Harrier sells 1,216 units in June 2019!

Harrier seems to be effected by the onslaught of MG’s Hector and the sales are already down below 1.5k units (1,216 nos to be precise). Though Hector’s dispatch figures are not available; >10k bookings for the model is a testimony to the model’s initial acceptance. Tata too have announced launch of Dual-Tone exteriors for the Harrier in retaliation. Tata should now act much faster before losing ground to competition.

Creta though being the best seller; its sales dipped -25% YoY. It has been first cannibalized by its own sibling Venue at the lower end of the segment and MG’s Hector at the higher end. The road ahead looks even more challenging for the model with Kia’s Seltos launch in sight. Venue sold higher numbers then Creta and was the second best selling Hyundai for June 2019.

Kicks loses all hopes to revive its volumes and settles at the bottom 2! Such a wonderful product facing this state is a direct testimony of how brand perceptions decide fate of models sales in the Indian market. Do note that the bottom most model in the list is Captur (which is the Kicks counterpart from Renault).

8,763 units of Hyundai Venue sold in June 2019!

Hyundai Venue has become a runaway success for the carmaker and has given required boost for the Korean OEM to minimize its overall sales loss in this downturn. Venue has not only proved to be a formidable competitor to Brezza; but now is in a verge of overtaking Brezza’s numbers! Venue was just 108 units short of the Segment-leader Brezza and 8,763 units of Venue were dispatched to Hyundai dealers in June’19. The model has already garnered over 35k bookings and is commanding a waiting period of almost 6 months in certain cities.

The Sub-4m Compact SUV segment has shown promise and has grown a staggering 38% YoY while the overall Car Sales have degrown by -17%! The success of the segment is owed to 2 Newcomers – Venue & XUV300. Both the new models have fared extremely well and has supported their parent OEMs. While Hyundai as an OEM degrew -7% in June’19; Mahindra Y0Y sales were up by 8%. This clearly showcases the importance of these new models in this troubling times for the industry. The influx of capable cars in the offering has shown a direct effect on the Market Leader Brezza – The model saw a YoY sales dip of -17% and the numbers have fallen below 9k units in June’19. Do note that Brezza’s monthly sales average last financial year was 13,156 units/month!

Yaris registered its all time lowest sales volume in June 2019!

Yaris undoubtedly shall be Toyota India’s biggest product failure till date. The model has somehow not clicked the right boxes in any department (pricing, features, looks) and has been outrightly rejected by the consumers. It degrew a monumental -94% YoY and shows no sign of recovering from the sales slump. The segment in overall too has proved to be unattractive for OEMs as the volumes are dwindling every passing month. The segment degrew -35% in June’19 v/s June’18 and almost all models saw a drop in their volumes.

Snippets of segment performance –

  • Honda’s City claimed the throne in June’19 and jumped to the Top Spot beating Nexa’s Ciaz. All Ciaz, Verna & City have been closely fighting for becoming the segment leader and every month there is a tough competition for the spot (Verna was the top selling executive sedan in Apr’19 & Ciaz was the best seller in May’19).
  • Rapid+ Vento combined sold >1k units. Also note that Rapid too saw its lowest monthly sales figure since launch (Nov 2011)! Indeed tough time for the segment and the models in it.

25 units of Hyundai Kona EV shipped in June’19!

Hyundai is all set to launch its first Electric Vehicle for the Indian market – The Kona Electric SUV is slated to be launched on July 9th 2019. Around 25 units of the E-SUV were dispatched in June’19 so that the dealers are ready for the launch as well. Hyundai claims that Kona comes with fast-charging technology that allows the car to be charged fast enough like a mobile phone from a DC fast charger. Upon launch, the Hyundai Kona will also be the country’s first fully electric SUV and it will be manufactured locally. Kona should also benefit from the EV push from the policies announced from the Government. In yesterday’s budget the support for EVs announced was – reducing the GST to 5 per cent, exemption in customs duty on EV parts and specially the Income Tax deduction on the interest component paid for loans taken for purchasing EVs.

Hyundai Kona shall boasts of an impressive design with a closed-off front grille and twin headlight design. There are LED headlamps, LED DRLs and LED rear lamps. The electric SUV gets 17-inch alloy wheels as well. Features like 7-inch digital cluster, 8-inch touch screen, paddle shifter (regenerative braking control) and electronic gear shift button are available inside the cabin of Kona. Highlights of the KONA Electric include Highest Electric Driving Range, Convenience to charge anywhere, and an Automatic Transmission.

June 2019 Car Sales – Snapshot

Passenger Vehicle sales in India continued its downward spiral in June’19 as automakers curbed factory dispatches to control inventory at their respective dealerships. The retail scenario too wasn’t encouraging and the overall market dynamics was slow as well. The Passenger Vehicle sales saw a double dip of -17.7% in June’19 v/s June’18. The market in a way emulated Maruti Suzuki’s performance which saw a YoY degrowth of -17.2%. The auto industry condition is worsening every passing month and it is high time government pitches in and extend the required support to lift things up. Infact, Car sales slipped for the eighth month in a row in June and did not show any signs of revival.

We had recently presented a report on how irrational the taxation structure currently is; and requires immediate action from the Government to rectify the same. We anticipate that the Government announces some industry friendly policies and reduce the GST in upcoming Budget to support the sector. Companies and SIAM are rightfully seeking a drop in GST rate from 28% to 18% to drive in affordability.

  • Market leader Maruti sales fall for fifth consecutive month, OEM registers 14 per cent drop in June 2019 v/s June 2018! The drop in Nexa sales was even scary and dipped -28% in June’19 v/s June’18. The combined YoY fall was -17.2%.
  • Hyundai registered one of the lowest degrowth and was possible to the positive momentum for its newly launched Venue. Hyundai also started the dispatches of the electric SUV Kona in June’19.
  • Mahindra was the only OEM to register a positive YoY growth! XUV300 have performed well for the OEM and has already shipped 25,000 units from the plant.
  •  Tata places itself into the fourth spot and its sales fell by -27% in June’19 vis-a-vis the same period last year.
  • Even added Glanza volumes couldn’t help Toyota improve its ranking. It stood fifth in the table and degrew -19% YoY.
  • Honda registered one the highest YoY sales drop in June’19 and has placed it in the sixth spot in the ranking table. Decelerating Amaze volumes has made the scenario even more difficult for the Japanese major.

Market Shares figures for June’19 –