Automotive Industry Trends News

J.D. Power Asia Pacific Reports: Annual Asia Pacific Auto Sales Projected to Increase by More Than 7 Percent in 2007

Automotive sales growth in the Asia Pacific region is projected to surpass Europe's by 2009, according to J.D. Power and Associates.

By 2009, the Asia Pacific region is expected to net 23 million sales, compared with 22.7 million sales in Europe. The Asia Pacific region is already home to the world's second- and third- largest light-vehicle(1) markets -- China and Japan -- and future sales will be bolstered by continued growth in China, plus expected expansion in India, Southeast Asia and Korea.



"Clearly, global sales growth in 2007 and into the future is being driven by strong demand in Asia's two major developing markets, China and India, while sales in other regions are moderate," said Jeff Schuster, executive director of forecasting at J.D. Power and Associates. "Steadily rising incomes in the Asia Pacific region will make vehicle ownership possible for more consumers in those areas, and we expect China and India to remain the forces that drive future global growth."

Light-vehicle sales in the Asia Pacific region reached 9.7 million units in the first half of 2007, marking a 7.2 percent increase compared with the same period in 2006, according to J.D. Power and Associates.

By the end of 2007, vehicle sales in the Asia Pacific region are projected to reach 19.3 million units and to account for 28.1 percent of global demand. By comparison, other regions throughout the world are projected to post only moderate gains for the year. Sales in Europe are expected to grow by 3 percent to reach 21.6 million units, while North America sales are expected to decrease by 0.04 percent to 19.2 million units. South America sales are projected to increase by 10.6 percent to 3.4 million units. Sales throughout the rest of the world are expected to grow by 5 percent.

The anticipated growth in 2007 is primarily due to a projected sales increase of 18 percent in China. China automotive sales have experienced compounded annual growth of 25 percent since the country joined the World Trade Organization in 2001. Sales in Japan are projected to total 5.4 million units in 2007, a 2.7 percent decrease since 2006. Sales in India, the region's third-largest market, are expected to reach 1.67 million units in 2007.

"China's continued strong economic indicators -- including booming exports and a robust retail environment -- will fortify the country's thriving vehicle demand going forward," said John Humphrey, vice president and general manager of Asia Pacific operations at J.D. Power and Associates.

By 2014, light-vehicle sales in the Asia Pacific region are projected to reach 31.9 million units, or 36 percent of the total global light-vehicle market. As the key driver of Asia's growth, China sales are expected to expand at an average of 12 percent per year between 2007 and 2014, reaching 16.3 million units in that time period, which means China will remain the second largest market in the world behind the United States. Japan sales are expected to reach 5.9 million units in 2014, while India sales will reach 3.0 million units.

At the current pace of growth, J.D. Power and Associates expects that China will surpass the United States as the largest new-vehicle market in the world by 2025.

"With China's rapid rate of growth, combined with its enormous population, it seems inevitable that China will become the largest new-vehicle market in the world," said Humphrey.

(1) Light vehicles are defined as passenger cars, SUVs, vans and commercial vehicles with gross vehicle weight of less than six tons.


About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate


Source: J.D. Power and Associates

Hyundai Autonet, Clarion Corporation of America/SANYO Automotive U.S.A. and Panasonic Lead Multimedia Quality Rankings, J.D. Power and Associates Reports

Nearly 40 percent of consumers report having satellite radio capability in their new-vehicle's audio system-marking a considerable increase from 26 percent the previous year, according to the J.D. Power and Associates 2007 Multimedia Quality and Satisfaction Study(SM) released today.

Additionally, 94 percent of owners indicate that their satellite radio is factory or dealer installed-increasing from 92 percent in 2006.

"Buyers want the latest technologies included in their new vehicle's audio system, and the increase in market penetration is a reflection of auto manufacturers' response to consumer demand," said Allison LaDuc, senior research manager of automotive product quality at J.D. Power and Associates. "New and redesigned vehicles-particularly those within the luxury segment-are increasingly being equipped with the latest multimedia features, including satellite radio, MP3/auxiliary output and navigation systems. Market penetration for these audio features will likely increase as time goes on."

The study evaluates owner experiences with the quality, design satisfaction and features of automotive multimedia systems in new vehicles. Twenty-eight different multimedia combinations are evaluated, which include different combinations of the following systems: AM/FM radio, cassette player, single CD player, multiple CD changer, navigation system and satellite radio. Multimedia system suppliers are ranked based on the number of problems experienced per 100 vehicles (PP100) in the three largest segments: AM/FM/Single CD Player, AM/FM/Multi-CD Changer and AM/FM/Multi CD Changer/Satellite Radio. A lower PP100 score indicates higher quality.

Hyundai Autonet ranks highest in the AM/FM/Single CD Player segment with an overall PP100 score of 3.8. In particular, vehicle owners experience little difficulty when operating the front auto/entertainment system controls of the Hyundai Autonet systems. Alpine Electronics (3.9 PP100) and Clarion Corporation (4.1 PP100) follow in the segment rankings.

In a non-competitive (NC) split sourcing arrangement, Clarion Corporation of America/SANYO Automotive U.S.A. rank highest in the AM/FM/Multi-CD Changer segment with an overall PP100 score of 4.0. Clarion supplies the radio and CD changer components, while SANYO supplies the display components within several Mazda vehicle models. Clarion also ranks second with 4.4 PP100 and Pioneer ranks third with 4.8 PP100.

Performing well across all problems measured in the segment, Panasonic ranks highest in the AM/FM/Multi CD Changer/Satellite segment with 4.6 PP100. Panasonic supplies systems to a broad range of models manufactured by General Motors, Honda, Mazda, Nissan, Subaru and Toyota. Following Panasonic in the segment rankings are Pioneer (4.8 PP100) and Delphi (5.7 PP100).

The study also finds that as more features and technologies are included within new-vehicle multimedia systems, the number of owner-reported problems increases. In particular, owners report more problems with navigation systems and satellite radio, such as poor satellite radio reception and issues with navigation system map accuracy.

"It's interesting to note that while consumers who have more complex systems tend to have more problems, they also have higher satisfaction levels than consumers with simpler systems," said LaDuc. "However, quality problems shouldn't be disregarded altogether, as our overall findings show that respondents who don't experience any problems at all have higher satisfaction than those who do report experiencing a problem-regardless of what system type they have."

The 2007 Multimedia Quality and Satisfaction Study is based on responses from 97,390 owners of new 2007 model-year cars and light-duty trucks. The study was fielded from February to May 2007.

To view car audio ratings visit JDPower.com.




NOTE: Only award-eligible suppliers are included in the ranking. To be award eligible, a primary supplier (or a split-sourcing arrangement that is non-competitive) must have sourced at least two vehicle models with sufficient sample within the appropriate award category.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE:MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion.

Additional information is available at http://www.mcgraw-hill.com/

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate


Source: J.D. Power and Associates

Poll Shows Little Improvement From Previous Year's Biggest GripesRICHMOND, Va., August 6 /PRNewswire/ -- Buying a car remains a hassle for women, according to a recent poll conducted by CarMax, Inc. (NYSE:KMX) , the nation's largest retailer of used cars. The poll, conducted on the company's website, shows little improvement in women's biggest gripes from previous years in which the poll was conducted.


This year more than 12,000 women were surveyed on carmax.com to share the things they lacked during their car-buying experiences. Their responses are both summarized below, including a comparison with last year's replies.

"We continue to see the same trends as women search for satisfaction in shopping for a vehicle," says Donna Wassel, regional vice president, CarMax. "It is essential for women to find a car retailer, such as CarMax, that focuses on excellent customer service, and a hassle free car-buying experience."






CarMax offers the following tips for women car shoppers:

1. Use the Internet to research vehicle types, makes, models, options, features, and prices. Visit websites such as carmax.com to see actual prices and photos of nearly every vehicle make and model, review vehicle history reports, and read actual customer reviews.
2. Print out fact sheets or information about the vehicles you are interested in, so you can remind yourself about what you want when you step onto the lot.
3. Bring key paperwork items with you, including title and registration for your current vehicle, your driver's license, and insurance card.
4. If you have been pre-approved for a car loan, bring in the approval letter with you.
5. Find a car retailer and salesperson you like and trust by asking friends and family for referrals.
6. Try a retailer that offers no-haggle prices and a la carte pricing on each part of the car buying transaction -- the vehicle price, the extended service plan, the trade-in, and the financing.
7. Get a fair offer on your trade-in separately from your car purchase. You can bring your car to CarMax for a free appraisal. Having the appraisal offer will help you understand the fair value of your "trade-in" before you start shopping.
8. Have confidence in your car shopping abilities. You have done your research and are prepared to make a smart car buying decision.
9. Do not hesitate to ask lots of questions -- as many as you need so that you understand exactly what you are paying for.
10. Be prepared to walk away if you are unhappy with your car buying experience.


"Being prepared to walk away can be tough to do, especially if you have spent a lot of time on one car lot," says Wassel. "But if you are not pleased with the car buying process, it's worth it -- remember, you are the one who has to drive the car and make the payments, not the salesperson."

About CarMax

CarMax, a FORTUNE 500 company and one of the FORTUNE 2007 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 81 used car superstores in 38 markets. The CarMax consumer offer is structured around four core equities: low, no-haggle prices; a broad selection; high quality vehicles; and customer-friendly service. During the twelve months ended February 28, 2007, the company retailed 337,021 used vehicles and sold 208,959 wholesale vehicles at its in-store auctions.

For more information, access the CarMax website at www.carmax.com

Source: CarMax, Inc.