Indian 2 Wheeler Sales Figures – Nov 2016

Nov’16 was nothing but disastrous for the 2-wheeler Industry. ‘Demon’itization impact on the business was catastrophic and the Big 2 (Hero & Honda) degrew respectively.

PS: Mahindra 2 Wheelers witnessed a massive 90% degrowth. The company is currently clueless on what steps to be taken to revive sales. Though the acquisition of BSA & Jawa motorcycles has raised a lot of expectation from the Indian OEM; it will be an extremely time consuming process. We’ll have to wait and see how the Mahindra dealers will survive the tide ahead.

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OEM-wise sales data

Model-wise Sales Statistics:

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Top 25 Two Wheelers for Nov 2016 –

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2 TVS offerings in the Top 5 stable! Indeed a good time for the Chennai based Two Wheeler manufacturer.

State-wise 2 Wheeler Sales Statistics – India

Similar to Region-wise sales data which was published previously for cars (link); find here the 2 wheeler sales data. Much to our surprise; we saw significant variance in the state statistics of 2 wheeler sales when compared to cars.

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  • The 2 wheeler Industry had a double digit growth of 10% in the first half of the Financial Year 2016-17. 2 wheeler sales is poised to cross 1 crore units this FY!
  • West emerged as the Top Zone and contributed to over 30% of the national sales volume. It also grew by 30% in the second quarter.
  • South was close and lost out to West in the second quarter. Tamil Nadu emerged to be the biggest market in South Zone.
  • North saw a dip in overall volumes in Q2 and stood 3rd in overall Zone-wise ranking.

A look at %Contribution to the State’s numbers and Country’s volume –

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Take a look at the Rank of these states basis H1 sales statistics (4wh sales rank also mentioned for comparison) –

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Indian Car Sales Figures – November 2016

Model-wise Sales figures:

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SNAPSHOTS:

  • To make way to the New Santro, i10 had its last breath in Nov’16 marking the end of its 9 year production run. Nov’16 also registered its best sales numbers in the past 15 months!
  • Maruti doing everything possible on earth to sustain Alto’s volumes. Alto again emerged as the country’s best selling model and also posted a growth of 6% YoY.
  • Eon however lost ~1500 units YoY and moved clearly out of the Top 10 stable. Eon’s finding it tough to fight the likes of Alto & Kwid without an AMT option and is selling primarily on heavy discounts.
  • Baleno crossed 11k units for the first time since launch! It has clearly overtaken its competitors (i20 & Jazz) in the long run and has emerged as the most value-for-money option in the segment.
  • Kwid manages to make in the Top 10. Renault has been able to replicate what Maruti did with Alto (first the 800cc Kwid, then launched the 1.0 ltr version and followed it with an AMT sibling).
  • Vitara Brezza maintains its consistency and emerges as the best selling SUV of the nation. Brezza has clearly outpaced Bolero and put Mahindra on its backfoot.
  • Even with its ailing sales,  Bolero was the highest selling model in Mahindra’s portfolio!
  • Did we see a Honda in Top 20? No! City numbers have dwindled beyond compare. Maybe the model update in Jan/Feb 2017 can work for the Japanese automaker.
  • 419 units of BRV! The numbers are similar to what Mobilio did in the same time last year.
  • Tiago contributed to over 47% of Tata Motors sales! The new kid in the block is exactly what Tata Motors needed now. With the Hexa launch scheduled in Jan’17; we expect the portfolio to go stronger.
  • Fortuner came back with a bang! With offtake (dispatch to dealers) of 1924 units; the model is a matter of envy for all other OEMs. It was able to garner over 5400 bookings within 2 weeks of its launch. The real test for Endy starts now!
  • Tucson & Elantra doing similar numbers? Yeah, Hyundai is infact the new Honda! The segment (18-25 Lakh SUV) was empty right now and the timing of Tucson looks apt.
  • Ford could sell only 363 units of Figo? They were able to sell more Endeavour’s in comparison!
  • Enjoy’s price reduction has worked wonder for the brand. It has crossed 900 units consecutively for the second month in succession.

A look at Top 20 selling brands –

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State-wise Car Sales Statistics – India

We have been receiving multiple requests to post State/City-wise car sales data. We have been able to compile state-wise data and would present the detailed analysis in this post. Considering India’s vast demography and the variance in buying-behavior of consumer; this analysis will help us understand the purchase pattern across various regions of the subcontinent and also allow to assess the state-wise contribution to the nation’s sales.

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Zone-wise and State-wise Statistics
  • In FY17 (Apr’16-Sep’16), South Zone has emerged as the TOP zone and currently contributes to over 31% of the country’s sales volume. South has marginally overtook West Zone’s numbers and the stellar performance in Q2 (Jul-Sep) made all the difference. South Zone also the registered the highest Quarter-on-Quarter growth (Q2 v/s Q1) – primarily boosted with Kerala’s volumes (Onam effect).
  • West Zone did perform well and gave stiff competition to South’s growth story. The festive (Ganesh Chaturthi) season also pulled up the Zone’s numbers in the second quarter and enabled West to register 17% QoQ growth.
  • North was the only Zone in the country to register a de-growth in Q2 (compared to Q1). J&K drop in volumes was the highest and the valley registered de-growth of 27%.
  • East did fairly well and delivered 14% growth. However, the overall volumes in this region is still way behind compared to other Zones. East as a Zone contributes only 10.9% to nations numbers (even lesser than Maharashtra as a state)!

A look at %Contribution to the State’s numbers and Country’s volume –

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  • Out of 14,92,652 cars sold in first of FY17, near to two-third of the sales were contributed from South & West Zone!
  • South has three biggies – Kerala, Karnataka & TN contributing ~8% each to the national sales. AP+Telangana combined remains in close contention with 7% contribution.
  • West Zone’s numbers is primarily controlled by Maharashtra (42% contribution to Zone’s numbers)! Gujarat Car Sales numbers are quite substantial as well.
  • North has multiple pockets, but is dependent on UP & Delhi largely.
  • WB & Assam emerge as the top two markets in East.

Take a look at the Rank of these states basis H1 sales statistics –

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Buy a New Car or a Used Car?

Riya is now settled in her job and wants independence in terms of personal mobility. While the option of Cab Aggregrators look feasible enough; she wants to own a machine that she can term as a ‘safer’ mode. Also after years of hard work, who wouldn’t want to flaunt their success? – Owning a car is still seen as a ‘status symbol’.

Now that Riya has decided that she ought to buy a car; a million dollar question revolves around her mind – whether to buy a brand new car or opt for an used one? We at Auto Punditz would want to answer that – A used car purchase would be more sensible. Let us see the reasons why –

  • New Car Depreciation: The moment you drive your new car off the lot, it will depreciate by as much as 11 percent of its value. Every car undergoes depreciation but a used car has an upper hand for the same when compared to a new car. It depreciates at a slower rate when compared to a brand new car. Have a look at the Depreciation Chart for better understanding:

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As seen above, Depreciation of a vehicle is at its peak during the first three years of purchase. But when you are buying a used car, you will obviously purchase it at a price which has already gone under major depreciation.

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  • Price of the Used Car: Buying a used car will not only be a much cheaper affair, but would also allow one to explore the higher segments. Ex: A friend of mine recently bought a top end Scorpio AT (2010 model with 52kms  on the odo) at a price of Rs.7 Lakh – while he couldn’t have sneaked a top end NEW Maruti Swift Diesel at the same price! Also note that the Top End NEW Scorpio would currently cost over Rs.15 Lakh.
  • Better Condition & Reliability: With time, today’s generation cars sustain for a longer period of time. The improved technology has enhanced the durability factor of the vehicles and thus the age of these machines has increased. Hence, buying a used car is much tension-free decision now.
  • Organised Sellers: Earlier the market was dominated by Brokers and lacked trust-worthiness. However, many OEMs and Organised players have jumped into the bandwagon of selling ‘CERTIFIED’ Used Cars. The experience promised is same as buying a new car and the same is backed with easy serviceability.
  • Cheaper Insurance: No matter the age of your car, insurance will be a concern. Rates will almost always be lower for used cars than new cars, but regardless, keeping coverage costs low is a good savings strategy.

Otherwise, The factors which will incline you towards New Car are:

  • It’s NEW, duh! – A new car hasn’t been in any accidents, hasn’t been mistreated by unknown evildoers, doesn’t smell funny, has seen no wear or tear, and comes with a clean history that includes only being driven off the line, onto a transporter, and then around the dealer’s lot.
  • New Launch – Almost 50% of the Top 10 selling cars today are the ones which have been launched in the past 2 years. Cars have become a fad today and customers are opting for newer models which are better looking and are loaded with latest features. The newer the car, the more modern the geeky tech that’s packed inside. Multimedia and navigation interfaces are constantly evolving and improving, so if you have to have the latest in gadgets (and don’t want to add them yourself post-factory) the selection will be better in the new-car showroom
  • Financing — Banks offer lower financing rates on new vehicles because the vehicles are inherently worth more and have not already been hit by depreciation.
  • Lesser Maintenance cost — Some new cars, mainly those from luxury marques, include free scheduled maintenance for a certain amount of time or mileage. This built-in cost saving should be considered in the final price analysis if applicable.
  • Hassle-free Purchase Experience – Once you’ve chosen a vehicle, or at least the brand you’re interested in, much of the new-car search can be offloaded on the salesperson, who can find the car you ask for. The same search in the used realm requires a lot more legwork on your part—hunting on the internet, visiting multiple private sellers, and driving from used lot to used lot.
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Indian Used Car Sales Statistics (v/s new car sales)

In overall, we believe that the Indian Consumer has aligned towards used car purchases and the segment has grown phenomenally well. As on date, used car sales have overtook new car sales and the same is bound to double by 2020. Hence, if you think buying an used car is smart, than you are right!

Top 10 cars of Nov’16

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Source: ET

*UVs and Vans are excluded from the list. Also Elite i20 figures do not include i20 active sales numbers (1316 units)

  • 6 out of Top 10 belong from the Maruti stable! Maruti is leaving no stone unturned to sustain Alto in the Numero Uno slot.
  • Only 2 Hyundai’s are seen in the Top 10 table. The month did extract the juice of the Korean major – ‘Demon’itaztion impact is clearly seen. Also did it find difficult to push stock to the dealers as year-end is approaching?
  • Grand i10 emerged as the best seller for Hyundai – With the demise of i10; Grand i10 is carrying a lot of stake ahead. However, a model change is expected soon – so will the numbers decline in Dec’16?
  • Tiago proves to be the comeback vehicle for Tata Motors. Tata Motors regain the 3rd position in the OEM Ranking after quite some time. A surprising month for Tata Motors though – rejig in the management earlier and now the ranking.
  • Kwid is for Renault what Tiago is for Tata. The entry level hatchs are back in the game! Alto, Celerio, Kwid and Tiago proves that even in tough times this segment will survive – Not many blackmoney hoarders would buy an entry level hatch 😉

November 2016 Car Sales – Snapshot

Two big highlights of the Nov’s statistics –

  • Maruti exudes clear dominance with over 50% Market Share (52.2% to be precise)
  • Did we see Tata silently climb up the ladder? Tata Motors is now India’s THIRD biggest car OEM!

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Even with ‘Demonitization’ aftermath, India Passenger Car Industry posted a humble growth of 2%. And like always, Maruti led the growth phenomena.