Driverless Cars: The Coming Green Transportation Revolution

Analyst Insight by Damian Shore, Contributing Analyst, Euromonitor International

Long the stuff of science fiction, the self-driving car is an emerging technology that has the potential to deliver huge environmental benefits. These include reducing levels of car ownership, lowering energy demand and reducing the amount of urban space required for roads and parking spaces. This technology is on the verge of becoming a viable form of personal mobility, and if it does, road travel will never be the same again. When a real revolution is in prospect, it can be difficult to distinguish between the signal and the noise. Unlike adding an extra blade to your razor, self-driving or driverless cars are the real deal.

Car Manufacturers in Russia Enjoy Robust Growth

 

Automotive manufacturers in Russia are enjoying a large rebound, with production volume almost tripling between 2009 and 2011. The main driver of this huge growth is the domestic market, and despite Russian joining the World Trade Organization in 2012, the country is protecting its domestic manufacturers by passing a "recycling tax" for imported vehicles. Local automobiles are exempt from the tax, which encourages the purchase of domestic cars. Euromonitor expects growth in the Russian automotive industry growth to continue well into 2017.

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The Record Level of Autos Demand in Thailand in 2012 Will Not Be Surpassed Before 2020

Analyst Insight by Neil King, Analyst -Automotive, Euromonitor International

Household ownership of a passenger car in Thailand is less than 10% until annual disposable income exceeds US$10,000. Euromonitor’s forecast for these households suggests that light vehicle sales will not return to the level of 2012, when demand was stimulated by a tax rebate for first-time car buyers, until 2020.

The percentage of households which possess a passenger car in Thailand remains below 10% until decile 7, which translates into average annual household income of US$10,245. Unsurprisingly, ownership rates take off from that point, climbing to over 20% for income decile 8 and 38% and 64% for income deciles 9 and 10 respectively.

US Minimum Wage Increase Would be Positive for Businesses and Consumers

Analyst Insight by Carrie Lennard, Government, Labour and Education Manager, Euromonitor International

Under proposals currently being pushed for by Obama, the US hourly minimum wage would increase from US$7.25 in 2013 to US$9 by the end of 2015.  America's minimum hourly wage is far lower than its average hourly wage of US$19.8 in 2012, creating a widening income gap in American society. The impact of the move would be overwhelmingly positive for America. It would help reverse its income inequality, boost consumer spending and increase labour productivity. It is also unlikely to contribute to a rise in unemployment, though it could slow the 'reshoring' trend of American manufacturers bringing jobs back to the USA from China and other emerging markets.

Nigeria: Africa’s next biggest consumers market?

South African grocery retailers targeting smaller cities in Nigeria

According to financial consultancy Renaissance Capital (Rencap), South African grocery retailers are increasingly looking beyond the metropoles of Lagos and Abuja to smaller cities in Nigeria. For example, Massmart, Woolworths and Shoprite all recently opened outlets in the eastern city of Enugu. Meanwhile, both Massmart and Shoprite are reported to have plans for opening shops in the northern city of Kano during 2013. However, Rencap also pointed out that a combination of severe flooding, higher fuel prices and the delayed implementation of a number of infrastructure projects were squeezing local consumer spending.

Demographic and Consumer Lifestyle Trends Drive Right-Sizing in the UK Car Market

Households with only one or two occupants continue to proliferate across the UK. Small car segments accounted for less than 30% of the UK passenger car market until 1999 but now hover around the 40% mark. Is this simply coincidence or is there a right-sizing trend in the market that is glacial in nature – slow but unstoppable? Euromonitor International reviews the right-sizing trend in the UK car market in light of changing demographic, consumer expenditure and consumer lifestyle patterns. 

Vehicle Sales Recover in South Africa - Despite Modest Economic Growth

Analyst Insight by Neil King, Automotive Analyst at Euromonitor International

With sales of 621,700 units in 2012 (up 8.8% y-o-y), the South African vehicle market has just put in its third best performance ever. The giddy heights of 2006 and 2007, when 714,000 and 676,000 vehicles were sold respectively, came on the back of real GDP growth in excess of 5% in both years. So why has 2012 been so strong against a backdrop of just 2.7% economic expansion? Our latest Automotive report explores a variety of societal and demographic factors which outweigh simple GDP when it comes to shaping demand.

Mobile Phones Signal a Strong Reception for Vehicle Imports in South Korea

Analyst Insight by Neil King, Automotive Analyst at Euromonitor International

If the mobile phone sector is anything to go by, and Euromonitor International believes it is, there is still plenty of scope for increased penetration of foreign automotive brands in to South Korea. Imported vehicles have been slowly gaining in popularity here for a while, but the implementation of free trade agreements with the EU and the US means they surged 20% y-o-y in the first ten months of 2012 despite a 5% decline in vehicle sales overall.

Consequently, imports have increased their share of the new vehicle market thus far in 2012 to 9.5%, compared to just 7.4% share in full year 2011 - and consider they accounted for less than 3% of all motor vehicle sales in South Korea before 2004. We believe this bodes well especially for the premium players, as well as mainstream brands able to offer distinctive small cars which stand out compared to South Korea’s indigenous carmakers.

Crashing Markets and Safe Havens

The size of a country's vehicle parc clearly impacts the number of road injury accidents on its roads. However, there are significant variations from country to country in terms of both the number of accidents per capita and per vehicle in circulation. Based upon both these metrics, Turkey has the highest accident rate by a notable margin.

New Automotive Data in Passport: Our Predictions for 2012 Come True

Analyst Insight by Neil King, Automotive Analyst at Euromonitor International

New passenger car and commercial vehicle registrations data in Passport reveal that global vehicle demand is on track to increase by 5% again in 2012, to 79.5 million units, which is only slightly shy of the 6% growth we predicted back in April. Global vehicle sales are therefore once again tracking the growth of households with a disposable income of over US$10,000 and US$15,000, which Euromonitor International now forecasts to rise by 4.3% and 4.5% respectively in 2012. This does, however, belie the mixed performance of key vehicle markets around the world.