Honda’s Bold Move for 2016!

Honda is launching its Bold Runabout Vehicle (otherwise abbreviated as BR-V!) on May 5th, 2016. The company is continuing its product offensive strategy and this will be the OEM’s fifth big launch in a timeslot of 3 years! (Amaze, New City, Mobilio, Jazz). The Japanese OEM is pinning a lot of hopes on this baby and the customers are also equally excited on the offering.

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Concept Teaser Image

About BR-V: It was initially previewed by Honda as a concept in the middle of 2015. Despite being categorized as a Compact-SUV, in Indonesia it is seen as a Crossover Utility Vehicle or CUV. The Honda BR-V is derived on the same platform as the second generation of Honda Mobilio; (which was itself based on the small eldest sibling namely Honda Brio) allowing to share mechanical components including powerplants. It is also based on the philosophy of “Active Solid Motion” to look premium and tougher in the class.

Currently popularity of Honda’s portfolio is limited to Tier-1 and Tier-2 cities. With BR-V, the company would also want to strengthen its reach to the rural consumer (the Ground Clearance 201 mm will help for the purpose). Also the Premium SUV segment in particular has grown stupendously in past few years. It started off when Mahindra launched its XUV 5oo in 2011 at a price point of Rs.10.8 lakhs. Renault was quick to jump in the game and found immense success with Duster. Partner Nissan to launched its own version through Terrano. However, no one could churn volumes like Hyundai did with Creta. The market was speculative of the high price point of the Creta and the initial sales predictions did not go >4000 nos for the Korean offering. But 63,900 Creta’s were sold in just 10 months and it attained an average sale of 6,390 units/mth! It helped the overall segment to itself to grow at staggering 39% YoY. The stats is as mentioned –

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BR-V will prove to be extremely crucial for Honda. The Japanese OEM struggled with volumes in FY16 and it already has 2 non-performers in its pack (Mobilio & Brio). The OEM lost its 3rd position to Mahindra and could post a meager growth of 1.6% YoY. BR-V is already doing wonders for the OEM in the initial markets that it was launched. In Indonesia, it is currently the second best selling car! January 2016 was the first month for Honda BR-V delivery at Indonesia, it sold 6.627 units and become second best seller car in Indonesia below Toyota Avanza and above Toyota Kijang Innova. Even in Feb’16, BRV sold 5,575 units and commanded a 6.3% Market Share.

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The most crucial aspect of the launch in India will be its pricing. While we expect the car to be priced near to Hyundai’s Creta; the Indonesian price comparison might be helpful – BRV is available only in petrol and the prices is as mentioned:

  • 1.5L S – 226,500,000 IDR (Rs. 11,41,711)
  • 1.5L E – 236,500,000 IDR (Rs. 11,92.118)
  • 1.5L Prestige – 261.500.000 IDR (Rs. 13,18,135)

Hence we expect the top diesel-spec variant to cost near Rs.15 Lakhs. However, it can turnaround the segment if the initial pricing is lower than as expected above!

Indian Car Sales Figures – March 2016

Last FY (Apr’15-Mar’16), passenger vehicle sales in India registered a stellar growth of 7.87% – reportedly highest in past 5 years! The growth was undoubtedly fueled by new launches (say Creta, Kwid, Baleno, TUV300, Jazz, KUV100, etc). Let’s compare the performance of OEM’s if the new launches were not there –

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  • In the above chart, Maruti yet again proves why it has remained the market leader for decades now in the sub-continent. It has been able to register a 5.2% growth even if the Nexa (S-Cross & Baleno) and Brezza volumes are taken away. This year Maruti also neared its all-time highest Market Share and closed at 47% MS. The Market Share increase in this tough business scenario has just been appreciable and their focus on their entire portfolio has been the key.  A look at the leader’s game :
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Source: Business Standard
  • Hyundai had a tremendous year as well – while Grand i10, Elite i20 broke new records in sales, Creta was able to set higher benchmarks in Premium-SUV category this Financial Year.
  • FY15 was pretty tough for Mahindra and had moved M&M to the forth spot; however M&M turned the table in FY16 and was able to successfully launch 3 new products this FY – TUV 300, KUV100 & Nuvosport. But the concern area remains on the dependency on the new models. Without the new launched, Mahindra would experienced a fall of 11.4% in sales!
  • The story for Honda remains similar to Mahindra, and the Japanese MNC was able to sustain volumes only due to the New Jazz! If we take out Jazz numbers; Honda would have de-grew 20.3% YoY!
  • One Product Wonders played the game for Ford & Renault. Kwid and Aspire helped the respective OEMs to grow or else they would have been in a tough position in the Indian market.

Model-wise Figures for Mar’16 –

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March 2016 car sales data

HIGHLIGHTS:

  • Brezza shipments were initiated last month and in the first month itself, it overtook Ecosport and TUV300’s numbers. Maruti has near to 1800 sales outlets – so just only 1 Brezza to each outlet would have helped Brezza garner 1800 shipments! As on date Maruti has received 40,000 bookings for Brezza (near to 22 bookings/outlet). Considering the initial response, we see the Compact-SUV to be the next big thing this year!
  • Mahindra did the makeover to Quanto and termed it Nuvosport (find any resemblance to the name Ecosport?). Around 1299 Nuvosport’s were dispatched in the first month and the SUV was launched on 4th April. Can it fight the mighty Ecosport & Brezza (also the sibling TUV300)?
  • Renault’s Kwid could make a grand entry in Top 5 with sales of 9743 units. It is also the highest ever a Renault car has been placed in the list of best-selling cars for the month. Nearly two-thirds of Renault’s total current sales currently come from the Kwid.
  • Celerio, New Endeavour and Camry grew notably in Mar’16 vis-a-vis Mar’15. While the diesel option is working wonders for Celerio, the New Endeavour has become the real competition to the mighty Fortuner (which incidentally degrew 71%)!
  • Tiago numbers were Zero. We wonder how.

March 2016 Car Sales – Snapshot

OEM-wise Sales Data

March traditionally is a good month for the Auto Industry and it did experience a growth of over 5%! Renault, Ford & Mahindra stood as the biggest gainers of March and again fueled by the stellar new product performance. Kwid, Aspire & KUV100 proved to be the saviors for the respective OEMs and helped them gain a double digit growth in the tough business environment. Amongst the luxury car makers, Volvo stood out in the crowd with a respectable YoY growth. The Swedish car maker launched the S60 Cross Country last month and currently has 7 models in its portfolio (S60 sedan, S80 saloon, V40 luxury hatchback, V40 Cross Country, XC60 SUV and XC90—the 6 seater SUV). We are sure that the surge in business shall encourage the Swedish OEM to assemble cars in India (Unlike other luxury car firms Volvo doesn’t assemble any model locally. All of them are fully imported.). In luxury segment, Mercedes again led the pack with the highest volume in luxury cars segment. Mar’16 also saw the launch of Mercedes Benz S100 from the German Luxury car maker.

March 2016 also witnessed the end of the financial year – hence a lot of these OEMs would have tried to rationalize their target achievement and would’ve pushed for more volumes. We also present the entire Financial Year performance of these OEM’s here –

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Biggest Gainers of FY16
  • Renault drove to the top backed by Kwid’s success and delivers a >65% growth in FY16! The French Automaker is now trying hard to gain volumes in the higher margin maker Duster for sustainability.
  • Porsche though with low volumes,  makes itself visible in the growth department – the luxury SUV models (particularly Cayenne) has helped it significantly.
  • Hyundai & Maruti emerge as the only 2 Carmakers to have a double-digit Market Share in India! Both of them combined command a Market Share of envious 64%. While other OEMs have put everything to gain a piece of Indian Market, these 2 OEMs are holding their fort pretty well and are giving a tough fight to the bigger OEMs.
  • Maruti has reached its ever highest Market Share in past 10 years and the Nexa strategy has paid it off quite well! The Indo-Japanese car maker don’t stop surprising us with the tricks they got to offer for the Indian Market – the latest addition being the compact-SUV Brezza which will shoot their hold of Market Share in the coming months.
  • It was a comeback year for the homegrown SUV-major Mahindra. The Indian MNC dethroned Honda from the third spot with a good margin. Mahindra’s product-offensive strategy (launch of TUV300, KUV100)worked wonders for the company and the volume jump helped it strengthen its slot in the third place!

A look at the Top 10 sellers of March 2016 (detailed model-wise data to be posted shortly) –

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Source: ET

Koenigsegg’s Regera – 2nd 1500 bhp Monster.

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Little was it know to the world that Bugatti’s Chiron will have a competitor ever so soon!! 2 days!!

Though we don’t have the luxury to drive these cars & really tell you how they feel to drive, We would like to present you with some Comparison about these  2  1500 bhp monsters.

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Both these cars take their owners for a Ransom.. Regerra – 12.71 Crore Rupees & Chiron – 17.4 Crore Rupees.

 

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Both these cars should be the Best of Production Hypercars the World has seen.

2017 Bugatti Chiron: The $2.6-Million, 1500-hp, 310mph Monster!

When Wolfgang Dürheimer (President, Bugatti Automobiles) was asked to plan a successor of Bugatti Veyron, he knew that he had to better the best and produce something invincible. Chiron was the outcome! So, do you think Chiron has all the ingredients to become the worlds fastest street-legal production car? The statistics on paper some how does –

  • Powered by an 8.0-liter quad-turbo W-16 engine
  • 1,500 Bhp
  • 1600 Nm torque
  • 310 mph speedometer (500 km/h)

The aforementioned specifications indeed has all the necessary hardware to outrun the outgoing Veyron and break the record for the fastest street-legal production car. The super car will cost a whopping $2.6 million (Rs.17.41 crores).

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This is what President Bugatti Automobiles had to say

Bugatti says the 2000kg Chiron is “the world’s first production sports car with 1500 hp.” It’s best to simply shelve any expectations of modesty on Bugatti’s part. After all, when the car you’re replacing produced 1200 horsepower, hit 258 mph, and cost more than 17 Crores , adding an extra 300 horsepower, 3 mph of governed top speed, and half a million to the window sticker matters. The Chiron’s redesigned 8.0-liter quad-turbocharged W-16 engine produces 1500 horsepower, 300 more than the outgoing Veyron Super Sport.

So wonderstruck! We are completely confident that the Chiron will trump the Veyron in all departments. It is undoubtedly an engineering masterpiece and the aficionados should be properly enthralled; atleast those who have the means to buy one!

So how does the Chiron sound? Play the video –

Source: Bugatti, CarandDriver & Motor Trend