Supermini Car Market Project
Chelsea
Hans
Richard
Garin
Supermini car
BEST SELLERS
(UK,July,2009)
Ford Fiesta - 8,976
Ford Focus - 7,934
Vauxhall Corsa - 5,920
Vauxhall Astra - 5,705
Volkswagen Golf - 4,101
Peugeot 207 - 3,957
Vauxhall Insignia - 3,340
larger than a city car but smaller than a small
BMW 3 Series - 3,292
family car.
Hyundai i10 - 3,084
Renault Clio - 2,837
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
China Car Market Background
Best sellers China 2009
 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
Automaker
Model
BYD
F3
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
Volume
291K
2.0326M
A typical supermini car in China Market, Geely Panda
3598×1680×1495
1.0 / 1.3L Petrol
110K Units/year
54MPG Petrol
£ 4K - 6K
C-NCAP 5 stars
Euro IV Emission
330K Units (2009 Brand sales)
A typical supermini car in the UK Market, Ka
3620×1658×1702
1.2/ 1.3 Petrol / Diesel
55.4MPG Petrol / 67.3MPG Diesel
£ 9K – 10K
Manufactured by Ford
Co2 119 G/KM
The analysis of the UK car market
Market Value
The United Kingdom new cars market shrank by 12% in 2009 to reach a value
of $42.9 billion.
Market Value Forecast
In 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 Volume
The United Kingdom new cars market shrank by 13.3% in 2009 to reach a
volume of 1.8 million units.
Market Volume Forecast
In 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 Share
Ford accounts for 17.9% of the United Kingdom new cars market's volume.
Background of the Market

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in
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Recession
Fluctuation of fuel
Encouragement of developing and purchasing Low carbon (electric and plug
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 New
Cars Market in the United Kingdom, 2009
Likelihood of new entrants
Weak
Strong
Low-cost switching
5
Market growth
4
3
2
Weak brands
1
0
Little IP involved
Suppliers accessible
Distribution accessible
Scores: 1= weak driver...5=strong driver
Source: D A T A M O N I T O R
Undifferentiated product
Scale unimportant
Low fixed costs
Little regulation
Incumbents acquiescent
Some successful cases
Japanese Car
Efficient
Quality
Korean Car
Cheap
Service Guarantee
Why China’s Cars can not be exported to the UK market
Brand reputation
Dealers network
Financial support
Emission 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



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

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
car
Heritage. 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 network
Rechargeable Hybrid Car
Make difference
Rechargeable Hybrid Car