The Verna was the best selling executive sedan of May’20 and was ahead of Skoda Rapid, Maruti Suzuki Ciaz and Volkswagen Vento. Verna commanded a Market Share of 27%! Hyundai had introduced the facelifted Verna in Mar’20 with exterior and interior changes alongside the debut of BS6 compliant powertrain options.
Skoda’s Rapid outsold the likes of Maruti’s Ciaz & Honda’s City in May’20! It registered a Market Share of 25% last month.
Maruti Nexa Ciaz ranked third with sale of 192 units in May’20 and could garner Market Share of just 17%. It also recorded a massive 95% YoY decline.
Honda is delaying the launch on the next gen City and is clearly affecting its sales volumes. Honda has recently announced that both the current gen and next gen City will be on sale in India.
The Product Lifecycle Concept is well known for a long time both in studies of general economy and management. As per the concept; every product launched has a predictable lifecycle and it goes through 4 stages – introduction, growth, maturity and decline. Each of these stages corresponds with a different amount of sales. While marketers attempt to capture high revenues at all of the stages, they alter their sales techniques noticeably throughout the product life cycle. Some economists believe that somehow sales of a new product can be predicted – right from the moment of its entry to its withdrawal from the market. The prediction is basis the stage the model/product is in.
We will assess if the PLC (Product Lifecycle Concept) makes sense in the Indian Automobile Industry and will showcase the Lifecycle Analysis of the models sold by various OEMs in India. Will start with the nation’s largest car maker – Maruti Suzuki.
We shall first state the specific reasons to undergo this analysis:
Every New Model launched by the Car Makers involve a lot of investment. The price tag to develop a new vehicle starts around $1 billion. According to John Wolkonowicz, Senior Auto Analyst for North America at IHS Global, “It can be as much as $6 billion if it’s an all-new car on all-new platform with an all-new engine and an all-new transmission and nothing carrying over from the old model.” (Source)
Considering the huge investment; the model has to sell a specific number of units in the mentioned timeline to make profits for the carmaker. An early death for a model shall convert into heavy irreparable losses. It is crucial that a model/platform sells minimum units to work profitable to the OEM.
An OEM having models with longer PLCs acts as a strategic advantage as the respective OEM not only makes more money out of it; but would be building customer base as well.
The Product Lifecycle also defines on how fast the OEM will need to work either to upgrade the model or bring the next model in the pipeline. Agility of the carmaker will make all the difference here. OEMs who can assess the market condition well in advance and are able to upgrade/launch a new model will have higher chances to gain market share.
Do note the mentioned points before going through the analysis:
We have considered the age of the brand/marque. Ex: Swift as a model would have gone through multiple facelifts / platform changes. However; the overall age of the marque is considered here.
Versa / Eeco has been combined in the analysis here as Eeco was nothing but a stripped down version of the Versa.
Lets see the Lifecycle of Maruti Suzuki’s Models –
Maruti Suzuki has introduced almost 26 models in the Indian Market since 1983.
Out of these 26 models; 12 models has seen the end of its lifecycle and has either exited the Indian market or discontinued globally.
As on date; 14 models are in sale in the sub-continent and with this Maruti Suzuki commands >50% market share. (Source)
The Discontinued Maruti Suzuki models list and their age –
Omni & Gypsy served Maruti Suzuki in India for almost 35 years! Both the models were discontinued owing to tighter emission and safety norms. With near to 35 years of sales in the Indian market, Maruti Omni probably shall be the second longest production car in India, next only to Hindustan Ambassador! In today’s world; who can imagine producing a car for over 30 years in any market? (and that too with minimal updates / changes).
Maruti 800 was actually the first offering from Maruti Suzuki India and is widely regarded as the most influential automobile in India – About 2.66 million Maruti 800s were sold in India during its lifetime!
Another cult hatch – Zen survived for over 20 years in India. Zen was Maruti India’s first world car and was exported to Europe as early as 1994. Besides being exported to Europe from 1994 to 2004, it has also been exported to several other countries. The Zen also quickly became a hit with the Indian Racing Scene with highly modified versions of the 993 cc G10B engine topping 100+ Bhp.
Esteem was Maruti’s attempt to cater the executive sedan segment and could sell for almost 10 years here.
List of Maruti Suzuki models currently on sale in India –
Wagon R has an enviable performance in the Indian market. The model has sold 24,14,328 units in the past 20+ years in India! The model still doesn’t show sign of ageing and has sold 1,56,724 units in the last Financial Year (FY20). Which analyst/economist can guess on which stage of product lifecycle Wagon R is in?
Another blockbuster model from Maruti’s stable – Alto has been in the Indian market for over 19 years! Still Alto commands the title as one of the best selling models in India. The model has sold 39,78,285 units and is definitely the best selling hatchback in India’s history. The model was also India’s highest selling car for FY20 with sale of 1,90,814 units. We don’t know how to categorize it in the product lifecycle.
Maruti has found stellar success in India and the life of its models has always been much higher than its peers. No wonder Maruti models command the best resale value in India and still its so called aged models has high demand. Though Maruti had its fair share of not so successful models (Esteem/SX4/A-star); Majority of Maruti’s models have been bestsellers in its segment and are still seeing demand irrespective of the age. Maruti has also been aggressive in bringing out relevant updates on its models to renew the demand over time. This has ensured that Maruti Suzuki makes enough profits even though the models are priced extremely aggressively and the ticket price is smaller too.
Hope you found the article interesting and we shall bring the analysis of other OEM models too in coming days.
MG India President, Rajeev Chaba recently disclosed to Livemint that MG are investing in local battery production. According to the source, this should allow them to bring an EV between Rs. 12-15 lakh. The ZS will also soon get an upgrade to get its range to 500km. That will make it the longest-range electric vehicle in the country. The Hyundai Kona’s 452km range is currently the best you can get here.
Here’s the statement:
“This is our mid to long term plan. We want to double our bets on electric vehicles in the medium to long term and want to be the leader (in the EV space). That’s why we will come with a battery with 500 kilometres range to show our intent.
Even in 2021, everyone is talking about 8% GDP growth because the base will go down in 2020. So, 2022 will be a good year and all these plans are lined up for then. The battery assembly will happen in our plant but whether it will be done by us or a vendor that has not been decided.”
The MG Hector Plus looks like it’s done testing and is ready to hit the showrooms. A 6-seat version of the Hector Plus was roaming around Gurugram with a Toyota Innova. This car had a captain seat layout in the second row.
The Hector Plus will also get a 7-seat version with bench in the second row. According to ACI, Hector Plus will go up against the Toyota Innova. It’ll challenge Innova’s reliability with a 5-yr unlimited km warranty, more features and a lower price tag. About Rs. 3.0 lakh lower than the Innova Crysta for the Hector Plus is enough to convince Innova buyers to at least take the Hector Plus for a test drive.
After ruling for over a decade, poor Innova is facing competition left and right. Mid- to full-size 7-seat SUVs like XUV500 and VW Group’s Tiguan Allspace and Kodiaq are taking small slices from the Innova’s pie. Meanwhile, the Kia Carnival is also posing a serious threat with a lucrative price tag, luxurious features and some serious road presence.
Say what you will about the Chinese roots of MG, but their strategy and focus have worked well so far. And their commitment to make in India also shows intent to stay here and help the Indian economy. Right now, the slowest to adapt are the Japanese veterans – Toyota and Honda.
Dealers Accepting Bookings For 2020 Mahindra Thar
According to a TeamBHP report, Mahindra dealers are taking bookings for the next-generation Thar. According to the source, the car could go on sale in August. Mahindra officials had earlier confirmed that the Thar would be the first new car after the lockdown ends.
Powertrain options for the 2020 Thar could include 2.2-litre turbo diesel and 2.0-litre turbo petrol.
After the BS6 update, the fuel efficiency of the Mahindra XUV300 remains the same as before – 20kmpl. While this is low for its class, it’s worth noting that the XUV300’s diesel engine is a lot torquier than the rest. It has 300Nm of twist coming at 1500rpm. That’s 85Nm more than EcoSport, 60Nm more than Venue and 40Nm more than Nexon’s diesel engines. Hell, it’s only 60Nm less than the XUV500. With that kind of performance, a small fuel efficiency penalty should not bother the owners.
For many of us, our car is like our second home. We use our cars as essential transportation for work, dropping the kids off at school or a set of wheels for a trip. Despite spending so much time in the car, very few of us actually keep our vehicles clean and by clean we are not just referring to an external car wash. The sanitization of your car from inside is more important than many people realize.
If you believe that touching a public elevator button or sitting on a public toilet is bad and can spread diseases, the germs found at a gas pump might send shivers up your spine. Compared to other public locations where the germ count was in the hundreds, the average gas pumps measure in the millions. Some bacteria, like E-Coli & Staphylococcus, which are found in our surroundings, are responsible for a multitude of complications like skin infections, food poisoning and toxic shock syndrome.
According to a study conducted by Queen Mary University, London, it was found that a car’s steering wheel has four times more bacteria on it than on a public toilet seat.
Most of us have no idea how harmful it is to not disinfect our cars. Surface cleaning just helps in cleaning the stains and some contaminants on the outside and leads to a shiny looking car. But the microorganisms present inside the car cannot be seen. With automobiles being a confined space, it is very easy for bacteria and viruses to grow and spread. This is why a thorough disinfection of the car is very important.
As many people don’t tend to sanitize their cars, layers start to build up, and when the sun rays fall directly on the car, it warms up making the vehicle a reproducing ground for the germs and viruses. It just takes around 30 minutes at high temperature for microorganisms to multiply.
According to experts, it is stated that more than 800 types of microorganisms which include various types of deadly viruses and bacteria can grow in your car if not cleaned regularly. The air conditioner of the car acts as the breeding ground for microbes. Also the high contact zones of the car such as the steering wheel, doorknobs, gear stick and seat belts have germs and bacteria on them.
Permagard’s Antimicrobial Shield
Permagard’s Antimicrobial Shield eliminates germs, bacteria, and viruses using a highly efficient antimicrobial formulation. This technology gives protection from 99.99% microscopic organisms by creating an invisible shield which acts as a barrier for the microorganisms.
This product cleans and sanitizes your car’s interior. Lysis technology attacks and kills viruses and germs by puncturing the lipid cell membrane of the microbes destroying its structure completely.
It acts as a shield on the surface of the car’s interior so that the germs and viruses are killed as soon as the microorganism comes in contact with the molecules of the antimicrobial shield.
Some of the unique advantages of Permagard Antimicrobial Shield:
The hypo-allergenic properties of this treatment allow it to be used in confined environments such as car cabins.
By killing germs at a microscopic level, that too without using any toxic products such as alcohol, dehydration or poison.
As this product is non- toxic, it is safe for infants, adults and pets.
As it is applied through aerosol spray method, it does not leave behind any oil stains
This is a DIY (Do It Yourself) product
Once applied, your car is protected for upto 12 months.
Permagard’s Antimicrobial Shield works on eliminating Microbes, Stains, Moulds, mildew spores, virus and also bad odours.
See how beneficial is the Antimicrobial Shield
Covid or No Covid, one should follow the practice of cleaning the car thoroughly from time to time. It is very important to keep your car clean and hygienic to protect yourself and your family from illness-causing germs and viruses.