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%.
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%.
Maruti Suzuki India time and again proved that it cannot be dethroned that easily. Despite having around 50% market share it further grew to capture a whopping 55% market share. Every time we think that Maruti reached peaks and it cannot grow further it is proving us wrong, this month it grew by 13.4% compared to the last April.
Tata Motors despite trying hard to reach third position is still having tough time to displace Mahindra. But Tata can make it to third position as we can see it is consistently growing at a healthy rate(this month it grew by 34.4%) owing to the success of Tiago and Nexon.
Biggest loser this April is Honda, it de-grew by 36.9% compared to the April 2017.
Thanks to Jeep Compass that Fiat is able to post better numbers.
November 2017 turned out to be positive for the automakers in India. The industry as a whole grew by 13.70% when compared to the last November. This growth can also be attributed to the lower base set by the last November which was affected by demonetization.
As usual first two positions were held by Maruti and Hyundai respectively. Fight for third position became more interesting with Mahindra, Honda, & Tata, giving tough competition to each other. Tata is riding upon the the success of Tiago and new product launches like Nexon. Mahindra is getting sustainable numbers from its old workhorses Bolero and Scorpio, and also from the XUV 500. Honda is depending on City and WRV for the sales momentum. With each company planning for new launches which include completely new products or facelift of the existing products the fight for third position is going to further heat up.
All companies except Renault and Volkswagen grew positively. Renault’s sales declined by 18.80% and Volkswagen’s sales declined by 14.60%. With the launch of compact SUVs from all the companies, Renault Duster lost its leadership position in its segment. Renault sales plummeted despite the launch of Renault Captur, have to wait for the detailed sales statistics to know the numbers brought in by the Captur to Renault’s table. Tata’s Tiago due to its unique positioning is competing with Celerio on one side and Renault Kwid on the other side, thus eating into sales of both Celerio and Kwid. Though not good by any margin, Volkswagen is getting consistent numbers from its trio Polo, Vento, and Ameo. Its new launches aren’t helping much. Volkswagen must develop products with India in mind instead of launching its international products here.
Fiat is riding on the success of Jeep Compass. Jeep Compass sales settled at around 2500 units per month which is good for its segment and price bracket. Skoda India’s main bread winners are Rapid and Octavia. Nissan sales numbers also constitute Datsun’s numbers. Major chunk of Nissan India sales comes from Datsun.
Fiat is the top gainer of the month, it grew by 990.00% from 266 units in November 2016 to 2900 units in this November. This phenomenal increase is due to Jeep Compass. Next top gainers are Skoda and Honda with growth of 75.00% and 47.20% respectively. Standing 4th in the top gainer list is Tata, it grew by 34.70% from 12,736 units in last November to 17,157 units in this November. This growth can be attributed to the consistent sales of Tata Tiago and added numbers from the newly launched Tata Nexon. Next in the top gainers list comes Mahindra, it grew by 17.00% to 14,572 units in this November compared to 12,389 units in the November 2016. None can beat Maruti Suzuki and Hyundai when comes to stable growth in sales. Maruti Suzuki grew by 14.00% and Hyundai grew by 10.00%.
Maruti Suzuki India’s overall sales in the month of December 2016 stood at 1,06,388 units which is 4% less than the previous December sales. Almost all the portfolio of Maruti except for the latest launches saw a degrowth in sales. Maruti’s entry level car Alto though is the leader of its segment is facing a tough competition from Renault’s Kwid. Alto sales this December stood at 17,351 units as against the December 2015 sales of 22,589 units. Alto’s sales since the last few months are steadily declining and its monopoly is being challenged. Sales of Dzire in December 2016 stood at 14,643 units compared to last December which stood at 16,790 units. Though Dzire is not having tough competition from other cars of its segment, its sales are taking hit due to production crunch at Maruti’s factories. Sales of Swift (14,538 units) remained same compared to the last December sales which stood at 14,548 units. With sales of 14,178 units in December 2016, WagonR saw a marginal decline of 3% compared to December 2015 sales. Even Baleno saw a sales decline of 10% and again this can be attributed to the production crunch problems of Maruti. Otherwise Baleno’s sales can easily cross the ten thousand mark. Baleno sales in December 2016 stood at 9,846 units against 10,572 units in December 2015. Vitara Brezza sales in December 2016 stood at 8,971 units which is 7.7% less than the November 2016 sales. Both Celerio and Ertiga saw a decline of 10% in Year over Year sales. The aging Omni with sales of 4,838 units is still raking in numbers for Maruti. Eeco’s sale in December 2016 stood at 4,386 units which is 12% less than the last December. Ciaz saw a raise in numbers and S-Cross saw a decline of 21%.
Maruti’s sales in India are at its peak with a market share of 46.7%, but a look at its sales chart tells an all together different story. It is the new models like a Vitara Brezza and Baleno that are helping Maruti to maintain its market share and its old portfolio started showing signs of aging. Introduction of Ignis, launch of new generation Alto, launch of new generation Swift & Dzire, strengthening of Nexa network and commencement of the new production facility at Gujarat are the few steps that Maruti is working on to maintain its market share in the year 2017.
Hyundai India sales in the month of December 2016 stood at 40,057 units against 41,861 units in December 2015 that is a 4% decline.With a market share of 17.6% Hyundai stands next to Maruti. Though the gap between 1st and 2nd positions in terms of market share is very high, Hyundai enjoys a premium image compared to Maruti. This is helping Hyundai to sell its products at a premium price with fattier margins than Maruti. For example, Creta is costlier than it should be, but despite high price Hyundai is able sell a good number of Cretas every month which the Maruti cannot do with its products. Sales of Creta in the month of December 2016 stood at 6,563 units which is a good 39% increase over December 2015 sales. Sales of i10 Grand stood at 10,519 units in December 2016 against 12,749 units in December 2015. Hyundai is prepping up to launch new i10 Grand to help maintain the sales momentum. Hyundai is also planning to phase out i10 and re-introduce new Santro in its position to counter Maruti WagonR. Newly introduced Tucson’s sales stood 424 units in December 2016. With a sales of 6,790 units December 2016, Hyundai Eon showed an increase of 3% compared to December 2015 sales(6,563 units). Hyundai Elentra sales stood at 212 units(168% YoY !).
Mahindra’s overall sales in December 2016 declined by 8% YoY, the company’s sales stood at 15,716 units against 17,149 units in last December. The aging Bolero with sales of 5,928 units is the top contributor to Mahindra. Scorpio’s sales stood at 3,556 units. The next three in order of their contribution are KUV-100, TUV-300 & XUV-500. KUV-100 sales may take hit with introduction of Maruti Suzuki Ignis . TUV-300 is already facing heat from Ecosport & Vitara Brezza. XUV-500 had to face heat from the upcoming Tata Hexa. So these Mahindra’s main contributors are bound to take a massive hit due various reasons. Have to see how Mahindra will handle its situation. There isn’t much to talk about the rest of the portfolio. Rexton proved to be a failure, but Mahindra is planning to introduce another product from the SsangYong’s portfolio to challenge Toyota Fortuner. This time under Mahindra’s brand name. It is also prepping up to launch a product to challenge Innova Crysta and the details are still scarce except for few camouflaged appearances.
Toyota India sales in the month of December 2016 stood at 12,747 units against 10,446 units in December 2015. Innova Crysta , Etios Series & Fortuner together make up 98.6% of the company’s total sales in India! Innova Crsyta itself contributed a whopping 51.4% to the total sales. And the Fortuner’s sales in the month of December 2016 stood at 1,780 units which is an increase of 174% of December 2015 sales(649 units).
Renault India sold 11,244 units in the month of December 2016 against 10,292 units in December 2015. Kwid, Duster & Lodgy are the top three contributors whose combined contribution stood at 98% of the total sales. Renault’s sales are bound to grow further as the company is prepping up to launch new products based on Kwid’s platform.
Tata Motors India sales in the month of December 2016 stood at 10,846 units against 8,068 units in the December 2015. Sales of Tiago stood at 4,013 units and its contribution to total sales is 37% of total sales. Looks like Tiago’s success is having a positive rub-off effect on the other products of Tata. Sales of Zest increased by 26% from 1,084 units in December 2015 to 2,279 units in December 2016. Nano is not flying off the shelves as the company expected it to happen. Guenter Butschek as the CEO of Tata Motors is bringing in an upturn in the company’s sales chart. Upcoming models sub 4 meter sedan Kite5(name not yet fixed), SUV Hexa & compact SUV Nexon are expected to further boost the company’s sales.
Sales of Honda cars declined by 19% from 12,379 units December 2016 to 10,071 units in December 2015. Introduction of BR-V(1,601 units sold) didn’t help much, it cannibalized the sales of Mobilio. Honda’s main bread winner, City is having a tough time due to Maruti Ciaz. Upcoming City’s facelift might help the matters. There is nothing to write home about Amaze or even the rest of the pack .
Looks like Ameo can be another consistent seller for Volkswagen in India apart from Polo. Volkswagen India sold 4,348 units in India in December 2016 against 2,577 units in December 2015. Though the Volkswagen India’s domestic sales are very minuscule, the company is managing to run its factory at optimal utility by making vehicles for exports.
Nissan India & Datsun India’s combined sales stood at 3,715 units against 3,066 units in the same period last year. Nissan India is not exploiting its portfolio to its full potential. Sunny & Micra with few feature additions at par with their competitors and proper promotion can bring in good numbers to Nissan. Redi-GO isn’t doing as good as Kwid is doing to Renault. Redi-GO sales in the month of December 2016 stood at 1,548 units. Though the Renault Nissan Alliance can make great strides in India, Nissan as a separate entity had to prove yet.
Except for the Enjoy’s upturn in sales, there is nothing to write home about Chevrolet India. Chevrolet India’s sales grew by 20% from 2,515 units in December 2015 to 3,020 units in December 2016.
Skoda India’s and Fiat India’s sales declined by 28% and 51% respectively. Even the luxury players Mercedes-Benz, Audi & BMW are selling well than Skoda & Fiat.