India’s ‘Omni’present Van makes the exit

It is over a month that Maruti Suzuki had announced the discontinuation of India’s most popular van since past 35 years! Launched in 1984; Omni was the second product to be launched from Maruti’s stable and was an immediate success.The first version of Omni had a 796 cc inline-three engine, same as the Maruti 800.

Sold simply as the Maruti Van, this was the second vehicle to be launched by Maruti Suzuki. It arrived one year after the 800, in 1984. The name was changed to “Omni” in 1988. It received a facelift in 1998, and further minor revisions in 2005, when improvements were made to the exterior and the interior, and new colours became available.

Omni’s multi-purpose usage (personal, people movement, load carrying, ambulance, etc) made it a popular choice among the Indian consumers. The Omni could be divided into two categories: the family version and the cargo version. The family version had two extra seats directly behind the front seating and facing away towards the rear of the van making it an eight seater. Older versions are modified by individual owners to add additional capacity this way. The cargo version is completely devoid of back seats. Both versions have sliding back doors and hatchbacks.

Even during the last phase of its production in India; Omni used to contribute >6% of Maruti Arena’s sales (without Nexa volumes). Omni averaged a sale of 7,236 units in FY19 and virtually had no competition apart from its sibling Eeco.

The demise of Omni; has given the entire baton of Van segment to Eeco. The result was seen in Apr’19 volumes when Eeco registered its all time highest sale of  10,254 units. Eeco volumes shot up 37% in Apr’19 v/s Apr’18. Eeco should now be the sole offering now in the van segment and can easily say the the ‘Omni’present van shall solely be missed henceforth.

Indian Car Sales Figures – April 2019

Modelwise Car Sales Figures for Apr’19 –

Top 25 Selling Cars of Apr’19 –

Segment Wise Sales Data – 

1. Entry Hatchback Segment:

2. Compact Hatchback Segment:

3.Premium Hatchback Segment:

4. Compact Sedan Segment:

5. Executive Sedan Segment:

6. Premium Sedan Segment:

7. Luxury Sedan Segment:

8. Compact SUV Segment:

9. Mid-SUV Segment:

10. Premium SUV Segment:

11. Lifestyle Offroader Segment:

12. MUV Segment:

13. Van Segment:

April 2019 Car Sales – Snapshot

The Passenger Vehicle sales saw a dip of -16.7% in Apr’19 v/s Apr’18 – This is the highest fall the Industry has seen in recent times. This is not a good sign for the first month of the fiscal year and depicts the tough time ahead for the industry. The main reason for the dip in sales are the political uncertainty and lower consumer sentiments. The slowing growth in Upcountry markets due to below-par Monsoon forecast has also been a deterrent for the overall growth. Decrease in OEM discounts for Apr’19, upcoming BS6 transition and no new model launches fueled the decline.

Let’s see how the OEMs fared in Apr’19 –

  • Only 1 OEM (Honda) reported a YoY growth in Apr’19! Rest all OEMs saw a decline in sales. Honda too saw a YoY growth owing to low base of Apr’18 (and Amaze was also not launched till then).
  • Nexa’s sole dependence on Baleno is now showing off and Nexa channel degrew by hefty -28%. Nexa performance led to the overall degrowth of -19.6% for Maruti Suzuki.
  • Hyundai fared better when compared to other mass market OEMs and degrew by -10%. However; it was able to gain a Market Share of 1.3% and its Apr’19 MS was 17.1%.
  • Mahindra too backed by XUV300 sales reduced the fall and degrew by -8%. It helped M&M gain a Market share of 0.8% in Apr’19.
  • Nissan registered the highest fall of -42.5% in Apr’19. The relentless decline in sales is worrisome from the Japanese brand and if this trend continuous Nissan may have to take serious steps to be viable. Even with new model addition (Kicks); Nissan has been unable to revive its condition in the Indian market.

Market Shares figures for Apr’19 –

Indian Passenger Vehicle Export Analysis FY19

Dispatch of overall passenger vehicles to foreign shores from India witnessed a degrowth of -9.9% in financial year 2019 (Apr’18-Mar’19). 6,73,630 passenger vehicles were sent off India between Apr 2018 to Mar 2019. That is lesser by 9.9 per cent compared to 7,47,826 passenger vehicle exported during FY18.

The top five passenger vehicle exporters (Ford, Hyundai, Maruti Suzuki, General Motors & Volkswagen India), contributed near to 85 per cent of the total passenger vehicle exports from India in FY19. While the top three PV exporters contributed over 64 per cent to the total exports.

  • Ford retained its top spot by a thin margin from Hyundai. The overall exports for Ford fell a hefty -11.3% and 1,62,801 units were exported.
  • Hyundai saw a healthy growth in exports of 5.3% in FY19 and was just marginally short of becoming No.1 exporter.
  • GM overtook VW to become the No.4 exporter in FY19! With only 1 model in exports (Beat); GM is doing a fairly good job.
  • VW & Nissan which were efficiently utilizing their plant capacities; seems to be offtrack as of now. Both registered a double digit degrowth of -30.5% & -15% respectively.

Modelwise Export Volumes – 

Passenger Vehicles Production Statistics – FY19

We have been getting continuous requests on the Production Statistics for the Passenger Vehicle Industry. We are happy to share the same in this report.

India has seen a tremendous influx of automotive manufacturing facilities since 2000 and has also made it a significant production hub for the global automakers. The cost competitiveness has enabled India to encourage OEMs to set up their plants to not only cater to the domestic market; but even exports as well. The option is so lucrative that General Motors even though has exited the Indian Market; still continues to export the Beat from the Talegaon plant in Maharashtra.

The investment trend still continues and OEMs are expected to invest over $8-10 billion (Rs 51,600-64,500 crore) in India over the next three-four years to set up factories in the sub-continent. It shall expand production base in a market that is set to become the third-largest for passenger vehicles by the end of the decade!

Source: ET

FY20 shall probably see 3 new OEMs stepping into the Indian market and set up their manufacturing units (Kia, MG & Citroen).

The passenger vehicles industry currently has a production capacity of more than 55 Lakh, according to industry sources. Near to 40 Lakh units of Passenger Vehicles were manufactured in the previous financial year (FY19). The OEM-wise production statistics is as shown –

Owing to the dip in the domestic sales; the overall production too saw a decline and degrew -0.2% in FY19 v/s FY18. However; the biggest gainers were Tata & Honda who registered a double digit growth in FY19.

We also have tried to collate the model-wise production statistics for clarity –