FY19 Car Sales – Snapshot

The Passenger Car Sales grew  a meager 2.8% in FY19 (Apr’18-Mar’19) v/s FY18 (Apr’17-Mar’18). We had anticipated a growth of over 6% in this financial year; but the growth forecasts were dropped by >50% citing the falling demand, increasing interest rates and liquidity crunch. Not to forget the other deterrents which hampered the growth plans – Kerala Floods, Volatile Fuel costs and increasing Insurance costs. Even the channel partners (Car Dealers) saw their worst phase in the business where almost all brands were carrying excessive stocks.

Let us see the YoY performance comparison of the OEMs –

  • Interesting to see that the Top 7 OEMs posted a positive growth in FY19 v/s FY18 and remaining all 5 OEMs registered a YoY de-growth!
  • While Tata posted the highest growth amongst all OEMs; It was Nissan+Datsun which seems to lost the track completely. It not only saw a slump of ~31% in terms of volumes; the new launch ‘Kicks’ too isn’t performing as per expectations.
  • Do note that Tata was the only OEM to register a double digit growth in FY19! Surprisingly Tata achieved this feat with only 1 new model Harrier which launched in this timeframe (that too at the fag end of the financial year). It is nice to see that Tata is not only focusing on new model launches; but equal significance is given to elevate their existing portfolio sales.
  • The growth for the Market Leader Maruti was supported by the Arena channel (6% YoY). Nexa struggled in previous FY and the sole dependence on Baleno is now showing up.
  • Hyundai could post a flat growth (2%) and this too was possible with the introduction of the iconic Santro. However Santro wasn’t exactly a successful launch; Hyundai is pinning its hopes on the launch of the Compact-SUV Venue to gain volumes this year.
  • Even with 2 new models launched this year (Marazzo & XUV300); Mahindra’s YoY growth was mere 1%!
  • Honda grew a healthy 8% in FY19 owing to the tremendous success of New Amaze. With no new models in pipeline this year; it looks to be a difficult year for the Japanese major.

In terms of Market Share; Maruti gained the most! Maruti Suzuki’s Market Share increase by 1.2% in FY19 and the Market Leader could capture a Market Share of whopping 51.9% in the Indian market! Can the likes of Kia, MG & Citroen really challenge Maruti’s success run in India? Only time shall tell.

Top 10 Selling Cars of Mar’19!

The Top 10 selling cars sold a total of 1,43,896 units in Mar’18 and contributed to >50% of overall car sales in India! And 8 out of the Top 10 cars were from Maruti’s stable.

  • Maruti’s most ‘Dzire’able car tops the chart and sells ~20k units in Mar’19. Dzire is now continuously ruling the chart and looks to stay here for a while.
  • Baleno ranks second and sells >17k units in Mar’19. The Nexa’s blue eyed boy contributed to >65% of Nexa’s volumes in India.
  • Alto is pushed to third rank and shows signs of ageing now. The entry-hatch volumes are draining down and 2 models mark their exit in FY19! (Nano & Eon). The performance of the models in the segment is as shown –

  • The New Wagon R is working the trick and crossed 16k units after 11 months. The Tall Boy ranked 4th in the list.
  • Dzire’s younger sibling Swift could only cross 14k units and stood fifth in the ranking table. Sixth Ranked Brezza was just 37 units short of Swift.
  • i20 was Hyundai’s best seller for Mar’19 and sold over 12k units. Hyundai’s second best seller was Creta – Grand i10 now moves out of the Top 10! Maybe a refreshed avatar of Grand i10 is on the cards?