[pqr]

2022 Indian passenger vehicle market scan : Average car sales price & Revenue

Average car sales price (mass-market segment)



The average mass-market passenger car sales price in 2022 is estimated to be ₹ 10.6 lakh, based on product’s fuel and variant mix.

Brand

• Jeep had the highest average car sales price in India, at ₹ 28.6 lakh, thanks to the premium range of SUVs sold in the country.
• Toyota was second at ₹ 20.4 lakh, with higher-priced Innova, Camry, Vellfire, and Fortuner being dragged down by rebadged Maruti's hatchback (Glanza – 21%) and SUV (Urban Cruiser - 19% & Hyryder - 7%).
• Despite being phased out in 2022, Datsun had the lowest average car sales price of ₹ 4.5 lakh, with Renault coming in second at ₹ 7.2 lakh, due to their budget product portfolio.

Body style

• SUVs have the highest average car sales price of ₹ 13.8 lakh, followed by MUVs at ₹ 11.5 lakh.
• The average sales price for sedans and hatchbacks is below the industry average, at ₹ 10 lakh and ₹ 6.8 lakh, respectively.

Revenue per car sales (mass-market segment)



The amount brands are left with after removing GST (29% to 50%) and custom duty (CKD, SKD, and CBU), which go directly to governments (centre and state), and dealer margin from the average car sale price, is the revenue recognised from new car sales.

Based on the fuel and variant mix of products, the average passenger car revenue in 2022 is estimated to be ₹ 7.3 lakh.



Body style

• SUVs had the highest market share of 42% in 2022, as well as the highest revenue per car sale of ₹ 9.3 lakh.
• The market share of hatchback products fell to 35%, with an average revenue per car sale of ₹ 5 lakh.
• MUVs and sedans were close in terms of market share; however, average revenue per car sale was higher for MUVs.

Length of car

• Cars under 4 metres in length account for 71% of the Indian car market; however, revenue is also low at ₹ 6 lakh.
• As vehicle sizes increase, so does the revenue earned per vehicle sold.

Brand wise (mass-market segment) - Market share - Revenue - matrix



Actual revenue from overall operation will be higher than the above-captured value - as brands have additional revenue streams based on their business models, e.g., after sales, spare parts, accessories, insurance sales, used car business, export business at arm’s length pricing, etc.

Revenue-wise, there are two distinct categories of brands in 2022.

Category I: Revenue above ₹ 20,000 crore – Maruti Suzuki, Tata, Hyundai, Mahindra, Kia, and Toyota.
Category II: Revenue under ₹ 10,000 crore – Honda, Renault, Skoda, MG, VW, Nissan, Citroen, and Jeep.

Category I

In the Indian market, Maruti has the largest market share and thus the highest revenue. However, Maruti’s average revenue per car is low, as its volume is dominated by hatchbacks and sedans in the low price range. Tata and Hyundai were neck and neck in 2022 in terms of market share and revenue earned per car sale; however, the total revenue difference was ₹ 5,000 crore, as the Hyundai Creta was sold in good numbers. Mahindra and Kia also had a good year and came close in terms of revenue. It is interesting to note that Kia is over three years old in the Indian market, and Mahindra is over three decades old. Toyota is last in this group; however, the average revenue per car sales is highest in this group.

Category II

Honda has slipped into this category, as its earlier plan for SUV product portfolio expansion has gone wrong. Renault and Nissan make less money per vehicle than the industry average. MG is still quite well placed in this category when other foreign brands are struggling badly even after decades of presence in India. Skoda has higher revenue than Volkswagen, as it is selling more cars and also has more premium products in its portfolio in a higher price range. Jeep and Citroen, belonging to the same Stellantis group, are placed on the opposite side of the spectrum, and are struggling to gain a meaningful share in the Indian market.

Brand wise revenue (mass-market segment)

• SUVs generated 53% of revenue, although their volume market share was limited to 42%.
• The hatchback segment generated 24% of revenue, despite having a 35% volume market share.
• The volume and revenue shares of the Sedan and MUV segments are comparable.
• Mahindra generated the highest revenue in the SUV category, closely followed by Hyundai and Tata.
• Maruti dominates the hatchback and MUV segments, both in terms of revenue and volume.

Product wise revenue (mass-market segment)

• Hyundai Creta is highest revenue earning product in 2022.
• To put things in perspective, Creta’s total revenue is higher than the revenue earned by Honda, Renault, and Jeep combined from new car sales in India.
• Tata Nexon is the second-highest revenue-earning product, as it sold in very good numbers in 2022.
• Despite selling in large numbers, Maruti products come next, as the average price is on the lower side and some products lost volume in the generation transition, like the Brezza and Baleno.
• Without panoramic sunroof option, Kia Seltos is ranked #4 on the list.
• Toyota Innova and Mahindra XUV 700 also made a lot of money in 2022 due to higher prices and high demand.
• It's worth noting that Toyota makes more money selling the Fortuner than Maruti does selling the cheapest car, the Alto, in large numbers!

[shortbread]

Great analysis pqr, Thanks for that. Using these stats, the market share % by revenue is quite revealing.

Hyundai group earns 80% of maruti's revenue, despite selling just half the number of cars. It also shows how precarious Honda is, VW brings in better revenue than Honda while the Renault Nissan alliance is hot at its heels.

[GTO]

Love your threads & analysis, pqr! All of us learn so very much from them. Thanks for sharing! Going to our homepage tomorrow.

Originally Posted by pqr

The average mass-market passenger car sales price in 2022 is estimated to be ₹ 10.6 lakh, based on product’s fuel and variant mix.

Big step up from 10 - 12 years ago, when hatchbacks ruled, crossovers were rare & the average transaction price was 6 lakhs. Many first-time buyers too are straight jumping to the 10-lakh & above segments.

Category I: Revenue above ₹ 20,000 crore – Maruti Suzuki, Tata, Hyundai, Mahindra, Kia, and Toyota.

Also the top 6 car brands by sales volume.

Category II: Revenue under ₹ 10,000 crore – Honda, Renault, Skoda, MG, VW, Nissan, Citroen, and Jeep.

Honda & VW-Skoda are the real disappointments here. Honda was the no.1 car brand of each segment it competed in, in the 2000s with the City, Civic, Accord & CR-V. Honda India today is a shadow of its former self.

VW-Skoda have so much potential as the only "German" car brands in the mainstream segments, but their marketing departments roll out one blunder after another. The Kushaq-Taigun were so poorly handled.

[RaghuVis]

Originally Posted by pqr

2022 Indian passenger vehicle market scan : Average car sales price & Revenue

As always, amazing analysis pqr. Such a pleasure reading and analyzing all this. Indians love stats and nothing else can top such threads.

We all are pretty amazed at the TATA turnaround story but one look at this analysis and we can see that TATA has hit it really out of the park with not just their turnaround but a healthy turnaround. They are very close to Industry average price per car as a brand, close in each segment as a brand (wish Punch was not considered a SUV) and has a revenue per car as much as the industry average. If only they can sort out their battery parts for the EV side, they can give a tough fight to Hyundai for the second spot.

[shortbread]

The smartest boy in class must be Toyota India.

Focussed on the revenue game, not simply volumes. Rake in the moolah with the Innova, Fortuner, Vellfire, Hycross etc.... and outsource the cheaper, low margin products to maruti. Smart, very smart indeed.

[RYP]

Originally Posted by shortbread

The smartest boy in class must be Toyota India.

Focussed on the revenue game, not simply volumes. Rake in the moolah with the Innova, Fortuner, Vellfire, Hycross etc.... and outsource the cheaper, low margin products to maruti. Smart, very smart indeed.

Also in the process they've kept the dealerships and service centers buzzing with recurrent revenue. Crowdy Dealerships -> Happy dealers. Innova & Fortuner would've never given them the volumes required to keep the service centers happy. Glanza and UC did it for them. With the most minimal effort they hit the bullseye with Maruti partnership. Keeping this on one hand, on the other hand they got direct line of access to rapid cheap localization (MSME's) to optimize input costs which Maruti spent decades cultivating. This will be a future case study of nailing a synergy-strategy. I wouldn't be surprised in the future if Toyota acquires Maruti

[UD17]

Originally Posted by GTO

VW-Skoda have so much potential as the only "German" car brands in the mainstream segments, but their marketing departments roll out one blunder after another. The Kushaq-Taigun were so poorly handled.

The showroom experience is nothing to write home about. Last week i had some time in my hand, so decided to visit Wakad area where almost all OEMs had their showrooms.

MG: One word - Exceptional showroom experience. Right from reception till test drive, everything is well planned. Dedicated RM was assigned immediately, he was enthusiastic, eager to explain and offer test drives. He was eager to understand our requirements and suggest.

VW: One word: Disappointment. The SA approached us and ask what we are looking for? He pointed to a lone Taigun and left us on our own. No explanation, No enthusiasm and No test drive. Needless to say, we were out in 2-3 minutes. seeing the Taigun' s interior (after spending good time with MG Hector) in itself is a big let down.

Jeep: One word: Good experience. A detailed explanation along with a longish test drive is offered. RM was enthusiastic to show all the capabilities and even offered to go off road and test the capabilities.

[RodRowdyBiker]

Originally Posted by GTO

The Kushaq-Taigun were so poorly handled.

Can you provide some context? I would like to know about this. In general I have seen that there is some negative sentiment towards the VW/Skoda on this forum. I wonder what sort of actions/circumstances made them end up like this - a state where no one can recommend this brand without serious notes of caution. Maybe some youngster can pick this up as a case study - "How to ruin your brand image and alienate customers"

[abhi_tjet]

A masterstroke thread once again by pqr

Two findings which surprised me in terms of average car sales price per Brand -
1. Hyundai is selling costlier product than Honda. Hyundai surely has come a long way.
2. Maruti is not the car maker providing lowest entry point, its Renault instead.

[07CR]

Originally Posted by RodRowdyBiker

Can you provide some context? I would like to know about this.

Some pointers-

• Car was said to be done lakhs of kilometers of testing before launch. Post launch and numerous examples facing epc errors and cars stopping dead on track, Skoda group blames it on the fuel quality and/or faulty fuel pump.
  One year down the line, the horrors still continue! (1-year up, but Skoda-VW EPC issues are still unresolved!)
• Skoda claimed this was a product made for India, with it's set of requirements. With India being a tropical country, the AC performance is of paramount requirement, and the 2.0 VW/Skoda cars underperform massively here.

[tsi_niks1989]

Originally Posted by 07CR

Some pointers-

• Skoda claimed this was a product made for India, with it's set of requirements. With India being a tropical country, the AC performance is of paramount requirement, and the 2.0 VW/Skoda cars underperform massively here.

Just wanted to know if you own any of the cars from VW 2.0? I have a Kushaq 1L and Virtus GT with no issues reported for AC or EPC.
Few cars did have issue and some software update came for them.
Saying "2.0 cars underperform massively" here is exaggeration at best. For example, our Honda brio AC performs poor when compared to both of these cars.

[07CR]

Originally Posted by tsi_niks1989

I have a Kushaq 1L and Virtus GT with no issues reported for AC or EPC.
Few cars did have issue and some software update came for them.

Good for you that there were no issues. But the issues have been genuine as seen in few team bhp threads. One such thread- https://www.team-bhp.com/forum/techn...nresolved.html (1-year up, but Skoda-VW EPC issues are still unresolved!)

Also there have been instances where inspite of replacing the fuel pump, the car refused to start. IMO this is not a matter of simple software update and completely unacceptable for brand new cars.

Originally Posted by tsi_niks1989

Saying "2.0 cars underperform massively" here is exaggeration at best. For example, our Honda brio AC performs poor when compared to both of these cars.

I was in the market for a new car last year and had multiple test drives of everything right from a kiger at lower end to Hector at higher end.

I found the AC of the kushaq and taigun to be the weakest and extremely subpar. Also this was in February last year, can't imagine how it would be in the next 3 months. Since a comfortable cabin was a prime requirement both these cars were outrightly rejected.

[BleueNinja]

Originally Posted by 07CR

I found the AC of the kushaq and taigun to be the weakest and extremely subpar. Also this was in February last year, can't imagine how it would be in the next 3 months. Since a comfortable cabin was a prime requirement both these cars were outrightly rejected.

Originally Posted by tsi_niks1989

Just wanted to know if you own any of the cars from VW 2.0? I have a Kushaq 1L and Virtus GT with no issues reported for AC or EPC.
Few cars did have issue and some software update came for them.
Saying "2.0 cars underperform massively" here is exaggeration at best. For example, our Honda brio AC performs poor when compared to both of these cars.

I agree with C.Ronaldo here, The AC performance of VW cars, specially with 1.0 engines have been underwhelming. The Taigun and Virtus (1.0 TSI) that I took a Test drive of had an issue with the AC. Our new Polo GT TSI with 1.0 engine has sub par AC performance when compared to our Polo MPI, it was quite noticeable.
When you are on or below D3 in a slow moving traffic it’s quite noticeable.

It might not be with all the cars but it does exist and it exists only for 1.0 TSI and not for the 1.5 TSI.

However, I don’t think VW 2.0 under performs. They have a good GNCAP score, they have provided powerful engines and they have provided us with two beautiful sedans yet their fit and finish quality can be better. So I think they don’t underperform but they aren’t performing well either, not as much as they thought while pouring money in their 2.0 platform. Kudos to them for trying tho. When other brands packed their bags and left india they are trying to put up their products out there.

Originally Posted by UD17

MG: One word - Exceptional showroom experience. Right from reception till test drive, everything is well planned. Dedicated RM was assigned immediately, he was enthusiastic, eager to explain and offer test drives. He was eager to understand our requirements and suggest.

VW: One word: Disappointment. The SA approached us and ask what we are looking for? He pointed to a lone Taigun and left us on our own. No explanation, No enthusiasm and No test drive. Needless to say, we were out in 2-3 minutes. seeing the Taigun' s interior (after spending good time with MG Hector) in itself is a big let down.

Jeep: One word: Good experience. A detailed explanation along with a longish test drive is offered. RM was enthusiastic to show all the capabilities and even offered to go off road and test the capabilities.

I happened to stumble across these 3 showrooms in Wakad as well when I was in market to purchase a car for myself.

I share the same good experience as you when it comes to Jeep however, I think our VW and MG experiences can be interchangeable.

Despite a couple of requests Hector wasn’t made available for a TD. I requested them to send the car over to my home once available as I wanted to TD the car with my dogs and family in tow to check what’s the comfort level. Never got to TD it, Atleast not in Pune.

SA assigned to me didn’t have proper information or responses to my queries and specs provided by him and his colleague to me looked exaggerated at best which comes off as blatant ignorance.

VW Wakad on the other hand was more accommodating, prompt and responsive to my requests and queries.

Also, at that time VW happened to have Taigun and Virtus available in almost all shades and trims which helped me a lot compared to MG who were just showing the vehicle with trims and colour on a projector screen. There was a lone Hector in sharp variant parked in the showroom at that time, that too was up for delivery the next day.

You are spot on about in cabin experience. MG definitely has it better compared to Taigun but again Taigun is a better performing car so that took precedence for me, personally.

[karanddd]

Thank you for this interesting thread. As you have access to this data, could you share a scatter plot distribution of cars sold by price, or the median car price? The average (or mean) price can be a misleading figure, as expensive cars in India are significantly more expensive than the cheap cars, pushing that figure up. The median value is likely smaller in this case, maybe Rs. 6-7 lakhs, which means half of the people buying a new car are still buying a car that costs less than that.

[07CR]

Originally Posted by BleueNinja

However, I don’t think VW 2.0 under performs

My comment about underperformance was with regards to the AC and not the car in general.