Indian Car Sales Figures – February 2016

February 2016 saw the hosting of  the biggest Automotive Exhibition in Asia with the hopes of spearheading the good times for the industry in the subcontinent. But, the absence of big (rather exciting) launches and the increased ‘cess’ proved to have an adverse effect on the consumer sentiment. The only notable showcases in the last month’s auto expo was the Brezza/Ignis from Maruti, BR-V from Honda and Hexa/Kite S from Tata.

The OEMs to taste growth in Feb’16 were primarily fueled with new ‘performing’ products in their portfolio – say Baleno for Maruti, Creta for Hyundai, KUV100 for Mahindra & Kwid for Renault. While other OEMs took the beating for not having a ‘FRESH’ offering! Renault & Honda have eventually launched refreshed avatars of their successful, yet currently ailing Duster and Amaze in Mar’16 – will the makeover help? Wait for Apr’16 for the answer.

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February 2016 car sales data
  • India’s largest car manufacturer – Maruti Suzuki again played all its cards and could successfully cross the 1 Lakh figure yet again! Though it saw a YoY decline in sales of its stalwart Alto, Swift, Celerio, Wagon-R & Ritz; additional numbers from its so called premium brand Nexa (Baleno & S-Cross) helped the Japanese car maker project growth in Feb’16. Rather surprising was the impressive growth in Omni & Eeco (8% & 13% respectively!). All this was attained even though the company’s production was disrupted from the Jat agitation (as the production was temporarily suspended).
  • Korean Major Hyundai is basking on the glory of Creta’s blockbuster success. Also to be appreciated is the OEM’s response to customer demand and manufacture >8000 units of Creta from its production line. It clearly exhibits the automaker’s seriousness for the Indian market and also the sensitivity to cater to the demand. i20 shows no sign of weakness from the stiff competition of Baleno/Jazz and proudly posts >10k sales figure yet again! However, Eon starts to face the heat from the French K(w)id! Renault is slowly eating into Eon’s sales (similar to what Creta did to Duster!).
  • Mahindra leads by example to define what ‘Jugaad’ really means! First develop a 1.99 L engine for its top selling market (Delhi), then build a compact SUV for Urban consumer and then offer a pseudo SUV-hatch for the mass buyer! The Indian OEM simply puts the global MNCs to shame in terms of its speed of market response and consumer demand. KUV100 has strongly placed the SUV-major in the hatchback race and the carmaker is slowly experiencing the taste of sales of petrol cars! M&M is now all set to revamp its ailing (or call it failing) Quanto and have termed it as Nuvosport! But the real concern lies in the fact that Mahindra would have experienced a de-growth of 13% if TUV & KUV wouldn’t be there in its portfolio this year!
  • Honda continues its fluctuating performance. Many-a-times it is difficult to assess on the month on month variance in their sales statistics. Ex: City’s performance in Feb’16 saw a YoY degrowth of 25% and MoM degrowth of 39%! (from a sales of 8037 units in Jan’16 to 4880 units in Feb’16). Also interesting is to see the lesser demand Amaze project a MoM growth (17% growth) and the newer sibling Jazz experiencing a MoM degrowth (-29%). In overall, the variance has costed the Japanese OEM its third position and seems that it’ll be unable to recover the loss and stay behind M&M for a while now.
  • Tata started shipping the Tiago from Feb’16. But yet the overall numbers decline! Even with the promising line up and impressive launches (Zest & Bolt) in the past year, the Indian consumer seems unforgiving for the past quality glitches and the brand fails to deliver. Can Zica finally change the game for Tata?

Lets look at the Top 25 selling cars of Feb’16 –

2TRIVIA – Maruti has 10 products in top 20 selling cars, Hyundai has 3 offerings in Top 10 & Renault has a formidable entrant in Top 10!

Sales Estimate of Luxury Brands for Feb’16 –

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Renault Duster Refreshed!

Crumbling Sales Figures!! If you can look at the data below you can easily understand that the Monthly average sales of 2012 was 3956 which further went on to increase to 4284 in 2013. However, in 2014 the sales average went down by 1000 nos. to 3317 cars/mth. Why? Terrano was cannibalizing the siblings sale. In Year 2015 too, though a brief rise was seen in the numbers (Jan~Mar’15 Avg. 3435 nos/mth); the launch of Hyundai’s Creta made the Renault taste dust!

Renault Duster – Sales Volumes, mentioned below for a quick reference.

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New Refresh – Duster, Will it help?

Renault Duster haven’t been refreshed since it was first launched though an AWD version was introduced in September 2014. The bland interiors was again a sore point for the SUV. 

The New Refresh 2016 Renault Duster was launched yesterday. The New Duster get a Manual & AMT Variant alongside with Petrol & Diesel Variants. AWD is retained. There are some updates both on the exterior design front and on the mechanical side. There is also a new interior.

On the exterior front, the new Duster gets new headlights, new tail lamps and a new grille. You also get a new set of wheels, which could have looked a little better than they do. The new Duster also get updated front and rear bumpers with new skid plates that have been finished in silver and a new orange paint shade which in our opinion looks quite stunning.

On the interior front, the new Renault Duster facelift gets an updated dashboard with a new centre console and updated instrument binnacles in a new instrument cluster surround. The new Duster will also get an updated touchscreen infotainment system that comes with inbuilt navigation. The new Duster also gets cruise control for the first time along with climate control which is also a new addition to the compact SUV.

Mechanically, the Duster gets two engine options, a petrol and a diesel. The 1.5-litre petrol makes 102PS of peak power and 145Nm of peak torque. The 1.5-liter diesel on the other hand gets two states of tune, a 85Ps and a 110PS. The 110PS makes 245Nm of peak torque and is also the only engine option to get the AMT gearbox option. The 110PS version also gets a top of the line variant with all-wheel-drive.

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Visually the New Renault is appealing to the eye.

Will it relive the glory days and help Renault build sustainable numbers?

We all know Renault would want it to be the Next K(w)id on the block, but with very minor changes to the exteriors & interiors volumes should stabilize at 1500 odd units every month. Also expect the Terrano sales to plummet even further making the gain in numbers negligible.

Our Opinion:

The changes are minuscule and we doubt if it could stand tall in front of the in-demand Hyundai Creta! We also await the launch of Honda BR-V which will make the segment even more interesting.

February 2016 Car Sales – Snapshot

February Car Sales India
OEM-wise Sales Data

The Valentine month didn’t prove lovely to the Indian Automotive Industry and almost all manufacturers suffered except the Big 3! (say Maruti, Hyundai & Mahindra). The outliers otherwise were the Renault-Nissan partners who could project some growth apart from the Top 3 players. In the premium brand stable, Merc leads the race again and is growing strong with a strong lineup of new launches and aggressive network expansion. However, the biggest dampener in Feb’16 proved to be the Union Budget – Prices of new cars are set to increase with a new infrastructure cess imposed on the industry. The budget proposes a 1% infrastructure cess on CNG, LPG and petrol cars; 2.5% on diesel cars and 4% on vehicles with ‘higher engine’ capacity. Though the so called ‘cess’ is touted to be used in improving country’s Road & Transport infrastructure; the idea seems to penalize customers for purchasing cars. As per the plan laid by the Finance Minister, Transportation Sector seeks the highest investment in this fiscal’s budget. Seeing the chart, the increased investment surely seems to be coming out of the pocket of new car buyers –

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Source: ET

The sales figures mentioned is offtake data (cars billed from OEM to dealers); it is expected that the dealers would have piled up their stocks anticipating the price increase and hence the actual performance may be much different (read lower than the seen numbers). March traditionally is positive for the Automotive Companies, but the increase in prices will surely affect the consumer sentiment and it will be a tougher road ahead for the industry. However, we have faith on the government’s plan and expect the Road Infrastructure to improve in next 6-9 months which will in turn breathe life to the sector.

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