[TusharK]

Mahindra SUV production tanks by 39% in December 2021

Mahindra has released its production numbers or December 2021. The carmaker produced 11,157 units last month, 38.9% less compared to the previous month.



YoY production figures were also down by 30%. In December 2020, Mahindra had built 16,069 vehicles.

Mahindra manufactured 499 3-wheelers and light commercial vehicles in December 2021, 81% less compared to the 2,755 units built in December 2020. Commercial vehicle production declined by 24.9% to 11,132 units in December 2021.

The decline in production numbers can be attributed to the semiconductor shortage that has affected the whole auto sector. But, despite the challenges, Mahindra sold 39,157 vehicles in December 2021 - a YoY growth of 11%. The UV segment registered a growth of 9%, while the company's exports stood at 3,017 units.

Link to Team-BHP News

[vinya_jag]

Originally Posted by raaj.bhalla

One thought that keeps resonating in my mind when I look at this thread. Chip shortage situation is same for all OEMs but why MS and Hyundai got impacted the most? Why not Tata? One thing could be they managed the situation better and that is commendable. Supply chain is as important as selling a product and both are part of doing business. OR is it that people who wanted to buy only Maruti or Hyundai suddenly moved towards Tata because they could not buy one from their stable? I feel those were the Fence sitters and they moved towards Tata as they wanted a car. Good for Tata as they have more new customers especially those who would have gone for other brands had Tata also not planned chip situation better.

I am not an expert, or hundred percent sure of their manufacturing methedologies, but
Two things:
Hyundai possibly uses "Just In Time manufacturing" - https://en.wikipedia.org/wiki/Lean_manufacturing
Hyundai and a lot of Japanese manufacturers use legacy Chips which are a couple of generation old, (For the sake of taking the tried and tested approach and making their cars fail safe), and fewer manufactures wish to manufacture legacy chips

[raaj.bhalla]

Originally Posted by vinya_jag

I am not an expert, or hundred percent sure of their manufacturing methedologies, but
Two things:
Hyundai possibly uses "Just In Time manufacturing" - https://en.wikipedia.org/wiki/Lean_manufacturing
Hyundai and a lot of Japanese manufacturers use legacy Chips which are a couple of generation old, (For the sake of taking the tried and tested approach and making their cars fail safe), and fewer manufactures wish to manufacture legacy chips

You might be right as I have no idea about manufacturing methodologies but changing times call for adapt and adopt. Isn't it? But then in coming months when situation becomes normal, then we will see who wins the race of Number 2.

[Akmal]

Based on the report published in The Hindu, the percentage of Indians living as nuclear families (couples and/or with children) is ~49.5% and increasing. Only ~11% live with either one or two of the parents. This trend reflects in the percentage of hatchbacks(40%) and Sedans(9%) (with 4 of 5 pax occupancy) sold in the Country. The interesting part is the growth of SUV/Crossover segment that seems to have grown from 8% in 2011 to nearly 38% in 2021. Despite the fact that family sizes are shrinking, cities are getting ever more traffic congested, parking spaces are scarce and fuel costs are increasing and still somehow increasing number of buyers seem to prefer SUVs instead of a Sedan/ hatchback that would be adequate for most.

[Plymouth_Fury]

Pleasantly surprised by TATA having 3 products in top 20. All three are new age cars which signify they moving in the right direction. Does Nexon include the Electric powertrain or just the combustion engines. 8 of top 10 are Maruti Suzuki which really shouldn't be a surprise. Chip shortage could have determined few of the numbers here, but would like to see how Hyundai performs after the things are back to normal.

[Bhalla]

Very happy for Tata. Now, all they need in their lineup is a compact 6/7 seater MPV to compete with Ertiga/XL6, rugged people mover against Bolero. They will strengthen their number 2 position even further.

[sougatadas]

Even though Creta and Venue are selling like hotcakes and Kia cars are doing good, albeit in the same segments, Hyundai must be worried that rest of the segments are not contributing well -

1) Amaze and City still averaging above 3k+ per month when Aura and Verna sales are declining - Honda is not dead yet, average revenue 10+ lacs per car should be considered good and probably keeping them motivated for more innovation

2) Even new gen i20 clearly way behind the competition Baleno (and Altroz) - probably safety concern and price factor

3) Grand i10/Santro are also nowhere near Swift/Wagon R

Reason to worry in my opinion, market will be more favorable to Tata and MS when they have new offerings in the Creta/Seltos segment.

[roby_dk]

Good news Tata being moved to second place. Surprised that they easily replaced Hyundai from that spot even after Hyundai cars are doing well. They are updating their models regularly and still losing the spot means Tata is doing better than them. Yes we can relate this to chip shortage as well but still Tata recently has done a commendable job. Wish Tata to grow further in the premium segment and launch a fully loaded 4x4 SUV which can rival Fortuner.

[Neversaygbye]

I think the SUV and especially the CSUV boom as evidenced in the numbers is an indication of the horrible road conditions that pervade India, more than anything else. While it's no fun navigating potholes and speedbreakers at any time, it's even worse if the car keeps bottoming out all the time.

The other theory I have is that more and more people are self driving now, and that has helped negate the body roll, bouncy ride and poor backseat comfort of most CSUVs. Plus the raised position gives a commanding view of the road. If the car is chauffeur driven, a sedan would still be the way to go because of the better backseat comfort.

Hence I feel that ground clearance has become a serious purchase driver. Not just SUVs or CSUVs, even small cars with good ground clearance have done well - the Espresso is a perfect example of that.

[Carma2017]

I was recently in NCR on a business visit and after getting thrown about on pot holed roads and getting stuck in water logged areas, i truly appreciate the swing towards pseudo SUV vehicles (4m SUVs like Brezza, Venue, Sonet, Nexon etc are not true blue SUVs). I think it will swing further towards SUVs and with new safety regulations the Alto, S-Presso Eon segment will be eliminated. High ground clearance will be order of the day.

[Electromotive]

Inflation is now so bad that even zero doesn't equal the historically understood value of zero.

[hummer]

Originally Posted by raaj.bhalla

One thought that keeps resonating in my mind when I look at this thread. Chip shortage situation is same for all OEMs but why MS and Hyundai got impacted the most? Why not Tata? One thing could be they managed the situation better and that is commendable. Supply chain is as important as selling a product and both are part of doing business. OR is it that people who wanted to buy only Maruti or Hyundai suddenly moved towards Tata because they could not buy one from their stable? I feel those were the Fence sitters and they moved towards Tata as they wanted a car. Good for Tata as they have more new customers especially those who would have gone for other brands had Tata also not planned chip situation better.

I would be happy to hear the reason as - people went to TATA for safety.

However, the reason could be, since Hyundai and Suzuki are bigger global players compared to TATA, they might have diverted chips to countries with high margins for quick and larger gains, whereas TATA being primarily local, might have used all chips for India based delivery. I would love to be proven wrong.

[Madrasin_selvan]

From being known only for Cabwala cars to second in the automotive sales chart is good news for the Indian Auto Industry. Now, they need to sustain it which would the most difficult task. The December sales figures might also be due to the Plant Maintenance Activities during the last part of the year.

- Tata just needs one more C SUV and Sedan to complete its product line-up.
- Also curious to note that Taigun/Kushaq sales have not exceeded the 3k margins. Maybe Skoda/VW need a change of brand perception to reach Seltos/Creta heights

[Bsreecharan]

Very interesting evolution of sales. Few points of view:

1. Will Maruti become a Nokia of cars in India? May be not so soon (Highways are improving, average speeds are increasing and hence the need for safer cars. Consumer awareness on safety is also enhancing by the day).

2. Combined market share of Hyundai and Kia is close to 20%. The only threat to Hyundai is its design language. Extreme and inconsistent design language with every generation of the vehicle can shake the trust. I cannot buy a car this year with a fear that the next year model will be very different looking than the current one.

3. Tata will continue to shine...it got itself to a point where people are not hesitating to put a million bucks on its cars. EVs will ride the wave for them. They are investing heavily in the EV charging infra across the country.

4. The other notable / look forward to players are Honda (will ride as long as the brand equity of City and Amaze last), Skoda-VW (Premium segment Sedans with some SUV options), Renault-Nissan (Good alternative to MS and Hyundai in the under a million INR space), and FCA (Jeep -New Compass is shining despite higher price and engine-gear box communication lag. Made in India Cherokee, Meridian, Compass Trail-Hawk and C3 will chart the next phase for this company with right pricing.)

[turbowhistle]

Originally Posted by sougatadas

Even though Creta and Venue are selling like hotcakes and Kia cars are doing good, albeit in the same segments, Hyundai must be worried that rest of the segments are not contributing well -

1) Amaze and City still averaging above 3k+ per month when Aura and Verna sales are declining - Honda is not dead yet, average revenue 10+ lacs per car should be considered good and probably keeping them motivated for more innovation

2) Even new gen i20 clearly way behind the competition Baleno (and Altroz) - probably safety concern and price factor

3) Grand i10/Santro are also nowhere near Swift/Wagon R

Reason to worry in my opinion, market will be more favorable to Tata and MS when they have new offerings in the Creta/Seltos segment.

Spot on, Hyundai has to go back to the drawing board and come up with a solid game plan.

As someone who has owned 3 Hyundais earlier for the lack of better product in the past, I can not think about buying another Hyundai now ( maybe i20N but that's also maybe). The new design language is more chinese than international, relative lack of safety, fuel sipping petrol engines paired with premium prices will hurt Hyundai big time in coming years.