Re: July 2012 : Indian Car Sales Figures & Analysis Not much of a month for foreign car manufacturers, with only Tata & Mahindra reporting a strong July 2012. In fact, the two Indian brands sold about as many cars as all the Korean, European & American manufacturers combined! It’s noteworthy to mention that UVs (MUVs & SUVs, both) are doing really well. UVs now outsell sedans by a full 6 market-share points! What’s more, 1 UV is sold for every 2 hatchbacks in India. Keep in mind that the average selling price of a UV is significantly higher than a hatchback, as are the profit margins.
The market’s net sales at 1.92 lakh cars are the lowest since October 2011.
• Unsurprisingly, Maruti records its lowest sales in a year too. I am shocked at how the market leader faces recurring labour issues! On the 18th of July, its Manesar factory stopped making cars (again), after an unfortunate dispute between management & factory workers (yet again!). The sooner Maruti solves the discrimination problem between contract & permanent workers, the better. The shutdown’s effect reflects only partially on the July 2012 numbers; however, unless Maruti gets out of this mess, August will be a disastrous month. The Ertiga records it’s highest ever sales in July with a whopping 7,000 shipments. The Swift & Dzire are No.2 & No.3 on the best sellers chart, despite supply restrictions from Manesar. The WagonR nudges the healthy 10K level for the 2nd month in a row. The Alto, however, completely slides, reflecting the sensitivity of the first-time car buyer to the economy. Remember, the Alto’s production is unaffected by the Manesar lockout.
• No major changes at Hyundai with the Verna & i20 performing exceptionally well in adverse market conditions. The Korean giant’s net volumes are taking a beating though, as volume sellers like the Eon & Santro slide below the 5K mark....recording their worst numbers of 2012. Times are bad for all of the entry “A” segment cars. As predicted, launching the new Sonata with a petrol-only engine menu was a terrible idea.
• Look who’s back at the No.3 spot : Tata Motors! And that’s with a 5,000 car lead over Mahindra. The Indica / Vista and the Indigo / Manza had an amazing month. These 4 cars are poised to make the most of the opportunity created by the Swift & Dzire’s supply issues. The Sumo is the other star, nearly touching the 4,000 level. Perhaps, there is a step up in the UV’s marketing activity in rural & semi-urban India. The Nano, like the other entry-level cars, is severely hit by market sentiment. The ageing Safari is feeling the heat from the Duster on one side, and the XUV on the other. Million $ question : When is the Storme going to be launched?
• Might be bad times for other car manufacturers, but not for Mahindra. The Bolero maintains its spectacular market run. What really amazes me though is the XUV500 bringing home its best ever sales & coming within an arm’s length of the Scorpio! There is a spike in the Verito’s numbers, but I don’t expect this to last. The sedan is just too old & cheap-feeling, facelift notwithstanding. The otherwise competent Xylo remains a mediocre performer by Mahindra UV standards.
• The Innova & Fortuner are Toyota’s stalwarts. The Etios does okay, but the Liva is clearly under severe pressure from more contemporary hatchbacks. The Corolla is the D2 sedan segment leader, yet only just. Incidentally, the new Camry is coming your way in August.
• The Beat diesel keeps Chevrolet’s cash registers ringing. Like other UVs, the Tavera also has a great month. The Chevrolet Cruze recently got an updated engine and enjoys a respectable position in the D1 segment. Other than this trio, it’s all downhill for Chevy. The Aveo, UVA and Optra (production ended due to zero demand) do miserably. What surprises me is the Spark; surely, this competent hatchback deserves to do better than just 500 odd cars? It’s outsold by the Fiat Punto! Chevrolet is going to be revamping its India portfolio soon. About time, I say. Phase out the old and bring in the new (please do NOT keep ageing duds concurrently on sale in the market).
• The Figo finds 4,700 homes, but July is a low point of 2012 for the Ford hatchback. The Fiesta Classic stays in the 4 digit zone for the 2nd month in a row, something that the new Fiesta can only dream about. The upcoming Figo facelift should rekindle interest in the hatchback.
• VW must be pleased with the Polo’s 3,500 factory dispatches. But that joy might be short-lived as the booted version (i.e. Vento) has its worst sales ever...a mere 1,546 cars out. The Vento’s sales are down a massive 40% M-O-M and 46% Y-O-Y. VW can’t blame it on the cheaper + identical Rapid which has had an equally bad month. The Vento is still a benchmark when it comes to all-rounded C2 segment sedans. I guess VW’s marketing department has its work cut out for itself. The Jetta outsells the Laura, although the new Passat isn’t going anywhere too soon.
• Honda’s Yo-Yo performance defies logic. The Brio & Jazz are competent products and so well-priced now; how is it that they aren’t up to the task of selling them? What poor performances, I say. The City is nowhere near the level that it once had a firm grip on. Honda India has gone off track, yes, but it’s just inexplicable how long they are taking to come back. Don’t blame it entirely on petrol prices either; remember, the i10 petrol (Brio competitor) and a good number of i20s (Jazz competitor) are doing reasonably well.
• The Sunny outsells its hatchback sibling by 2.5 times. Strange how the Micra has such few takers, despite a competent, fuel-efficient diesel engine. Not a good month for Nissan. Things will look up once the Evalia MUV is launched (soon), but the company needs to rejuvenate it’s Micra strategy.
• It surely seems like Skoda stuffed dealer pipelines last month. Their entire product range has a poor showing in July. Even dependable sellers like the Rapid, Laura & Superb record their worst month in the current year. Obviously, dealer yards don’t need new supplies from the factory.
• I had predicted how the Duster will change Renault India’s fortunes. The SUV’s production has barely begun and Renault has already left its usual company (Fiat & HM) way behind. The Duster has received over 12,000 bookings. In July alone, Renault sold about as many cars as it did in the previous 3 months combined. The situation will only improve once Duster production stabilizes at the 3,000 / month level. Renault might even overtake Nissan in India!
• Meanwhile, there is a party at HM celebrating the Pajero Sport’s sales. It even overtook the Ambassador!
Last edited by GTO : 2nd August 2012 at 10:16.
Reason: As per PM
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