Over 22 Lakh Wagon R sold till date in India!

Maruti Suzuki has sold 22,14,544 Wagon-R’s in the past 19 years in the Indian market!

Wagon-R was primarily launched by Maruti Suzuki to counter Hyundai’s tallboy car Santro. While Santro established brand Hyundai in the sub-continent; Wagon R worked out to be equally significant to Maruti Suzuki India. The Suzuki Wagon R was primarily a kei car produced by the Japanese manufacturer Suzuki since 1993. The R in the name stands for Recreation. Wagon R was one of the first cars to use the “tall wagon” or “tall boy” design, in which the car is designed to be unusually tall with a short bonnet and almost vertical hatchback, and sides in order to maximize the cabin space while staying within the kei car dimension restrictions.


Maruti is now preparing to launch the Next-Gen Wagon R in the Indian market on Jan 23rd 2019. While the erstwhile Wagon R had a visible Tall-Boy characteristic; the upcoming Wagon R has been designed a bit more curvy. Built on Suzuki’s 5th-generation Heartect platform, the new Wagon R gets matte black grille at the front and lower bumper and completely redesigned tall headlights. The car also gets floating roof design as seen on the Swift and the Ertiga. The new Maruti Suzuki Wagon R will be available in 7 variants and 4 of them will have Maruti’s coveted AGS automatic gearbox – LXi 1.0L, VXi 1.0L, VXi AGS 1.0L, VXi 1.2L, VXi AGS 1.2L, ZXi 1.2L and ZXi AGS 1.2L.

Next Gen Wagon R completely revealed

Will the New Wagon-R continue the sales run it earlier generation enjoyed? Will the upcoming model stand true for the tall boy characteristics and give unparalleled space and practicality as earlier? Will the pricing be as attractive? Lot of questions which shall be answered on 23rd Jan.

A look at the historical sales data of the Maruti Suzuki Wagon-R:

  • Wagon-R is one of the few models which is present in the Indian market for nearly 19 years!
  • It has sold an average of 9,756 units/mth in the past 227 months. Rare to see such sales performance!
  • The highest volume Wagon R had sold was 17,119 units in the month of June 2014.
  • 2016 was the year where the highest number of Wagon-R’s were sold (in a year). Maruti recorded 1,73,286 units of Wagon-R’s sold in that year!

Top 10 Passenger Vehicle OEMs for 2018 – China

Probably, you may be thinking on why are we covering Chinese Car Sales for 2018? – The reasons are:

  1. To highlight the magnitude of car sales in China. The Top 2 OEMs sold more cars than all OEMs combined in India! However; if you notice China’s Top OEM SAIC_VW sold over 20 Lakh cars and was only 3 Lakhs more than India’s Biggest Carmaker (Maruti has sold 17,31,179 cars in 2018).
  2. If all SAIC Brand Collaborations are combined together (VW+GM+Wuling); SAIC as a group sold a whopping 53,90,980 cars!!! With SAIC entering the Indian market this year (in name of MG Motors) – It shall be interesting to see how the Chinese OEM grab a considerable pie here.
  3. VW is the dominant brand otherwise. Its tie-up with SAIC & FAW combined garnered a sale of over 41 Lakh units last year. Considering VW’s India sales, VW is doing negligilbe volumes in Indian market.

December 2018 Two Wheeler Sales – Snapshot

A look at YoY Growth of the Two Wheeler OEMs and the Industry –

  • De-growth in the Two Wheeler Industry is a bad sign. The Two Wheeler Industry had been pretty immune to price hikes, stock market volatility, rupee depreciation – However drop in the sales means that the increase in Insurance Prices, Negative Consumer sentiment in Rural Markets, has highly affected two wheeler sales.
  • Another trend which is seen primarily this year is drop in Bike Segment – Clearly visible in Honda’s sales drop. India’s love for scooters slowly seems to be wading down. In this Financial Year; while the motorcycle segment grew a healthy 13%; scooters could grow only 5%. Also Honda now faces stiff competition from TVS, Suzuki & Yamaha in scooters segment. Quoting ET Article – Experts said urban buyers are deferring plans to buy scooters due to the rise in the cost of ownership. “Unlike motorcycles, which are used for daily commute by small businessmen and farmers in rural areas, scooters are family vehicles,” explained Ashish Kale, president of the Federation of Automobile Dealers Associations. “Scooters are more often a second two-wheeler used by the women in families in urban areas. With fuel prices and insurance costs increasing last year, many such buyers put off discretionary purchases, slowing down scooter sales.”

  • Bajaj has clearly been the biggest gainer this year! The OEMs price revision of its models has worked magic for the brand and the Motorcycle maker has grew impressively in terms of volumes.
  • Royal Enfield has been struggling off late and the erstwhile poster boy has now revised (reduced) its year sales estimates. While we see that the OEM is slowly losing its royalty and the segment is shrinking; new players such as Jawa pose a bigger threat as well.




Market Share Graph:

  • Top 4 OEMs (Hero, Honda, TVS & Bajaj) command 88.3% of the Market Share – Crazy!

2018 – Slowdown in luxury car market growth

In 2018, luxury car market has grown at the slowest rate compared to last 10 years. Only, if we overlook 2016 growth rate because of one-off exceptional event, when 2000cc + diesel engine cars were banned for limited period in New Delhi.

Growth rate has moderated, from being exponential during the period of 2009-2013, to more linear in last five years (2014-2018).





GDP growth rate in last 5 years has remained a mixed bag. So, in economic terms what could be the possible reason for luxury car market’s phenomenal growth rate tapering in recent past?

  • Has propensity of conspicuous consumption come down? This cannot be true, given the past growth trend. So answer lies somewhere else.

Either

  • World’s fastest growing large economy is not creating enough wealth (read – $ Millionaires/$ Billionaires) to fuel demand for luxury cars.

Or

  • Wealth is getting concentrated in hands of few, indicating economic prosperity is not very wide spread.

Or

  • GDP growth data is not in line with ground reality.

For relative reference we looked at how Indian Luxury car market leaders are performing in world’s largest car market – China.

In 2007, Mercedes Benz China were selling 3 times more car than Mercedes Benz India, now in a decade time, it reached to almost 30 times.





Audi China is selling more cars in a month then whole Indian luxury car market combined annually. To put things in perspective, Audi China (Luxury car maker) annual sales is higher than India’s second largest car manufacturer Hyundai India (mass market player with ~16% market share).





BMW though 3rd in German manufacturer ranking in China, is still churning phenomenal numbers.

This data set shows how world’s second largest economy has created huge wealth and exponential luxury car market growth rate shows penetration level is high, indicating wide spread prosperity.

To understand economic relation and for apple to apple comparison, a more suitable economic indicator is considered over here – $ GDP per capita. Since India and China has very close population size, higher GDP size of China shows Chinese are relatively more wealthy and prosperous, which reflects in their purchasing power.

Till late 80s, India’s and China’s economic progress was comparable too, but after that, with rapid transformation, China achieved exponential growth rate.

For now, Chinese economy is reaching a saturation level and struggling to find newer growth engine, but it is something which is bound to happen.

Indian GDP per capita has very long way to go and so is luxury car market size. Luxury car makers and their component suppliers need to carefully plan their expansion plans in India. What one couldn’t ignore during planning phase is, Indian economy, too, is highly vulnerable to global economic churning due to trade war, gradually slowing Chinese economy and its impact on world economy and last but not the least, volatile and unpredictable global crude oil prices.



Major Luxury Car Manufacturers Sales data at a Glance

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

Luxury Car Sales – 2018

  • The Luxury Car Sales too had a tough time in 2018 and 2 biggies – Audi & Mercedes reported a negative and stagnant growth respectively. The overall industry could grow a modest 3% in 2018 vs 2017.
  • Mercedes-Benz retains the No.1 position for the year 2018. However; the YoY was growth was stagnant and couldn’t gain any significant increase in volumes during 2018.
  • BMW+Mini had an impressive 2018 and grew 13% which was the highest growth reported in the Top 3 OEMs. BMW is currently on a product offensive and has a lineup of 12 launches in 2019 as well. Hope the German OEM gives a tough competition to its other German counterpart (Mercedes).
  • Volvo has given not only safe; but beautiful cars as well recently. XC40, XC90, V40 cross, S60; etc – The lineup is now comprehensive and is well accepted in terms of looks and features. The Chinese owned (Geely) brand is slowly and steadily gaining volumes.
  • Tata owned JLR too did a moderate 16% growth and was only 404 units short of 5k.

Harley Davidson LiveWire – Harley’s first-ever electric motorcycle!

Harley breaks the mold and opens its doors to the rest of us with a solid product strategy

– Opened pre-bookings for the electric LiveWire which costs US $ 29,799

– Expect it to cost ~Rs. 40-50 lakh if it comes to India via the CBU route

– Revealed specs of the LiveWire

– LiveWire deliveries to commence in September 2019

– Showcased electric scooter concept for urban mobility

– Showcased electric off-road trail bike concept

An electric naked street fighter with a supercar-like 3.5-second 0-100kmph time is nothing to scoff at regardless of who makes it. It’s far more impressive considering that this crotch rocket wears the Harley-Davidson badge. The motorcycle maker is known for its laid-back cruisers with old-school push-rod V-twins and loud pipes.

As Harley’s target audience of baby boomers shrinks, they’re looking to excite the youth and get young blood on two wheels.

The LiveWire already has a production plan. The scooter and the trials bike are still only concepts. But if their production avatars end up sharing the floor with the LiveWire, that will mean a whole new direction for Harley-Davidson.

While their bikes may have different personalities, they’re all seen as cruisers. There’s no need to get the Iron 883 and the Road Glide as they both pretty much do the same thing. But a scooter, a street naked, and a trail bike are so different that a single owner could have all three in his/her garage and easily justify spending the cash. The scooter can do the grocery runs in style. The LiveWire can take you to office and back through curvy canyon roads. The lightweight trail bike will let you have fun off the road. Judging by the looks of that thing, it appears pretty hardcore and may not even sneeze at a rocky trail.

It’s nothing new and many automakers do it. Ducati, for example, has the stylish Scrambler for weekend breakfast rides, the Monster for commuting, the Multistrada for touring, and the Panigale for the track. The fact that it’s coming from Harley-Davidson makes it noteworthy.

Whether we get to see the two concepts in production form or not will greatly depend on the success of the LiveWire. It’s a big-ticket product for only the early adopters. It’s certainly a good strategy to have a small number of customers to satisfy should something go wrong. A new product with new technology is bound to have teething issues. With a big price tag, it’s going to have a smaller number of paying beta testers and limited success. A positive response from the earliy adopters should help clear the path for the other two concepts, which are not only going to be more refined but also more affordable. Which is how it should be because the mass market is neither prepared nor willing to become a guinea pig.



Harley-Davidson LiveWire Specs

– 0-100kmph in 3.5 seconds

– 177km range per charge

– Adjustable front and rear suspensions from Showa

– Michelin Scorcher tires

– 4.3-inch touchscreen console

– Available in orange, lime green, and black

– 20km per hour charge rate regardless of whether you connect to 110v (level1) or 220v (level 2)

2018 Car Sales Statistics – India

Modelwise Car Sales Statistics for 2018 –





Top 25 selling models of the year 2018 are –





Top Selling Compact Sedans of 2018:





Top Selling Compact SUVs of 2018:





Top Selling Sedans of 2018:

Best Selling Car of 2018 – Maruti Dzire!

Maruti Dzire dethrones Maruti Alto after 13 years; and emerges as India’s highest selling car of 2018!

In a reflection to consumers preference over bigger cars; Dzire emerged as the Sub-continent’s best seller. It is the first time in the Indian Automotive history a compact sedan would’ve been throned as the nation’s best selling car. Dzire sold 2,64,612 units in 2018, a growth of 17.6 percent over 2017 and was higher than Alto’s tally of 2,56,661 units that was stagnant over the previous year. Dzire has been closing in on the Alto over the last 3 years showcasing a growing trend among consumers to opt for bigger, more feature rich cars against bare bones entry level models that depend on lower price point.



A look at the Top 10 Selling Cars of Year 2018 –

  • Dzire’s facelift in May 2017 has helped it register all time high sales.
  • Alto is now under its peak annual sales of 2011 when it hit 3,11,367 units and also now became the best selling small car in the world in a single market between 2011-14.
  • Swift and Baleno did impressive volumes each and crossed >2 Lakh sales in Calendar Year 2018. The time is not far where these cars shall overtake Alto volumes as well! Also to note here that both Swift & Baleno clearly outsell its much cheaper sibling Celerio.
  • The tall boy Wagon R had a forgettable year dropping out of the top 5 for the first time ever with a 8.9 percent decline in sales at 1,52,020 units. It was replaced by the company’s compact SUV Brezza in the top five. However, the refreshed Wagon R is expected to change the scenario this year.
  • Value Conscious Indian buyer is now ready to spend higher – Hyundai’s Elite i20 for example found more customers at 1,41,104 units than the Grand i10 that clocked 134,249 units.

Car Sales India – Year 2018

~33.5 Lakh Passenger Vehicles were sold in India during the year 2018! The Industry could project a growth of little over 5% in 2018 when compared to 2017. While we anticipated that 2018 shall be they year where the industry could grow double digit owing to multiple new launches and also due to the Auto Expo euphoria. However Weakening Rupee, Volatile Stock Market, Increasing Fuel Prices & Rising Interest Rates played spoilsport in the growth story and the Industry struggled to register even 5.2% growth.



Let’s see how the OEMs fared in 2018 –

  • Tata registered the highest YoY growth; witnessed an improvement of 26.3% in sales volumes. Riding on the consistent performance of Tiago and Nexon, Tata sold almost 2.2 lakh passenger vehicles last year.
  • Ford and Toyota were the next two OEMs which could register positive growth, witnessed growths of 11.7% and 8.5% respectively.
  • The Nation’s Biggest Car maker sold >17.3 Lakh cars and grew by 8% in 2018 v/s 2017.
  • As a matter of fact; 6 out of Top 7 OEMs saw a positive YoY growth barring Honda which registered a degrowth of -2.4%. Even with the big ticket launch of Amaze; Honda wasn’t able to match 2017’s volumes in 2018.




How the Market Shares fluctuated in 2018 v/s 2017 –

  • Maruti strengthened its market share even further in 2018 to 51.7% v/s 50.4% Market Share in 2017. Maruti+Hyundai now captures 68.1% of the overall market!
  • Renault registered the highest dip in Market Share and lost a heft 1.1% Market Share in 2018 v/s 2017! It’s high time for Renault to pull its socks and avoid any further drop in its volumes/MS.

Retail Sales Snapshot – December 2018

FADA (Federation of Automobile Dealers Association) has taken a great initiative of sharing the Retail (sale of cars from Dealership to End Customer) Data. This shall be the right way of looking at the Industry Performance as the Wholesale Data was deceptive as it used to reflect the dispatches of cars from OEM to dealer. As the Wholesale figures were primarily published; OEMs used to push cars to dealers to project growth in the sales volumes which used eventually lead to high inventory levels at dealerships if retail movement was slow. We appreciate FADA’s initiative and hope they shall be able to share model-wise retail data as well.



The Industry-wise Retail Statistics for Dec’18 is as shown below:

  • Not a healthy scenario for the Auto Industry
  • MoM (Month on Month) Auto Sales have actually declined; vis-a-vis growth seen in the Wholesale Statistics
  • Liquidity a concern for the Auto Industry and is backed with negative consumer sentiment
  • Passenger Vehicle Sales was down by -7% in Dec’18 v/s Nov’18 and was -3% when compared to Dec’17. The PV Sales were down by 7% in FY18-19 vis-a-vis FY17-18! Indeed a much more tougher time for dealers rather than the OEMs as they shall be still carrying the stocks in their inventory.
  • 2W sales were comparatively better and showed 11% growth in Dec’18 v/s Dec’17. However; there was a degrowth of -18% in Dec’18 v/s same period last year.