Well, since you've asked I'll give my opinion for what it's worth. Many car makers are facing reduced profit this year yet gross profit was up slightly. That would indicate they decided to focus on margins rather than volume. Having negotiated that, it offers a chance to go forward with a stronger business structure as new models are released with emphasis placed on meeting demand rather than production targets.
I just noticed I haven't put out anything for Moldova since 2021. So while I don't get monthly data, I have annual registrations for 2023 so here it is. A 16% increase is the third consecutive gain and the best since 2008.
Dacia took the lead here in 2010 from Lada and held that post until 2021 when Toyota took over. It's held that for three years with Škoda and Dacia ready to pounce if the chance comes their way.
The car manufacturing industry is facing challenging times. Sales in many markets are flat or reduced. More brands are vying for the customer, notably an influx of Chinese brands into many markets. Many car makers are not structured to adapt quickly to changes taking place. A few examples.
Audi recently announced that operating profit was down nearly 70% so far this year. There were various reasons for that, not just the challenging market place but still a sobering result.
Volkswagen announced profit was down 64% and wanted to close up to three plants in Germany, lay off workers and cut pay by at least 10%. It hasn't gone down well at all.
As I see it, the pressure is mainly from a surging Chinese car industry. They are taking more of the global sales but the pie isn't getting larger to accommodate this. Chinese companies have been quick to change and improve when required. China's import tariffs aren't helpful while expecting no such obstructions when exporting.
Another issue is that those car makers that went into China producing cars made good money. They are now being driven back by local manufacturers and with falling volume, profits there are much harder to come by.
It doesn't take much to move from very profitable to loss making. A drop in volume with overheads mainly fixed and the red ink can soon follow. If tough decisions aren't made and acted on, there will be grave consequences for some car manufacturers
Putting this together was tricky. More than one source was required and they didn't match in all instances. There are also some soundly based estimates on the list below. Campi-TMA is the main source and according to that organisation sales were up 2% in September and increased 9% YTD.
Toyota is well ahead, the Vios and Avanza models the most popular for the brand. Mitsubishi is next with the Xpander (below) and Mirage doing the big two for them.
Nissan's top two are the Navara pick up and the Terra medium sized SUV.
Suzuki are the same as last year for market share, the S-Presso and DZire its two most popular.
Chinese brands are arriving in force and will be challenging more established ones. Most premium marques have lost market share it would seem, Lexus being a notable exception. Some brands aren't available to be added but all the main ones are present.
Manufacturing cars in Western Europe isn't very cost effective. The standard of living has climbed as the wages improved. Any hint of a drop in that standard has quotes in the media of people wondering how they can make ends meet.
Whenever deliveries contract, it isn't a good look in a world that perceives growth as a sign of a healthy company. However, volume doesn't always equate with profit. Besides, reduced sales can be for all sorts of reasons. In the car industry today, electric car volume is falling for many manufacturers and extracting profit from them can prove elusive. Increased costs are another issue that may necessitate backing away from less profitable sales such as fleet.
For Audi, deliveries are down 8% YTD. It is across most of the range so it would seem a planned strategy. It's a balancing act between selling at a price that allows a reasonable profit and also keeping assembly plants as busy as possible. Business is about profit, something the car industry has not paid as much attention to as it should. Maybe that's changing.
Data & picture source: Audi.
Regions: Europe remains the largest region for Audi but less so, with China closing in. The USA and the rest of the world are well behind.
When Lamborghini introduced the Urus SUV, it opened the marque to a new audience and lifted volume and no doubt profit. However, it may have reached its peak at just over 3,000 units per annum. In fact what saved Lamborghini from a small slide in deliveries was the replacement for the Aventador, the Revuelto.
It will always be a niche player but one that has a unique character. They are too flamboyant for me (and too costly) but the well heeled extroverts out there will ensure it's not too short of customers. For 2024, deliveries could be about 11,000 in total.
Data source: Audi. Pictures Lamborghini.
I always thought when Bentley hit the 10,000 mark, that was about right for the marque and it settled there for several years. Then in 2021 15,000 produced and 2022 well over 16,000! heady stuff. Then in 2023 13,000 and this year somewhere around 10,000 if the current volume is maintained.
Data source: Audi. Pictures Bentley.
Toyota started making cars in the UK in 1993. Amazingly, it is the last new car assembly plant built in the UK for any volume car maker. The country hasn't been attracting car plant investment for some time. Chery is contemplating doing so but not decided as yet.
The first model was the Carina which became the Avensis in late 1997. The same year, the Corolla (also called the Auris for a while) joined in the same year. The Avensis departed in 2018 but the Corolla has soldiered on alone since then.
Moving on to the motivation for this piece, 5 million cars have now departed from the facility at Burnaston, Derbyshire. That's an average of nearly 170,000 per annum. Amazingly, the split between the two model made there is about 50/50.
If a UK customer buys and registers a Corolla Hatchback, Touring Sport or Corolla Commercial by the 31st December 2024 and they may be one of five customers to win back the cost of their new car. A nice touch.
Summary: Two models improves plant utilsation and cost effectiveness but Toyota has not replaced the Avensis with another model. Surely they will in the future as the volume is now well short of capacity, going by historical numbers.
The 2024 figure is for nine months of 2024. Picture source: Toyota UK.
