Global Car Sales Analysis – 2017

Global Auto Industry is growing at steady rate since 2010. With buyer’s preference shifting to SUV, automakers are getting more and more innovative with their products. Let us have a look at the bestselling vehicles across the globe for the first eight months of 2017 (Jan 2017 to Aug 2017).

Top 50 Best sellers

Top 10-Manufacturers of 100 Best Selling Vehicles Globally

Ford seems to be having most successful product portfolio here, dominated by SUV. Ford F-Series, a pick-up, is America’s bestselling vehicle, surprisingly a pick-up and a best seller. Well Americans love their pick-ups! Toyota has very balanced portfolio and wider global coverage, with Corolla being the bestseller globally. Despite diesel gate scandal, VW continues to maintain a steady lead in the list. Success emanates from hatchback led grip in Europe and sedan’s success in China. New design language since 2008 has catapulted Hyundai’s products in global favorites, with Tucson and Elantra being in top 10 in 2016. With 5 of Jeep’s product in top 100 list, one can surely learn that having SUV in portfolio is sure footed success mantra.

Country-Wise-Manufacturer of 100 Best Selling Vehicles Globally

Though Japan and Germany lost the Second World War as villains, now they have conquered the world of automobile and how! I am pretty sure their third partner Italy would appear in the conquering list when it comes to the supercar arena. These countries were defeated, destroyed to rubble and were devoid of resources in post war period. Still with great minds they have in their country, has made them to conquer the world with technology and resurrected giants like Toyota, Honda, VW and likes. Have you ever wondered that we have our independence, freedom and control on our resources since 70 years, still we don’t have such feat. One can always argue that Tata owns marque like JLR, but owning is different from making, for example Chinese car company – Geely, they too own safety obsessed marque Volvo, and they sell blatant copy of Rolls Royce in China! Speaking of China their products are not exported much outside the country and right now the number of product in this list is virtue of China being largest producer and consumer at the same time. America is home of Pick-up, SUV and muscle cars. Their products are more powerful, simple and cheap and Americans love to keep on changing them like a razor blade cartridge. Korean manufacturer, Hyundai and Kia, have really transformed themselves in past two decades and gained huge acceptance worldwide and that’s a feat. Wondering why Romania is in this list, it is because of Dacia which is owned by Renault, it’s the same car company which has conceived Logan and Duster, sold in our country under the Renault brand umbrella. France is anchored by Renault and Peugeot. Ironically the UK which actually won the Second World War is missing in the list.

Body Type Analysis

SUV – Flavor of the season

  • Close to 40% models are SUV!
  • New fondness for compact SUV – Top 10 list is dominated by 5 seater and more of a softroader
  • Ford & Jeep each having 5 models in top 100

Sedan

  • Toyota Corolla is bestselling vehicle in the history and still holds #1 position
  • Volume wise sedan and SUV are neck and neck
  • VW having 3 in top 10 because of China connection

Hatchback

  • Despite being relatively inexpensive, 13 is too low of a number for hatchback!
  • VW accounts for 30% of hatchback sales in top 100 ranking
  • Europe is anchorage for hatchback

Pick Up – American love

  • 6 models in list of 100 is not a surprise, but for pickup it is!
  • Ford F Series, Chevrolet Silverado and Ram Pick-Up are bestselling “vehicle” in USA for years!
  • For reference its contribution to global 100 rankers is 9% slightly less than hatchback in terms of volume!

MPV – Chinese love

  • Only two Chinese MPV in the list of 100!
  • As Americans love their pickup, Chinese find practicality in MPV

 Luxury Cars Sales – 

How 100 Global Bestselling Vehicles Performing in India?

Past – Vehicle which got discontinued in India but still Bestseller Globally

Hyundai Sonata

It kick started a segment where it never was able to make its value realized against the competition. Re launched in 2005 and 2011 with reasonable pricing, but no success at all. Not all global bestseller do well in India.

Wuling  Hongguang

Chinese bestseller! In India it was launched as Chevrolet Enjoy. Chinese cars really don’t go very well with Indian buyers who are used to Japanese quality and pricing since quite a long time.

Ford Fiesta

Older generation of Fiesta was launched in India in 2005 and was quite successful. Later when newer generation was launched in 2011, older was rechristened and sold with classic prefix. 2005 generation was developed in Australia for emerging market. It struck a chord instantly with Indian buyers because of engine under the hood and balanced ride and handling characteristics.  1.4L diesel engine was a gem, having excellent fuel economy. No wonder 85% cars sold in India were diesel, despite being slightly cramped in comparison. Newer generation just bombed due to overambitious pricing, lack of space at the back and a design which did not catch buyers fancy. Numbers has been so bad that Ford has to pull it out even before product’s normal lifecycle end, which in India is around 6 years from launch including mid-life update around 3 years.

Hyundai Santa Fe

Recently got discontinued. Overpriced perception took a toll on its numbers.

Honda Civic, Volkswagen Jetta, Chevrolet Cruze

Refer to my older article which talks about the entire segment (http://www.autopunditz.com/autopedia/mahindra-xuv-500-cheetah-that-killed-a-segment)

Present

Hatchback

Alto got its global 100 ranking because of Indian connection, second being i20. Since launch, i20 has been real money spinner for Hyundai in India. No surprise as its sales is as good as younger sibling i10. Honda Fit in India is known as Jazz, was not able to make much mark in the segment but in its new avatar as WRV, its getting much needed respectable figures. Polo is now too old in India, new generation already launched in Brazil let us see when we will get the new one. Usually global manufacturer take their own sweet time for launching global product in India.

Sedan

Except City all are struggling for numbers. Some really had good run in the past but not now. In India SUV in respective price range are killing the sedans. This phenomena is catching up fast since the introduction of concept called compact SUV, or as what I comprehend – pseudo SUV. Nissan Versa is called Sunny in India, space at the back is simply great, but looks is certainly uninspiring, hence poor show.

SUV

Compass, Ecosport and Creta are boy wonder for respective manufacturer. For others, they don’t stand a chance in India due to their (over-) price (-d) tag.

Future – Cars which May Come to India

Honda HR-V

Biggest question is will Honda be able to slot it in between BRV and CRV? Can it bring numbers for Honda what others have failed to? All I have is dramatized questions, but no answers!

Peugeot

Sometime back, Indian media has reported that Peugeot has planned an investment around ₹ 4000 crore  to set up a plant in India in partnership with C K Birla Group. They even bought Ambassador Car Brand name from defunct Hindustan Motors. Would 208 and 2008 ever touch our shores? Plans are still in air!

Kia

Kia is working on new manufacturing plant in Andhra Pradesh. Product portfolio is still not announced yet, so could we see their global bestseller Rio, Sorento and Sportage in India. Only time will tell.

Jeep Renegade

Being tested extensively in India, may get launched sometime in 2018. Likely to be positioned below Compass, competing against likes of Brezza.

Renault Captur

Soon to be launched in India. But we are not getting the bestseller which shares its underpinnings with Clio. What we are essentially getting is Duster in fancy frock which is on sale in Russia. Renault wants to keep cost low for emerging markets,  thus selling old platforms with new body styling. Same thing they did with Datsun, by introducing older Nissan Micra platform as Go and Go+.

Toyota Yaris (Hatchback) & Vios (Sedan)

India should have got these way back in 2011, instead what we got was bland Etios and its derivative-Liva. Toyota decided to compete against Renault Logan (Now Mahindra Verito) rather than segment Leader Honda City. Etios design too was inspired from Logan. Take a Logan, round all its edges and you have bland tasting Etios! But cost-cutting inspiration came from Tata Nano, it has a single front windshield wiper and dreary looking instrument cluster placed unconventionally in the middle of dashboard. Hopefully Toyota is serious this time with competent Yaris and Vios.

Mitsubishi Outlander

Mitsubishi is well known in India for its macho SUV – Pajero. So what they were thinking when they launched petrol guzzling soft roader with not so mean SUV image. Certainly it reflected on its performance. There is a news that it could be reintroduced.

Nissan X Trail

Sometime back Nissan has showcased hybrid X Trail to Indian Media. No launch dates announced so far. They are already struggling with poor portfolio performance. Moreover, Indian Government’s policy flip-flop is not very encouraging for automakers long term drivetrain planning.

Data Source : http://focus2move.com/world-best-selling-car/

(The article is written by the Newest Pundit on the team – Rohan Rishi. You can connect with him at emailrohanrishi@gmail.com)

India’s most Dzire’able car!

Dzire has been the most successful car in the past 2 months and its volumes have just baffled the analysts. It is not easy to beat the current bestseller (Alto) and Dzire has just been able to do it with considerable ease. So what making the Dzire such a heartthrob?

Recent Phenomenal Growth in Dzire’s Sale

  • 3rd generation of Maruti Suzuki Dzire was launched in India on 16th May 2017
  • Has recently touched the phenomenal mark of 30,000+ for two successive month, quite surprising for a car which cost ₹ 6+ Lakhs  in India

  • Since 2012 it came in close vicinity to Alto’s sales number, Alto still holds the crown of bestseller in India
  • In some of the months Dzire has snatched the title of bestseller as well
  • Just note, later is an entry level hatchback and former is a sedan version of premium hatchback

Undisputed Leader

No doubt Swift Dzire has its core strength but often makes me wonder, is it by design from Maruti Suzuki or is it really a miracle- for both Maruti and Indian customer alike. Competitors came, tried and failed!

Dzire

It is a product which has outlived its own name “Dzire” to become “Addiction”. To me previous avatars do look good in parts but not as a whole, due to awkward proportion. Recent iteration looks more akin to compact sedan.

Generation-1 (2008)

  • Side profile looks like two disparate cars stitched together
  • A near full size sedan having heart and body parts from hatchback model and ultimately cannibalized grown-up stable mate SX4

Generation-2 (2012)

  • Set the charts on fire, though looks like a truncated boot latched to a hatchback
  • Second offering in the unique to India  4m sedan segment, first being Tata Indigo CS – the real innovative answer to Government’s tax laws

Generation-3 (2017)

  • More sublime design and looks good in whole
  • Packaged well with all modern features and gadgets on select variants and safety features on all variants with option of economical automatic transmission system on all variants, except the base one

 Hypothesis : Is this mere a Spike or Sustainable-New-Normal for Dzire

May be “Yes”

  • Despite cut throat competition in the segment, demand is strong, right now there is 2-4 months of waiting period for the car
  • For reference, consider this – Maruti Suzuki has to dish out cash discount of ₹ 25000 on Wagon R to get it out of the showrooms in this festive season
  • New plant in Gujarat has gone on-stream so Maruti Suzuki does not have production constraint

May be “No”

  • Numbers for Dzire started tapering downward since the introduction of Baleno in 2015, as both jostled for same sub – 4m length footprint, in different body forms
  • Essentially Baleno has started cannibalizing both the stable mate – Swift & Dzire, but it was deliberate and well thought out strategy from Maruti Suzuki, as it added more numbers to its overall kitty and catered to overlapping needs of different buyer-segment

  • Recent spike could largely be attributed to initial dispatches, which were too low in May and June, may be due to steering column issues, as reported by few insiders and published on the internet, thus Maruti Suzuki is making up for the lost time – as it is yet to reach it monthly average peak of 2015, for whole year

“For now it seems to be more of a spike, but in future, as this miraculous car’s story unfolds, 30k+ could be new normal!”. Or can the New Swift change the trend?

Note : Only Maruti Suzuki stable is considered for this analysis, as all of the products are respective segment leader.

(The article is written by the Newest Pundit on the team – Rohan Rishi. You can connect with him emailrohanrishi@gmail.com)

Indian Car Sales Figures – September 2017

The Indian Auto Industry continued its growth momentum this festive season and grew over 11% in Sep’17. Dusshera was the prominent festival in Sep’17, and the market was also getting ready for the biggest festival of the year – Diwali. Let’s see how the OEM’s fared –

Maximum number of new car launches happen in the Aug-Nov timeframe owing to the festive demand. Even in Sep’17, new launches were in the limelight. Tata started dispatches of its much awaited Nexon and Skoda bought in the Kodiaq too. Ford too started dispatches of it next generation Ecosport. Hyundai’s Newest Generation Verna topped the segment and pipped City to be the best seller – Again a reason why launching a car in festive season is fruitful! All the new car launches are extremely strategic to its respective OEM –

  1. Nexon – The compact SUV segment can’t be ignored right now. Honda too recently bounced back into action with the success of the WRV. Brezza’s numbers too are testimony of what the segment can offer. Tata launched its model at the lowest price and raised many eye-brows. Not only the price; but the feature list is mouth watering too. Nexon’s success could push Tata’s in the No.4 spot in the ranking table.
  2. Kodiaq – It has been generating a lot of interest right from the time it was showcased in the Geneva Motor Show. Globally, it has already won many awards – (In November 2016, Škoda Kodiaq was named the “Best Family Car in the World” by Top Gear Magazine. Kodiaq won the title of the Car of the Year 2017 in the Czech Republic, Poland and Bulgaria, the SUV of the year in China and France and the all-wheel drive car in Germany. Kodiaq also won in German magazine competition Auto Test for 2017 and is the winner of competitions in British magazines Auto Express and What Car for 2017. Kodiaq also received the Red Dot Design Award for 2017. Source: Wikipedia). However, similarity to the already launched Tiguan and the ambitious pricing can act as a deterrent.
  3. Ecosport – It is the only silver lining Ford can currently depend upon. Over 56% of Ford’s sales in Sep’17 was contributed by Ecosport and the trend will aggravate even further. With new entrants in the Compact SUV space (WRV, Nexon, etc); Ford needs to protect its turf and keep its buyer engaged. The new design and interiors will help Ford in its purpose and sustain the volumes.
  4. Verna – While Hyundai’s volumes had stagnated at 42k mark, it needed a product which could push it ~50k. And yes, Verna comes in. It has all the bells and whistles to be the ‘Hero’ product in the portfolio. However, beating the competition (City & Ciaz) will not be easy.

Let’s look at the modelwise analysis here:

Look at Top 25 selling models of September 2017 –

Top Selling Hatchbacks (entry & mid level) –

Top Selling Premium Hatches –

Top Selling Compact Sedans –

Top Selling Sedans –

Top Selling Compact SUVs –

Top Selling MUVs –