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Old 13th June 2019, 09:24   #61
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Quote:
Originally Posted by vharihar View Post
Why is Hexa not selling at all? For several months in a row. Any idea?

At this rate, even the Alturas sales will beat Hexa sales, after some months!

Clearly there's something that Mahindra is doing right, that Tata simply doesn't get.
Its unfortunate to see Hexa numbers. We as car buyer demand this and that and all that, and ask for a VFM price tag.

Hexa is proof that even with everything, a car is not guaranteed to sell.

The Hexa
- has only positive reviews
- has an amazing autobox
- has the looks
- has the safety features
- has the comfort features
- has the ride and handling
- has the performance
- has the build quality
- is value for money
- Tata has decent service network

People who have driven the Hexa, love it. I test drove it and my wife names the Hexa whenever I ask her which car to buy. But I dont need such a big vehicle for transporting 2 people in 100% road conditions (zero offroading)
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Old 13th June 2019, 11:40   #62
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Hexa's dismal performance is more likely a result of no communication on the upcoming emission norms.

The silence on Tata Motors part is a strong signal to prospective buyers that the vehicle will be discontinued once BS VI norms come into force. And the continuing silence on a new engine, offering Hexa only in dual tone paint etc reinforce the belief that it will be discontinued.
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Old 13th June 2019, 11:42   #63
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

The Hexa and its creators are an enigma. I wanted to buy it for a long time and had almost made up my mind. Then the powers that be, in the Hexa product team did something unthinkable - they decided to pull the most popular color (Arizona Blue) from the XTA. Someone at Tata thought that the fancy dual tone colors are what all its customers want, and that was it for me. Even if you forgive them for deleting LED glow lights from window buttons (worth Re 1), you can't really forgive them for not providing the color of your choice.

I finally paid double the price of Hexa and bought another car.

Believe you me, I am in a WhatsApp group of Endeavour owners and few days back, everyone on that group were praising the Hexa for its build quality, its driving ability, its gear box - but everyone bought the Endeavour because Tata left out small little gaps (i.e. if you want AT, you can't get 4x4, if you want TC, ESP, you can't get the AT, if you want the AT, you won't get single tone version etc. etc.) in the product and did not make it complete so someone who wants to buy it, just buys it for the car it is.

I feel sorry for Tata. I wanted to give them my hard earned money, but they did not care to earn it from me.
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Old 13th June 2019, 17:47   #64
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The Indian market is maturing. The younger generation who are the first time prospective buyers are making informed decision whether to buy a car or not. Our generation mostly purchased cars because we wanted to have a car in the household, and for a car-starved generation (read Fiat, Amby, 800 era), the sudden open market scene in auto sector gave wings to our suppressed desires to own a car.

Now, people are thinking about the practicality of owning a car - Parking charges, Insurance (20K per annum is the lower end), Fuel, Maintenance (even Maruti ASS are expensive these days)...and for what? Crawling through traffic. And with plenty of alternatives (Uber Pool, metro, shuttle buses, office cabs, work from home etc.) the craving for a car goes down.

Also, cars have become like a latest fashion. No one wants to buy even a 6 months old model these days. The moment a new model is announced, people postpone their purchase till that model is launched. Then there is an unusual high booking for that model for a couple of months and then discounts and the model fades away and the story repeats.

Lastly, for the people in Delhi/NCR which is the biggest auto market and one of the most polluted cities, the NGT order for scraping of diesel cars after 10 years and petrol cars after 15 years has made people think twice before purchasing a car. Means, you purchase a 15 lakh car and it will be scrap after 10 years, that is Rs 1.5 lakh every year as capital cost + fuel, insurance, maintenance, tyres, battery etc.

It makes sense to use uber/ola for city rides and take a rental car for outstation trips. BTW, the tourist destinations near Delhi (Haridwar, Rishikesh, Nainital, Mussoorie etc.) are facing 2~3 hours long traffic jams due to tourists arriving in their cars. So maybe rental cars future might not be that great as expected.

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Originally Posted by Subby View Post
In July 2018 McKinsey published an article where they predicted India was expected to emerge as the world’s third-largest passenger-vehicle market by 2021.
All the Mckinseys, BCGs, Deloittes etc. have a standardised report about how India is expected to emerge as largest market. Name a sector and you have the report ready - Real Estate, Tourism, Entertainment, Apparel, eCommerce, consumer goods and what not.

Their reports should be taken with a pinch of salt. Unless they publish bullish reports on Indian economy who is going to hire them as a consultant for "India Entry Strategy".

Last edited by Gannu_1 : 13th June 2019 at 19:25. Reason: Back to back posts merged. Please edit your previous post if re-posting within 30 minutes. Thanks.
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Old 14th June 2019, 15:42   #65
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

This just in from The Federation of Automobile Dealers Association (F A D A).

Quote:
FADA today released the Monthly Vehicle Registration Data for the Month of May’19.

MAY-19 Retail Sales

Commenting on May’19 performance, F A D A President, Mr Ashish Harsharaj Kale said, “Even though on a MoM basis, there was an uptick in Vehicle Registrations, all categories of Vehicles de-grew when compared on YoY basis. It should also be noted that May last year had a very high base and had witnessed 2nd highest registrations on a monthly basis in the last fiscal.”

Bringing further Transparency to the Sales and Registrations of Automobiles, F A D A is also sharing State wise registration numbers, beginning this month. F A D A for the first time is publishing State Wise Vehicle Registration Details and going forward it will be a regular feature of our Press Release with Further Detailing in the near future. Detailed State wise registration details can be found in Annexure 1 on Page 05.

A Few Highlights of the Vehicle Registrations for the month of May are mentioned below:

- Overall the States with Highest Vehicle Registrations were Uttar Pradesh (2,81,175), Maharashtra (1,99,509) and Tamil Nadu (158,433)

- In PV Category, the States with highest registrations were Uttar Pradesh (34,249), Maharashtra (31,871) and Gujarat (21,929)

- In 2W Category, the States with highest registrations were Uttar Pradesh (2,36,713), Maharashtra (1,51,265) and Tamil Nadu (1,31,092)

- In 3W Category, the States with highest registrations were Maharashtra (8,520), Uttar Pradesh (7,649) and Gujarat (5,791)

- In CV Category, the States with highest registrations were Maharashtra (7,853), Tamil Nadu (6,676) and Gujarat (4,923)

- In Total Vehicle Registrations, Arunachal Pradesh registered highest YoY growth of 31% while West Bengal registered highest YoY degrowth of -27%

- In PV category, Chhattisgarh registered highest YoY growth of 36% while Manipur registered highest YoY degrowth of -25%

- In 2W category, Sikkim registered highest YoY growth of 67% while Haryana registered highest YoY degrowth of -30%

- In CV category, Goa registered highest YoY growth of 48% while Jharkhand registered highest YoY degrowth of -45%

Dealer Inventory

We would once again express our serious concern on the increase of 2W inventory despite such difficult times and F A D A appeals to our 2W OEM’s to kindly regulate the same. We would also like to Applaud and place on record our Appreciation for Honda Motorcycle and Scooter India Pvt. Ltd. For being the 1st 2W OEM to have reduced their Dealer Inventory to an average of 30 days by having taken unprecedented wholesale billing reduction in the last 90 days and moving towards the F A D A requested and recommended norm of 21 days.

Production cut being a painful decision for the entire Auto Eco System, F A D A appreciates the Bold decisions taken by our PV OEM’s on Cutting back on production for reduction of Dealer Inventory. We would also like to Applaud and Place on record our Appreciation for Tata Motors PV division for being the Pioneer amongst the PV OEM’s to Officially announce a move towards FADA requested and recommended norm of 21 days of Dealer Inventory by September along with a Shift in Dealer Market Share calculation by Retail Sales.

High Inventory at this juncture is an Added Liability on the Auto Dealers especially when the current environment is witnessing Negative Sales Growth combined with Extremely Tight Working Capital Availability for the Auto Retail Sector. We acknowledge and Appreciate the Steps taken by Most of Our Principals for moving towards new Inventory Norms for Sustained Dealer Survival and Profitability. F A D A has been and will continue to request and recommend that the Entire Auto Industry and all our OEM’s move to 21 days of inventory as well as adopt the Globally Practised Norm of Market Share Calculation by Registration Data.

Near Term Outlook

The Current situation continues to be worrisome and Consumer Sentiment continues to be Negative. With Liquidity still an issue and the New Government getting settled and in the process of planning and rolling out New Initiatives coupled with Delay in monsoon by 10-12 days, we expect the near term outlook of the next 4-6 weeks to be similar to last month with Overall Auto Retails Continuing to be under Strain across all Verticals

Liquidity

On the Liquidity front Mr Kale Commented, “Dealer Liquidity continues to be Negative and Extremely Tight. A very slight easing of Overall Liquidity can be felt although it continues to be Tight and nowhere near the normal required to stabilise the Degrowing Auto Sales. The CRR reduction by the RBI has not seen a reduction in Interest Rates at the Retail Level, but the Change in Monetary Stance from Neutral to Accommodative will definitely act as a Facilitator for the Banking and Financing System moving back to a Positive approach with regards to the Auto Retails Sector, both for the Consumer as well as the Dealer community”

On the Long-Term Outlook, F A D A President commented, “As already emphasised earlier, the Long Term Growth Story of Our Nation is Extremely Robust and has been further Strengthened by a Popularly Elected Majority Government led by Prime Minister Shri Narendra Modi which will bring Continuity and Stability to Policy Making along with Continued Focus on Infrastructure Development and Agricultural Prosperity. A growing Nation heading towards Global Leadership is best served by the Automobile Industry for its needs of Mobility, Infrastructure Building and Ever Growing Aspiration of its People.

The Long-Term Outlook for the Auto Industry and therefore the Auto Dealership Community continues to be very Strong and Positive, Despite the Current Prolonged Slowdown. An accommodative RBI, an Expected Progressive Budget, an Average Monsoon and an Overall Stability to Consumer Sentiment due to Political Stability will all Contribute towards the Auto Industry heading back into the growth Phase once again and FADA is Confidently Hopeful of that Happening in the next 8-10 Weeks.’’

Key Findings from our Online Members Survey

On the Current Sentiments of the Industry
54% Dealers rated it as Neutral (42% in April’19)
43% Dealers rated it as Bad (51% in April’19)

On the Liquidity Front
57% Dealers rates it as Neutral (47% in April’19)
36% Dealers rated it as Bad (39% in April’19)

On the Current Inventory Front
Average inventory for PVs ranges from 35-40 days (40-45 days in April’19)
Average inventory for 2W ranges from 55– 60 days (45-50 days in April’19)
Average inventory for CV ranges from 45 – 50 days (45-50 days in April’19)
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Old 14th June 2019, 17:55   #66
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Quote:
Originally Posted by GTO View Post
This just in from The Federation of Automobile Dealers Association (F A D A).
The retail numbers show that the Industry is rather flat.

The OEMs are frantically trying the reduce the stocks at their yards before BSVI kicks in. And that is leading to the so call unprecedented fall in automobile markets.

Companies such as Tata Motors have actually gone ahead and announced a project called as "Paradigm Shift" aiming at bringing the dealer inventories to a level of 1 month of retails or lower. The fact is that such drastic steps are the need of the hour considering that post April 2020, carry forward inventories could be worthless since no registration of BSIV engines would be allowed.

Also an interesting point to observe is that earlier OEMs would push stocks to dealers either to reduce their own factory stocks or to keep their market perception high (they have to announce their their monthly numbers after-all). But now with VAHAN 4, all this would be a thing of the past, since retail numbers would be reported.

What FADA is trying to do is to bring this change in culture of counting offtake numbers and bring into focus retail numbers. A welcome step indeed.
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Old 14th June 2019, 20:02   #67
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This is probably one humbling article on the current scenario.

All these global automakers have till now been powered by volumes in mostly homogeneous markets, and they call this as real market experience or whatever. And does that help them in a diverse and subjective market like India ?

Hyundai has truly set up shop here, and they are successful. So is Toyota and to much lesser extent Honda.

Of course, it doesn't help that all firms use the standard market entry template from McK/BCG or what have you. No wonder almost everyone has dismal sales performance

https://www.livemint.com/opinion/col...446119668.html
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Old 15th June 2019, 10:41   #68
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Only 7 sedans have managed to clock 1000+ numbers in May 2019.


1. Dzire
2. Amaze
3. Ciaz
4. Verna
5. City
6. Xcent
7. Etios


Key brands missing out in this list are Ford Aspire, Toyota Yaris, Tata Tigor, Skoda Rapid etc. None of the Tata sedans have a sales volume of over 1000. This is surprising considering how the new cars from Tata pack are competitively priced.



Only Dzire and Amaze manage to be in top 20 and both are compact sedans. City that used to be in the top 20 for long has lost that position for good. Ciaz and Xcent numbers are low considering the huge distribution reach of the two giants. Etios manages to cling onto 1000+ numbers for long. It is time Toyota adds a CVT and better aesthetics to Etios to realize its full potential.



Is it the end-of-the-road for full sized sedans?
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Old 16th June 2019, 18:47   #69
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Creta leads in sales amongst all Hyundais. The Santro's placement at the end of the list is again a sign of the times. It would obviously been in the top 10 about a decade back, when smaller engined hatches were much more preferred and we did not have such a galaxy of mini SUV's.

The top-six best sellers are Marutis. The Omni is obviously on its way out. Eeco is compensating for the lost Omni sales perhaps ! And through the slowdown in car sales, the pathetic overall sales figures from Fiat, Nissan/ Datsun, Jeep and Skoda among a few others and no sales from Mitsubishi are intriguing. Swift is ahead of the Alto ( this is more or less a regular feature) and for Hyundai, the Elite i 20 is ahead of the Grand i 10.

The XUV 3000 has ultimately joined hands with the Bolero to become a bread and butter offering from Mahindra. The Scorpio finds its place as # 3.

Two of the most interesting models however are the Nissan Kicks and the Renault Captur. Customers do not want Kicks, as is evident and some 79 have been sold. They also do not want to be Captur(ed) too, as some 76 have been sold. And there in Japan, the ex- Honcho of these companies, Carlos Ghosn keeps moving in and out of the Japanese jail.

Last edited by anjan_c2007 : 16th June 2019 at 18:49.
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Old 16th June 2019, 19:30   #70
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Quote:
Originally Posted by simplyself View Post
Hexa's dismal performance is more likely a result of no communication on the upcoming emission norms.

The silence on Tata Motors part is a strong signal to prospective buyers that the vehicle will be discontinued once BS VI norms come into force. And the continuing silence on a new engine, offering Hexa only in dual tone paint etc reinforce the belief that it will be discontinued.
For my understanding, if we were to buy a Hexa today (2019) and then in Apr2020, the BSV1 norms kick-in. How many more years would the owner be able to run the car on the road?

And, I believe there is no way in which the car can be made BSV1 compliant, post-factory build.
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Old 16th June 2019, 20:52   #71
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by AutoSphere View Post
For my understanding, if we were to buy a Hexa today (2019) and then in Apr2020, the BSV1 norms kick-in. How many more years would the owner be able to run the car on the road?

And, I believe there is no way in which the car can be made BSV1 compliant, post-factory build.
No issues in driving the car. BS6 restriction would only be for new cars sold post the implementation date.
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Old 16th June 2019, 21:52   #72
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

Given how dismal Tigor's sales have been, I'm actually going to question the sanity of developing the product in the first place.

Lets face it, it was always going to be a far inferior product to the market leaders (Amaze and Dzire), especially with those engines.
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Old 18th June 2019, 23:12   #73
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by vharihar View Post
Why is Hexa not selling at all? For several months in a row. Any idea?

At this rate, even the Alturas sales will beat Hexa sales, after some months!

Clearly there's something that Mahindra is doing right, that Tata simply doesn't get.

I have been in love hate relationship with the Hexa for almost 8 months now. I almost bought it in December but backed out since I was told by my contacts in the industry that the Varicor 400 was to be phased out and no BS6 replacement was due. In March I had convinced myself that BS6 or not, the Hexa was the best product on the block and then I realized that single color tone option on the 2019 XTA was gone. I couldn't convince myself on the dual colors offered by Tata and I canceled my plan a second time. Now with the 19in rims not being offered anymore I think it is the end of the story for me. There are too many compromises and risks associated with the product at this point of time to justify a spend of 23lakhs OTR.
The final nail in the coffin was when my dad asked me a few days ago: "Do you trust TATA service centers to be competent enough to detect and resolve issues with the Punch Powerglide transmission if any problem should arise 4 or 5 years from now?". I had no convincing answer to his question and I guess I got my answer if the Hexa was worth getting at this point of time.
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Old 19th June 2019, 10:31   #74
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Originally Posted by 2000rpm View Post
Its unfortunate to see Hexa numbers. We as car buyer demand this and that and all that, and ask for a VFM price tag.

Hexa is proof that even with everything, a car is not guaranteed to sell.

Correction. Hexa is proof that , if you don't have everything , car is guaranteed not to sell. It simply is not a complete product . It sure excels in some traits , but misses out on some important ones as well. Colour choices , ESP , TC in top end etc to name a few. Most of which the competition offers while performing not so bad in the traits where Hexa excels. In a way competition offers everything , while Hexa does not.

Last edited by padmrajravi : 19th June 2019 at 10:44.
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Old 20th June 2019, 09:28   #75
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Default Re: May 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by padmrajravi View Post
Correction. Hexa is proof that , if you don't have everything , car is guaranteed not to sell. It simply is not a complete product . It sure excels in some traits , but misses out on some important ones as well. Colour choices , ESP , TC in top end etc to name a few. Most of which the competition offers while performing not so bad in the traits where Hexa excels. In a way competition offers everything , while Hexa does not.
Depends on what do you have in your definition on Competition

I have 7 seaters like Innova, Marrazo, Ertiga in my mind. Dont think any of these offer the features mentioned by you. I may be wrong, dont follow the MUV segment very closely.
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