[drive2eternity]

Thanks Aditya for the numbers in this thread (February 2016 : Indian Car Sales Figures & Analysis).

Did a small analysis, trying to see how well the top 20 sellers contribute to the companies.

Maruti seems to have the most balanced portfolio, followed by Hyundai. Toyota numbers are skewed with Innova bringing ~48%.

Similarly, Bolero contributes 33% for Mahindra and City 37% to Honda.

But the most heavily skewed portfolio is of Renault, with 85% contribution of Kwid.

[GTO]

Thanks for sharing, drive2eternity! Copied your very interesting post to its own thread. Thought the chart will make for a great discussion.

The Alto might be India's best selling car, but (as you rightly said), Maruti's portfolio is very balanced. The Dzire, Swift & WagonR are also best sellers in their respective segments. Further, considering that the Dzire costs 2X that of the Alto, it's contribution to Maruti's revenue will be higher.

It's tough enough to have one best seller in India; hats off to Maruti & Hyundai for scoring multiple successes. Hyundai truly hit the sweet spot with the Grand i10, Elite i20 & Creta. If you bring the Creta's pricing into the picture, it's the biggest Hyundai in terms of revenue.

The Bolero gives Mahindra a third of its sales, yet the company has many other successes / volume generators (XUV500, Scorpio & now the KUV100).

Renault has so many cars on sale, but the company is really all about the Kwid (followed by the Duster). The Kwid hit the bull's eye in terms of product & price. After a long, long time, someone has had success in the entry-level segment. So many manufacturers tried & failed.

Despite all its new mass-market launches, Honda's best seller is the City, as has been the case since the company's inception in 1997. Of course, the Amaze & Jazz are also bringing in the numbers, but the Brio & Mobilio sank without a trace.

Toyota remains a people-mover company in India. Bring the Fortuner into the picture and the IMV platform UVs give it nearly 60% of its sales!

[libranof1987]

Thanks for sharing!

That attachment is importance of diversification of portfolio 101!

I wonder how the profitability varies for each segment. On one hand, numbers are essential for a business to thrive; on the other, manufacturers might be playing in a segment for intangible reasons (than just financial).

~50% for Innova is surprising; in the Indian market, I doubt if Toyota wants a MUV to bring home the bread and butter.

Originally Posted by drive2eternity

But the most heavily skewed portfolio is of Renault, with 85% contribution of Kwid.

Originally Posted by GTO

Renault has so many cars on sale, but the company is really all about the Kwid (followed by the Duster). The Kwid hit the bulls eye in terms of product & price.

Contributing 85% to your organization's performance is not just commendable but even scary!

About Kwid (and maybe even Creta), could this skew be so pronounced since there's a huge backlog of orders? I don't deny that these two have been champions for their manufacturers, but perhaps numbers will settle once the production:demand has normalized.

[rohansachar]

Originally Posted by GTO

Thanks for sharing, drive2eternity! Copied your very interesting post to its own thread. Thought the chart will make for a great discussion.

Originally Posted by drive2eternity

Did a small analysis, trying to see how well the top 20 sellers contribute to the companies.

Great idea! It's something on the lines of which I've always wonder, let a brand have an X best car in the portfolio, but if Y is the best seller, that's what becomes the Face of the Brand in the market & this product can make or break the brand(read what the Taxi Indica did to Tata Motors).

Highlights:

• The highest skew in the above graph & numbers, is on Skoda Rapid, giving sales contribution within the brand of 79%. Obviously because of being the only mass product in the market.
• Renault Kwid, as rightly mentioned by drive2eternity, contributes the highest scale in comparison to the entire portfolio of Renault with a whopping 71%

HOWEVER, these are some of the instances wherein the product price might play an important role, let's look at some of the instances which defies this rule:

• Nissan Terrano outsells the Micra & Sunny in the Nissan portfolio by giving 41% of the sales
• Same goes to Innova, with Etios & Liva still in play & trying to go the fleet model also, Innova still leads the Toyota chart with 43% of the overall sales
• In the Honda family too, City topples Amaze & Brio with 40% contribution

The above example are good to have, & I'm sure the OEMs might be happy, but what above the brands which an OEM might not shout out loud:

• Chevrolet Tavera, a solid product no doubt, but being seen as primarily on a rural/tourist/high to & fro vehicle, it leading 35% of the sales for Chevrolet might be good for the books, but IMO, not the best Face for the brand on road. The Beat is in a very close second. Hopefully, Chevrolet can make the Tavera their Qualis & turn it around.
• TATA INDICA, VISTA Somehow, even if Tata Motors stop selling them, I see people breaking into the plan to just steel a few Too many discussions around this, & a sensitive topic, so I'll just leave it for your interpretation.

The GOOD PORTFOLIOS:

• Despite selling 130,851 Alto in the 6 months, it still only contributes to 20% of the sales of Maruti. Shows an excellent brand diversification.
• The Hyundai family too, knows exactly how to present themselves, which each product being a high seller.
• Ford, needless to say, has gotten their sh*t together, launch one after another best seller, but currently with Aspire as the top seller.

Regards,
Rohan Sachar.

[girishglg]

A very interesting cut on the top selling cars.

If one looks at the top sellers, majority of the models are new launches, however there are quite a few of them which are old work horses (just calling old models - which have been launched over 3 years ago)

The grand old daddy of them is the Omni - the oldest of the top 20 lot still contributing quite a bit to Maruti's sales figures! Some of the manufacturers even do not sell that much in total every month!

We have the Bolero, the original MUV contributing highest to Mahindra's sales figures. Bolero still going strong in semi urban markets, rugged and efficient.

We have the Ecco (earlier Versa) doing some good numbers after its relaunch catering to budget buyers and small businesses.

The Eon on its own does some good numbers though way below Hyundai's internal target and still a player in the entry level A segment.

The Alto, Swift twins, Wagon R are all old brands however have been either refreshed/relaunched over time and lead the pack.

[rr_zen]

Interesting thread with a lot of insights. While Maruti certainly has a balanced portfolio with its eggs spread across different baskets, it surprises me to see the Omni contributing more to the company than the Ciaz. The Ciaz is at a meagre 4.77%. I thought the Ciaz was selling decent numbers.

[Rajeevraj]

Interesting thread. Thanks for sharing. There was also a comment in the sales thread wondering what would be the revenue from these top 20 sellers for the manufacturers based on Ex-Showroom price. Did a rough back of the envelope kind of calculation to come up with the chart below.

• Price is a rough median price based on the Ex-Showroom Delhi price from CarWale.
  
• Note that this is just an approximation of revenue. The profit of course depends on Manufacturer costs which we will not know (but can take some educated guesses).

• The most expensive cars in the Top 20 list are the Innova, Creta and City. Hence the 7th in sales Creta is 2nd in terms of revenue. The 17th Rank Innova becomes 6th in Revenue and the 18th Rank City becomes 10th. These are the biggest movers.
  
• The Dzire is the most profitable as per these numbers. A reasonably expensive car regularly selling close to 20K. Must be Maruti's biggest cash cow.
  
• The Creta probably is making the most profit in this list. Expensive car with huge sales numbers. With the Elite i20 and Grand i10 also in this list, assume there will be a lot of part sharing and hence further control in costs. There is also a wide agreement that the Creta is overpriced and Hyundai is taking advantage of the fact that there is no strong competition.
  
• The Innova brings in a pot load of money for Toyota. Considering that it is a well established, several year old model, costs should be well controlled resulting in good profitability. Probably the reason why Toyota does not want to focus too much on the lower segments.
  
• Marutis legacy cars like the Eeco, Omni, Wagon R, bring in a lot of money. Assume these are highly profitable for Maruti.
  
• Bolero brings in a lot of revenue for Mahindra. Again considering it is an older model, costs will be controlled and should be returning good profit to Mahindra. Typically Mahindra has the XUV and TUV300 also in the Top 20. Expensive cars with big numbers = Big revenues.
  

[GTO]

Originally Posted by rr_zen

it surprises me to see the Omni contributing more to the company than the Ciaz. The Ciaz is at a meagre 4.77%. I thought the Ciaz was selling decent numbers.

You can buy 4 Omnis for the price of 1 Ciaz . Therefore, in terms of gross $$$, the Ciaz brings a lot more to the table than the Omni.

Of course, both are accomplished products. The Omni is a 30-year old car that still sells in good numbers purely on price, utility & low cost of running. The e-commerce segment has also driven the Omni's growth.

The Ciaz is Maruti's first success in the C2 sedan segment. In February, it was the no.1 in the segment (though it's usually no.2 behind the Honda City).

[drive2eternity]

Thanks Rajeevraj for bringing the Financial perspective. I intended to do something similar but couldn't manage to find the time.
Maruti had an approx revenue of Rs. 5617 Crore in Feb. And we all know Feb isn't the hottest month in terms of Car Sales.
Unfortunately VW doesn't have any car in the top 20, because all its offerings make a strong case for themselves.
2 Players which I would have liked to see in this list are Ford and Tata. Both have numerous competent products, but are not able to translate those to sales figures.

Could you please add VW, Ford and Tata to the above analysis?

[LoneRidder]

A very good analysis drive2eternity. As pointed by you, Maruti and Hundai have very balanced portfolio. Cars are direct consumer driven products. Generally for such products, demand drops or surge would happen over a period of time unless it is a new enterer. Most of Maruti and Hundai's products have been in the market for a while and are stable. Their new offerings have been 'spot-on' too. For Renaut, it would be a risky proposition of Kwid pulling in 70+% of share. These could be just an introductory surge, unless it maintains for few more months. there are also so many offerings from others too. Skoda and TATA too have many offerings and the risk distribution is even

[vish_wagon]

Excellent analysis..!

The biggest cash cows across all companies seem to be the Swift/DZire twin cars for Maruti stable. Together roughly 30000 units come off a month, from what must be extremely similar/same production lines! And with the previously mentioned fatter (over the cheaper Alto) margins, they must be partying!

Considering parts sharing advantages, it's a good chance for companies like Honda to use the existing production lines, for nicer products.
Along with sharing the production capacity, its mostly about placing a product in the right space to make it a cash cow! As GTO mentions in one of the other threads, a well planned/balanced product like the HRV (parts-shared with City/Jazz?) will be a fantastic product as against the "Not-So-Good" looking BRV (parts-shared with the cheaper Amaze). Going by Mobilio's market performance, there will obviously be strong doubts whether they can expect any fatter margins out of the BRV!

Really interesting to see how the cars fare in terms of revenue generation!

[jpcoolguy]

Originally Posted by drive2eternity

Did a small analysis, trying to see how well the top 20 sellers contribute to the companies.

Thanks for this interesting thread . Good alternate perspective to the sales numbers.

Originally Posted by Rajeevraj

Did a rough back of the envelope kind of calculation to come up with the chart below.

Good innovative idea - thanks for sharing. Thought of expanding the list further to find the actual Top 20 in terms of Revenue, by calculating the same for all the cars, instead of Top 20 in terms of Sales.

This one itched my mind since I wanted to find where the Fortuner really stands, since Toyota must be laughing their way to bank with the fat margin they gain from Fortuner.



1. Top 12 places are untouched, but surprisingly Scorpio jumped to 13th place (from 22nd in terms of sales). This is the top ranked in the revenue chart from outside of Top 20 sales chart.

2. XUV500, Amaze and S-Cross are the other 3 rounding off the Top 20 in terms of revenue.

3. KUV100, EON, Eeco and Omni are the 4 cars out of Top 20, in fact, Eeco & Omni goes out of Top 25.

4. The Fortuner comes at 24th spot - surely it would've been in the Top 20 in terms of revenue when it was selling in the range 1.5K units.

But the above ranking is purely guess work, since the below points which will play a large role in the actual revenue:

• Petrol and Diesel variants price variation - some models sell more petrol than diesel and also vice-versa. And some models only have an either option of Petrol or Diesel, which will play a huge role in the Median Ex-Showroom price.
  
• Price difference between Top end and low end variants - for most of the cars, the base variant is just for academic purpose where it will be used to advertise the car as x.99 L and in these cases, the median price may be more.
  
• Some cars sell more in the top end variant which may also skews the pricing.
  
• Pricing of Automatic variants - this is also once of the skewing factor for median price.

Most probably, the above figures will have variance of approx. 10-20% with the actual revenue the car generates, which will vastly impact the ranking of the models by revenue since most of the cars are closely placed in the table. Hence, it is prudent to take this analysis at a face value than as an exact one - only the manufacturers can provide the actual figures.

Edit: The 25th positioned car is Hyundai Eon, which is under the T-BHP watermark.

[saion666]

Toyota should seriously consider bringing in the Yaris and the Corolla hatchback in India to expand their portfolio. These cars will be serious competitors to i10/swift and i20/Baleno.

God knows how long will they try with the Etios Liva. The new Innova if not priced correctly would be the end of Toyota in India.

[jpcoolguy]

Done the analysis for the Apr '16 month and the result is given below.



1. Dzire lost the top spot to Creta in terms of revenue, in fact, it has moved to 3rd spot behind its hatchback sibling.

2. New Innova Crysta comes in at 4th spot when in terms of sales it is 21st rank - shows how much Toyota is earning per Innova.

3. Brezza comes in at 8th position and Bolero falls to 15th position.

4. Amaze & S-Cross moves out of Top 20 while Ecosport makes a entry in at 19th.