly enter a particular country's market. High capital requirements for a manufacturing facility of feasible scale, new start-up companies are rare. Have left relatively few players in this market. Competitive rivalry is likely to intensify over the next few years, as major players contend for their share of declining markets. Key inputs like steel, whose price may be difficult for manufacturers to control, as well as more differentiated products, such as fabricated components, and labor.

Used cars and public transport are likely to offer a very strong threat

to car makers.

Factors Influencing the Likelihood of New Entrants in the NewCars Market in the United Kingdom, 2009

Likelihood of new entrants

Weak Strong

Low-cost switching 5

Market growth 4 Undifferentiated product 3 2 Weak brands 1 Scale unimportant 0

Little IP involved Low fixed costs

Suppliers accessible Little regulation

Distribution accessible Incumbents acquiescent

Scores: 1= weak driver...5=strong driver Source: D A T A M O N I T O R

Some successful cases

Korean CarCheapService Guarantee

Japanese CarEfficientQuality

Why China’s Cars can not be exported to the UK market

Brand reputationDealers networkFinancial supportEmission standard

Change people’s minds

China's Geely Automobile recently have confirmed that they had made agreements with Ford on all important commercial issues of the sale of Volvo Car Corporation. Ford believes they will sign the contract with Geely at the first quarter of this year, and will finish the deal before the second quarter of this year. Volvo doesn’t make any small model car, in contrast, Geely is well known for its small car(500K unit export/year). We won’t be surprise if the Geely small car exported to the UK market with Volvo brand.

Yes, I do

Swedish brand (safety, quality) relatively Low costs of procession and maintenance Environmental friendly (Plug in Hybrid, fuel cell vehicle) Advanced technology (Regenerative braking technology, light weighting etc.) Worldwide components, assembly close to end-user Chinese capital

Thank you!

MG6, British life, British Car

Brand. Britain’s ever best-loved sports carHeritage. New face of MG comfortably familiar, Exciting new developments. remains true to the heritage and history. Local. New MGs have been designed and engineered here in the UK. They plan to commence production of MG6 at the Birmingham plant before the end of 2010. Dealers networkRechargeable Hybrid Car

Make difference

Rechargeable Hybrid Car