Automotive Roundup January 2010 24th January 2011

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China says to continue subsidies for green cars in 2011 (31/12/10)

Chinese authorities have said they will give subsidies to motorists buying fuel-efficient cars in 2011, but will rescind cash for farmers trading in fuel-heavy vehicles for newer ones.

GM, Changan and Ford Motor Co are all expected to benefit from the move, which will stimulate interest in hydrogen-powered and hybrid models.

Meanwhile, tax incentives for small cars are expected to come to an end this year.

China carmakers say demand growth to outweigh end of tax breaks (29/12/10)

The high growth of demand for cars in China will offset the impact of the end of tax incentives, automakers in the country have said.

Geely Automobile Holdings, General Motors and BYD all expect the nation's economic expansion will help to increase deliveries in 2011, following a year that saw vehicle sales jump by 34 per cent in the first 11 months.

General Motors has not changed its forecasts after the Chinese government confirmed that the end of the tax break will go ahead, while Hyundai said it does not expect to see a major impact on sales.

Brazil overtakes Germany as 4th biggest car market (20/12/10)

Brazil has become the fourth-largest car market in the world, with a total of 3.45 million vehicle sales expected for the year of 2010.

It puts the country behind China, the US and Japan, and ahead of Germany, as the world's biggest buyers of cars and light trucks.

According to Cledorvino Belini, president of carmakers' association Anfavea, Brazil has around one vehicle for every seven people, meaning there is plenty of scope for growth in the future.

"[Brazil] is a market that should keep growing over coming years, and that is attracting a lot of investment," he said.

Brazil 2010 vehicle sales rise to record (3/01/11)

Car and light truck sales in Brazil rose to an annual record for the fourth year running in 2010, jumping 10.6 per cent to 3.33 million units.

Fiat led the charge with 760,495 vehicles sold, then Volkswagen, spurred on by a boom in credit availability in the country.

December's car sales were the highest-ever monthly figure at 361,300, helping automakers to offset weaker sales in other markets.

UK new car sales to fall in 2011, says industry (7/01/11)

New car sales will fall by five per cent this year, according to the Society of Motor Manufacturers and Traders, which blamed tough conditions in the wake of a difficult year for the forecast.

Vehicle registrations rose by 35,847 units in 2010, but this marked the second-lowest decade of sales for ten years, nearly 375,000 below 2007's figures.

Paul Everitt, chief executive of the society, said fewer motorists than expected took advantage of the chance to buy a car before January and beat the VAT rise.

"We're in a difficult period in terms of public expenditure, concerns about job losses and tax increases," he added.

China 2010 auto sales reach 18 million, extend lead (10/01/11)

Vehicle sales in China rose by 32 per cent last year due to a combination of government incentives and economic growth.

Some 18.06 million cars, trucks and buses were sold in the country throughout 2010, figures from the China Association of Automobile Manufacturers revealed.

The association predicts growth of between ten and 15 per cent this year to reach as high as 20 million.

Green cars on the rise, but consumer interest lags (11/01/11)

This year's Detroit Auto Show was marked by the prevalence of eco-friendly vehicles, such as the Nissan Leaf and Chevrolet Volt, but analysts say the industry's success will depend on whether the public will pay for them.

Toyota also presented three new models and said it is preparing an electric version of its 4x4 RAV-4 for next year, while Ford displayed the Focus Electric.

However, Dave Cole, president of the Center for Automotive Research, said there remains the question of whether hybrid and fuel-efficient technologies can be competitive without government subsidies.

Mexico auto output rebounded in 2010 on exports (11/01/11)

Mexico's carmakers saw a strong recovery in 2010, with exports rising 52 per cent to nearly 1.86 million vehicles.

Figures from the Mexican Automobile Industry show that overall production rose by 50 per cent to over 2.26 million units.

Russian car production doubled to 1.15m in 2010 (17/01/11)

Car production in Russia increased by 92.6 per cent in 2010 compared with the previous year, partly on the back of a government scrappage scheme for Russian-built vehicles.

A report from the Trade and Industry Ministry found that light commercial vehicle production rose by 58 per cent to 105,000 vehicles.

"In 2011, as the initial demand for cars is met, car output is expected to edge up one per cent," added the report.

UK car production rose 27.1% in 2010, says SMMT (20/01/11)

The Society of Motor Manufacturers and Traders said carmakers in the UK made 1.27 million last year, an increase of 27.1 per cent compared with 2009.

While production levels are still far from pre-recession numbers, the figures mark a recovery for the car industry and strong export performance in the engine production sector.

"This performance continues to underline the significant role played by the UK in global production," said SMMT chief executive Paul Everitt.

Toyota remains world's largest automaker even after recalls (24/01/11)

Despite setbacks and embarrassment caused by vehicle recalls in 2010, Toyota retained the title of the world's largest automaker.

Sales, including those from the luxury Lexus brand, rose by eight per cent o 8.42 million units, compared with 8.39 million from closest competitor General Motors.

However, sales were not even across the globe: in China, volumes rose 19 per cent, somewhat behind General Motors' 29 per cent.

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