Blog – Tires & Parts News https://tiresandparts.net Your News Source for Everything Automotive Mon, 12 Apr 2021 11:11:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.0.11 Car ownership more popular than pre-COVID, according to Arthur D. Little “Future of Automobility” report https://tiresandparts.net/interaction/car-ownership-more-popular-than-pre-covid-according-to-arthur-d-little-future-of-automobility-report/ https://tiresandparts.net/interaction/car-ownership-more-popular-than-pre-covid-according-to-arthur-d-little-future-of-automobility-report/#respond Tue, 16 Mar 2021 11:26:04 +0000 https://tiresandparts.net/?p=34471 The third edition of the Global Automotive Mobility Study highlights numerous societal shifts as related to the automobile industry. The research is released after a largely disruptive period of time, heavily impacted by the ongoing COVID-19 pandemic. The Future of Automobility study collects insights from around 8500 respondents across 13 major countries, including the United […]

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The third edition of the Global Automotive Mobility Study highlights numerous societal shifts as related to the automobile industry. The research is released after a largely disruptive period of time, heavily impacted by the ongoing COVID-19 pandemic. The Future of Automobility study collects insights from around 8500 respondents across 13 major countries, including the United Arab Emirates. Recent disruption has led to many consumers in the UAE valuing car ownership more highly since the onset of the crisis, with 27 per cent now considering car ownership more important and 16 per cent much more important than in the previous report released in 2018. In terms of the coming decade, around one-third of respondents also expect car ownership to be much more necessary – with 19 per cent and 15 per cent conveying it will be more important and much more important, respectively.

“Since the COVID-19 outbreak, cars have played an even bigger part in people’s lives because of the protection and independence they offer,” said Joseph Salem, Regional Practice Leader Transportation at Arthur D. Little. “The crisis has influenced car ownership intentions, with UAE consumers in particular expressing a need for the sense of security. The protection we feel inside our ‘socially distanced transport bubble’, as opposed to using public transport, seems to be preying on the mind of the consumer more than ever before, while the longer term health of the car industry will ultimately depend on national economies and post-pandemic recovery.”

One-third of UAE respondents cited environmental activism as a primary reason behind them reconsidering car ownership, with 9 per cent saying environmental awareness activities was very much a factor behind their views and 24 per cent claiming it had somewhat contributed.

With unprecedented digital transformation acceleration, ADL also investigated whether consumers were ready for online car lots in place of traditional face-to-face consultations. Despite pandemic-related restrictions, the vast majority have – since the outbreak – not purchased vehicles without having at least one meeting in-person beforehand, with 2.4 visits on average globally. The UAE ranked highest of all surveyed countries in relation to car dealership visits before contracts were signed and deals concluded. In total, 11 per cent visited once, while 27 percent both visited twice and three times.

“When it comes to arranging test drives and finalizing purchases, more than two-thirds of our UAE respondents prefer person-to-person interaction. Transparency, customer-centricity, and quality of information is widely regarded as the most important factors for a positive customer experience during the car purchase journey, followed by personal consultation by a product expert and achieving the best bargain possible. These aspects seem likely to remain in place regardless of a global pandemic,” Salem noted.

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Toyota tops YouGov’s 2021 Automotive Rankings in Saudi Arabia https://tiresandparts.net/interaction/toyota-tops-yougovs-2021-automotive-rankings-in-saudi-arabia/ https://tiresandparts.net/interaction/toyota-tops-yougovs-2021-automotive-rankings-in-saudi-arabia/#respond Tue, 16 Mar 2021 11:05:52 +0000 https://tiresandparts.net/?p=34465 YouGov’s 2021 Automotive Rankings reveal Toyota enjoys the best brand health among Saudi residents and tops the list with an Index score of 36. Along with the parent brand, its luxury segment subsidiary- Lexus also makes a presence in the list in third (with a score of 22.6). YouGov 2021 BrandIndex Automotive Ranking is determined […]

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YouGov’s 2021 Automotive Rankings reveal Toyota enjoys the best brand health among Saudi residents and tops the list with an Index score of 36. Along with the parent brand, its luxury segment subsidiary- Lexus also makes a presence in the list in third (with a score of 22.6).

YouGov 2021 BrandIndex Automotive Ranking is determined using Index score – which assesses overall brand health. The score takes into account consumers’ perception of a brand’s overall quality, value, impression, reputation, satisfaction and whether consumers would recommend the brand to others.

The 2021 rankings show Saudi residents’ affinity towards Japanese auto brands as they occupy four spots in the rankings. Along with Toyota and Lexus, Honda and Nissan are also present in the list, at sixth (17.6) and eight place (13.8), respectively.

German luxury car brands are not far behind and are equally well represented, with Mercedes Benz and BMW landing at second (with a score of 29.7) and fourth (22.5), respectively, and Audi at the ninth place (13.7). The launch of BMW X series and Audi’s new E-commerce platform last year (enabling customers to buy Audi cars online during the pandemic) may have helped the luxury carmakers strengthen their position in the market and secure a place in the 2021 rankings.

Hyundai is ranked fifth (19.6), while American car brands Ford and GMC, took the seventh (16.2) and tenth spot (13.6), completing the list of KSA’s top ten auto brands in 2021.

Commenting on the rankings, Scott Booth of YouGov said, “Like many other industries automakers also suffered the impact of the Coronavirus lockdowns. However, things seem to have gradually improved as vaccination efforts expand across the world. Our data shows that Saudi residents have a strong affinity towards Japanese automakers with four of the leading brands making the top 10 list this year. Not far behind are German luxury cars that enjoy strong brand health among the population. The rankings show that despite the impact of the pandemic on consumer purchasing patterns, the strength of bellwether auto brands remains and they maintain strong brand health in the country.

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Remarkable Post-Lockdown Recovery Marks a Favourable End to a Challenging Year https://tiresandparts.net/interaction/remarkable-post-lockdown-recovery-marks-a-favourable-end-to-a-challenging-year/ https://tiresandparts.net/interaction/remarkable-post-lockdown-recovery-marks-a-favourable-end-to-a-challenging-year/#respond Mon, 08 Mar 2021 10:38:38 +0000 https://tiresandparts.net/?p=34347 Similar to other economic sectors, the automotive industry in the UAE also experienced the impact of the unprecedented COVID-19 pandemic in 2020. Despite the new challenges, the year 2020 has certainly ended on a positive note for the used car market marked by an increase in market activities and heightened customer confidence post-lockdown. When the […]

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Similar to other economic sectors, the automotive industry in the UAE also experienced the impact of the unprecedented COVID-19 pandemic in 2020. Despite the new challenges, the year 2020 has certainly ended on a positive note for the used car market marked by an increase in market activities and heightened customer confidence post-lockdown.

When the number of Covid-19 cases started to rise in March, the used car market also had to deal with high levels of uncertainty. Transactions were held off due to the fear of social interaction. Despite the initial drop during the lockdown in April 2020, the market has shown extraordinary strength and resilience as it bounced back by the end of July:

–        In August 2020, dubizzle saw a record number of 6.21 million visitors, which is indicative of interest returning to the market once buyers and sellers could adapt to the new circumstances.

–        A total of 110,000 new sellers have chosen dubizzle in 2020, highlighting a healthy balance of demand and supply.

–        More than 225,000 new listings of used cars have been added in one year.

Moreover, the government’s economic stimulus packages that contributed to the recovery in most sectors have also lent support to the auto trade market. Initiatives and relief packages exclusively targeted towards the automotive sector, like online registration facilities and suspension of pending fines, have also proved fruitful in keeping the market afloat.

Consequently, consumer confidence has been restored in the market as evident from the data collected from dubbizle and consumer surveys.

–        Nearly 60% of the respondents have shown willingness to buy a car in the next six months.

–        90% of those respondents include looking at used cars as part of their search criteria

–        Affordability, value for money and depreciation have stood out as the top driving factors.

Mercedes-Benz Leads in Popularity 

dubizzle has seen growing inventory in 2020 with well over 78 car brands listed on the portal. Mercedes-Benz has been the most viewed car make followed by Toyota, Nissan, BMW and Ford. Accordingly, the most popular models have also belonged to these aforementioned brands.

–         Nissan Patrol and Toyota Land Cruiser have remained the popular choices in 2020, indicating an unwavering interest in SUVs across the UAE.

–         In contrast, a good number of users have also looked for Mercedes S Class, which is an upscale sedan, followed by Mercedes C Class and Mercedes E Class.

–         Cost-effective models like Toyota Camry and Nissan Altima have made it to the list of top ten car models in 2020.

SUVs Remain in Demand 

Owing to their passenger capacity, spacious cabins and off-road capabilities, SUVs have remained the most popular body type searched by dubizzle users. As mentioned above, SUVs also make for the top two most popular models on dubizzle.

While 35% of the users have searched for SUVs, a close 34% of interest buyers have also shown an interest in sedans. The high-end Mercedes Benz S-Class leads this category, followed by the affordable and fuel-efficient Toyota Camry.

Buyers are Cost-Conscious 

Since affordability has remained a major deciding factor, it’s unsurprising that nearly 44% of dubizzle users have looked for cars under AED 50,000, resulting in higher views for models like Toyota Camry and Nissan Altima.

However, there has been a growing interest in upscale models ranging between AED 50,000 to AED 100,000 as well. Nearly 24% of users have shown an interest in models like Mercedes-Benz C and E Class and Ford Mustang.

Interestingly, high-end models have also captured the interest of prospective buyers as 14% of users searched for vehicles that cost well over AED 200,000. Super-luxury models like the rare  1962 Ferrari, Bugatti Chiron 2019 and W Motors Fenyr Hypersport 2021 have also been listed on dubizzle recently, showing that there is interest for exclusive, iconic models that are hard to procure.

Supply Meets Demand on dubizzle

According to dubizzle’s data, there has been a good balance of demand and supply in 2020 with most major dealers optimising their inventory according to users’ interest.

–         The most popular models, Toyota Camry and Nissan Altima, have also been the most advertised models on dubizzle.

–         GCC specs have remained the popular choice and most commonly available option with a whopping 71% of the total used car market share.

–         Most users have searched for 4-cylinder and 6-cylinder vehicles, for which there was a healthy inventory on dubizzle in 2020.

–         Due to this balance of supply and demand, the average response time for cars listed on dubizzle was approximately 2 hours.

Moreover, sellers’ confidence in the platform has remained strong due to a high number of inquiries and activities. In this regard, SellerAssist by dubizzle Pro has also played a significant role in making dubizzle a seller-friendly platform.

Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA shared his views on the UAE’s used car market performance in 2020 and said: “The last year has been an exceptional learning curve for all of us. Not only did we have to face the uncertainties presented by the pandemic, but we also had to streamline the processes post the merger of Bayut & dubizzle in the region. Despite these unique circumstances, the year has ended on a remarkably positive note for the user cars market in the UAE. It’s understandable that more residents have been looking for personal conveyance to minimise the risk posed by public transportation and this trend may continue in the years to come. This sentiment has also been echoed in the responses to our surveys.

With a market share of over 73%, dubizzle already has a strong foothold in the UAE’s used car sector. By understanding the challenges for both buyers and sellers, we are actively playing our role in sustaining their confidence in the market. We will continue to strive to deliver a better experience and more value to our users no matter the circumstances.

Overall, the used car market in the UAE has shown strength, resilience and a remarkable recovery in 2020. We are optimistic about the year ahead as the government continues to effectively combat the pandemic across the country.”

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Japanese OEMs need to focus on pricing strategy to accelerate BEV adoption https://tiresandparts.net/interaction/japanese-oems-need-to-focus-on-pricing-strategy-to-accelerate-bev-adoption/ https://tiresandparts.net/interaction/japanese-oems-need-to-focus-on-pricing-strategy-to-accelerate-bev-adoption/#respond Sat, 06 Mar 2021 05:39:20 +0000 https://tiresandparts.net/?p=34319 The uptick in the domestic demand for mid-range electric sedan Tesla Model 3, the company’s most affordable EV, is a result of significant price cut of 24% announced last month. The development signifies the importance of pricing strategy for EV transition and customers’ affinity towards cheaper products.  “Japan is a strong market for hybrid vehicles […]

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The uptick in the domestic demand for mid-range electric sedan Tesla Model 3, the company’s most affordable EV, is a result of significant price cut of 24% announced last month. The development signifies the importance of pricing strategy for EV transition and customers’ affinity towards cheaper products. 

“Japan is a strong market for hybrid vehicles with sales soaring nearly a million per year. On the other end, battery electric vehicles (BEVs) sum up to volume of approximately 21,000 units of the total 5.2 million automotive market annually i.e., less than 1%. Despite conducive policies for EVs in Japan, the slow pick up of BEVs can largely be attributed to the unavailability of attractive offerings from the OEMs. Nissan’s Leaf is the only popular and successful BEV available for the mass market in Japan. Tesla caters the premium segment with sales of nearly 2,000 units annually.

“Tesla Model 3, with the latest price cut, now stands better positioned than other competitors in terms of pricing. Major OEMs should look forward to reviving their position in the electric mobility by bringing in new BEVs for the mass market and offering a better mix of both BEVs and HEVs. While OEMs such as Honda, Mazda and Nissan are already market ready with new BEV products in the year and falling, others are yet to follow. The new launches will also support government’s targets to ban sales of gasoline-only vehicles by the mid-2030s.

Credits: Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData.

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New project announced to deliver recycling supply chain for luxury cars https://tiresandparts.net/interaction/new-project-announced-to-deliver-recycling-supply-chain-for-luxury-cars/ https://tiresandparts.net/interaction/new-project-announced-to-deliver-recycling-supply-chain-for-luxury-cars/#respond Mon, 22 Feb 2021 15:44:51 +0000 https://tiresandparts.net/?p=34136 The University of Birmingham has announced a three-year research project with Bentley Motors to deliver a sustainable source of rare earth magnets for electric and hybrid vehicles for one of the most sought-after luxury car brands in the world. The £2.6m RaRE (Rare-earth Recycling for E-machines) project is funded by the Office for Low Emission […]

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The University of Birmingham has announced a three-year research project with Bentley Motors to deliver a sustainable source of rare earth magnets for electric and hybrid vehicles for one of the most sought-after luxury car brands in the world.

The £2.6m RaRE (Rare-earth Recycling for E-machines) project is funded by the Office for Low Emission Vehicles (OLEV) and delivered in partnership with Innovate UK, and involves six partners who will work together to establish the first end-to-end supply chain of recycled rare earth magnets in the UK.

Rare earth magnets are found in almost every appliance that uses electricity to generate motion. In the last 30 years their use has increased exponentially, and although they are increasingly important in the transition to a low carbon economy, less than 1% of these magnets is recycled.

RaRE will build on an innovative technology developed by Professor Allan Walton and Professor Emeritus Rex Harris of the University of Birmingham’s Magnetic Materials Group, the only research group in the UK focussed on processing and recycling permanent rare earth magnetic materials.

The technology, called Hydrogen Processing of Magnet Scrap (HPMS), extracts rare earth metals from waste electronics by breaking them into a powder that is easily separated from remaining components.

The technology was patented by University of Birmingham Enterprise, and subsequently licensed to HyProMag Ltd, the company that was set up by the Birmingham researchers. HyProMag has since received substantial investment from Mkango Resources, which will be fully funding HyProMag’s contribution to RaRE.

The project will develop a process to recycle magnets extracted from computer hard drives to make rare earth magnets for use in bespoke ancillary motors, and will involve HyProMag scaling up the recycling techniques developed at the University of Birmingham.

The University will also provide cast alloys, which HyProMag will blend with secondary materials in order to produce the ‘sintered’ magnets, which are formed by press moulding the metal powders.

Nick Mann, Operations General Manager at HyProMag, added: “RaRE is an exciting project and a fantastic opportunity. HyProMag’s recycling technologies allow us to produce NdFeB magnets with a much lower embedded carbon cost than using virgin supply and with independence from Chinese supply and we are working closely with our major shareholder Mkango Resources to further grow the business. We are proud to be working with established, innovative and renowned companies in the RaRE project with whom we can showcase the technologies of the RaRE project as a whole – recycled magnets being used for cutting edge products in a prestige application.”

Jon Bray, R&D Manager, Office for Zero Emissions Vehicles commented: “We are excited to be supporting this innovative project as part of our ambition to put the UK at the forefront of the design, manufacture and use of zero emission vehicles.”

In addition to the University, Bentley and HyProMag, the other partners in the RaRE project are:

Unipart Powertrain Applications Ltd, which will lead the development of manufacturing scale up routes to ensure facilities and processes defined are suitable for volume automotive manufacture.

Advanced Electric Machines Research Ltd, leading on the design and development of the motors.

Intelligent Lifecycle Solutions Ltd will pre-process computer hard disk drives to remove the rare earth magnet containing components from the waste, which will be shipped to HyProMag for recycling of the rare earth magnets.

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esla sees 60% surge in influencer conversations on Twitter post bitcoin investment https://tiresandparts.net/interaction/esla-sees-60-surge-in-influencer-conversations-on-twitter-post-bitcoin-investment/ https://tiresandparts.net/interaction/esla-sees-60-surge-in-influencer-conversations-on-twitter-post-bitcoin-investment/#respond Mon, 22 Feb 2021 10:23:19 +0000 https://tiresandparts.net/?p=34118 Tesla Inc. witnessed a dramatic 60% jump in influencer conversations on Twitter during the second week of February 2021 over the previous week, following the electric vehicle manufacturer’s announcement to invest US$1.5bn to incorporate bitcoin into its payment infrastructure, according to GlobalData, a leading data, and analytics company. In a recent update to its investment […]

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Tesla Inc. witnessed a dramatic 60% jump in influencer conversations on Twitter during the second week of February 2021 over the previous week, following the electric vehicle manufacturer’s announcement to invest US$1.5bn to incorporate bitcoin into its payment infrastructure, according to GlobalData, a leading data, and analytics company.

In a recent update to its investment policy, Tesla decided to provide more flexibility to diversify cash and cash-equivalent holdings and maximize return on cash. The company also mentioned its plan to accept digital currency as a form of payment option for its products in near future.

Smitarani Tripathy, Influencer Analyst at GlobalData, comments: “An analysis of GlobalData’s Tesla, Inc Company Influencer Platform, which tracks leading industry experts and their discussions on Twitter, revealed Bitcoin, Investments, #Tesla, Cryptocurrency, #Btc and Payments as the most mentioned trends and hashtags among influencer discussions during the same period.”

The news of Tesla’s decision to invest in bitcoin received lot of reactions from influencers on Twitter. Below are a few most popular influencer tweets captured by GlobalData on 8 February:

  1. Peter Schiff, Investment Banking Specialist at J.P. Morgan, shared his opinion on how Tesla used funds to invest in bitcoin.

“Tesla received $1.5 billion in environmental subsidies in 2020, funded by U.S. taxpayers. The subsidies are intended to reward and encourage environmentally friendly behavior. #Tesla then spent the same amount buying #Bitcoin, which wastes electricity and harms the environment.”

https://twitter.com/PeterSchiff/status/1359850198332301312

  1. Brian Roemmele, Founder of PayFinders.com, tweeted on how tesla’s investment on bitcoin an advantage for the corporate treasury will be.

“BOOM! Tesla buys $1.5 billion in #Bitcoin and will invest in more according to SEC filing. “we invested an aggregate $1.50 billion in bitcoin”—Tesla This will be the start of something massive for corporate treasury. Buckle up folks.”

https://twitter.com/BrianRoemmele/status/1358770412046307331

  1. Carl Quintanilla, Principal anchor of CNBC, tweeted on Tesla’s 10-K report annual report, where the company disclosed about its investment on bitcoin.

“TESLA 10-K: “we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future.” $TSLA.”

Credit: GlobalData

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Everything you need to know about classic cars in 2021 https://tiresandparts.net/interaction/everything-you-need-to-know-about-classic-cars-in-2021/ https://tiresandparts.net/interaction/everything-you-need-to-know-about-classic-cars-in-2021/#respond Mon, 22 Feb 2021 07:19:44 +0000 https://tiresandparts.net/?p=34115 People are interested in classic cars because of various reasons. Some collect them, others repair or have them for everyday use. Still, of course, there are people, who invest in them, hoping to earn in the future. Whatever the reasons are, the ones who are interested in classical cars should be engaged in future predictions […]

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People are interested in classic cars because of various reasons. Some collect them, others repair or have them for everyday use. Still, of course, there are people, who invest in them, hoping to earn in the future. Whatever the reasons are, the ones who are interested in classical cars should be engaged in future predictions related to classic car models as well. So what can be expected in the field of classic cars in 2021?

Perfect time for new investments. Due to the global pandemic, this time has become a major challenge for many areas of trade. The interesting thing is that such problems didn’t reach the sphere of classic cars. This just proves that investing in classic cars is reliable indeed. It means that sales remained stable and prices did not increase. As it is known, the value of many car models is growing every year. So, stagnation of price growth is a good sign. With the purchase of a classic car model now, you can expect a significant jump in prices as soon as the world returns to the rhythm of normal life. So, why not take this opportunity?

Invest safely. Yet, it should be emphasized, that the value of your future four-wheel purchase needs to be carefully considered. First of all, one should look at how popular this car has been over the last decade. At what intervals and how significantly did its price increase? What growth of its value do specialists predict in five or ten years? Assessing all possible scenarios will determine whether a particular model is worth investing in. And also to spend time for its maintenance or renovation.

Models to choose from. The top 10 most popular classic cars for 2021 include various models made from 1948 to 1984. Those who are no longer new to the field of classic cars recommend paying attention to Morgan cars. These British sports cars, built for more than a century, cannot leave you indifferent. Among the sports cars, we can also mention the Jaguar XK 120 (1948), Ferrari Testarossa (1984) as well as Ferrari 328 (1985). Nor does Mini Cooper (1961-1972) abandon his position at the top of the best. So, if your return on investment is crucial to you, you might want to start your search for a new classic car from the models mentioned here.

Be patient. Given the global situation, not everyone can dare to take risks when investing. And those who are already owners of classic cars may even be fascinated by the idea that the time has come to sell their cars. Still, the time for sales isn’t perfect right now. So if you have a car that doesn’t require extra costs, take care of it responsibly and try to keep it in the best possible condition for as long as possible. Therefore, consider it carefully and ask some professionals for a piece of advice before making a decision. A hasty solution is likely to be ineffective and probably regrettable as well. Good luck!

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Global Automotive Mobility Study from Arthur D. Little highlights market uncertainty https://tiresandparts.net/interaction/global-automotive-mobility-study-from-arthur-d-little-highlights-market-uncertainty/ https://tiresandparts.net/interaction/global-automotive-mobility-study-from-arthur-d-little-highlights-market-uncertainty/#respond Thu, 11 Feb 2021 20:50:03 +0000 https://tiresandparts.net/?p=34006 Arthur D. Little (ADL) today released the third edition of its Global Automotive Mobility Study. Entitled ‘The Future Of Automotive Mobility’ and based on a global survey of over 8,500 end customers in 13 countries, it shows that global automotive markets are currently at a crossroads. While the study identifies that the internal combustion engine […]

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Arthur D. Little (ADL) today released the third edition of its Global Automotive Mobility Study. Entitled ‘The Future Of Automotive Mobility’ and based on a global survey of over 8,500 end customers in 13 countries, it shows that global automotive markets are currently at a crossroads. While the study identifies that the internal combustion engine still dominates the market, many vehicle owners are weighing up the pros and cons of going electric – as a result, there is confusion about where the automotive sector is heading and at what speed.

Whereas ADL’s previous Global Automotive Mobility Study in 2018 depicted a ‘business as usual’ industry only just taking its first steps towards electric, the mobility landscape three years later is markedly different. For example, there has been a dramatic change in both demand for cars and how ownership of them is perceived – while the COVID-19 pandemic has highlighted the protection and independence that a private car offers, a significant number of people are contemplating giving them up for environmental reasons and embracing alternative transport solutions. The auto industry’s 2% compound annual growth rate is much less than ADL’s last survey predicted.

The study also shows that the move away from petrol and diesel fueled vehicles is real and growing stronger – asked about their next vehicle, 29% of survey respondents favored a hybrid product, while 12% were considering the move to pure electric. And if established brands don’t provide an EV offering, many of their customers are ready to migrate to other manufacturers. However, market growth is hampered by both limited model range and an immature charging infrastructure, with vehicle range still dictated by the availability of public charging points.

One of the study’s most intriguing findings is the emergence of China as a ‘special market’ with markedly different attitudes to consumers in the rest of the world. For instance, while excitement over self-driving autonomous vehicles has dimmed in both Europe and the US due to safety fears, 71% of Chinese drivers remain positive about using such vehicles. They are also more adventurous in trying new powertrains, mobility services, and even purchase options – 71% of drivers in China would be willing to buy a car wholly online, against 35% in Europe and 42% in the US. Given the size of China’s domestic market, these attitudes could have significant implications for the global automotive industry.

Klaus Schmitz, co-author of the study and Partner in ADL’s Automotive and Manufacturing Practice, comments: “While the global automotive industry isn’t exactly in turmoil, the findings of this study definitely indicate significant turbulence, plus an uncertainty about the speed and direction of the market. Established trends are meeting new, emerging ones, which has inevitably led to a state of flux. We believe that the industry faces four main market-related challenges: how to better anticipate changes in vehicle demand and ownership profile; how to better transition towards electric; how to profitably grow the mobility services segment; and how to optimize the new value chain.”

Wolf-Dieter Hoppe, co-author of the study and Partner in ADL’s Automotive and Manufacturing Practice, adds: “Given the degree of uncertainty in the sector, the automotive industry needs to develop a better understanding of the modern driver’s priorities if it is to fully exploit electric’s potential and counter concerns over autonomous vehicles. This will require an evaluation of current investments and an informed calculation about how markets and the value chain will look in ten years. For those manufacturers who get this right, there will be significant opportunities.”

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Tesla will prove to be bitcoin’s great experiment https://tiresandparts.net/interaction/tesla-will-prove-to-be-bitcoins-great-experiment/ https://tiresandparts.net/interaction/tesla-will-prove-to-be-bitcoins-great-experiment/#respond Tue, 09 Feb 2021 04:51:06 +0000 https://tiresandparts.net/?p=33937 This is a massive move by Tesla. By accepting bitcoin as a form of payment, Tesla is unleashing the first major consumer experiment in not just bitcoin but cryptocurrency as whole. Tesla, being the fifth largest company in the world by market cap, will send out a bold statement if it can successfully integrate bitcoin […]

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This is a massive move by Tesla. By accepting bitcoin as a form of payment, Tesla is unleashing the first major consumer experiment in not just bitcoin but cryptocurrency as whole. Tesla, being the fifth largest company in the world by market cap, will send out a bold statement if it can successfully integrate bitcoin payments into its business.

“Tesla has topped GlobalData’s Automotive thematic scorecard, which ranks companies based on how they will be affected by various industry themes, since before 2019. The firm has remained on top of the scorecard for the past two years by investing in emerging technologies such as electric vehicles (EV) and batteries. Cryptocurrencies could represent Tesla’s next foray into disruptive themes.

“The main sticking point will be the volatility of the cryptocurrency. The firm cannot accept $35,000 for a Model 3 today and then $29,000 tomorrow – it is just not good business. In bitcoin, swings of 10-20% in price in a matter of days are not uncommon. However, if adoption of bitcoin becomes more widespread, volatility is likely to fall.

“If Tesla were to fail in successfully implementing bitcoin, it could be a detrimental blow to the cryptocurrency, signalling to investors that it has no future as a payment mechanism. A further worry for the cryptocurrency is that the purchase of $1.5bn of bitcoin by a single actor in a public manner has sent the price through the roof. Bitcoin jumped over 15% to a new high of $44,000 on Monday. This sort of hype-based price power should be worrying to investors and consumers alike – especially if this is to be used as medium of exchange. If Elon Musk can help dictate the price of this asset with a tweet or large order, the same could happen to send the price back down. The task of purchasing a vehicle should not be speculative. Consumers who may have thought of buying bitcoin to use as a substitute for fiat – could very easily end up with more or less than they bargained for.

Credits: Danyaal Rashid, Head of Thematic Research at GlobalData

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Global styrene butadiene rubber market likely to regain growth momentum in 2021 https://tiresandparts.net/interaction/global-styrene-butadiene-rubber-market-likely-to-regain-growth-momentum-in-2021/ https://tiresandparts.net/interaction/global-styrene-butadiene-rubber-market-likely-to-regain-growth-momentum-in-2021/#respond Wed, 03 Feb 2021 06:38:12 +0000 https://tiresandparts.net/?p=33877 The steep decline in automotive and tire demand has largely affected the growth of the global styrene butadiene rubber (SBR) market. In these challenging market conditions, companies have reduced capital expenditure for 2020. Trinseo SA, one of the major producers of SBR, had a reduction of capital spending from US$100m to US$80-US$85m for 2020. Companies […]

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The steep decline in automotive and tire demand has largely affected the growth of the global styrene butadiene rubber (SBR) market. In these challenging market conditions, companies have reduced capital expenditure for 2020. Trinseo SA, one of the major producers of SBR, had a reduction of capital spending from US$100m to US$80-US$85m for 2020. Companies will continue to prioritize investments in their growth areas to remain competitive and place themselves for sustained growth in the long-term, says GlobalData, a leading data and analytics company.

Dayanand Kharade, Oil and Gas Analyst at GlobalData, comments: “Automotive production was down in most parts of the world due to plant shutdowns. International and domestic travel restrictions have substantially impacted the SBR demand from the airplane tire segment. However, as inventories continued to build up and demand started to show signs of growth, the SBR market started taking pace. Companies are keeping a close eye on the trends and market conditions to best position themselves for the eventual economic recovery in the near future.

SBR capacity additions are largely concentrated in China and India, targeting existing and growing demand in these countries. Iran is the third-largest country in terms of capacity additions, leveraging feedstock advantage.

New SBR capacities under construction are facing various issues, which may delay project completion and commissioning. The construction works of the Sinopec Hainan Refining & Chemical Yangpu SBR project had been delayed. However, it was back on track in February 2020.

Mr Kharade concludes: “Global demand growth of SBR is expected to strengthen in 2021 and continue further, as sequential demand improvement is expected to be seen in automotive and tire applications. Producers are trying to manage short-term adversity while focusing on long-term strategic actions like investments in applications with higher growth and less cyclicality such as solution-SBR (S-SBR).

Credits: GlobalData

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