Monday, January 20, 2014 by
Do you think a Jeep Grand Cherokee is a direct competitor of a
Porsche Cayenne? Would you add the Volkswagen Touareg to the
competitive set? Well, many Brazilian consumers do. And the results
may be surprising. Let me start with the winner in the
SUV/crossover segment. Land Rover is the preferred brand. The Range
Rover Evoque sells over three times more than vehicle number two,
the Volvo XC60. And the Freelander (LR2 in the U.S.) comes right in
third place. Looking one length class above, the......
Friday, January 17, 2014 by
When Google released its Zeitgeist 2013
, a compilation of the most googled
terms of the year, the Hyundai HB20 reached the top spot for
the Brazilian automotive industry. It was followed by the
Chevrolet Onix and Chevrolet Prisma. The new Volkswagen Golf and
the Volkswagen Beetle (locally called Fusca) rounded out the Top 5.
The HB20 hatchback, the Onix and the Fusca were launched late in
2012. There is no doubt the HB20 has written its success story in
Brazil’s automotive history. With 3,312......
Wednesday, October 9, 2013 by
Do you have the impression that the Brazilian president meets the
CEO of an automaker daily? Lately there have been a lot of
announcements that OEMs will start – or resume – production in
Brazil. This year, Honda and Mercedes-Benz announced new plants,
while Audi stated it is coming back to Brazil and making cars
in a VW plant where it built the A3 some years ago. VW confirmed it
is finally updating the locally made Golf (currently still in its
fourth generation). Last year, BMW announced its......
Wednesday, October 9, 2013 by
For those of you like me who have been in the automotive
aftermarket industry for a number of years, you understand the
common challenge that all of us have been facing for over a decade
– how do you determine if parts being sold in the U.S. or Europe
have applications that can generate revenue in other parts of the
world? And how do you identify vehicles that are more likely to
have the same components as those on the road in different
countries? I've never found these questions to be easy...
Tuesday, June 25, 2013 by
Tax incentives were very effective in 2012 and helped
Brazil reach a new sales record of 3,573,076 light vehicles.
With this success, Brazil remained the fourth largest
automotive market in the world, just behind China, the United
States and Japan. Polk's automotive forecast does include any
changes in this ranking in 2013 when sales in Brazil are
anticipated to reach 3.63 million light vehicles. However, Brazil's
importance declines when we analyze production numbers. Last
Thursday, June 6, 2013 by
It's not always about who has the largest market share or the
broadest product line. Sometimes repeat sales for OEMs and dealers
are fruitful when you're a small player, too. Yesterday, Polk
issued a press release of customer loyalty on automakers who beat
the industry average by looking at first quarter results.
What did we find?
- Thirteen brands exceeded the average industry increase for make
loyalty when we compared buyer behavior from Q1 2012 and Q1 2013.
The first three months of the...
Tuesday, January 29, 2013 by
As Toyota announced it has regained the global sales crown
, it makes me think of how the
Japanese OEM has wasted its chances in the world's fourth
largest market. Not everyone is aware that Toyota opened its first
factory outside of Japan within Brazil in 1959, a plant that is
currently used to produce parts. For decades, the Brazilian market
was closed to imports and Toyota only produced a version of
its Land Cruiser. It was a great product for rural areas, but
Toyota was far behind its...Read...
Wednesday, January 9, 2013 by
South America is a very diverse continent. Brazil, its main
country, forbids diesel passenger cars and speaks Portuguese, but
is surrounded by Spanish speaking countries. French Guiana still
belongs to France, something not very common nowadays. Consumer
behavior is also different: Toyota, for example, is the market
leader in Peru and has a higher share in the countries closer to
the Pacific Ocean, while customer loyalty in Brazil and Argentina
goes toward brands from Europe and the United...Read...
Wednesday, December 19, 2012 by
I rely on some form of a "mileage countdown" system when tracking
the time to change the oil in my car. Whether it's an electronic
display on my dashboard or a sticker in the upper lefthand corner
of my windshield, I'm regularly comparing my current mileage
against the target that commands a visit to my local lube/oil shop.
Unfortunately, it's kind of like waiting for your alarm clock to
hit the magical point when the buzzer goes off early in the
morning. You know it's coming, but you really...Re...
Monday, December 17, 2012 by
As someone who works in the auto industry, knowing how long
Amercians hold onto their car or truck gives me a sense of what
future sales demand may look like--"demand" in terms of selling
replacement parts and service as well as understanding factors that
impact new vehicle sales. We're all looking for "demand signals,"
right? Polk's research shows that as of the second quarter of 2012,
the average number of months that both new and used vehicle owners
hold onto their vehicles is climbing....
Monday, December 10, 2012 by
Welcome to a series of blog posts about the global automotive
market based on a paper that I recently worked on with a set of
colleagues that discusses important strategic questions for
automotive business planners. For those of you interested in
the BRIC countries (Brazil, Russia, India and China), this
blog focuses on the question, "Will BRIC countries continue to
drive organic growth in the automotive industry?" Answer: Yes! Why?
Of the 38 percent jump Polk expects to see for global light...
Wednesday, October 17, 2012 by
It was a national holiday in Brazil on October 12 and I went with
my family to where my father was born, a small town where
approximately 10,000 people live today. During the long weekend, my
impression was that Chevrolet was the best seller in Brazil, but
actually it falls behind Fiat and Volkswagen. However, I saw more
of the Chevrolet Montana (a pick-up truck based on a passenger car,
something that Brazil created decades ago) and the S-10 (the local
name of the Colorado) than the Fiat...
Monday, September 17, 2012 by
At this point in automotive history, nobody denies the importance
of Hyundai. According to Polk data, the Korean OEM produced almost
3 million light vehicles worldwide in 2003 and we forecast that its
output will reach 8.3 million in 2016. That's a growth of 183%,
while on the other hand, GM's production is rather stable during
the same period. Part of this growth will come from a brand new
factory in Brazil. With an investment of $600 million, Hyundai will
start producing a hatchback on... Read...
Tuesday, September 11, 2012 by
There is a lot of buzz about the Audi plant that will be built in
San José Chiapa, Mexico. The press refers to it as "Audi's first
car plant in the Americas," but this is not correct. Audi produced
the A3 in São José dos Pinhais, Brazil between 1999 and 2006, in a
factory now totally owned by Audi's parent company, Volkswagen.
Golf (still in its fourth generation), Fox and SpaceFox are
produced there. It was a joint venture between Audi and Volkswagen
– Audi had 25% of the factory.The A3...
Wednesday, August 15, 2012 by
It is a presidential election year, which is creating a flood of
advertisements along with politicians pounding on podiums to
convince voters they are the best candidate for the job.
Politicians present their plans to turn the United States economy
around and create jobs. Both parties discuss plans to invest in
small companies and sexy high tech companies such as Facebook, and
mobile devices including phones and tablets. Too often,
they fail to discuss plans to attract and retain...
Friday, August 3, 2012 by
As the July sales numbers were released, Ford and GM made the
headlines for their drop, while Chrysler still enjoys its momentum.
But Ford’s challenges are not only in the U.S. – and I am not
talking about Europe. In Brazil, where the market enjoyed a 22%
growth in July, Ford sold 12% less light vehicles compared to June.
Its monthly market share slumped to 8.44% from 9.90% in the
previous month. Ford, the first OEM to be established in Brazil
(1919), has always faced challenges in Latin... Read...
Monday, July 9, 2012 by
The Polk forecasting team is in a position to report good news as
the North American assembly and sales volumes continue to improve
year over year. This is the direct result of modest economic
improvement and the satisfaction of pent-up demand. Polk
anticipates North American assembly volumes will increase by
10% (14.4 M) in 2012, following a 10% increase in 2011 (13.1 M) and
a 39% increase in 2010 (12M), following a dreadful fall to 8.6
million units in 2009. However, there is at least one...
Monday, June 25, 2012 by
Polk has just finished updating its light vehicle sales and
production forecast, which is made four times a year. For the South
American market, the numbers are not as positive as one would
expect for emerging countries. We've reduced the sales forecast by
2% for 2012, 3% for next year and 5% for 2014. Regarding
production, the forecast was reduced by 3.4%, 2.9% and 1.6% for
those same years. The main cause of these reductions is the
Brazilian market, which represented 67.3% of the total...
Tuesday, June 5, 2012 by
The Venetian Resort in Las Vegas served as host to the 3AF (Asian
American Advertising Federation) The 2012 Annual Asian Marketing
Summit on May 16-17. The goal of the annual summit was to share
marketing best practices and celebrate the leaders in Asian
marketing. With Asian Americans representing one out of every 20
new vehicles purchased in the U.S., it's easy to see why automotive
market leaders including Toyota, Honda and Nissan were well
represented at the conference.
Wednesday, March 28, 2012 by
An analysis of new vehicle buyers shows that their average age was
51 years old in 2011, three years older than buyers in 2007. In
2011, 40% of all buyers were aged 55 years or older, up from about
30% just four years earlier. And, in keeping with much commentary
about today’s youth, in 2011, only 11% of all new vehicle buyers
were aged 34 years or younger, down from almost 16% four years
earlier. Perhaps today’s young people indeed do have less interest
in cars or perhaps they don’t have the...R...