Indian Automotive Retail Figures – February 2019

FADA (Federation of Automobile Dealers Associations) released the February 2019 Vehicle Registrations statistics today. Please note that these are the vehicle registration data (delivery of Invoiced vehicles from dealers to end customers) and clearly indicates the vehicle sales movement. Otherwise we have always been tracking the vehicle offtake data (billing of vehicles from OEM to authorized dealers). FADA releases number based on VAHAN data which covers about 75 per cent of nation’s RTO.  As usual; we thank FADA for publishing the retail data and providing much realistic data about the actual sales of vehicles.

As seen above; majority categories (PVs, 2Ws & 3Ws) saw a massive decline in registrations. The sole exception was CV segment which posted a growth of 4.92%. The total sales for the Industry touched 14,52,078 units and the overall automotive industry registered a YoY de-growth of -8.06 percent!

With slowing retails; Dealers are facing over-stocking issues and the Inventory levels have shot over the roof. Basis dealer fraternity feedback; PV dealers are carrying stocks upto 60 days and 2-Wheeler dealers are stocking upto 3 months Inventory! The scenario is pushing both OEM and dealers to continue offering excessive discounts and liquidate the stock. The condition is going to worsen ahead – with a deadline of ensuring no BS4 inventory is left till April 2020; OEMs and dealership are bound to go under the panic mode.

Tough times ahead for Passenger Vehicle OEMs & Dealers. While OEMs will have to scale up investment to meet the upcoming emission and safety norms; Dealers will have to ensure that the stock vehicles are moved out as soon as possible. Maruti has already announced that it shall have its entire portfolio of cars BS6 ready by end of December 2019. New Entrants like Kia & MG are already planning to bring BS6 cars since day 1.

Domestic Sales v/s Exports Statistics – FY19 MTD

While the domestic sales of passenger vehicles have slowed down; the exports statistics has been disappointing too this year. The Domestic volumes have grown by a meager 3.27% in the past 11 months and Exports have dropped by a hefty -10% in the same timeline. We are not sure if India’s losing the competitive advantage in terms of production and this could hamper the sub-continent’s plan of becoming Asia’s production hub.

Stats for Apr’18 to Feb’19

Snippets from the statistics shown above:

  • Hyundai is leading the Export OEM Rankings and was ahead of Ford with a margin of just 1,573 units. Mar’19 exports volumes will decide on who’ll Top the rankings table for FY18-19.
  • Ford exports almost 1.7 times the volumes that it actually sells in the country. Making India a export base has helped Ford to rightly utilize the production capacity and ensure loses are minimized.
  • Similar to Ford; the OEMs whose exports are higher than the domestic sales are  – GM, VW & Nissan. In fact; GM is using its Talegaon facility only for exports as the domestic operations have ceased.
  • Maruti Suzuki’s export numbers are minuscule when compared to its domestic volumes. With capacity expansion in place; we were expecting the exports volumes to grow for India’s biggest automaker.

Indian Car Sales Figures – February 2019

Feb’19 was one of the toughest month’s for the industry and again saw a negative growth (-0.6%). Country’s biggest carmaker Maruti Suzuki reported a flat growth in Feb’19 and has actually lowered its FY19 sales projections seeing the downward trend. Overall Passenger vehicle sales declined owing to  weak consumer sentiments, tightening liquidity after the IL&FS crisis and increased insurance costs hampering purchases. With the upcoming BS6 norms and general elections; all OEMs are wary about the slowdown in the market.

  • Nexa loses the highest Market Share in Feb’19 and also reported a YoY degrowth of 14%. Apart from Baleno, all other models in its portfolio seems to be slowing down.
  • Nissan+Datsun volumes have almost halved! The Japanese conglomerate posted a YoY degrowth of 41.8! The volumes have not grown even post the launch of much anticipated Kicks and the situation is worrisome.
  • Mahindra holds the third spot with the help of Marazzo & XUV300.
  • Tata Motors regains the 4th spot by dethroning Honda. Harrier launch has given Tata the platform to scale up volumes and reduce the gap with M&M.
  • With a low base of Feb’18; Honda could project a staggering growth of 16% YoY. But the Japanese OEM saw a drop of -26% in Feb’19 v/s Jan’19! Honda is launching its global best seller in Mar’19. It’ll be interesting to see on how this model could help revive both Honda’s and segment’s Sales.

A look at Modelwise Sales Figures –

Top 25 selling cars of Feb’19 –

  • Alto regains the Numero Uno spot with a big margin. Alto sold over 6k units more than the second ranked Swift.
  • Dzire has not only lost the top spot; but has pushed to the 4th position. It suffered a YoY degrowth of -24% and the fall was highest among the Top 10 selling cars.
  • Baleno facelift helped it grow 14% and also helped it maintain the Third spot in the rankings table. But Baleno is the sole representation from Nexa in the Top 25 List! Ciaz, S-Cross & Ignis are now out of the top 25 selling cars and emerges as a big concern for Nexa network of dealers.
  • New Wagon R has helped the model post 12% YoY growth and places it in the 5th spot.
  • i20 was the best selling Hyundai for Feb’19 and ranked 7th. However; the sales dropped -14% YoY for the model.
  • Creta is faring really well for Hyundai and sold more units than the much lower priced Grand i10.
  • Tiago continues its success run and sold 8,286 units in Feb’19. It is now undoubtedly the backbone of Tata Motors monthly volumes in the subcontinent.
  • Ertiga’s numbers have picked up really well and sold 7,975 units in Feb’19 and registered a YoY growth of 72%!
  • XUV300 makes an entry at the 20th rank and sold 4,484 units in Feb’19.

Isuzu Motors Sales Statistics in India

Isuzu has sold over 13,500 vehicles till date in India! Isuzu Motors India Private Limited was established in August 2012 in India having its headquarters in Chennai and the manufacturing facility was later built in Sricity, Chittoor District (Andhra Pradesh). However; the products were rolled out from the year 2015 and the company has been slowly gaining hold in the Indian sub-continent.

Isuzu currently sells a range of Isuzu D-Max pick-up trucks that includes variants like Regular Cab Flat Deck and S-CAB. D-Max also has a V-Cross avatar which is India’s first adventure utility vehicle and has been positioned as a lifestyle pick-up. Let’s see the Historical Sales Statistics of D-Max models –

  • Isuzu has sold an average of 411 units/month of D-Max + V-Cross in 2018. The sales of D-Max portfolio grew by 51% in 2018 v/s 2017. Isuzu is steadily increasing its dealer network and the effort is slowly visible in the sales volume.
  • 11,626 units of D-Max vehicles sold between Jan 2015 to Dec 2018.
  • Isuzu is pitching hard to promote D-Max and currently offering ‘D-Serve’ package at no additional cost for Regular Cab variants till March 31, 2019. The package provides Free Periodic Maintenance for 3 years / 100,000 kms (whichever is earlier) – includes PMS parts, lubricants, related labour costs and certain wear & tear items. This shall help the OEM gain trust among the customers who would be buying an Isuzu product for the first time and ensure that the Cost of Ownership is low.

Isuzu also sells the MU-X, a large sized Sports Utility Vehicle (SUV) in automatic transmission in India. The dispatches of MU-X started from May 2017 and has overall sold 1,751 units till December 2018 (almost equivalent to Fortuner’s monthly volumes). Let’s see the Historical Sales Statistics of MU-X –

  • Isuzu has sold an average of 79 units/month of MU-X in 2018. The sales of MU-X has not been as expected and the acceptance levels has been pretty low as well.

Both D-Max & MUX vehicle models are available through Isuzu’s exclusive dealer outlets. The company has currently dedicated dealer touch-points, located in 44 locations across the country. Considering 2018 volumes (Total 5886 units); Each Dealer outlet would be selling an average of 11 units/month which considerably low. The volumes need to substantially increase to enhance both market share & dealer viability in the coming time.

Maruti attempts to ‘Ace’ LCV Goods Carrier segment with its ‘Super Carry’!

Maruti had tasted commercial success with its passenger carriers like Omni, Eeco & Versa. All the offerings in the passenger carrier segment were petrol-only models and were successful in both personal and commercial usage. Owing to the success of these models; Maruti identified a huge business opportunity in load carrier segment as well and launched the Super Carry in the year 2016. The Super Carry is powered by a 2-cylinder turbo-charged 793 cc diesel engine and an all-new 1200 cc CNG engine variant.

Maruti Suzuki knew that the segment shall cater primarily to the commercial customers and only diesel models shall be viable; hence it decided to have a different network/dealership for the sale of Super Carry. Similar to Nexa; the commercial outlets were offered to existing Maruti dealers and it invested all the focus in expansion of the network. By Nov’18’ Maruti’s commercial vehicle channel was present in 193 cities with 250 outlets.

Maruti Suzuki’s Commercial Outlet

The Mini Truck Load Segment (<2 tons) was dominated by offerings from Tata Motors & Mahindra. While Ace was the undisputed leader in the segment; Mahindra tried to grab considerable share via its offerings Maxximo/Jeeto. Ace (Normal+EX+Zip) is currently enjoying a market share of 66%; while Mahindra’s share in the segment is 23%. The overall segment has grown by 50% in this financial year (Apr’18-Jan’19) v/s Apr’17-Jan’18.

Super Carry’s performance in this financial year has been extremely positive. The model posted a growth of 159% in the first 10 months of this FY over same period previous FY. The model has steadily gained a market share of 10% and at this rate may even match Mahindra’s volume in the next 1-2 years!

Only 44 units of Jawa bikes dispatched in Jan’19!

Classic Legends; a subsidiary of Mahindra had announced that their motorcycles are sold out till September 2019 owing to massive number of bookings received online. However, the booking figures were not disclosed and it was told that the deliveries for the Jawa and Jawa 42 will commence by March’19 once all 105 dealerships shall be operational by February 15, 2019.

44 units of Jawa bikes were dispatched to the respective dealerships in Jan’19. These figures indicate that these bikes were primarily dispatched to the newer set of dealers and shall be used for Test Drives. The right assessment of Jawa bikes production, demand and sales shall happen basis Feb’19 data. Do note that Classic Legends has set a target of 90,000 units of Jawa Motorcycles for this year, making a target of 7,500 units per month. Royal Enfield is currently selling an average of 45k units of Classic 350 per month; and seeing the initial response 7.5k units of Jawa bikes shouldn’t be difficult.

Suzuki Access overtakes TVS Jupiter as the 2nd Best Selling Scooter in Jan’19!

In Jan’19; Suzuki sold 54,524 units of Access v/s 51,300 units of Jupiter sold by TVS. While Activa has been the undisputed leader in the segment; Jupiter had slowly established itself as a strong second spot holder in the category. It even crossed 1 Lakh unit sales in the month of Oct’18 and had sold 1,02,132 units that month. However; post the launch of refreshed avatar Access has been slowly gaining volumes and maintained a sale >44k units/month in Apr’18-Jan’19.

Sales comparison of both the models in this financial year –

In terms of vehicle comparison; Access comes with 124cc engine whereas Jupiter comes with 109cc engine. Access 125 and Jupiter both comes with rear disc brakes. The price difference between both the vehicles is just within Rs.5k. With Access gaining steady popularity; TVS is losing Jupiter’s volumes and with Jan’19 performance it shall be interesting to see if Jupiter could bounce back and firmly regain the 2nd spot.