Best Selling Motorcycles of September 2018





  • Top 5 motorcycles were dominated by Hero & Bajaj! The Motorcycle segment still dominates the Indian 2-wheeler scenario – the Top 4 motorcycles sold more than the Top 10 scooters in Sep’18! (The combined sale of Top 4 motorcycles was 6,71,192 units v/s the combined sales of Top 10 scooters of 6,01,878 units).
  • Splendor still sells like a charm! It overtook Activa sales and emerged the No.1 Bestseller in the Two Wheeler category.
  • Bajaj has gone the volumes way and has aggressively priced the entry-level offerings (CT & Platina). Bajaj also had 3 models in the Top 10 list and was only second to Hero (which had 4 models).
  • Surprisingly Royal Enfield sales have slowed down and the Classic 350 was pushed to the 10th spot. Classic 350 sold 44,021 units in Sep’18 (v/s 47,674 units sold in Sep’17).

Best Selling Scooters of September 2018





  • Honda Activa continues its dream run and again dominates the Top Slot in the list of Best Selling scooters. It has also recently crossed the 2 crore sales milestone! Honda Activa took 15 years to cross the 1 crore mark, while the second crore landmark took just three years. Activa has been the highest-selling two-wheeler in India for the past few years, displacing the Hero Splendor.
  • The 2nd best in the segment – Jupiter sells ~2 Lakh units lesser than Activa! However, TVS has been the only OEM who has been able to show some fight to Honda in this segment. Jupiter sold ~90k units and has consistently been the No.2 brand in the segment.
  • Grazia is missing in the list and the competition TVS Ntorq stood 7th with sales of 20,820 units. Ntorq has a better acceptance amongst customers and is slowing gaining popularity.
  • Access & Dio fight hard for the 3rd place and Access emerges as the winner! Access was one of the early adapters of 125cc engine and has a good demand among buyers.
  • Though Hero has 3 offerings in the segment (Maestro, Duet & Pleasure); the combined sales is lesser than Jupiter! The volumes aren’t good enough considering vast dealer network of Hero Moto Corp.

Three Wheeler Industry Snapshot – H1 FY19



Three Wheeler Industry has been on a growth trajectory since past 2 years and has been growing significantly when compared to the overall Auto Industry. In fact, the Three Wheeler Industry grew a healthy 36% in Apr-Sep’18 when compared to the same period last year. These numbers indicate that demand in the three-wheeler market is currently sustainable. Earlier the industry saw a decline due to three-wheelers being replaced by aggressively priced, small four-wheeled mini-trucks. But current industry numbers contradict that.



  • Bajaj Auto is the Maruti of Three Wheelers! Yes; with a Market Share of 58% and a segment-leading YoY growth of 50% Bajaj Auto has been growing extremely strong in the segment. Bajaj has also taken the lead and ventured into Quadricycle segment with its offering ‘Qute’.
  • While Piaggio, the No. 2 player, has sold 85,657 units in the first of this financial year, which marks growth of 19 percent. Mahindra & Mahindra sold 30,774 units (+30% YoY). Meanwhile, the Rajkot-based Atul Auto sold a total of 20,837 units, a 6% YoY increase.
  • Bajaj + Piaggio command 82% of the Market Share. The duopoly has clearly dominance in the segment.

Tiago – The ‘Real Hero’ in Tata Motors comeback!



Tata Motors has made a huge image makeover in the past 3 years and has helped the OEM slowly gain market share which it had previously lost. Tata Motors in now currently challenging the No.3 Spot in the Top 3 OEMs and is progressively strengthening its hold. So what exactly changed in the recent years for Tata Motors that allowed Tata Motors in the path of regaining its lost glory –

  • Project HorizoNext – Way back in 2013, Tata initiated HORIZONEXT, a four-pronged customer-focused strategy to provide the best customer experience — from best vehicle experience to superlative purchase experience and followed by technology-intense after market service support. Tata Motors products were reeling with Quality-related issues and the Dealership Service Experience was nothing but a nightmare. The HORIZONEXT helped the OEM to work on improving its overall quality levels of the products/new launches and also elevate the dealership interaction experience.
  • Shift from Taxi Segment – Tata’s Indica & Indigo duo which were the mainstay of the OEMs volumes during 2010-2014 was slowly deteriorating the brand’s acceptance amongst personal usage buyers. The company had sought to bring about a change in its brand positioning from an automaker that makes cars for commercial operations like taxis to an automaker who makes cars for personal use. As of today; apart from Zest/Bolt none of the OEMs models are offered in Taxi segment. Tata Motors has completely shifted focus from the Taxi segment and even the upcoming line of products are bound to cater to personal usage buyers (Harrier, 45X).
  • Shooing away from the ‘cheap’ tag – The lesson was learnt from its most ambitious project – Nano. Touted as the world’s cheapest car, did not live up to the expectations in spite of several makeovers and its production was recently halted citing low volumes. Post Nano; none of the new launches carried the ‘cheap’/’cheapest’ tag in the segment. Rather segment-best features were marketed as the USPs (Ex: Harman Music system which was earlier available in high end cars were featured in Zest/Tiago).
  • JLR Support – Jaguar Land Rover’s support in product development has helped Tata Motors to bring a vast improvement in the quality of products introduced in the recent times. It was told that Tata had taken a lot of cues from JLR while designing the Hexa and a lot of JLR pedigree shall be seen in upcoming SUV Harrier as well.
  • Expanding Market Base – With Hexa & Nexon; Tata marked its entry to bigger MUVs & Compact SUVs space. Tata Motors current portfolio of products does not cater to the premium hatches, vans, bigger sedans, larger SUVs segment. However, the future lineup of products shall enable Tata Motors make its presence felt in these segments. By 2019, with a string of new products in the aforementioned segments, Tata Motors hopes to cover 95 per cent of the market!
  • Improved Customer Engagement – Tata Motors has taken huge stride in terms of engaging its customers online and also support the customer communities accordingly. Ex: A bunch of Tata Nexon Owners have joined together and formed ‘The Nexon Tribe’ and is organizing get together drives/meets and the same is backed by Tata Motors. Such associations will further enhance the brand association and loyalty of the customers.
Source
  • Enhanced Dealership Network – Currently Tata has ~650 outlets. The OEM is targeting 1500 outlets by 2020. With the expansion Tata is trying to enhance the customer experience as well in these touch points.



With all these efforts this could well be the strongest comeback in the history of the Indian car industry. However, there is one model which has stood the test of time and has evolved as the biggest enabler in terms of Tata Motors comeback – TIAGO. 1,84,278 units of Tiago’s have been sold in the past 32 months and has contributed to ~40% of Tata’s volumes in this timeline.

  • Tiago’s contribution to the OEMs volumes have increased over the past 2 years and the averages too have shot upto ~8k units/mth in 2018 (v/s 6k units/mth in 2017).
  • Tiago has achieved this feat by overcoming some strong competition in its segment (namely Kwid, Celerio, etc) and is unseen in the industry to see a Brand increase its yearly average post 2-years of its launch!
  • Tiago was also instrumental in helping Tata Motor’s leverage its platform to bring compact sedan Tigor. Though Tigor hasn’t seen significant volumes; the recent facelift may just help it gain the required momentum.
  • Offlate; Tiago is also seeing a jump in its ranking in the Top selling cars list (recently in Sep’18, it ranked 12th)

Tiago has proven its worth over time and it wouldn’t be wrong to say that it has played an extremely significant role in terms of helping Tata Motors revive its brand identity and also elevated the parent as a serious challenger in the fight for the Top 3 OEMs!

Discounts for Oct’18 – Honda, Hyundai, Mahindra, Tata & Toyota

HONDA-

Maximum Discounts upto Rs.1 Lakh available (on BR-V)



HYUNDAI-

Maximum Discounts upto Rs.1.5 Lakhs available (on Tucson)



MAHINDRA-

Maximum Discounts upto Rs.9.6 Lakhs available (on Rexton)



TATA-

Maximum Discounts upto Rs.52k available (on Hexa)



TOYOTA-

Maximum Discounts upto Rs.95k available (on Altis)

2018 YTD Passenger Car Industry Analysis

2017 vs 2018 (January to September YTD)

With three quarters of the year behind us and two big festive season to go before the year ends, situation has become little challenging for auto manufacturers, due to rise in input costs and fuel prices. As both these factors are impacting the consumer sentiments at large. Let us see how passenger car market has performed so far in 2018 compared to same period (January-September) in 2017.

  • Industry grew by 6.9% so far over 2017
  • Maruti is growing much faster than the industry and yet doesn’t seems to be complacent in any way with product and technology onslaught
  • Hyundai has to wait for Santro’s launch to match industry’s growth rate by the year end
  • Tata has come very close to secure 3rd position, ceded to Mahindra in 2012
  • Despite good numbers from Amaze, Honda is yet reach last year’s numbers, largely due to City and Jazz’s numbers, feeling intense competition in respective segments
  • Ford’s growth is propped by Ecosport, no surprise why Ford in India is called one product wonder company
  • Similarly, Toyota’s growth is coming from mighty MUV ‘Innova’, rest of the story is not so hunky-dory
  • Despite facelift Kwid available in market, Renault is deep in red



Car Size

Car Size

  • Small cars (<4m) are major growth driver of the industry in the current year largely attributed to Maruti’s products
  • Mid-sized segment growth is pulled down by shrinking sedan segment
  • Large car growth is led by Toyota Innova, rest all are stagnant or declining



Body Type

  • India too caught the global SUV fever and growth of SUV/Crossover is no surprise
  • Sluggish growth rate of hatchback is largely attributed to shrinking base of small hatchbacks like Alto or Kwid
  • Large hatchbacks are doing pretty well
  • Mahindra Marazzo and upcoming Maruti Ertiga may bring MUV category back in black till year end



Sedan Segment

Though sedan segment appears to be growing, there is more than meets the eye. So we tried to peel the layers of onion to see how market demand shift towards SUV has impacted sedan segment’s growth.

Except for sub 4m sedan, every other sedan segment is in decline mode. Growth of sub 4m is led by only Maruti Dzire followed by recently launched Honda Amaze. Decline in premium sedan segment has been covered in one of our earlier article. The latest victim of compact SUV onslaught is mid-size sedan segment.

Since segment is de-growing YoY by 5.4%, 3rd generation Hyundai Verna launched in late 2017 has eaten into the Honda City and Maruti Ciaz’s pie. Despite the latter’s inherent strength, they were left with no choice other than to cede market share. Right now only relief for them is suicidal pricing of Toyota Yaris.

Toyota’s highly ambitious and miscalculated step has backfired badly. Four months since launch sales tapered down, so, Toyota has started offering discounts, that too in festive season. Moreover, Yaris doesn’t feel any special or premium over segment benchmark for two decades – Honda City, and at that price point Hyundai Creta looks far more lucrative too.

For manufactures, choice is simple now – start investing money, time and effort in SUV, where future market demand lies, instead of sedan! It seems, Ford’s global strategy to kill sedan by 2022, a more prudent decision, because at the end of the day, marketer’s job is to meet the needs of buyers, functional and emotional.

(The article is written by Rohan Rishi. You can connect with him at emailrohanrishi@gmail.com)

Discounts on Maruti Cars for October 2018

Maruti Suzuki Consumer Offer/Scheme for October 2018

Our endeavor always have been to make our analysis better month-after-month. In our this month post of the Offers; we have done a comparative study of the discounts offered by the OEM (Maruti) for Oct’18 v/s the discounts of Sep’18. The purpose of this study is to highlight on how the OEMs design their discount schemes and what logic would’ve been used at their end to promote their cars. In Oct’18 scheme highlighted in the aforementioned table; you could see that schemes have reduced in majority of the Maruti’s models. Why is that? Let us explain:

  • Being a festive month (Dussehra in North/West; Durga Puja in East & Ayudha Pooja in South); Maruti is aware that the customers would go ahead with their purchase irrespective of drop of discounts. Hence shelling out more discounts would be avoided and thus the OEM shall save some promotion money.
  • Also discounts would be reduced on the models where the inventory/stock levels are lower. The concept is simple; one would not discount a product where the stock availability is less. Seeing the wholesale trend; the Alto, Wagon R, Celerio, Eeco dispatches were lower in the previous months and basis the festivity the discounts have been lowered in these models.
  • However, Discounts on demand-models like Swift & Dzire has been increased! Maruti has heavily pushed these two models in the previous months to ward off competition (Ex: Swift wholesales in Sep’18 was higher than Alto!). Also Dzire was pushed to dealers to shorten the waiting period citing the success of New Amaze and upcoming launch of Ford’s Aspire & Tata’s Tigor. The diesel models of both Dzire & Swift now has Rs.10k more discount in Oct’18 v/s Sep’18!
  • Considering the upcoming launch of the New Ertiga, the discounts on the old Ertiga have shot up! One can avail discounts upto Rs.70,000 on the Ertiga!

The discount on Maruti models has been highlighted here in Descending Order (Ex: Ertiga has the highest offer for Oct’18 and has been mentioned first)

1. Ertiga: The outgoing Ertiga has now a discount of upto Rs.70,000! The launch of Next Gen Ertiga is on the cards and Maruti would want to liquidate the old gen cars on priority.

Ertiga Diesel discount is increased by Rs 20,000 and total cash discount on Diesel Ertiga is Rs 40,000. There’s also an exchange bonus of Rs. 30,000. Cars older than 7 years gets Rs 20,000 exchange bonus.

2. Celerio: 

Celerio is available with a maximum discount of Rs. 60,000. The AMT petrol and CNG variants gets a cash discount of Rs. 30,000, while the MT variants get a cash discount of Rs. 25,000. There is an exchange bonus of Rs. 30,000 on AMT and Rs. 25,000 on the MT models. For cars older than 7 years, the exchange bonus is Rs. 20,000.

3. Alto:

All time best selling Maruti Alto 800 is currently available with discounts of up to Rs. 45,000. (15,000 cash discount + Exchange Bonus of 30,000). All variants of the car get Rs. 30,000 exchange bonus (on old car less than seven years old). If the old car is older than 7 years, the exchange bonus is Rs. 20,000.

4. Wagon R: 

WagonR is currently available with a cash discount of Rs. 25,000. Additionally, there’s an exchange bonus of Rs. 25,000 on the petrol AMT and Rs. 20,000 on the MT Variants. The exchange bonus is Rs. 5,000 lesser for cars older than 7 years.

5. Swift & Dzire:

Swift petrol is available with Rs. 15,000 and diesel with Rs 20,000 cash discount. Discount on diesel variants increses by 5,000 comapring to last month. Exchange bonuses on the petrol and diesel Swifts stand at Rs. 10,000 and Rs. 20,000, respectively. However, this bonus reduces by Rs. 5,000 on cars older than 7 years.

Dzire and swift gets the same offers

Nexon sells more than the Ecosport in Sep’18!

Tata’s Nexon sells more than the Ford’s Ecosport for second consecutive month in a row! Nexon completed 1-year of it’s launch and has been holding on to its volumes pretty well. The model has gained acceptance over time and selling more than the legendary Ecosport is no easy task. Usually, the 2nd spot in segment was fiercely fought between Nexon, Ecosport & Honda’s WRV – However, with no Automatic variant available; the WRV has been pushed to the No.4 slot and the competition now lies between the Tata & Ford offerings.

Once the biggest UV maker; Mahindra now occupies the last slot in the segment with it’s TUV 300. However, M&M is planning to make a strong comeback in the segment with it’s upcoming S201 (based on Ssangyong’s Tivoli).

Autocar‘s iteration of Mahindra S201

Let’s see how the Top 5 best sellers in the segment –

The segment in overall de-grew by 6% and apart from Brezza & Nexon; all other models witnessed a YoY decline. The biggest drop was in Honda WR-V’s volume and without an automatic variant update the model should find it difficult to gain the expected volumes. YoY growth statistics of the offerings in the segment: