Export Experts!

A look at the brands who are doing phenomenally well in exports vis-a-vis their sales in the Indian Domestic market. 
The report has been categorized separately for cars and 2-wheelers to get a better picture. Also note there would be other brands whose volumes would be higher than the ones mentioned in the report, but will not find a mention here as their domestic sales numbers would be higher. The first Quarter data (Q1 – April 2015 to June 2015) has been evaluated. 
   – Hyundai i10 still finds buyers ‘outside’ the subcontinent. Even the previous gen i20 (before the elite) and Accent has considerable export volumes – though the brands are not even selling in India currently!
   –  Nissan India’s plant capacity utilization is still dependent on export numbers – Micra & Sunny are exported near to 10 times what they sell in India! India made Nissan’s seem to be pretty famous outside the country 🙂
   –  Even Ford has been extremely focused on gaining export volumes. The same was evident from the launch of Ecosport – where exports was given higher significance rather than to support the local demand. The resultant is still seen – Ecosport exports remain higher than the local offtake numbers. Also the demand for its younger sibling Figo has fizzled out domestically, it still exports over TWICE the domestic volumes!
   – VW exports significant units of Vento as well (~5 times the volumes that it sells in India)
   – Ashok Leyland decided to stop Stile’s journey in India – though the export volumes are not significant; it indeed is exponentially higher than the Indian sales.
   – The trend here is quite surprising – 10 brands which have stopped (or phased out) in India are extremely successful in terms of exports. Brands such as Boxer, Victor, Star City are doing exceptionally well export volumes!
   – Royal Enfield Continental GT finds a special mention here – it is the only Royal Enfield brand which has seen YoY de-growth in India; but the exports have been better! The cafe racer concept being widely accepted in other countries support the aforementioned numbers. Also note that Mr. Siddhartha Lal (MD & CEO, Royal Enfield) has recently announced to move to UK to achieve the company’s global ambitions and gain volumes outside the sub-continent. 
The Auto OEMs have surely utilized India’s production prowess and have leveraged on the export potential in European & African markets particularly. We expect the trend to witness a rapid boost with the ‘Make in India’ initiative.

Indian Car Sales Figures – June 2015

See how the OEM’s fared in June’15:

Source: AutocarPro

Points to note:
1. Positive growth shown by Maruti, Hyundai, Honda, Tata, Renault, VW, Skoda, HM & Isuzu. American MNC’s saw a tremendous drop in sales – GM de-grew by hefty 41.1% & Ford by 37.6%. Industry as whole was flat and the de-growth stood at -0.54%.
2. Honda dethrones M&M yet again and stands 3rd in the table. The top 8 OEM’s in terms of June’15 offtake data is as shown below:

Source: Autocar

Also a glimpse at the carline-wise numbers –

June 2015 Sales Figures – Pan India

   1. Did we see Jazz & Creta sales? – Yes! These are the number of cars shipped from the respective manufacturers to dealers. Both Honda & Hyundai have shown tremendous focus and have dispatched ample amount of cars to the channel. This signifies the confidence the OEM’s have on the new products and we hope that the production is aligned accordingly as well. These 2 new launches are extremely crucial to define their growth story in the sub-continent and we believe they’ll not leave any stone unturned to make it a big success!
   2.  Dzire overtakes Alto as the Number 1 selling car in India! Our prediction turns true with this statistic – We did assume that the Indian customers have off-late become more conscious and the value for money aspect is seen in higher segment cars! A lot of first time buyers are experimenting with premium hatchbacks and sub-compact sedans! Gone are the days where the average Indian consumer wouldn’t think above an 800/Alto/Spark/Eon!
   3. Celerio crosses 8k figure for the first time since launch!!! No wonder it’s an after effect of the introduction of India’s most fuel efficient variant (Celerio diesel – 27.6 kmpl). Can Celerio maintain the momentum?
   4. A sudden drop in Ciaz numbers is a concern – While Maruti is taking the next step with Nexa, drop in Ciaz volumes will surely pinch the manufacturer. Also focus on S-Cross production can be a reason here.

Top 10 selling brands of June 2015 –

Source: ET