August 2012 Sales Analysis
If Maruti sneezes, the entire auto industry catches a cold. It’s unfortunate that worker issues at Manesar resurfaced, hitting Maruti’s volumes very hard. This episode resulted in the industry recording its lowest ever cumulative sales in over 2 years @ 171,668 units. Despite that, and the subdued market sentiment, 4 manufacturers had a reasonably good August 2012. Details below.
UVs (MUVs & SUVs combined) had only just overtaken sedans in the Indian car space; they’re now 75% ahead in volume. At 46,810 units, the UV category has also recorded its best month in history.
For other manufacturers, a 50K month would mean year-long celebrations. For Maruti, it’s a completely forgettable result. I must add, the company’s labour relations are shockingly unstable for a market leader in one of the most important industries. A damaged manufacturing base saw their production turn topsy turvy. The Alto is made at Gurgaon and should have been unaffected. However, your cheapest product is rarely a priority when times are bad. Maruti clearly pushed the production of other cars. Gurgaon products like the WagonR, Ertiga, Eeco & Omni experienced no hiccups and brought the volumes home, despite 3 of them being petrol-only models. Whatever limited production Maruti had at Manesar was routed to the facelifted Ritz that was launched yesterday. Regular heroes like the Swift & Dzire had their wings clipped due to obvious reason. Maruti recently let word out that it intends to focus on “bigger cars”. Well, ZERO customers for the overpriced Grand Vitara & Kizashi ought to have woken someone up.
Some of that Verna magic must be rubbing off on the Elantra. The Team-BHP Review spoke of the car’s neutral nature. That combined with the snazzy looks, high equipment levels and low pricing strategy see the Elantra take the lead in the D1 sedan segment. Quite an achievement when every other 10+ lakh Hyundai has ended up as a failure. Has the product matured, or is it the brand? I think it’s both. The Verna & i20 are the other Hyundai’s who continue to run while the market walks. On the flip side, the 2012 Sonata is a dud just like its predecessor, while the Eon & Santro are feeling the heat of the economy. Potentially first-time car buyers are sticking to their motorcycles, I suppose.
Tata takes back the No.3 spot from Mahindra, it’s an absolute fist fight in here! The Indica sisters put up a good show, while the cheaper + repositioned variants keep the Sumo above the 3,000 level. The all-rounded Manza is performing way below what it should; proof that Tata’s brand & marketing work against it.
The Bolero, Scorpio & XUV500 continue to dominate their respective segments. It just amazes me how a 15 lakh product like the XUV sells 4,000 units for the 2nd month in a row. It’s equally amazing that Mahindra –
and not Maruti or Hyundai – has proven that an economy brand can succeed in the premium segment. Ignore the Verito passing the 2K level. It’s still cheap, outdated and puts people off. The car will be back where it belongs soon.
Toyota was primarily a utility vehicle company in India and, 15 years from the time of entry, its real performers are still UVs. The Innova & Fortuner have a superb August. A matter of huge concern : the sedans & hatchbacks simply aren’t selling as much as expected. Even with a diesel engine option, the Liva can’t reach the 2,000 milestone. The Etios barely manages to outrun the Indigo and hasn’t been able to capitalize on the Dzire’s lack of supplies either. The market makes it obvious that it won’t buy cars on brand name alone.
The Figo makes a noticeable recovery with a ~30% spike over the May – July average. Yet, there is not much else to cheer about at Ford. The Eco-Sport could be the next big thing here, if priced realistically of course.
Chevrolet also has only the Beat (diesel) making its cash registers ring. By gross turnover however, the Tavera might be the most significant product to Chevy. In my Cruze facelift review, I wrote how it’s a mediocre sedan, save for that awesome diesel engine. The market appears to agree while the competition has also upped its game. No surprise that the Cruze has its worst month ever (except for May 2012 when production was being moved over to the facelift).
Honda remains as unpredictable as ever. The City has a decent month at 2,500 cars and, along with the Brio, gives the company ~90% of its sales volume. Strange how the grossly overpriced CRV overtakes the Accord for perhaps the first time and comes within an arms length of the Civic. This shows how flawed their 10+ lakh strategy is. The irony : their sub-10 lakh cars are now all well-priced, but they just aren’t able to move enough metal.
VW wouldn’t have imagined that the nobody’s of yesterday (Renault & Nissan) will be a mere 300 – 400 cars behind so soon. Also, the Renault-Nissan combine has overtaken VW-Skoda. In my books, the Vento is still the C2 diesel sedan to buy, yet the car sold merely 1,500 units (for the 2nd month in a row!!). The 3-cylinder Polo isn’t doing much better either, and has hardly dented the Swift & i20 in the manner it intended to. On the other hand, the Jetta has its best month in 6. Just like the Sonata, the new Passat is a dud as its predecessor was. A sheer genius from Hyundai – Arvind Saxena – has recently taken charge at VW sales. It will be interesting to see what changes he brings.
Renault overtakes Nissan & Skoda, both, and has VW firmly in its sight. The competent Duster is clearly enjoying its USP as the only monocoque (SUV) game in town, even if the higher variants are steeply priced. If the Scala is launched at a good price this Friday, Renault seems all set to overtake VW & Honda. What a difference one quarter – or rather, two relevant products – can make. Renault should forget about the Fluence & Koleos, focussing entirely on the Pulse, Scala & Duster instead.
Nissan has the Evalia just as Renault has the Duster. If priced competitively (read = significantly cheaper than the Innova), the Evalia can make serious inroads into the commercial segment. The Sunny has a decent month, albeit the Micra needs serious attention from its mother. 1,100 units is a flop show by a petrol + diesel hatchback with a 4.xx lakh starting price.
The only manufacturers that Skoda is ahead of are Fiat & HM....that’s not saying a lot, is it? It’s an absolute bloodshed at Skoda. Sure, the Fabia & Yeti have done poorly as always. But even regular performers like the Laura & Superb don’t impress. The Rapid is such a competent sedan and is sold at a VFM price too. It’s unthinkable that the sales should be any less than the
more-expensive-and-identical Vento.
Fiat looks like that terminally ill patient whose condition deteriorated even further. HM, well, have its oldest (Ambassador) and newest (Pajero Sport) to talk about. The Pajero Sport is the second best selling Rs. 20 lakh vehicle this month.