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Old 10th June 2014, 11:49   #1
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Default May 2014 : Indian Car Sales Figures & Analysis














NOTES:

1: Thanks to the team at Management Punditz for sharing these sales numbers with us!

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

3: A big shout-out to parrys for preparing these beautiful charts & graphs!
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Old 10th June 2014, 11:50   #2
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Movers & Shakers

With about 2.03 lakh passenger cars sold in May 2014, the market is going through challenging times. Still, we've seen worse (e.g. May 2013 = 1.90 lakh). Those with fresh / relevant products and a fire in their belly weather the storm, while the lethargic sitting on a stale line-up watch the action from the sidelines.

I think it's amazing how some manufacturers go from strength to strength in rough waters. For instance, see how Maruti & Hyundai fiercely guard their turf in the mass market segment. They're absolutely relentless, showing no weaknesses in the product, marketing or after-sales functions. When it comes to the high volume segments, the two have successfully fought competition from major global players (Toyota, VW, Chevrolet, Ford), eventually demolishing their rival's compact car offerings. The industry is also watching Honda closely. The Japanese company is now a consistent 5-figure performer, thanks to volumes from the City & Amaze. Then, there's the impending launches of the Jazz, Mobilio & a possible compact SUV.

Auto CEOs are looking forward to reforms & initiatives from the powerful + stable new Government. Car manufacturers bring significant levels of investment & job creation to the country. You can bet those in power will keep this sector as a priority.

• The bestselling car in India isn't the Alto...this time around, it's the Dzire with nearly 19,000 shipments! Over 2 years since the Dzire's launch and the market just can't get enough of this compact sedan, fresher competition notwithstanding. The successful Swift isn't too far behind either at 17,936 units and grabs the no.2 overall rank. Since April, the Alto isn't able to hold on to the mid-20000 levels it managed earlier. This shows the weak sentiment of the entry-level segment and how a good number of potential first-time car owners are sticking it out with their motorcycles. Period. The practical WagonR continues to attract its usual tally of 12,000 customers, while Maruti is pushing out all the Celerios it can make. Remember, the AMT isn't localised yet and there is a massive waiting list for the VFM automatic. A noticeable improvement in Eeco numbers & the Omni's strong too; if the trend continues, it might signal confidence among the small business segments that these UVs serve. Meanwhile, the ol' Ritz has simply lost its sheen and is in dire need of an overhaul. In the 5 lakh and over segment, product freshness is incredibly important. Happy to see a handful of Gypsy 4x4s consistently roll out of Maruti's factory gates (unlike the zero-production months of 2013). Compare the Y-O-Y charts and you'll see that Maruti has gotten rid of 5 under-performers (800, Estilo, A-Star, Kizashi, Grand Vitara).

• Driven by new launches, Hyundai actually gains market share points! Look at the 'total manufacturer sales' table in the opening post; this is Hyundai's best month since March 2012. The Xcent - Hyundai's first compact sedan - adds 7792 units to the kitty, outselling the Amaze by a considerable margin. The 3 month trend seems to indicate that some Grand i10 customers are adding a small amount to their EMIs, going for the sedan instead (India's fascination with a 3-box is unmatched!!). Like the Alto, the Eon reflects the condition of the entry-level category. 6,300 sales is respectable, but the lowest this year, and far from Hyundai's original projection of 12K monthly units. The Verna is a distant no. 2 in the C2 segment, clearly losing a lot of walk-ins to the indomitable City. The old warhorses (Santro & i10) get 5.5K customers between them. Hyundai must be looking forward to launching the next-generation i20 soon (related link) as the premium hatch's performance is far from the 6,000 average it maintained in year 2013. The Elantra relinquishes the top spot in the D1 segment after a long time, but we'll have to watch the new Corolla's sales over the coming months before passing verdict. The Santa Fe has its best month ever; 250 units is impressive for a Hyundai SUV costing between 30 - 35 lakhs on road. On the other hand, the Sonata has sunk & how!

• Mahindra holds on to the no. 3 spot by a big margin. It's the same story with the Bolero grabbing a chunk of sales, albeit not in the 5 digits. The Scorpio maintains its superb 4,000 run and the new model (launch isn't too far away) should bring in even more customers. The XUV500 is doing rather good for a premium-priced SUV from a not-so-premium brand. There's no other company out there that is able to consistently sell 3K units of a 15 lakh product. On the flip side, the Xylo & Quanto are sheer failures in terms of design & marketing, as they do offer a lot of car for the money. The cheap & outdated Verito & Vibe are a write-off, I'm surprised they even occupy space in a Mahindra showroom. In the meantime, working silently out of the limelight, the Rexton has its best month in a year. 155 shipments is pretty neat when you consider its 20 - 25 lakh price tag.

• With a 1.5L diesel in its arsenal, Honda stays put as the no. 4 manufacturer in India. Over 7,000 copies shipped and the City outsells all of its C2-sedan competitors combined. Honda hit the bulls eye with the new City's evolutionary approach....this time with a diesel & better equipment levels. The Amaze rakes in 4,750 dispatches, although that's not too strong, keeping in mind that it's priced bang against the Dzire. Still, volumes are volumes and I have a feeling Honda is prioritising production of the more profitable City over the Amaze. The Brio is the dud from the portfolio. Truth is, Honda just can't get its hatches right in India. After the old Jazz, this is their second hatchback to fail : related thread (Why is Honda Brio not selling in big numbers?).

• The Innova thunders past the 5k mark for the first time since the facelift + price hike. Month on month, that's more than a 50% climb! With production getting stabilised, the Fortuner settles back at the 1400 - 1500 level it's comfortable at. The new Corolla also makes a great debut with 548 shipments, straight to the top of the D1 segment. Let's wait & watch on its longer term performance. In what is a first for the Camry, it matches the Superb's sales car for car, jointly occupying pole position amongst the D2 sedans. Not much has changed with the Etios & Liva though. They remain the laggards they've always been. More modern competition is giving them a thorough beating in the ring.

• April '14 was a low point for Tata with merely 7,441 cars out the door. May '14 is better at 9,230, yet that's hardly anything to write home about. As usual, it's the Indica / Vista & Indigo / Manza getting a majority of the volumes. Shockingly, the Nano is barely able to stay in the 4 digits, and the Aria sees 3 digits after 1.5 years! Tata is banking on the Zest & Bolt big time. Even if they are great cars (we're yet to drive them), there's nothing revolutionary about the duo (except for that first-mover diesel AMT advantage). They'll have to be priced very, very competitively to make any sort of impact. It's going to take a couple of years of determined hard work for Tata to climb out of this self-created pothole. Honestly, there's no problem that great products can't solve. Tata's current range of cars either lack a differentiator, are too old or badly marketed.

• The EcoSport's demand exceeds its supply, but there is hardly an improvement in the local numbers at 4,000. Ford exported 6,000 cars last month, presumably a large part of that consisted of the EcoSport. Nevertheless, for some variants, the waiting period has either come down or completely disappeared (depending on the city). Some BHPians have reported getting their EcoSports in less than a month of booking! Not much else to talk about at Ford as the old Figo & Fiesta Classic are losing favour in the market. The new Fiesta facelift is going to be launched anytime now and there are rumours of super aggressive pricing floating around. About time to get the new Endeavour in too, wot? Related Link. It looks awesome!

• The Datsun Go clocked 2,000 pieces last month. That's not too bad considering it's from an entirely unknown brand and suffers dealership limitations. In fact, from Nissan's Indian portfolio, the Go is the top seller. We'll be keeping a close eye on its performance in the months to come. The Terrano is the only other car that Nissan has its staff busy with. The Micra, Sunny & Evalia are all flops! I'm glad that Nissan finally took up responsibility and divorced Hover. Only wondering if it's too little too late. Related post (Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover).

• Confused marketing, inconsistent sales push and old + unappealing products have left Chevrolet in the doldrums. Year on year, the company has lost over 40% volume! It's only the Cruze that is revving healthily, selling in the whereabouts of its German competition. The Beat, Tavera & Enjoy somewhat keep the cash registers ringing, although they are severely under-performing, whichever way you look at it. I don't understand why GM has 8 cars in its portfolio when it can't support any of them. R-I-P to the failures (I'm talking about you, Spark & Sail), cut the fat and focus on the ones with potential. New boss Arvind Saxena is a genius.....he does have his work cut out though. Plus, there's only 3 years to do the magic as GM's retirement age is 60.

• Renault remains a one-trick pony with a single car (Duster) accounting for 90% of its sales. That said, the Duster is having a nice run, despite all the competition. The parent company will be happy too; combine the Duster & Terrano's numbers (same SUV, basically) and you are looking at over 5,000 shipments. Robust SUV aside, every other Renault sold in India is a sob story, be it the cheap Pulse or the expensive Koleos. Look at things another way: If it weren't for the Duster, Renault would've sold merely 323 cars in India!

• Year on year, the Polo & Vento lose about 50% of sales and VW can't do anything to stop the slide!! It's been ages since the two were launched and it sure doesn't help that they look so alike. New engine & transmission options will only take you so far. That said, the upcoming Vento Diesel DSG might just be the gamechanger (related link). The premium-priced Jetta has a decent month (outselling the Octavia again), and VW seems to be cleaning up ol' Passat stock (all of 7 units).

• A similar story at Skoda as well. For a well-priced competent sedan available with diesel & petrol engines, the Rapid's poor show is inexplicable. The Octavia is working its way through the waiting list, only wish Skoda had more kits allocated for India. The Yeti facelift is shortly to arrive, but that's not going to do anything for its fortunes. This month, the Superb has quite a fall and ends up sharing pole position with the Toyota Camry. It's the Superb's weakest month since the facelift was introduced.

• The Punto & Linea are struggling, even when compared to recent numbers which were awful to begin with. I can only wonder how the dealers are surviving. It's been 5 years since they were launched and are now long in the tooth. The brand's negative reputation doesn't help matters either. Fiat is going to need a lot more than cut-price variants & dressed up versions.

• It's time to bring the curtains down on the Ambassador. Production of this iconic vintage car has stopped and, keeping in mind HM's troubles, the Ambassador isn't likely to be revived. The Pajero Sport deserves a pat on the back for selling 150 units, despite the horrendous backing it has. Says a lot about the value of 'brand Pajero' in India.

Last edited by GTO : 10th June 2014 at 14:55. Reason: Typo
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Old 10th June 2014, 11:51   #3
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Old 10th June 2014, 11:51   #4
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Old 10th June 2014, 11:52   #5
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Old 10th June 2014, 12:32   #6
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Default Re: May 2014 : 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 10th June 2014, 12:57   #7
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Good to see the capable Xcent taking over Amaze.

True, its part of new car euphoria, but the Xcent offers tremendous value for the buck when compared with the Amaze. Not only is cheaper than the Amaze - it offers more bells and whistles and in the long term might as well be cheaper to own than the Amaze. What with Hyundai's more widespread and cheaper service network and longer service intervals compared to the Honda.

In the long term i see Xcent neck and neck with the DZire, it might possibly overtake it too.
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Old 10th June 2014, 12:59   #8
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Nice to see this post with the Analysis as back up!

Maruti Suzuki proves again it has a few tricks up its sleeve. A game changer in AMT and diesel in the lower segment is next?

Hyundia is holding its fort in its new releases of Xcent and Grand i10. Verna seems to be slipping and will the market accept the New i20 ( i30 /Grand i20?) as a premium Hatch is to be watched for market acceptance.

Honda continues the upward trend! Honda city is continuing to lead the segment. Amaze seems to be in a drooping trend and Brio is facing the heat -Celerio effect?

Sad story at Fiat! Not much to talk of. Avventura and the new Punto should do a bit for them

Tata - Awaits the Zest and Bolt, but the market is watching on the Quality and reliability of these two launches . It would be await and watch situation for most buyers.

VW-Need new models and innovative technology to be in the game. Speed to market is the key factor here. Bring in the Taigun ,SUV's and 'refreshed' Vento at the earliest.

Skoda - Not doing good at the moment. Seem to be moving towards the premium segment . Maybe looking at the future - 2016?

Last edited by volkman10 : 10th June 2014 at 13:04.
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Old 10th June 2014, 13:02   #9
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

The eagerly awaited thread is here! To look at the Brio doing thrice of what it did last month is assuring. As mentioned by GTO, Honda has not been very successful with the hatchbacks which is strange. Both the Jazz and the Brio were/are very competent products. Goes a long way to prove how price sensitive the Indian market is. Waiting for the refreshed Jazz now and hoping Honda prices it correctly this time.
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Old 10th June 2014, 13:06   #10
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Way to go Maruti Dzire. It just shows the amount of confidence people have in a Maruti product. Although a very competent product Honda Amaze is loosing out to Maruti Dzire as well as feature rich Hyundai Xcent. Its time Honda does something with respect to feature list of Amaze along with improving the interior quality.
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Old 10th June 2014, 13:12   #11
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A 1500 number for the Figo?

A 30% drop MoM while Ritz has a 30% increase over the same time. Ford, get aggressive!
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Old 10th June 2014, 13:56   #12
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

I was curious about the shipment numbers for the Chevy Enjoy, and I am not surprised seeing that it has sold close to 1000 of them last month. Of late, I have been noticing that more and more of them being used as IT/BPO cabs here in Bangalore.

On a similar note, I guess it is the taxi fleets that are contributing majorly to the Etios/Liva numbers? I am not sure too many people want to buy them any more for private use. The king (Logan) is dead, long live the king (Etios)!
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Old 10th June 2014, 14:18   #13
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Fantastic analysis as usual, GTO.

Considering it was the month of May, I would say those are strong numbers for the top 4-5 manufacturers. The Grand i10 and the XCent have been particularly strong movers, and I daresay a large chunk of prospective Amaze owners shifted base to the more practical and feature-loaded, premium inside-out Hyundai. Time for Honda to start fast-tracking the Amaze facelift maybe? - give it better interiors and differentiating looks (from the Brio/Mobilio) to face the stiff competition in it's segment, which is bound to get stiffer in the months to come.

City numbers don't show any respite! And that's hardly surprising, since brand City commands a lot of pull in India. Honda has got the pricing right as well, and the City's VFM quotient cannot be ignored, specially when compared to overpriced pseudo-SUVs such as the EcoSport.

An incident of note - a few days back the ASM, Central Zone, of Honda Cars India, visited my Tier-III city to scour for a location for their future (prospective) dealership. His team gave me a call (being a close contact) before arriving, and I took them on a tour of my city. We finalised a few under-construction locations, and then their team went to conduct an interviewing session of a few guys who specialised in sales and marketing. The ASM explained that the dealership will initially start with 20-30 cars, with A.S.S. service bundled in as well. Depending on the response, they will increase the number of cars and spread out their dealership in the times to come. He will be returning on the 11th (tomorrow) to continue the interviews for the (future) staff of the (future) dealership in my city.

This means that Honda Cars India has started it's expansion of dealerships. We might see even sub-dealerships spring up in most Tier-III cities in India. All I can say is, welcome and a big thumbs up!

Last edited by RavenAvi : 10th June 2014 at 14:19.
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Old 10th June 2014, 14:27   #14
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

With the next year or so seeing the release of

- the new i20
- the new Fabia
- the new Jazz
- the new Figo (Ka)


it will be interesting to see how the segment leader Swift holds out. IMPO, the current Swift should have had better space than the previous one - rear passenger legroom and a little more boot space.

Last edited by DDIS : 10th June 2014 at 14:29. Reason: added detail
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Old 10th June 2014, 14:27   #15
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Default Re: May 2014 : Indian Car Sales Figures & Analysis

Excellent analysis as usual. The highest selling car in India is a now sedan. The market is evolving in value terms.
I honestly don't think the Bolt or Zest would do very much to improve Tata's fortunes (much as I would like them to). They urgently need exciting designs to titillate palates.
IMO the Elantra will get back to the top of the D1 segment once the initial euphoria/curiosity of the new Corolla dies down. It is fantastic value for money (I just nudged my colleague, who almost booked a new Corolla, into booking an Elantra - Petrol AT).
If Ford don't do something about increasing the supply of Ecosport in the local market, I think interest will simmer down and with new launches due, Ford will lose out big time.
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