Indian Car Sales Figures – February 2017

The Union Budget was presented on 1st Feb’17 and again no major announcements were made for the Auto Industry. A lot of expectations were there from the implementation of GST and thus reduction on car prices was awaited. GST stands delayed as of now and no major policy changes meant that the customers who would have delayed their purchase in Jan’17 would finalize it on Feb’17. The result was evident and the Passenger Car sales grew by 5% in Feb’17 v/s Feb’16. The Industry also seems to have recovered from Demonetization effects and the availability of cash in the market is a positive sign. Mar’17 will be a much stronger month as a lot of customers would want to avail depreciation benefits.

A look at the model-wise Sales for Feb’17:

SNAPSHOT:

  • Apart from Mahindra & Chevrolet, all Passenger OEMs posted a YoY positive growth in Feb’17.
  • Maruti Suzuki saw a massive 110.5 per cent growth in the UV space, mainly because of the Vitara Brezza. Brezza became the fastest SUV to garner a sales of 1 Lac units. It sold 1,04,146 units within 12 months of its launch!
  • Celerio is now a Petrol-only model and is performing well. The first Indian car to offer AMT is currently No.10 in Sales Ranking. Alto still facing the heat from Kwid and registered a degrowth of 8% in Feb. Kwid shipments in Feb’17 was 9648 units and was the only Renault in Top 25 selling cars.
  • Looks like the millennials are not that excited after seeing Ignis’s pricing and the model saw a sales decline in the second month itself (4662 units in Feb’17 v/s 4830 units in Mar’17). Nexa’s other offering Baleno also declined in sales numbers in Feb’17 – The Baleno RS will surely help it gain volumes in Mar’17
  • Hyundai made a ‘Grand’ entry in Feb’17 with its ‘facelift’ed Grand i10. It outsold Swift in Feb’17!!!
  • Honda started the shipments of its keenly awaited WRV. This model will define Honda’s volumes in 2017 and a lot is at stake for the Japanese manufacturer. Feb’17 also saw Honda posting a positive YoY growth after a long time! It was possible due to the resurgence of its all time best seller City.
  • The country’s biggest UV-manufacturer Mahindra & Mahindra is facing heat in its home turf. OEMs like Maruti (Brezza, Ertiga), Hyundai (Creta), Renault (Duster, Lodgy), Honda (BRV, Mobilio), Nissan (Terrano), Ford (Ecosport), etc have eaten away M&M’s market share. The best seller for Mahindra is still Bolero; but it stands 3rd in UV sales (after Brezza & Creta).
  • A lot of hopes were pinned on Tata’s Hexa. However, Feb’17 figures of Hexa was extremely disappointing. It could register a sales of only 1026 units in its second month. Tata’s have invested a lot in this product and any failure now will be detrimental for the OEM. However, Tiago continues its success run and crossed 5k units sales in Feb’17 as well.

Top 25 selling cars of Feb’17-

Top Selling Hatchbacks (entry & mid level) –

Top Selling Premium Hatches –

Top Selling Compact Sedans –

Top Selling Sedans –

Top Selling Compact SUVs –

Top Selling MUVs –

Top Selling SUVs –

Clash of the Titans – City v/s Ciaz

The C-segment was a comparatively dull segment earlier and the volumes here were never that significant. Also the segment was majorly dominated by Honda’s City wayback since 1998 itself. Many OEMs tried their luck here, but volumes were never that encouraging. However, many OEMs performance still depends on the sales performance of their respective offerings in the segment – To name a few Honda (City), Skoda (Rapid), VW (Vento), etc where the models contribute ~50% of their overall sales. The segment was again ruled by the so called ‘PREMIUM’ car manufacturers since the beginning (erstwhile Opel Astra, Chevrolet Optra, Toyota Corolla, etc were preferred during their times). Mass market OEMs always wanted to have a major pie in this segment – Hyundai was successful with its Verna (for a limited period) and even the SX4 was Maruti’s attempt to break into this category.

But only 1 model evolved to be the undisputed leader in the category – Honda’s City. It sold over 6.5 lakh copies since 1998 and is still going strong. However, Maruti changed the dynamics in the segment and gave Honda a good run for its money. It clearly outsold the market leader in 2016 – Ciaz sold 63,187 units in the year 2016 when compared to 57,619 units of Honda City sales within the same period. Ciaz’s more feature and lesser price played the trick and made it the market leader.

Let us see what helped Ciaz gain the lead in 2016 –

  • Fuel Efficiency: With SVHS for Diesel and lower spec Petrol, Ciaz raised the bar in Fuel Efficiency and offered segment best figures. Petrol claimed ARAI mileage of 20.7 kmpl and Diesel Hybrid offered a mileage of 28.09 kmpl. These kind of fuel efficiency figures were literally unheard in the segment.
  • Price: With SVHS, Maruti could play the price card much better – with subsidies for Hybrid vehicle; the Diesel Ciaz was now almost equivalent priced to the Petrol variant! This allowed the customers (particularly from Tier 2 & Tier 3 cities which were Maruti’s stronghold) to easily upgrade to a C-segment sedan.
  • Feature-rich: It evolved to be the widest and longest car in the segment. Also it offered projector headlamps as standard in all the variants. Higher spec variants also offered a much advanced 7’inch Infotainment system (compared to smaller 5’inch system in City).
  • Maruti’s Network: All are aware about Maruti’s enormous Dealer Network. This particularly helped Maruti gain in-roads in Rural market where Honda was comparatively weak.
  • Maruti Service & Reliability: It became a big factor for customers who were upgrading to the segment. Low maintenance assurance and ease of service worked for Maruti.

Honda’s retaliation was in Feb 2017 – It launched the mid life facelift for the City and launched it on 14th Feb. As the dispatches of the new model started in Jan’17 itself the Japanese OEM was able to garner significant volumes in the first 2 months of 2017. As of now, it has overtaken Ciaz numbers by a thin margin and regained the No.1 position in the segment. Between Jan’17-Feb’17, City has sold 12,640 units v/s 12,416 units of Ciaz.

With City 2017 launch Honda announced features which were again unheard in the segment. It became the only car in the segment to offer LED headlamps, Sunroof, etc. Also the stellar safety package of 6 airbags and larger alloy wheels helped it differentiate itself. The USP of the brand still lies with the i-Vtec Petrol engine. And the pricing announced for the Petrol Variants was nothing less than mouth-watering. However, the Diesel variants are priced steeply when compared to Ciaz counterpart. Lets see how the New City fares in Pricing –

The Price Difference was also highlighted by Honda’s Top Executive, Mr. Ueno in a press conference last month – “That company (Maruti) has gained from using regulations to its advantage. The petrol City sells several times more than Ciaz petrol version, while that company is selling more diesel models because of the subsidies, Excise duty benefits as well as the incentives arising from the FAME scheme, while we get none of them. So they can play the price game as well.”

We did a comparison of the Variant-wise sales of these 2 models and the findings is as shown –

Maruti Ciaz Sales for Jan’17 & Feb’17:

Honda City Sales for Jan’17 & Feb’17:

It is clearly seen that Diesel variants contribute to over 64% of Ciaz sales! And in absolute numbers, it sells over 2.5 times that of City Diesel. Similarly, City is the clear winner in Petrol – its sales is almost double that of Ciaz Petrol. While the market is shifting towards Petrol, we see that City will slowly maintain its hold in the segment and sustain the leadership position. It would also be interesting to see on how Maruti will fare its Ciaz with Nexa and what updates could be seen in the upcoming Ciaz facelift as well. In short, it is going to be an interesting contest ahead!

Production Statistics – India

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Source: ET

Economic Times published a very interesting on India’s Biggest Auto’makers’; i.e. the OEMs were ranked basis their Production Output from the respective manufacturing plants. In 2016, Renault-Nissan alliance and Ford jumped to become the No.3 & No.5 OEMs in India! While Ford is cashing on Ecosport’s Global success (and hence exports); Renault had an extremely good year in the domestic market with Kwid’s success.

However, Maruti & Hyundai combined manufactured ~23 Lakh cars in 2016! The numbers for Maruti will see a massive surge as the Gujarat plant becomes operational in 2017. Also the expanding Nexa portfolio will help it sustain the production numbers.

To give a holistic picture of how the OEMs are utilizing the Production Output, let us look at the Production v/s Domestic Sales v/s Exports numbers of the Car Manufacturers (for Apr’16-Jan’17 data):

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  • Maruti, Mahindra, Tata, Honda, etc are heavily dependent on local market demand and the production is directly aligned to it. Ex: Tougher Market scenarios will push these Carmakers to cut production and lower their manufacturing output.
  • Ford & Nissan have evolved themselves to be neutral to the Indian demand and have ensured that their production capacity caters to other markets as well. Ex: While Nissan Micra is selling negligible units in Indian market; the Brand is exported to more than 100 markets from India! As on date, Nissan has exported over 6,50,000 lakh cars from India.
  • General Motors too have learned the trick and with ailing local demand it is utilizing its production capacity for Export purposes. Almost 88% of its production output is being used for Exports.

In a long run, India is going to be the battle turf for Top Automobile OEMs and Production Capacity Utilization will be a key factor of profitability for these carmakers. Hence, it will be interesting to see which OEM adapts to the dynamic environment and evolves to be the best.

*Export Contribution has been directly extrapolated from FY16 Production Nos (however the exports could be from the cars which were manufactured prior to Apr’16 as well).

World Car Sales Statistics – 2016

Automotive Sales Figures have always been a disputed subject. While OEMs shy away to share their respective Sales Numbers, we at Auto Punditz just couldn’t understand the logic. We believe in data transparency and just wish all OEMs could share their numbers without much fuss. We do not see any reason why they should hide it. We in this post try to assess the World Cars Sales Figures of these manufacturers as per the data available in various forums/sites.

Let us look at how the OEMs stand in the Top rankings table:

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Source: Forbes
  • The aforementioned data is for the OEMs Alliance. For Ex: GM numbers would include the sales of all its subsidiaries (Chevrolet, Cadillac, Buick, Opel, Vauxhall etc). Similarly Renault-Nissan Alliance Nos would include the sales from Renault, Nissan, Avtovaz (Lada) & Mitsubishi.
  • Volkswagen did the impossible in 2016. It emerged as the Global No.1 Automaker for the first time! Despite the Dieselgate emissions scandal which has rocked Volkswagen worldwide, the German carmaker achieved record group sales in 2016 of 10.3 million vehicles.
  • Renault Nissan Alliance was just a stone throw away of claiming the No.3 spot! The Alliance grew a staggering 16.8% pushed by excellent performance of Renault in markets such as India and the recent controlling stake at Mitsubishi boosted their volumes positively.
  • Toyota & GM posted single digit growth and stood 2nd & 3rd in the podium respectively.
  • What is interesting to see is that ALL Top 4 automaker groups are hovering around the 10 million mark and it’ll be a much interesting race in 2017!

PS: While VW, GM & Renault-Nissan published the vehicle delivery data for 2016; Toyota’s numbers in consideration here are the production stats. Hence the above table will not have the exact metric.

However, if we consider the individual brand performance – Toyota surpassed the No.2 manufacturer by quite a margin and stood tall at the Numero Uno spot.

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Source: Focus2Move
  • Again, stellar performance by Renault & Mercedes who grew double digits in Calendar Year 2016.
  • Honda is strongly challenging Hyundai’s & Nissan’s global numbers. It successfully overtook Chevrolet this year and looks promising in the way ahead.
  • Also to note that even in Electric Car Sales, Nissan held the Top Spot. Nissan was way ahead of Tesla with the support of its electric offering Leaf. Since its inception, more than 250,000 Leafs have been sold worldwide through December 2016, making the Leaf the world’s all-time best-selling highway-capable electric car in history. As of December 2016, the United States is the world’s largest Leaf market with almost 103,600 sold, followed by Japan with almost 72,500 units, and Europe with almost 68,000 units.
  • Mercedes also clearly stood ahead of its German Counterparts. While it sold over 23 Lakh units and overtook BMW (19.85 Lakh units); Audi came third with sales of 18.85 Lakh units globally.

Note: The data in this post is a consolidation from multiple sites and multiple references. Hence accuracy is not guaranteed.