BHPian
Join Date: Sep 2014 Location: India
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| Re: October 2015 : Indian Car Sales Figures & Analysis Rather interesting figures, these. It was the usual stuff at the top, surprisingly, with MS dominating the proceedings. Surprising, because with the arrival of new cars like the Kwid and the Baleno, many had thought the current chart toppers would be under threat.
Many (including yours truly) had already predicted that the Alto would be displaced from the no.1 spot, and it indeed has been the case. The Dzire has taken that spot, and it seems will hold onto it for a while. The Swift, despite its age and heat from the competition, is still managing well over 10K, which is commendable.
Apparently, whatever happens, things do not shuffle too much at the top of the charts. It takes nothing short of a herculean effort to even think of doing so.
For Hyundai, the Creta keeps bringing in the money. However, I feel it is still a huge initial hoopla for the Creta, which may probably last well into the next year as well. But I think once the new car hype dies out and people begin seeing beyond the SUV styling and into the actual car per car value the Creta provides for the price, it may fall down dramatically, like most other high-end Hyundais.
Anywhere else in the world, one would've expected the Creta to get sandwiched right between the well-equipped Verna and the elegant Elantra (the Elantra's failure still shocks me; it is such a well engineered car). Here, the Creta literally murders both at the same time, playing as an SUV, while it is hardly actually one, and despite being only decent-sized for an SUV. Speak of form factor appeal! Similarly, the compact sedans are still going strong (one rules this sales chart, mind you!) despite the arrival of better standard premium hatches. Perception, my dear friends, still rules!
It's a usual story for most other companies, with Mahindra and Honda posting strong sales, mainly due to their bread-and-butter models. Tata showed promise, but again failed to make a mark. Ford have thoroughly revised their entire lineup, yet are posting just about average numbers. Toyota are again stable in the middle, but they would be laughing away on their way to the bank. The Innova and Fortuner still generate fat profits for them. Renault have the biggest potential right now, but it doesn't seem to convert to momentum. Volkswagen are still way below on the charts, and it doesn't appear like they will rise anytime soon. Fiat are in an even poorer position, but the fanboys will love them even more, due to introduction of Abarth. Skoda and Nissan are just names on the charts, with next to no presence. Shame for such huge companies.
However, there is another obvious fact to note here. Despite every major carmaker having really competent products in the major volume segments, it is the ones who offer better service and showroom experience that are ruling the sales. Maruti, Hyundai, and Honda, who have a well established dealer network and customer service reputation, thus gain on the word-of-mouth promotion too. On the other side, Tata, Ford, Volkswagen, Skoda, Renault, who all have really high quality cars in their stable, are struggling to find buyers. Ford for instance, have got some very good budget cars to offer right now. But their dealers just aren't as good as Maruti or Hyundai ones.
How the showroom treats us affects the buyer more than we'd think. Forget commoners, even many of us BHPians, who are generally far more aware and informed about the market, have admitted moving out of showrooms that may otherwie sell really competent cars, only due to bad treatment by the sales people. The fact that we only go there to book our car from the company is usually forgotten in such circumstances. People don't just want to buy a car, but buy into a complete ownership experience, even in the lowest of segments. (However, most won't be ready to pay the money for the same.)
Further, at a product-to-product level, the clear preference is to cars that offer more visual bling (and not necessarily design balance), feeling of road presence, form factor appeal ('badi gaadi' effect, as I often say), and gadgetry on the inside, etc. and these are the ones that find the most takers. Apart from the increasing love for chrome by manufacturers, there is another new trend seen recently. The infotainment systems in almost all mass-market cars have also received a lot of attention from manufacturers, and primarily USB and Bluetooth connectivity have been added to all cars via upgrades and facelifts. I won't be surprised if 'This car cannot connect to my smartphone' becomes a reason not to consider buying it at all. (Yes, that's how our public thinks, unfortunately.) And it is often the so-called sophisticated, educated urban audience that have such preferences while making a choice.
Meanwhile, very little attention is given to factors like road manners, high speed stability, refinement, safety, sheet metal quality, etc. The best example of this, the Creta has visual bling, feeling of road presence, form factor appeal, and interior gadgetry all simply nailed. One can see the results.
And in even more expensive 20L+ cars, a similar trend can be seen. The Fortuner being the best example. What is essentially a hardy pickup-based SUV intended to handle off-roading and rough usage, and used for the same in most other countries, has become the ultimate 'show-off car' here. Want to announce yourself? Buy a Fortuner. Everyone- rich businessmen, politicians, celebrities, drives one. The actual purpose of the Fortuner has long been forgotten, the 4WD lever is never touched, and now we want soft touch interiors and touchscreen systems and automatics in the Fortner (and other such SUV's. Trailblazer also came here in 2WD only). Toyota will only happily oblige, they sell every single one for about 30 big ones.
Hence, Buying a car is still very much a prestige issue, education, awareness, and financial status no bar.
Although, the one place where buyers and manufacturers are showing maturity is the entry level segment. It just keeps getting better and better with every new car that comes on the block setting new standards of something. The Alto K10 redefined performance for a budget car, the Eon aesthetic appeal and interior quality, and now the Kwid is proving that cheap cars need not be tiny-sized compromises. Maruti also gave the Alto an AMT, not forcing the customer to buy more expensive cars for the same (they could have very well done that). Datsun compromised too much with the Go, and they were punished. The RediGo now shows more promise than before. Tata also worked hard endlessly with the Nano to make it acceptable to customers. And the Kite also appears to be a thorough effort. In short, The budget cars are really getting better, and need to be taken seriously.
Now, if we take the inferences from every paragraph (at the end in italics), and list them together, it makes for a nice little five-pointer that I hope helps to get a better picture of the buying trends in recent times:- #1. Whatever happens, things do not shuffle too much at the top of the charts. It takes nothing short of a herculean effort to even think of doing so. #2. Perception and popular opinion is something that still rules. #3. People don't just want to buy a car, but buy into a complete ownership experience, even in the lowest of segments. #4. Buying a car is still very much a prestige issue, education, awareness, and financial status no bar. #5. The budget cars are really getting better, and need to be taken seriously. |