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.

With printed circuit boards (PCB's) experiencing reduced demand in many industrial applications as a result of being overtaken by newer and more advanced technologies, it is not surprising that the electronic chemicals market is facing a similar situation considering the close link between the two industries.

"Growing replacement of PCBs in several industrial applications has led to decreased usage, and is further compounded by the increasing shift of production capacities to low-cost countries in Asia," observes Frost & Sullivan Research Analyst Sowmya Ramaswami. "This is the leading cause for increasing saturation in the European electronic chemicals market."

New analysis from Frost & Sullivan (http://chemicals.frost.com), European Market for Electronic Chemicals, reveals that this market earned revenues of $225.0 million in 2006 and estimates this to reach $267.0 million in 2013.

In addition, the market is also grappling with significant pricing issues. Low selling prices of PCB's inevitably impacts the selling prices of electronic chemicals that play a vital role in the fabrication of PCB's.

With the added complication of PCB production capacities moving to Asia, the electronic chemicals market is not only experiencing reduced growth, but is also witnessing the exit of many participants, and in some cases, mergers of smaller companies with market leaders.

In such a situation, the challenge for electronic chemicals manufacturers in Europe is to promote the sales of PCB's. Adopting the strategy of forming collaborative partnerships with Asian manufacturers could help in promoting a global image of these products. The quality of products may also improve due to a combined effort of two or more manufacturers' Research&Development (R&D) initiatives on product formulations.

Despite reduced application in many end-user industries, the demand for PCB's from applications such as automobiles continues to be strong. This is likely to promote the application of electronic chemicals and sustain market growth in Europe to a certain extent. Automotive applications of PCB's are projected to grow at around 4 to 5 percent annually in Europe.

"On a positive note, it seems unlikely that Asian chemistries will fully replace European ones or PCB's will be completely substituted by more advanced technologies in all industrial applications," says Ramaswami. "Despite the reduced application scope for PCB's today, continuing demand from sectors such as the automobile industry will drive the PCB market and ensure the stability of the electronic chemicals market in Europe."

European Market for Electronic Chemicals is part of the Chemicals and Materials Growth Partnership Service program and provides a detailed analysis in terms of forecasts by product type for the market. This research service reviews the principal market drivers and restraints and examines technological trends in the PCB industry. Frost & Sullivan's expert analysts thoroughly examine the following product types: laminating resins, plating chemicals, primary imaging resists, encapsulants and conformal coatings, solder masks and other auxiliary products.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics.

For more information, visit http://www.frost.com

Source: Frost & Sullivan

Seven New Hybrid Models to Enter the Market in the Second Half of 2007

Hybrid vehicles are on course to achieve record sales in 2007, increasing by 35 percent compared with 2006, according to the J.D. Power and Associates 2007 U.S. Hybrid Vehicle Forecast Second Quarter Update.

According to the report, an estimated 187,000 hybrid vehicles were sold in the U.S. market through the first half of 2007, accounting for 2.3 percent of the total U.S. new light-vehicle market through June. While sales of hybrid vehicles are projected to decline slightly in the second half of the year, the market is still on track to sell 345,000 hybrids in 2007 -- a 35 percent increase from the 256,000 hybrids sold in 2006.

"High gas prices during the first half of 2007, coupled with automakers lowering the price premium for most hybrid models, have given the hybrid market a boost," said Mike Omotoso, senior manager of global powertrain forecasting for J.D. Power and Associates.

The Toyota Prius continues to be the most popular hybrid model, selling 94,503 units through June 2007 and representing 50.6 percent of all new hybrid vehicles sold in the U.S. market in 2007. Toyota Prius sales were bolstered earlier this year when Toyota began offering incentives up to $2,000 to entice customers.

"Toyota realized that they had to offer incentives for the Toyota Prius to offset the decrease in the federal tax break, which decreased from more than $3,000 in 2006 to less than $1,000 in 2007," said Omotoso. "The incentives helped Toyota maintain a strong sales pace for the Prius."

Despite the entry of nine new hybrid vehicle models in the market in 2007 -- seven of which are expected to go on sale between July and December -- the Toyota Prius is projected to continue as the sales leader among hybrid vehicles during the next few years.

Competition in the hybrid segment is projected to intensify further in the coming years. According to the report, there will be as many as 65 hybrid models-28 cars and 37 light trucks-in the market by 2010, with sales expected to reach nearly 775,000 units, or 4.6 percent of the total U.S. new light-vehicle market.

"While consideration for hybrids is falling, interest in hybrids is still strong among consumers, and projections indicate steady growth for this segment in the coming years," said Omotoso. "Bringing additional hybrid models to the market will serve to fuel that interest."

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