Electric Vehicle Sales Data – India

Source: SMEV

While India’s Transport Minister Mr.Nitin Gadkari had committed that India India will stick to its plan of having 100% electric mobility by 2030. However, government’s efforts to promote electric cars have been dismal and disappointing. Hence FY 2017-2018 saw de-growth in sale of electric four-wheelers where the sales are down year-on-year by 40 percent! The sale of electric 4-wheelers dropped from 2000 in FY16-17 to 1200 in FY17-18. However, the positive news is that the Electric 2-wheeler sales catapulted from 23,000 units in FY17 to 54,800 units in FY18. We also saw new-age Electric 2 wheeler manufacturers (likes of Ather Electric) venture into Electric 2-wheeler segment and make their presence felt.



However, Mahindra Electric seems to be the only OEM in India which has considerable number of electric vehicles in its portfolio and has been serious about this segment. The vehicles in Mahindra Electric’s portfolio are:

  • Mahindra eVerito – eVerito is the most radical offering out of all; as it has maximum space and practicality of the diesel-run sibling (Verito). The car is a hit among Taxi Fleet buyers and have tied up the vehicle with enterprise clients. Majority of the eVerito’s are sold in Bangalore. Mahindra Electric had earlier tied-up with Baghirathi group which launched its brand ‘rydS’ and had the plans to include 1000 eVerito’s in the fleet.
  • Mahindra e2o – Reva was the pioneer in the Electric Vehicle space and e2o came into existence post Mahindra bought over Reva. It is an evolution of the earlier generation Reva Electric cars and is much more advanced when compared to the predecessor.

  • Mahindra eSupro Passenger – The vehicle is an electric avatar of the already selling Supro passenger and provides an excellent green option of mobility in big cities. The vehicle has acres of space and can be used as an excellent people mover.

  • Mahindra eAlfa – The electric 3-wheeler is an excellent mobility option in the Tier-2, Tier-3 towns and could also be used in bigger campuses for ferrying public.



Last 3-months Sales figures of the vehicles sold by Mahindra Electric for reference –

Tiago – The ‘Real Hero’ in Tata Motors comeback!



Tata Motors has made a huge image makeover in the past 3 years and has helped the OEM slowly gain market share which it had previously lost. Tata Motors in now currently challenging the No.3 Spot in the Top 3 OEMs and is progressively strengthening its hold. So what exactly changed in the recent years for Tata Motors that allowed Tata Motors in the path of regaining its lost glory –

  • Project HorizoNext – Way back in 2013, Tata initiated HORIZONEXT, a four-pronged customer-focused strategy to provide the best customer experience — from best vehicle experience to superlative purchase experience and followed by technology-intense after market service support. Tata Motors products were reeling with Quality-related issues and the Dealership Service Experience was nothing but a nightmare. The HORIZONEXT helped the OEM to work on improving its overall quality levels of the products/new launches and also elevate the dealership interaction experience.
  • Shift from Taxi Segment – Tata’s Indica & Indigo duo which were the mainstay of the OEMs volumes during 2010-2014 was slowly deteriorating the brand’s acceptance amongst personal usage buyers. The company had sought to bring about a change in its brand positioning from an automaker that makes cars for commercial operations like taxis to an automaker who makes cars for personal use. As of today; apart from Zest/Bolt none of the OEMs models are offered in Taxi segment. Tata Motors has completely shifted focus from the Taxi segment and even the upcoming line of products are bound to cater to personal usage buyers (Harrier, 45X).
  • Shooing away from the ‘cheap’ tag – The lesson was learnt from its most ambitious project – Nano. Touted as the world’s cheapest car, did not live up to the expectations in spite of several makeovers and its production was recently halted citing low volumes. Post Nano; none of the new launches carried the ‘cheap’/’cheapest’ tag in the segment. Rather segment-best features were marketed as the USPs (Ex: Harman Music system which was earlier available in high end cars were featured in Zest/Tiago).
  • JLR Support – Jaguar Land Rover’s support in product development has helped Tata Motors to bring a vast improvement in the quality of products introduced in the recent times. It was told that Tata had taken a lot of cues from JLR while designing the Hexa and a lot of JLR pedigree shall be seen in upcoming SUV Harrier as well.
  • Expanding Market Base – With Hexa & Nexon; Tata marked its entry to bigger MUVs & Compact SUVs space. Tata Motors current portfolio of products does not cater to the premium hatches, vans, bigger sedans, larger SUVs segment. However, the future lineup of products shall enable Tata Motors make its presence felt in these segments. By 2019, with a string of new products in the aforementioned segments, Tata Motors hopes to cover 95 per cent of the market!
  • Improved Customer Engagement – Tata Motors has taken huge stride in terms of engaging its customers online and also support the customer communities accordingly. Ex: A bunch of Tata Nexon Owners have joined together and formed ‘The Nexon Tribe’ and is organizing get together drives/meets and the same is backed by Tata Motors. Such associations will further enhance the brand association and loyalty of the customers.
Source
  • Enhanced Dealership Network – Currently Tata has ~650 outlets. The OEM is targeting 1500 outlets by 2020. With the expansion Tata is trying to enhance the customer experience as well in these touch points.



With all these efforts this could well be the strongest comeback in the history of the Indian car industry. However, there is one model which has stood the test of time and has evolved as the biggest enabler in terms of Tata Motors comeback – TIAGO. 1,84,278 units of Tiago’s have been sold in the past 32 months and has contributed to ~40% of Tata’s volumes in this timeline.

  • Tiago’s contribution to the OEMs volumes have increased over the past 2 years and the averages too have shot upto ~8k units/mth in 2018 (v/s 6k units/mth in 2017).
  • Tiago has achieved this feat by overcoming some strong competition in its segment (namely Kwid, Celerio, etc) and is unseen in the industry to see a Brand increase its yearly average post 2-years of its launch!
  • Tiago was also instrumental in helping Tata Motor’s leverage its platform to bring compact sedan Tigor. Though Tigor hasn’t seen significant volumes; the recent facelift may just help it gain the required momentum.
  • Offlate; Tiago is also seeing a jump in its ranking in the Top selling cars list (recently in Sep’18, it ranked 12th)

Tiago has proven its worth over time and it wouldn’t be wrong to say that it has played an extremely significant role in terms of helping Tata Motors revive its brand identity and also elevated the parent as a serious challenger in the fight for the Top 3 OEMs!

Discounts for Oct’18 – Honda, Hyundai, Mahindra, Tata & Toyota

HONDA-

Maximum Discounts upto Rs.1 Lakh available (on BR-V)



HYUNDAI-

Maximum Discounts upto Rs.1.5 Lakhs available (on Tucson)



MAHINDRA-

Maximum Discounts upto Rs.9.6 Lakhs available (on Rexton)



TATA-

Maximum Discounts upto Rs.52k available (on Hexa)



TOYOTA-

Maximum Discounts upto Rs.95k available (on Altis)

Discounts on Maruti Cars for October 2018

Maruti Suzuki Consumer Offer/Scheme for October 2018

Our endeavor always have been to make our analysis better month-after-month. In our this month post of the Offers; we have done a comparative study of the discounts offered by the OEM (Maruti) for Oct’18 v/s the discounts of Sep’18. The purpose of this study is to highlight on how the OEMs design their discount schemes and what logic would’ve been used at their end to promote their cars. In Oct’18 scheme highlighted in the aforementioned table; you could see that schemes have reduced in majority of the Maruti’s models. Why is that? Let us explain:

  • Being a festive month (Dussehra in North/West; Durga Puja in East & Ayudha Pooja in South); Maruti is aware that the customers would go ahead with their purchase irrespective of drop of discounts. Hence shelling out more discounts would be avoided and thus the OEM shall save some promotion money.
  • Also discounts would be reduced on the models where the inventory/stock levels are lower. The concept is simple; one would not discount a product where the stock availability is less. Seeing the wholesale trend; the Alto, Wagon R, Celerio, Eeco dispatches were lower in the previous months and basis the festivity the discounts have been lowered in these models.
  • However, Discounts on demand-models like Swift & Dzire has been increased! Maruti has heavily pushed these two models in the previous months to ward off competition (Ex: Swift wholesales in Sep’18 was higher than Alto!). Also Dzire was pushed to dealers to shorten the waiting period citing the success of New Amaze and upcoming launch of Ford’s Aspire & Tata’s Tigor. The diesel models of both Dzire & Swift now has Rs.10k more discount in Oct’18 v/s Sep’18!
  • Considering the upcoming launch of the New Ertiga, the discounts on the old Ertiga have shot up! One can avail discounts upto Rs.70,000 on the Ertiga!

The discount on Maruti models has been highlighted here in Descending Order (Ex: Ertiga has the highest offer for Oct’18 and has been mentioned first)

1. Ertiga: The outgoing Ertiga has now a discount of upto Rs.70,000! The launch of Next Gen Ertiga is on the cards and Maruti would want to liquidate the old gen cars on priority.

Ertiga Diesel discount is increased by Rs 20,000 and total cash discount on Diesel Ertiga is Rs 40,000. There’s also an exchange bonus of Rs. 30,000. Cars older than 7 years gets Rs 20,000 exchange bonus.

2. Celerio: 

Celerio is available with a maximum discount of Rs. 60,000. The AMT petrol and CNG variants gets a cash discount of Rs. 30,000, while the MT variants get a cash discount of Rs. 25,000. There is an exchange bonus of Rs. 30,000 on AMT and Rs. 25,000 on the MT models. For cars older than 7 years, the exchange bonus is Rs. 20,000.

3. Alto:

All time best selling Maruti Alto 800 is currently available with discounts of up to Rs. 45,000. (15,000 cash discount + Exchange Bonus of 30,000). All variants of the car get Rs. 30,000 exchange bonus (on old car less than seven years old). If the old car is older than 7 years, the exchange bonus is Rs. 20,000.

4. Wagon R: 

WagonR is currently available with a cash discount of Rs. 25,000. Additionally, there’s an exchange bonus of Rs. 25,000 on the petrol AMT and Rs. 20,000 on the MT Variants. The exchange bonus is Rs. 5,000 lesser for cars older than 7 years.

5. Swift & Dzire:

Swift petrol is available with Rs. 15,000 and diesel with Rs 20,000 cash discount. Discount on diesel variants increses by 5,000 comapring to last month. Exchange bonuses on the petrol and diesel Swifts stand at Rs. 10,000 and Rs. 20,000, respectively. However, this bonus reduces by Rs. 5,000 on cars older than 7 years.

Dzire and swift gets the same offers

Nexon sells more than the Ecosport in Sep’18!

Tata’s Nexon sells more than the Ford’s Ecosport for second consecutive month in a row! Nexon completed 1-year of it’s launch and has been holding on to its volumes pretty well. The model has gained acceptance over time and selling more than the legendary Ecosport is no easy task. Usually, the 2nd spot in segment was fiercely fought between Nexon, Ecosport & Honda’s WRV – However, with no Automatic variant available; the WRV has been pushed to the No.4 slot and the competition now lies between the Tata & Ford offerings.

Once the biggest UV maker; Mahindra now occupies the last slot in the segment with it’s TUV 300. However, M&M is planning to make a strong comeback in the segment with it’s upcoming S201 (based on Ssangyong’s Tivoli).

Autocar‘s iteration of Mahindra S201

Let’s see how the Top 5 best sellers in the segment –

The segment in overall de-grew by 6% and apart from Brezza & Nexon; all other models witnessed a YoY decline. The biggest drop was in Honda WR-V’s volume and without an automatic variant update the model should find it difficult to gain the expected volumes. YoY growth statistics of the offerings in the segment:

Baleno – The model that established Brand ‘Nexa’ in India!

Baleno crossed 4.5 Lakh unit sales in just 36 months (3 years)!

The shipment of Baleno started from Oct’15 and has sold an average of ~13k units per month. The Nexa Brand of Network (Showrooms) was started in the year 2015 (July’15); and the first model to be launched from the brand was S-Cross. The initial response of S-Cross was muted and a lot of apprehensions were there on Maruti’s decision to have a separate so-called ‘Premium’ channel for its models.

However, things changed pretty quickly for the brand post Baleno was launched:

Baleno sold 4,76,011 units within a span of 6 months and Baleno currently contributes to over 60% of Nexa volumes in India.



The model is currently matching Swift volumes and that by itself is a great feat for the model. Just for comparison – Baleno sold more than Swift in past 12 months! The sales of Baleno between Oct’17-Sep’18 was 2,08,647 units and 2,07,621 units of Swift were sold in the same timeline. And do note that Baleno are sold in approx. 400 Nexa outlets and Swift in almost 1800 Maruti outlets! It clearly highlights the significance of Baleno’s sales contribution to the Brand Nexa. Baleno’s pricing and extensive feature list has been the USP for the model and has placed it amongst the bestselling premium hatches in India!

Ciaz – No.1 Selling Sedan of Sep’18!

The mid-sized sedan is currently one of the most competitive segment and majority of the OEMs have a product in the category. There has been a consistent shuffle in the top-seller in the category and has been an interesting segment to watch for. The struggle for the Top Slot has been between the Big 3 (Maruti Nexa, Honda & Hyundai) and all the mentioned products have their own competencies to make them the market leader.

Let’s see who fared in which position in the month of September 2018 –

1. Nexa Ciaz – Maruti Nexa’s Ciaz sold a whopping 6,246 units and was the undoubted leader in the segment.

Ciaz in it’s refreshed avatar has made significant changes in the erstwhile weak areas (performance) and now the package is even more complete. The company has marketed the product well and has an excellent value proposition at the price at which it is offered.

2. Hyundai Verna – Verna is the most performance oriented vehicle amongst other models and is extremely feature rich too in the latest avatar. Verna was the model which had helped Hyundai elevate it’s Premium Brand Imagery.

Verna sold 3,501 units in September 2018 and the sales fell -42% when compared to the same period last year.

3. Honda City – Once the benchmark in the segment; now is facing stiff competition from the other two lower priced models (Ciaz & Verna).

City sold 2,564 units in Sep’18 and degrew a hefty -57% YoY. The recently launched Ciaz has affected the sales of all other models in the segment and even City couldn’t stand the tide.
4. Skoda Rapid – Skoda’s bestseller is now selling more than the Yaris!

Yes, Rapid registered higher sales than that of Toyota’s Yaris in Sep’18! However, even Rapid’s YoY growth was -29% and had a bad festival season.

5. Toyota Yaris – One of the most ambitious launch of the year fell short of expectations!

The pricing played the villain’s role in Toyota’s case as the price conscious customer’s were opting either the Ciaz/Verna and the premium customers were attracted towards Honda’s City. Yaris somehow missed the bus and couldn’t create a following of it’s own. Yaris has registered the lowest sales figures yet since launch in Sep’18! The road looks extremely tough ahead for this sedan.

6. VW Vento – The Rapid’s sibling again wasn’t able to justify the price difference and sold a meager 430 units in Sep’18.

Vento degrew -46% YoY and the sales volumes are slowly dwindling for the model.

Have a look at the statistics and the YoY comparison for the models in the segment –