Production Statistics – India

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Source: ET

Economic Times published a very interesting on India’s Biggest Auto’makers’; i.e. the OEMs were ranked basis their Production Output from the respective manufacturing plants. In 2016, Renault-Nissan alliance and Ford jumped to become the No.3 & No.5 OEMs in India! While Ford is cashing on Ecosport’s Global success (and hence exports); Renault had an extremely good year in the domestic market with Kwid’s success.

However, Maruti & Hyundai combined manufactured ~23 Lakh cars in 2016! The numbers for Maruti will see a massive surge as the Gujarat plant becomes operational in 2017. Also the expanding Nexa portfolio will help it sustain the production numbers.

To give a holistic picture of how the OEMs are utilizing the Production Output, let us look at the Production v/s Domestic Sales v/s Exports numbers of the Car Manufacturers (for Apr’16-Jan’17 data):

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  • Maruti, Mahindra, Tata, Honda, etc are heavily dependent on local market demand and the production is directly aligned to it. Ex: Tougher Market scenarios will push these Carmakers to cut production and lower their manufacturing output.
  • Ford & Nissan have evolved themselves to be neutral to the Indian demand and have ensured that their production capacity caters to other markets as well. Ex: While Nissan Micra is selling negligible units in Indian market; the Brand is exported to more than 100 markets from India! As on date, Nissan has exported over 6,50,000 lakh cars from India.
  • General Motors too have learned the trick and with ailing local demand it is utilizing its production capacity for Export purposes. Almost 88% of its production output is being used for Exports.

In a long run, India is going to be the battle turf for Top Automobile OEMs and Production Capacity Utilization will be a key factor of profitability for these carmakers. Hence, it will be interesting to see which OEM adapts to the dynamic environment and evolves to be the best.

*Export Contribution has been directly extrapolated from FY16 Production Nos (however the exports could be from the cars which were manufactured prior to Apr’16 as well).

World Car Sales Statistics – 2016

Automotive Sales Figures have always been a disputed subject. While OEMs shy away to share their respective Sales Numbers, we at Auto Punditz just couldn’t understand the logic. We believe in data transparency and just wish all OEMs could share their numbers without much fuss. We do not see any reason why they should hide it. We in this post try to assess the World Cars Sales Figures of these manufacturers as per the data available in various forums/sites.

Let us look at how the OEMs stand in the Top rankings table:

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Source: Forbes
  • The aforementioned data is for the OEMs Alliance. For Ex: GM numbers would include the sales of all its subsidiaries (Chevrolet, Cadillac, Buick, Opel, Vauxhall etc). Similarly Renault-Nissan Alliance Nos would include the sales from Renault, Nissan, Avtovaz (Lada) & Mitsubishi.
  • Volkswagen did the impossible in 2016. It emerged as the Global No.1 Automaker for the first time! Despite the Dieselgate emissions scandal which has rocked Volkswagen worldwide, the German carmaker achieved record group sales in 2016 of 10.3 million vehicles.
  • Renault Nissan Alliance was just a stone throw away of claiming the No.3 spot! The Alliance grew a staggering 16.8% pushed by excellent performance of Renault in markets such as India and the recent controlling stake at Mitsubishi boosted their volumes positively.
  • Toyota & GM posted single digit growth and stood 2nd & 3rd in the podium respectively.
  • What is interesting to see is that ALL Top 4 automaker groups are hovering around the 10 million mark and it’ll be a much interesting race in 2017!

PS: While VW, GM & Renault-Nissan published the vehicle delivery data for 2016; Toyota’s numbers in consideration here are the production stats. Hence the above table will not have the exact metric.

However, if we consider the individual brand performance – Toyota surpassed the No.2 manufacturer by quite a margin and stood tall at the Numero Uno spot.

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Source: Focus2Move
  • Again, stellar performance by Renault & Mercedes who grew double digits in Calendar Year 2016.
  • Honda is strongly challenging Hyundai’s & Nissan’s global numbers. It successfully overtook Chevrolet this year and looks promising in the way ahead.
  • Also to note that even in Electric Car Sales, Nissan held the Top Spot. Nissan was way ahead of Tesla with the support of its electric offering Leaf. Since its inception, more than 250,000 Leafs have been sold worldwide through December 2016, making the Leaf the world’s all-time best-selling highway-capable electric car in history. As of December 2016, the United States is the world’s largest Leaf market with almost 103,600 sold, followed by Japan with almost 72,500 units, and Europe with almost 68,000 units.
  • Mercedes also clearly stood ahead of its German Counterparts. While it sold over 23 Lakh units and overtook BMW (19.85 Lakh units); Audi came third with sales of 18.85 Lakh units globally.

Note: The data in this post is a consolidation from multiple sites and multiple references. Hence accuracy is not guaranteed.

RIP – The ‘Indian’ Ambassador

Rather we can say that ‘our’ Ambassador is now French! Peugeot SA recently bought the rights from Hindustan Motors to use the brand name Ambassador at a cost of Rs.80 crores. Also known as Amby, it was an iconic brand in India and many of us share our first rides in this automobile. It is still seen running as taxis in many cities in India and also a lot of ‘babus’ (ministers/govt officials) get driven around in an Amby. A lot of Indians still swear on the sturdiness of this machine and they’re yet to find a much comfortable car than an Ambassador.

Amby though has a rich Indian heritage; was primarily British. Ambassador was an automobile manufactured by Hindustan Motors. It was in production from 1958 to 2014 with few improvements and changes over its production lifetime. The Ambassador is based on the Morris Oxford series III model, first made by Morris Motors Limited at Cowley, Oxford in the United Kingdom from 1956 to 1959. Modelled after the British Morris Oxford, the Ambassador was the first car to be made in India!

Let us see the premise of the downfall of this legend:

  • Outdated – While the ‘original’ British Morris Oxford ceased to exist in 1959 in Great Britain; the HM Ambassador sold at premium as it was the only few automobile brand to exist in India. It  began losing its dominance in the mid-1980s when Maruti Suzuki introduced its low-priced 800 hatchback. It lost further cachet and market share when global automakers began setting up shop in India in the mid-1990s, offering models with better design and technology.
  • Hindustan Motors – HM is to be blamed for the dwindling sales of this machine. While other Indian OEMs were able to revive/better the imported models (say Willys were re-engineered to become modern day Mahindra’s!); HM was unable to bring significant changes to the age old Amby. It is rather a surprise on how Ambassador brand survived 56 years on Indian soil without much changes.
  • Competition –  The options available for Indian consumers spoilt them for choice and the Amby brand lost its significance. The insurgence of Global Automotive OEMs led to innumerous product offerings and Amby lost the race. The major drop in sales was seen post 2006 and the continuous de-growth led to the death of the icon. We present the 15-years (1999-2014) sales analysis for the same :

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Sales Trend Graph:

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With the ‘Amby’ sales declining rapidly from a high of 24,000 units a year in the mid-1980s to under 12,000 a decade later and less than 6,000 in the mid-2000s, the HM management struggled to position the car and had to put an end to the production in 2014.

We now hope that the PSA group could bring back the Amby and give it the life it deserves. We Indians have a taste for legends (RE, M&M, etc are thriving on it) and would love to see an updated Amby back on Indian roads. We are also sure that the Amby can also give a headstart to PSA for connecting with the Indian consumer and become a household name.

If you’ve missed on how our Indian Amby fared amongst the best Taxis of the world; do click on the video here:

January 2017 Two-wheeler Sales – Snapshot

Snapshot:

  • Two-wheeler brands under pressure and the industry de-grew by 7% YoY in Jan’17.
  • The biggest gainer was Piaggio. Aprilia SR150 has been accepted well and fueling the growth for the Italian OEM.
  • Luxury Bike Manufacturers reeling badly due to ‘Demon’itization. Harley & Kawasaki saw double digit degrowth.
  • However, Scooters saw a tough time in Jan’17. The segment saw sales falling down by 15%!

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Like cars; we have done segment-wise OEM ranking.

Top selling Motorcycle OEMs of Jan’17 –

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Top selling Scooter OEMs of Jan’17 –

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Top selling Moped OEMs of Jan’17  (only 1 OEM selling Mopeds!) –

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Indian Car Sales Figures – January 2017

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Model-wise Sales Data

A look at Top 25 selling brands –

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Basis the feedback from one of our readers (Mr. Paul Dennis Padayatti); we are incorporating Segment-wise Best sellers as well.

Top Selling Hatchbacks (entry & mid level) –

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Top Selling Premium Hatches –

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Top Selling Compact Sedans –

2 - CS

Top Selling Sedans –

5 Sedan

Top Selling Compact SUVs –

4 C SUV

Top Selling MUVs –

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Top Selling SUVs –

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January 2017 Car Sales – Snapshot

Highlights –

  • The Pre-Budget month grew a healthy 14% in Jan’17 vis-a-vis Jan’16. The growth was attributed by the factors of heavy discounting of 2016 models by the OEMs and was particularly led by Maruti Suzuki. The Indo-Japanese car maker crossed the 50% Market Share in Jan’17 and started the year with a bang. Also Jan’17 marked the launch of 2 crucial products to their respective OEMs – Ignis for Nexa & Hexa for Tata.
  • Hyundai too registered a steady growth of over 10% but was way lower than that of the market leader. However, Feb’17 can bring more excitement to the Korean MNC – the new Grand i10 launch is slated this month.
  • Honda however recovered the Fourth Spot in the rankings table. Though the OEM has de-grown 9% YoY; it has grown ~55% when compared to Dec’16! The upcoming City facelift in Feb’17 can improve the game for Honda.
  • Hexa dispatches would have started in Jan’17 and the same is clearly seen in Tata’s numbers. The company has seen steady numbers now and Hexa’s success will define Tata’s 2017!
  • Luxury Brands have now encountered their worst phase in India. The effects of Demonetization seems to have lingered and not a single luxury brand registered growth in Jan.

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