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Old 1st June 2012, 20:49   #1
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Default May 2012 : Indian Car Sales Figures & Analysis














NOTES:

1: Only cars that sell 500+ units (and thus, the relevant ones) have been included in the gainers & losers chart.

2: The Maruti Gypsy has not been included in the 'Top Gainers' list as its production spike might be due to Military orders or a short production run to fill up stocks.

A big shout-out to Jalsa777 for preparing these beautiful charts & graphs!

Last edited by GTO : 1st June 2012 at 20:52.
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Old 1st June 2012, 20:55   #2
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Movers & Shakers

May 2012 saw an absolute bloodshed in the Indian auto industry with most manufacturers reporting a severe loss of sales. A quick look at some of the unfortunate happenings in the recent past:
  • Petrol prices hiked by Rs. 7.5 / liter in May! It's hard to believe that the now-precious fuel cost only Rs. 44.55 (Mumbai) in January 2009.
  • The Government increased excise duties on all cars in Budget 2012.
  • The Rupee hits a record low of Rs. 56.52 to the US$, thereby increasing import cost for manufacturers.
  • Earlier today, it was officially announced that India's annual GDP growth has slowed down to a 9-year low of 6.5%. This isn't the best time to buy big ticket items like cars.

You know times are bad when your email box is NOT filled with press releases announcing xx.xx% growth by the afternoon of the 1st. Challenging times indeed, and it will be a survival of the fittest. The weak will have to keep requesting $$$ from parent companies abroad and also face a drastic reduction in budgets. When the market is bad, does it make sense to increase or decrease advertising budgets? The jury is out on that one.

Interestingly, three manufacturers who have bucked the trend are Mahindra, Toyota & Honda. Honda overtakes arch rival VW after a long time.

I see motorcycle sales gaining at the cost of entry-level cars. After all, the first-time car buyer is now more concerned about his monthly petrol bill than the Maruti Alto / Hyundai Santro EMI!

- It looks unlikely that the Alto will reach its previous 30,000 / month level anytime soon. Remember, the entry-level segment is the most price sensitive. Maruti's best performers are cars that have been launched in the last 12 months and are powered by the 1.3L MJD diesel engine. The Swift & Dzire continue to go from strength to strength, while the Ertiga is gaining traction too. These three cars share the same platform...a platform that has managed a cumulative 45,000 units in May 2012! The Omni - surprisingly unaffected by the petrol price hike - is the only other good news Maruti has. The WagonR, Eeco & Ritz lose sales share big time. Duds like the A-Star & Estilo reach new lows and the SX4 appears to be completely annihilated by the cheaper Ertiga.

- Hyundai's best selling hatchback is the i20, a car that had its highest sales month in a year (link to official review). This goes to show that the 6 - 8 lakh customer isn't as affected by external market conditions as a 3 lakh buyer. The Eon, i10 & Santro - petrol only hatchbacks - take a noticeable hit on volumes. The Verna continues to impress with its success in the C2 segment, but the Sonata is already showing signs of struggle. Might be time for the Accent to R-I-P soon (it's been a long run anyway).

- Say hello to the new No.3 in the Indian market, Mahindra! Just like Warren Buffett who frequently bucks the trend, the Bolero, Scorpio & XUV500 continue to laugh all the way to the bank. Bad market? Whaaaaat? On the other hand, a facelift isn't doing anything to the Xylo's fortunes. Doesn't look like taxi drivers are out shopping either (ref = Logan sales dip).

- The Nano is the only Tata that has managed to retain its regular sales performance. The Indica, Indigo & Safari are severely affected by the negative market sentiment. Though, it could be that Safari production is being transferred to the Storme? The Aria's performance is shabby even by market dud standards.

- Toyota has reason to cheer in the grim market; the Innova, Fortuner (recording it's best-ever month btw) and Etios bring the volumes home. On the flip side, the Corolla & Liva have a rather mediocre run. The Liva, especially, will find it hard to sustain competitive pressures.

- Honda is the other manufacturer to swim against the tide and move up to position 6 overall. It has recorded substantial gains in its entire sub-10 lakh portfolio. The Jazz, written off even after the price cut, is now nudging the healthy 2,000 level. The Brio & City put up a strong show in a difficult month. It's 10+ lakh portfolio, however, provides ample learning on what NOT to do when you are at the top. The Accord, Civic & CRV are all relegated to the flop category. It is noteworthy to mention that these cars were once the No.1 in their respective segments. When times change and management styles don't, there is a price to pay.

- The only shining star in the Chevy universe is the Beat. The company would have been in serious trouble if it weren't for that 3-cylinder diesel engine saving the day. Every other Chevy car, including the once respected Spark, has had an entirely forgettable May. The Cruze suffers an inexplicable fall and we can only credit that to the updated Cruze being launched next month. Let's see whether June 2012 proves us right or wrong.

- Just like Chevy, Ford has a sole product - the Figo - to keep the cash registers ringing. The ol' Fiesta is sitting with 50% lesser sales than what it managed in the Jan - March 2012 period. The less said about the new Fiesta's performance, the better. Ford needs the EcoSport and fast. Hope it's priced well as there is a lot of interest in this compact SUV.

- VW records its lowest sales in a year and is said to be working furiously on solving the problem. The Passat outsells the Superb and the Vento beats the Rapid. But the Polo has dropped to the 2K level, and the Vento's numbers are nothing to write home about either. The Jetta records its second <200 month. VW's biggest challenge is Skoda selling nearly identical products with the same core competencies at noticeably lower prices.

- The Sunny has a reasonable run @ 2,500 units, but doesn't seem capable of getting back to the levels it held in the first quarter of 2012. The Micra suffers a massive slip to a paltry 500 units (outsold by even the Punto).

- The Rapid is Skoda's knight in shining armour. The company's engines are misfiring otherwise, with the Laura & Superb (one time cash cows) taking a noticeable dive due to market conditions (and not any product flaws). Cheaper Superb variant isn't working. The Fabia sells barely 20% of what it did in May 2011.

- Not much to talk about with the trio on the last bench (Fiat, HM & Renault). It's the same grim story as in earlier months. I'm quite surprised by Renault's lack of energy...when your brand is new, you just have to make an aggressive assault. The Pulse, in the 5th month of its life, hits a bottom of mere 300 cars sold. The company has a lot riding on the Duster which does have the potential to become a game-changer.

Last edited by GTO : 2nd June 2012 at 11:57.
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Old 1st June 2012, 20:55   #3
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Old 1st June 2012, 20:56   #4
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Old 1st June 2012, 20:57   #5
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Old 1st June 2012, 20:58   #6
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene!
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Old 1st June 2012, 21:17   #7
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

We got the report on the very first day of the month, thanks Jalsa777 and GTO for the efforts.
It seems Mahindra, Toyota and Honda had a relatively better month than the rest of manufacturers.
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Old 1st June 2012, 21:20   #8
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Quote:
Originally Posted by GTO View Post
... The Omni - surprisingly unaffected by the petrol price hike - is the only other good news Maruti has. ...
The Omni's performance could be explained by the available CNG/LPG variants?
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Old 1st June 2012, 21:22   #9
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Thanks GTO for the monthly sales analysis. Surprisingly we have the analysis in the first day of the month!

May really seems to be a tough month for most manufactures.

Swift, Dezire and Ertiga gaining the top position was not unexpected. I feel Ertiga would gain momentum in the coming months!

Hyundai's i20 seems to be a hit with other models not doing much.

Ford has nothing to talk of with Figo numbers on the down slide!

No point in discussing the Fiat numbers with the same story repeating.

Nissan's Micra seems to be low in sales with the saving grace being Sunny. Renault is not having any, to excite the customer!

Chevrolet seems to be in trouble with all cars on the down slide. High time for marketing to spruce up their offering.

Honda's run seems commendable with City , Jazz and Brio doing decent numbers. Interesting to see if they continue this run in the coming months!

VW and Skoda seem to have a flat month in sales with Vento out performing the Rapid!

Cheers!

Last edited by volkman10 : 1st June 2012 at 21:26.
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Old 1st June 2012, 21:28   #10
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As usual, great compilation, GTO and Jalsa.

Finally, after all constrains Honda faced for Jazz, it has started to move in respectable numbers now.

Ertiga and Innova's numbers again proved what I have been saying from day 1: Ertiga is not direct competitor to Innova/Xylo but to hatchbacks and sedans. Look at SX4 numbers, direct impact of Ertiga.
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Old 1st June 2012, 21:45   #11
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

- Ertiga and Innova are neck to neck. Really exciting phase ahead !

- 7-8 lakh rupees car is in 3rd position (doing 17000 units per month). Car buying capability of Indians have gone up

- Inconsistent but still performing : Nano isn't exactly rejected by Indian market. Diesel version can be a super duper hit actually !

- Brio doing decent business. Jazz still an underperformer but improving.

- i20 might see even more growth in coming time.
- Chevrolet needs to bring on Aveo replacement (with mjd engine) soon. Their development is really slow.
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Old 1st June 2012, 21:51   #12
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Quote:
Originally Posted by Turbokick
- Ertiga and Innova are neck to neck. Really exciting phase ahead !
Yes, they are neck to neck, but as I have said before, we should not compare theae two as they belong to different segment. If you see, Ertiga has not dented Innova at all, matter of fact, Innova is going strong even after Ertiga but direct impact can be seen on high end hatchbacks and sedans like SX4.
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Old 1st June 2012, 21:55   #13
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Pleasant surprise, 1st day and GTOs monthly summary,
Maruti seem to know the indian market with right product and what a way to leverage the only diesel (that too borrowed design!!) engine in their inventory (swift,ritz,ertiga,desire,sx4).
While Mahindra knows how to invent a new market oblivious to economic situation. The demand far outstrips the supply. What a enviable position in todays scenario!
"D"(Diesel) is the savior for all manufacturers while petrol is most dreaded giving nightmares to consumers and manufacturers alike.
Good compilation and reading this forum is the only solace in todays motoring world.
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Old 1st June 2012, 21:58   #14
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Quote:
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- Honda is the other manufacturer to swim against the tide and move up to position 6 overall
+1 to that.

With a Petrol only portfolio, itís more like a tsunami to sail against.
IMHO, two main reasons behind their survival,

1. Power of quality : Reputation for good quality is not easy to earn and maintain, but definitely pays.
2. Understand and accept market realities.
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Old 1st June 2012, 22:06   #15
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Default Re: May 2012 : Indian Car Sales Figures & Analysis

Although late, Hondas diesel plans for Brio, City and Jazz should see them doing very well. If you look at sales of these 3 cars, it doesnt look like Honda is late to diesel party
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