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Old 10th September 2019, 07:54   #31
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
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Old 10th September 2019, 08:48   #32
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
in India new safety regulations have backfired by making cars unaffordable.
Perhaps he could explain how the new gen swift is 150 kg lighter, despite adding those 2 airbags and an ABS pump.
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Old 10th September 2019, 09:14   #33
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
For the stake of affordability, why dont we sell cars with
3 tyres?
Curtains in place of doors?
One cylinder engine?
Neelkamal chairs in place of metal fabric seats?
Wooden spare tyre?
Add bricks for seat height adjustment?
Use distemper for exterior colors?
Install pandal speakers instead of co-axial etc speakers?

I think the auto industry is playing victim here. They have milked Indian customers for such a long time and created a culture where alloys / music system takes priority over airbags and other safety features.
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Old 10th September 2019, 09:27   #34
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
It is hard to fathom that there are persons like RC Bhargava at the top of a established company who talk such nonsense that too publicly.These are the statements that a layman may make, not a chairman of a company with their so called credentials. And this is not the first time he has done such loose talk . With this sort of thinking, i really wonder what took them to where they stand today. Intrigues me!

Last edited by sagarpadaki : 10th September 2019 at 09:32.
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Old 10th September 2019, 09:30   #35
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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I don't think the XUV300 is grossly overpriced. It is true that it is more expensive than the competition but then you also get a car with more power and better features. Mahindra has placed it in a sub segment between the Venue and the Creta especially the W8(0) variant.

Regarding overpriced cars failing, it would be one of the happiest days of my life when post BS6 Innova and the Fortuner are shown the door by Indian buyers after their already inflated prices inflate further by 15-20% as mentioned by Toyota senior management.
With respect to Fortuner and Innova, i read somewhere that the price might increase 5-6 lakhs post BSVI. Don't if it is true or authentic, but am very sure Innova will still sell good numbers.
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Old 10th September 2019, 09:33   #36
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by sagarpadaki View Post
It is hard to fathom that there are persons like RC Bhargava at the top of a established company who talk such nonsense that too publicly.These are the statements that a layman may make, not a chairman of a company with their so called credentials. And this is not the first time he has done such loose talk . With this sort of thinking, i really wonder what took them to where they stand today. Intrigues me!
This is nothing new. In 2014 he had given more such ridiculous statements. Refer to this thread.

https://www.team-bhp.com/forum/road-...tatements.html (Safety last? Maruti Chairman Mr. R.C. Bhargava's ridiculous statements)

What concerns me the most is comments like these are coming from the think tank of the largest car manufacturer in India. So I would definitely feel unsafe in a Maruti knowing that the maker may have cut corners to save on the cost, knowing that the maker gives more importance to costs than safety.

Last edited by Pancham : 10th September 2019 at 09:36.
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Old 10th September 2019, 09:34   #37
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Who are these 4 guys buying Quanto !! Need a round of applause
On a serious note, are these any display vehicles/test cars or someone just erred on the data side ? It's not the 1st time when we have seen few units of a discontinued model show up in dealer dispatches. Any idea ?
I spotted some Quantos mentioned in an auction list of cars lying around at their Chakan and Nashik plants. There was a wide variety of in-demand models and also obsolete ones such as the Quanto on that list. It could well be that no one picked these up in the auction...or perhaps some dealers picked it up in the auction at throwaway prices to serve as roadside assistance vehicles in their service centers. The auction list is available in an appropriately titled thread on the forum.

OT: I know of one FNG mechanic who uses a Quanto to tow stranded vehicles - including bigger ones such as the Xylo.
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Old 10th September 2019, 09:53   #38
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
Has seen Suzuki has been in oblivion towards the safety since quite a few years. Also, they have not been enthusiastic towards the competition as well. Remember those sarcastic comments from the company towards Nano and Bajaj's Qute?
That's business anyway. But this is high time as a nation we focus on safety and that's what is happening now.

Unfortunate comments from Suzuki, the largest car company of the nation.

Last edited by rangarx : 10th September 2019 at 09:55.
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Old 10th September 2019, 10:06   #39
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
I read that article. However ridiculous it sounds (and It is ridiculous, coming from the head of the largest car seller in the country), but it is somewhat true as well. Entry level car buyers in small towns and villages never wear seat belts, which render Airbags useless anyways. He is just stating the obvious.

However, that does not mean Govt should allow unsafe cars to ply on roads. In fact, safety norms should be made even more stringent (which the Govt is doing).

Stupid comments from the largest car seller, only applicable to stupid car drivers of our country. Sadly, both the stupids are in majority.
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Old 10th September 2019, 10:07   #40
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
Ok Mr. Bhargava, let us take your statement (for the sake of discussion only) that the Government regulations with respect to safety requirements have contributed significantly to the price rise so much so that it has become unaffordable for the two wheeler owners.

From this stand point let me ask you one simple question: Assuming that the Government withdraws / rolls back all its mandates and regulations with regard to the safety requirements and the manufacturers are now free to make cars at their own peril, would you as a car maker pass on the entire benefit arising from this substantial reduction in cost of car production, so that many more can afford them? In earlier instances where certain statutory relaxations were available, have you passed on the entire benefit to the customers or have maintained the elevated costs under pretext of “increase in cost of raw materials and other inputs”?

Last edited by King_pin09 : 10th September 2019 at 10:08.
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Old 10th September 2019, 10:14   #41
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

I am glad to see the Brezza take a beating at the hands of the Venue. Maruti needs to wake up and start selling upgraded versions of this model with sunroof, petrol engine, min 4 (if they can't give 6) airbags etc. Meanwhile Ocatavia has overtaken the Civic again. Once again I hope this catalyses Honda to do something about the engine gear box combo which I am 99.99% sure that they won't be doing anything about. It is the survival of the pro-active ones who will take the market with them, rest are going to sink like a stone.
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Old 10th September 2019, 10:16   #42
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by rovingeye View Post
Today's TOI carries an interview with RC Bhargava, the Maruti Chairman. He says due to new safety regulations such as mandatory air bags etc entry level cars have infact gone out of reach of the two wheeler rider who aspires to own a car. He seems to be suggesting that safety is for the rich and goes on to compare per capita incomes of other countries to assert that car buyers in rich nations can afford to buy cars with safety tech, in India new safety regulations have backfired by making cars unaffordable.

Makes sense, somewhat.
That's funny, considering car prices in the EU, USA and Australia are way less compared to ours, and most vehicles come loaded with safety features. Both the Govt and car makers are equally culpable for this slowdown due to their greed. Frankly, as a car maker, especially one who makes tin cans, implying that safety features are for the rich is a very careless statement to make. Rather than blindly making your cars go on a forced diet, try making safety features to be cheaper and accessible.

Special thanks to Volvo for releasing the 3 point seat belt patent, otherwise we would have had Mr.Bhargava hue and cry about another additional expense.

https://www.arnoldclark.com/newsroom...tant-invention

Mr.Bhargava also seems to be against a GST rate cut. Why? Because I guess he feels Ciaz, Brezza, Ertiga, XL6 sales will be cannibalized by the likes of Creta, Seltos, Hector. People would ditch the top end products of MS and probably go for the entry and mid variants of the new players.

Last edited by TROOPER : 10th September 2019 at 10:21.
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Old 10th September 2019, 10:20   #43
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

Any information on actual dealer end sale. That will be actual sign of recovery. I heard that the footfalls and enquiries have gone up but conversion is slow. Probably buyers waiting for GST rate cut and festive season discounts
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Old 10th September 2019, 11:18   #44
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

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Originally Posted by KiloAlpha View Post
In the C2 segment, sedans have sold 6079 in August, 77589 YTD. SUV/MUV combined sales in August 55395, YTD 458269.
The C2 segment is now ~28% of the overall market.
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Originally Posted by Maverick0986 View Post
Stats for C2 segment Sedan & SUV:

Breeza...somewhat recovering when compared with previous month.

Venue marginally down compared with previous month.

Seltos the game has just begun...it will be interesting to see how does the new Creta will stand against Seltos.
Thank you both! That was quite interesting to note. One additional factor driving up the SUV/MUV sales could be the bad roads in India er.. Bangalore.
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Old 10th September 2019, 11:26   #45
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Default Re: August 2019 : Indian Car Sales Figures & Analysis

Yet another terrible month for the auto industry. All the data looks bad, but to use a stock market term, it seems like car sales are bottoming out and setting the stage for the next bull rally.

Poor data in August is not a surprise - manufacturers have been lobbying hard of a GST cut - and reducing dispatches to dealers before that makes immense economic sense. And now that the government has made some noises indicating it is considering the same, the industry will go into freeze mode - why on earth would you buy a car today when a 10% cut in prices due to GST reduction could happen in a matter of weeks? Am surprised that there is anyone buying cars right now!

So that is a cyclical factor hitting August sales - a trend I suspect will continue into September. But what are the structural factors affecting auto sales. The fact that A, B1, B2 and C1 sales have slowed down the most offers a clue. Ola and Uber have about 800-900 k drivers on each of their platforms - assuming a 30% overlap, that implies about 1.2 mm cars between the two platforms. Assuming a 1 mm of those cars were added between 2014 and 2018, they contributed about 200 k per annum of sales, or more than 16% of average sales in these segments each year. Are Ola and Uber still expanding fleets at the same rate? I suspect not - drivers are already under pressure, and the strike that took place last year would have convinced investors not to focus on this market. Assuming their fleet expansion dropped 75%, that in and of itself would account for an over 10% fall in auto sales.

Further, the structural aspect of the much larger Ola / Über fleet probably leads to another 10% fall in auto sales as people choose to ride share instead of buying cars.

The NBFC crisis is of course the proximate cause of the auto sales decline. The death of easy money would now give pause to those who were buying on instalments.

So is this something to panic about? I think not - sooner or later, car sales will bounce back.
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