March 2019 car sales in India

Overall car sales in March 2019 declined by 2.8% when compared to March 2018 due to various reasons. One prominent reason being companies adjusting their inventories so that all the non-confirming stock is cleared before the new safety norms kick-in in April 2019. According to the new norms, all the cars must come fitted with ABS and non-ABS cars will not be registered post 31st March 2019, thus companies are in a rush to sell and register existing stock before April and are cutting on manufacturing of non-ABS models.

This inventory adjustments along with reasons like upcoming elections and market slump led to degrowth of 2.8%.

march 2019 car sales india

  • All the OEMs barring Mahindra, Honda, and Toyota saw a decline in sales.
  • Maruti’s regular sales channel remained neutral while the premium Nexa channel declined by 6%. Nexa channel needs more models to arrest the sales decline and make it positive.
  • Interestingly Maruti’s market share grew by 0.7% from 49.8% in March 2018 to 50.5% in March 2019 while the overall sales declined by 1.5%.
  • Hyundai’s market and sales both declined by 0.8% and 8% respectively.
  • Mahindra’s sales grew by 5% while the market share grew by 0.6% from 8.4% to 9%.
  • Despite the newly launched Harrier, Tata Motors’ sales degrew by 12% and market share fell by 0.7%.
  • But the overall FY-2019 sales of Tata Motors saw an uptick of 12.18% which is the highest among all OEMs in India FY-2019. Standing next to Tata Motors is Honda with 8.09% growth owing amazing response to its facelifted Amaze. (Refer FY-2019 sales report for more)
  • Honda just short by 600 units stood at 5th position in the March 2019 sales chart next to Tata. Thanks to new Amaze, Honda’s sales grew by 27% and market share grew by 1.4% which is highest market share growth among all OEMs.
  • There’s nothing new to write about Toyota, it is riding on the sales of Innova Crysta and Fortuner while the Yaris can be termed as a flop. Toyota’s sales grew by 2% and market share grew by 0.3%.
  • Ford is running thriving on domestic sales of Ecosport and exports. Its sales degrew by 8% and its market share stood at 2.9%. Ford despite having the competent Figo twins is struggling to get good numbers.
  • The sole breadwinner for Renault India is Kwid and its sales are gradually declning, Captur’s launch isn’t helping improve the situation. Duster is long in the tooth and needs interior-exterior design overhaul to revive its sales. Renault’s sales declined by 7% while market share declined by 0.1%.
  • Nissan India’s situation is much worse compared to its alliance partner Renault. Despite having the mass market brand like Datsun its sales(Nissan+Datsun) fell by a whopping 41% and market share decline by 0.7%.
  • Volkswagen India’s sales and market share declined by 26% and 0.3% respectively. Introduction of Ameo isn’t helping the company, it is in dire need of portfolio expansion and uplifts for existing products. Volkswagen laid out a new strategy called India 2.0 wherein Skoda India will lead its India journey.
  • FCA India is at the verge of closing its Fiat India operations while the Jeep brand remains. FCA’s overall sales fell by 31.3% and market share fell by 0.2% due to fall in Jeep Compass sales. The groups sole breadwinner is Jeep Compass, the car received good market response but sales declined gradually over time.
  • Skoda’s sales fell by 6% while its market share remained unchanged at 0.5%.

Source: AutoPunditz

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Author: Prasanth Chunduri

I am an Independent Financial Advisor advising about mutual funds. Apart from my profession I am interested in cars and bikes.

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