CV Prest

Commercial Vehicle Market and Future Potential : 

Commercial Vehicle Market and Future Potential Presentation By : Pan India Motor Pvt Ltd

Introduction : 

Introduction Research Context Research Objective Research Design

■ World Population Top10 : 

■ World Population Top10 【Source：UN, World Population Prospects: The 2006 Revision 】 Estimated Population_2008~2050

■ BRICs Estimated population ratio : 

■ BRICs Estimated population ratio 【Source： World：Vehicle Industry　Future estimation report　2009-2025】

■ World Top15 New Car sales 2003-2007 : 

■ World Top15 New Car sales 2003-2007 【Source：FOURIN World Vehicle Statistic　2008】

■ BRICs New Car sales Estimation : 

■ BRICs New Car sales Estimation 【Source：BRICs Vehicle Industry 2008】 Est.: Estimated

■ World’s New car registration 2003-2006 : 

■ World’s New car registration 2003-2006 【Source：World Vehicle Statistic　2008】

■ New car sales VS Vehicle Possession Ratio : 

■ New car sales VS Vehicle Possession Ratio 【Source：FOURIN World Vehicle Statistic　2008】

■ World Vehicle Possession No. out of 1/1,000 People 2006 : 

■ World Vehicle Possession No. out of 1/1,000 People 2006 【Source：FOURIN World Vehicle Statistic　2008】

Slide 10: 

【Source：ELECTRO TO AUTO FORUM】 World Vehicle Possession No. out of 1/1,000 People

Slide 11: 

USA: Used car market Hybrid vehicles, subcompacts, and compact crossovers continue to incur the most depreciation, even as gas prices inch up. While this is counter-intuitive, it is consistent with other analyses we’ve conducted showing: 1) American consumers still prefer larger vehicles and 2) purchase behaviors don’t change significantly until fuel prices reach a certain threshold, which appears to be in the $3.50-$4.00/gallon range. Source: Blue Book Marker Report, June 2009

Slide 12: 

China: Used car market ① Despite the youth of China’s car market, second-hand sales are growing even faster than new sales — up 34 percent in 2006. In 2008 around 1.45 million used cars were sold in the mainland. This signifies an increase of 10 percent of transaction volume compared with 2007. With a used/new car ratio of 0.25 China clearly represents the structure of an emerging vehicle market, while mature market places display ratios of 2 (Germany) and 3 (US). From January to April 2009, the second hand vehicle sales grew remarkably. The total transaction volume was 978,900 units, up 29.11% year on year. The cumulative transaction value was RMB 42.603 billion, increasing by 32.13% year on year According to this data transaction value grew faster than transaction volume. This increase in sales value can be attributed to higher demand and short supply, or entrance of more and more high class vehicles into the second hand market.

Slide 13: 

China: Used car market ② After almost a decade of double-digit growth of new car sales we may anticipate a considerable increase of used car transactions in the coming years. This expectation is based on the estimated average vehicle usage time of 7 to 8 years. Approximately 30 percent of motorists express their intentions to renew their current car after 5 years and less. By 2009, the number of passenger vehicles falling into this age category is estimated at nearly 25 million. Most typically, used car flows pass from the more affluent coastal regions to Central and Western regions, and from Tier 1 cities to lower Tier cities.

Slide 14: 

India: Used car market The used car market in India presently is growing at the rate of almost 30% per annum. Fiscal year 2007-08 touched an approx 1,420,000 of used car sales as compared to 880,000 l in the year 2005-06. The used car business is developing. Thus the gap between new and used cars reduced considerably with 1.4 million used cars against 1.5 million new cars. At least 90 percent of the used car market remains unorganized, while the organized market is a mere 10 percent. Organized players include manufacturers, used car dealers and car brokers. Despite the lack of infrastructure and financial muscle to operate in a large scale, the unorganized segment continues to account for a major chunk of the used car market. In the unorganized sector, used car vendors constitute 30 percent, while majority of selling/buying car is carried out between private individuals.

Slide 15: 

Russia: Used car market① “Double” VAT was preventing the Russian used car market from becoming transparent and civilized. The overwhelming majority of used vehicles are sold on “grey” automotive markets, through newspapers or the Internet, etc., rather than through dealerships. In the used passenger car market, the Russian used cars accounted for about 86.9% share in 2007. The cancellation of the “double” VAT on the sale of used cars will contribute to an increase in transparent and civilized used car sales through dealerships. At the same time the increase in duties on used car imports will destroy the grey market import business for used cars in the Far East. This may be desirable for appropriate marketization against dark business, promotion of environmental improvements (including recycling and disposal of end-of-life vehicles), and traffic safety. In the coming years, the number of foreign cars aged between 3 and 7 years – the segment of cars with a traditionally high resale rate - will show significant growth. It is important to note that for dealers the maintenance and sale of used cars is more profitable than the sale of new cars.

Slide 16: 

Russia: Used car market②