[naveen.raju]

Originally Posted by motorworks

One of the biggest disappointments in sales has been the Santro.

Many reasons I feel:
1) Looks - People expected a lot and the end product was sort of a disappointment. I have always felt it was designed by multiple people individually and haven't met. Hyundai then selected each designs and called it the Santro.
2) Price - Yes, it's in the Grand i10 territory which offers more features.
3) Lack of AT in the top end - I feel this is the biggest factor. I don't understand why Hyundai refuses to launch any AT cars in the top end variant. I thought they learned it when they launched Verna AT in the top end but looks like the dude who introduced Verna AT was fired .

I rarely see the car on road. The number of replies and views on our official thread says the story .

[tarik.arora]

Originally Posted by naveen.raju

Many reasons I feel:
1) Looks - People expected a lot and the end product was sort of a disappointment.
2) Price - Yes, it's in the Grand i10 territory which offers more features.

Totally with you on this:
a) Santro looks a lot like grand i10 (rear looks like Celerio though), which means, it does not have its own identity. A cult name needs to have a different identity. Mee too spoiled it for Santro.
b) And the biggest factor is price- with Grand i10 always running on solid discounts, it is a no-brainer over the Santro. Even base (Era & Magna) i20 variants are within a short stretch for someone looking at the top end Santro.
c) I dont think Hyundai will come-up with a top-end auto for Santro. The top end manual itself costs close to 6.5 lacs on-road in certain cities and with the AMT, it will touch 7 lacs

[pavi]

Originally Posted by naveen.raju

Many reasons I feel:
1) Looks - People expected a lot and the end product was sort of a disappointment. I have always felt it was designed by multiple people individually and haven't met. Hyundai then selected each designs and called it the Santro.

For me the new Santro looks like an evolution of the old i10 (not the grand i10, the other one). The new Santro reminds me of the Zen Estilo which was never a Zen but was called one expecting the name ‘Zen’ would bring sales. Hyundai should have been gone for a design which is an evolution of the Santro, something like an Ignis - modern, but having a boxy design.

[balderash_12]

Sharing some observations from the thread.
-A segment: The Alto continues its dominance. The Kwid desperately needs a miracle (launch of a true top-end, full refresh). Nano and Eon are on their way out.
-B1 segment: The WagonR is back and how! The Tiago has gained the upper hand over Santro. Expect it to stay like that. The santro has too many compromises. What’s with the Celerio??
-B2 segment: Swift-Baleno and Grand i10-Elite i20 doing business as usual. They are the backbones for Maruti and Hyundai. Why is the Freestyle doing such low numbers (for a relatively new launch)??
-C1 segment: Dzire all the way. Nothing unusual. The Amaze is the only other significant player here. What’s with the Xcent? It can definitely do better.
-C2 segment: Simple formula: Vitara brezza at the lower half and Creta at the upper The Verna, Ciaz and City are fighting tooth and nail to dominate over the premium sedan category. There is hardly any significant difference in their sales figures. Yaris: R.I.P. It seems Toyota did not learn lessons from Ford Fiesta’s debacle.
-D1 segment: Innova (headpalm) The Compass REALLY needs the Diesel AT. Classic case of a great product dying due to a “I don’t care” parent company. Hexa is also dying. Why is the Tiguan listed here??

[bf1983]

Originally Posted by pavi

For me the new Santro looks like an evolution of the old i10 (not the grand i10, the other one). The new Santro reminds me of the Zen Estilo which was never a Zen but was called one expecting the name ‘Zen’ would bring sales. Hyundai should have been gone for a design which is an evolution of the Santro, something like an Ignis - modern, but having a boxy design.

I think you hit the nail on the head. I too was considering the Santro but it looked so similar to an i10 and the equipment list just didn't make me want the Santro over the better built i10 which had additional safety features to boot.

A design change was needed for the Santro.

[GTO]

FADA shares registration data:

The Federation of Automobile Dealers Associations (F A D A) today released the Monthly Vehicle Registration Data for the month of Februry’19.

Commenting on the February numbers, F A D A President, Mr Ashish Harsharaj Kale said, “After a month of spike in PV sales in January which was largely due to year end stock clearance getting extended and Few New Launches which generated some excitement, the Industry is once again witnessing downward trend as February turned out to be one of the slowest month for Auto Retails during this financial year. Indian Auto Sales are experiencing a Prolonged Slowdown as its already seen 6 months of Slowing Sales and growth reversal and Positive triggers in the near term appear Few.

Starting with the Huge hike in Insurance costs in September, we have seen a lot of negative factors come together in the past few months, leading to major postponement in purchase decisions and overall weakening of Consumer sentiment.

Auto Dealers across the length and breadth of the Country are in a High stock Situation across all Categories and Inventory levels of Passenger Vehicles and Commercial Vehicles, which had seen partial correction in the past 2 months are now back to the unsustainable levels seen in November 2018.

FADA has been highlighting the High Level of Inventory amongst the 2W Dealers and would like to Express Serious Concern that it has now reached Alarming Proportions and in some geographies has breached the unheard level of 100 days of stock as per todays retail situation.”

Commenting Further FADA President said, “FADA believes, as does the entire Auto Industry that the dip in demand is temporary and India will continue to be amongst the Fastest Growing Auto Markets in the World. Having said that, navigating smoothly out of the current slowdown is the need and the entire Auto ecosystem, including dealers, will have to and already are in a cost regulation mode, till the Industry returns to Vibrancy.”

Already facing a substantial increase in operational costs in recent times due to various factors as well as increased working capital needs and that too in a Tight Liquidity Environment, Prolonged maintenance of such High Inventory and its additional costs is unsustainable and with demand continuing to be a challenge, Dealers would be urgently looking to reduce their inventory in the months of March and April

Given the Current Environment F A D A urges Our OEMs to take a realistic stock of the Current Retail Situation and Recalibrate their production to regulate Dealer Invoicing in these 2 months to facilitate return to Stock Normalcy for Dealerships to maintain a sustainable business environment till the industry again hits the High Growth Trajectory.

According to a survey conducted by F A D A among its members, the current inventory levels are as following:

PVs ranges from 50-60 days
2W ranges from 80-90 days
CV ranges from 45-50 days

[tarik.arora]

Originally Posted by GTO

FADA shares registration data:

Now this is a big worry. With Retails declining by a bigger margin than Wholesales, the dealers are holding a lot of inventory.

The immediate risk is March numbers. March is a month when every OEM pushes vehicles to the dealers to attain their yearly targets and thus March generally sees an uptick in wholesales. Now, with the inventory already hitting the roof, i fear that March will be very slow.

[volkman10]

Will XUV3OO dent the market leaders or expand the segment share?

[balderash_12]

Originally Posted by volkman10

Will XUV3OO dent the market leaders or expand the segment share?

I doubt. I predict that the Ecosport will be hit the hardest. It is priced closest to the XUV300. Vitara Brezza will continue its dream run

[tarik.arora]

Originally Posted by balderash_12

I doubt. I predict that the Ecosport will be hit the hardest. It is priced closest to the XUV300. Vitara Brezza will continue its dream run

I too have a feeling that Ecosport and WR-V will be the worst hit. Nexon will actually gain a little as a lot of fence sitters will move to Tata after the Mahindra pricing fiasco.

Brezza sells in a parallel world and will remain unaffected, as you rightly said!

[imidnightmare]

Am not astonished at the sales numbers not growing. I've been looking for a C2 kind of sedan to replace my Honda City for a couple of months now, but just can't find a decent option. Either the build quality is terrible / uninspiring (Ciaz, City, Verna) or the car hasn't been updated at all and is old (Vento, Rapid) and most are terribly underpowered. The hatches and compact sedans etc. are generally even worse. The absence of viable alternatives is terrible. Earlier, I felt it could be because people here value "apparent / visible economy" over "total package value" in India and will therefore flock to the cheapest alternative. This was borne out by the numbers with MSIL routinely topping all charts despite build quality that makes you wonder how people can live with a car like that (not considered an MSIL car for well over a decade now despite 6 purchases in the period).

Frankly, a lot of folks I know are looking for replacements, but holding off a purchase because there's "no value in the market" (quoting a football transfer truism). Skoda and VW for example make you wonder what they are thinking of. The Rapid with a better (newer) engine and all airbags would be a no-brainer, but hey, no dice. Vento desperately needs to at least start resembling other 2010s cars but again, no dice.

Honda - the build gets worse with every iteration of the City. Jazz is a horror to drive (driven the CVT only) and their interiors make me shudder at the clear "cost over value" approach. Toyota meanwhile are beyond belief when it comes to price - and still don't deliver a product that feels great. I could go on, but won't

In summary, I feel right now, the only people buying are those that need to buy. That will obviously restrict growth potential. Buyers for whom a new car is just a "good to have" (replacement of a running model) just have no incentive to buy right now (apart from the luxury segment perhaps, which I have little insight on.

Originally Posted by JediKnight

What an incredibly biased and prejudiced post. Sales numbers aside there is no taking away from the fact that Hexa is a great car.

Agreed. Have a Hexa and an Octavia - and have driven the Crysta and XUV5OO multiple times. Safe to say that my XTA has given me absolutely no reason to ever regret the purchase or even wonder if I should have gone for the others. The sales numbers surprise me, but I put it down, once again, to random buyer mentality and perception.

[balderash_12]

Originally Posted by imidnightmare

Am not astonished at the sales numbers not growing. I've been looking for a C2 kind of sedan to replace my Honda City for a couple of months now, but just can't find a decent option. Either the build quality is terrible / uninspiring (Ciaz, City, Verna) or the car hasn't been updated at all and is old (Vento, Rapid) and most are terribly underpowered. The hatches and compact sedans etc. are generally even worse. The absence of viable alternatives is terrible.

In summary, I feel right now, the only people buying are those that need to buy. That will obviously restrict growth potential. Buyers for whom a new car is just a "good to have" (replacement of a running model) just have no incentive to buy right now (apart from the luxury segment perhaps, which I have little insight on.

The Verna’s build quality is not terrible as such. Definitely it should have been better but it is pretty sturdy compared to the City and Ciaz. Shame on the manufacturers for providing double standards for the Indian market!
True, car sales are only reducing. I feel it is (partly) because of NGT diesel norms which make the car buyers uncertain of their purchase. But this will be applicable only for a small portion of buyers. The real reasons are the hassles of owning a car in a crowded metropolis, high costs, cabs, car renting and sharing etc. A car has become more of a “want” now.

[imidnightmare]

Originally Posted by balderash_12

The Verna’s build quality is not terrible as such. Definitely it should have been better but it is pretty sturdy compared to the City and Ciaz. Shame on the manufacturers for providing double standards for the Indian market!
True, car sales are only reducing. I feel it is (partly) because of NGT diesel norms which make the car buyers uncertain of their purchase. But this will be applicable only for a small portion of buyers. The real reasons are the hassles of owning a car in a crowded metropolis, high costs, cabs, car renting and sharing etc. A car has become more of a “want” now.

And therein lies the issue. "Not terrible as such" is hardly a great vote of confidence. And the Ciaz in particular, is an astonishingly poor example of build quality. That it sells well speaks about how poor the choices are.

Yes - the parts you mention are true. A lot of folks now cite the ready availability of cabs as a reason to not buy. That said, this has been true for a while now. It doesn't explain the sudden decline, specially in a country with low per capita ownership and not just rising affordability (incomes) but also one where there is rather high aspirational value to owning a car, specially a sedan. The latter is what the makers were eyeing when making even crude "sedans" like the Indigo and DZire. Poor quality, but hey, they had a boot!

[adithya.kp]

High value cars with consistent high volume are Creta, Innova and Fortuner. Among these, I consider Creta a phenomenal success. Because in my opinion, bulk of the innova sales are from taxi segment and politicians. In fortuner, I reckon bulk of the sales are from politicians. It will be interesting to know the number - (taxi +politicians)
It must have taken even Hyundai management by surprise. I remember some interview (during the launch) where they said they were looking at 5k to 6k per month.