Posted on April 13, 2012, at 2:00 am
 Mohit Arora Surinder Singh (a fictitious name) currently drives a BMW 3 Series, is the male head of household and earns anywhere from Rs 1 lakh to Rs 5 lakhs (US $1,954 to US $9,770) or…infinity. This is the typical profile of a luxury new-car buyer from our 2011 India Sales Satisfaction Index (SSI) Study.SM
In March 2012, India’s Finance Minister Pranab Mukherjee announced a hike in the basic customs tax on luxury cars. Large cars (excluding imported models) over 4 meters in length and with engine size larger than 1.5L are subject to a new excise duty of 27%—up from 22% + Rs 15,000 (US $293) of the fixed duty. This means that luxury vehicles are set to become more expensive in India—by up to Rs 3 lakhs (US $5,748)—as automakers are compelled to pass on the additional burden to consumers.
Given the substantial increase in cost to the consumer, the question to consider is: Will the price hike deter buyers like Mr. Singh from making a luxury car purchase in the future? Continue reading ›
Posted on April 12, 2012, at 2:00 am
Matthew Racho
We expect this alliance to have a very positive effect for dealers, manufacturers, and our industry. The alliance will allow for increased dealer participation across the U.S., providing deeper penetration into retail transactions across all markets, and enabling more extensive regional and local market analysis.
With over 20 years’ experience . . . Continue Reading Alliance with NADA Provides Key Benefits for Dealers and Automakers
Posted on April 9, 2012, at 6:00 am
 Tim Dunne The continuation of higher gas prices in the U.S.—averaging $3.93 per gallon at the beginning of April—and less discretionary spending due to consumers who are under-employed or unemployed are two outcomes of the U.S. financial turmoil that began in 2008. One result is that consumers are now buying smaller vehicles with more fuel-efficient engines. Continue reading ›
Posted on April 6, 2012, at 6:00 am
David Sargent
This week during the opening ceremonies of the New York International Auto Show, J.D. Power presented plaques to executives from Cadillac and MINI to recognize their strong improvement in the quality, dependability and appeal of their vehicle models and for the dealership experience during the past three years.*
Cadillac was singled . . . Continue Reading Cadillac, MINI Brands Recognized for Outstanding Customer Service
Posted on April 5, 2012, at 6:00 am
 Tim Dunne While light-vehicle sales have been strong in the first quarter of 2012, rising gasoline prices—which averaged $3.92 nationwide at the end of March (according to AAA’s Daily Fuel Gauge Report)—have convinced many consumers to purchase smaller, more fuel-efficient vehicles.
Through the first two months of the year, sales of sub-compact and compact passenger cars have accounted for approximately 25% of all retail sales. Sales of sub-compact vehicles have increased the most, up more than 35% in the first two months of 2012, compared to the same period in 2011.
Yesterday’s sales update with March delivery numbers confirms the trend since sub-compact vehicle sales soared 36.3% and total U.S. new light-vehicle sales reached 1.4 million units, according to LMC Automotive, which is the highest monthly total since 2008, based on analysis from our Power Information Network® (PIN) and LMC Automotive.*
J.D. Power’s John Humphrey, senior vice president of global automotive operations, suggests that higher vehicle sales are obviously welcome news for the U.S. automotive industry and general economy, but he points out that automakers are going to have to closely monitor shifts in segment demand and build accordingly. Continue reading ›
Posted on April 4, 2012, at 2:38 pm
 The Nissan Versa was the best-selling Sub-Compact in March. Higher fuel prices helped prime sales of smaller and more fuel-efficient passenger cars, especially Sub-Compact and some Compact Conventional segment models, which boosted U.S. new-vehicle deliveries in March for nearly all automakers. The seasonally adjusted annual sales pace (SAAR) was more than 1 million units stronger than a year ago, and many automakers said March sales were their strongest since March 2008.
More than 1.4 million new vehicles were sold in the U.S. market during March, which was up 8.7% (on a selling-day-adjusted basis) from March 2011, when fewer than 1 million units were delivered, according to analysis from our Power Information Network® (PIN) and LMC Automotive.** The sales pace in March 2012 averaged 14.4 million units vs. 13 million units in March 2011.
At the segment level, Sub-Compact sales soared 36.3% and outperformed the industry, gaining nearly 1 point of share to garner 4.6% of industry sales, while Compact Conventional sales edged up only 3.1%, but still accounted for a 15.8% share of the market. Led by Toyota Camry, Nissan Altima and Ford Fusion, Midsize Conventional segment sales increased by 23.3% and the category captured 2 more points of share to end March with 18.4% of industry sales. Also noteworthy: Large Pickups, up 9.3% as a category and with the help of incentives, outperformed the industry’s 8.7% improvement as the segment garnered a 10.4% share in March 2012. Continue reading ›
Posted on March 30, 2012, at 6:52 am
Tim Dunne
After a major push to jump start an electric vehicle (EV) industry in China, it appears that the Chinese government is backing off plans for the world’s largest EV industry, and is instead redirecting its focus on promoting hybrid powertrains.
If history is any indication—and automotive history is filled with a . . . Continue Reading China’s Government Backs Off EVs, Looks to Hybrids
Posted on March 27, 2012, at 7:03 am
 Tim Dunne During the past few years, exports of passenger vehicles from China have quietly been making gains, with total exports quadrupling from just 100,000 units in 2009 to more than 400,000 units in 2011. China’s exports are forecast to surpass 1 million units annually by 2019, according to LMC Automotive. China’s export performance in 2011 made it the fourth-largest exporting nation in Asia, behind Japan, Korea and Thailand.
China’s Auto Exports Grow More Slowly due to Local Market, Quality Issues
While China has been the center of production and exports for many of the world’s goods, the export of vehicles has not been as prominent. There are several reasons why auto exports have lagged: First, because the Chinese domestic market has been growing at such an unprecedented pace, automakers with local production have focused on capturing and building their share of the local market; and secondly, the quality of Chinese-made vehicles has needed to become more competitive with global quality standards. Continue reading ›
Posted on March 26, 2012, at 6:00 am
 Tim Dunne From the perspective of political expediency, U.S. President Barack Obama isn’t really allowed to drive an Audi (or VW), and Germany’s Chancellor Angela Merkel isn’t allowed to drive a Cadillac (or Chevy). So why should Chinese government officials be any different?
China announced a new policy in February that government vehicle purchases would be restricted to Chinese domestic brand vehicles only, and that vehicles used for official operations (such as tax collection) could not exceed 180,000 RMB (US $28,500). According to media reports, total government spending on vehicles reached about $12 billion in 2011, and government purchases accounted for roughly 4.5% of all passenger-vehicle sales in China.
The new policy will likely make a significant dent in the sales of foreign brands operating in China—such as Audi, Volkswagen, Buick, Citroen, Toyota, Honda, Hyundai and others—as foreign-branded vehicles are currently estimated to account for 80% of all government vehicle purchases. Continue reading ›
Posted on March 23, 2012, at 7:49 am
 U.S. new-vehicle sales in the first quarter are likely to end on a particularly strong note, based on an updated monthly auto sales forecast from J.D. Power’s Power Information Network® (PIN) and LMC Automotive.* The retail sales pace is projected to come in at 11.6 million units in the first quarter, with total sales (retail and fleet) set to hit 14.4 million units, which is ahead of the J.D. Power/LMC Automotive 2012 calendar-year forecast of 11.4 million units for retail light-vehicles and 14.1 million units for total light-vehicle deliveries.
Based on the sales performance in the first 15 selling days of the month, March retail new-vehicle sales are projected to reach 1.086 million units, which would be the highest monthly sales volume in more than two and one-half years, and would translate to a seasonally adjusted annual rate (SAAR) of 11.6 million units. Continue reading ›
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