December 2016 Car Sales – Snapshot

Highlights –

  • Industry de-grew by 1.5%. December generally a good month for Automobile OEMs; this time couldn’t perform as per expectations. 2 main reasons to be attributed for this – Mr. Modi & Maruti. While the market is still reeling under ‘Demonitization’ effect; Maruti’s drop defined the industry degrowth as well. Hyundai’s YoY performance was similar to that of Maruti as well (-4.3%).
  • Luxury Brands are under ‘tremendous pressure‘. The segment has literally taken a beating – First with the TCS (Tax Collected from Source) and now government’s policy of scrutinizing every luxury car purchase (after demonitization). The buyers in the segment are literally scared to finalize their purchase. Otherwise, December used to be a blockbuster month for luxury cars (as discounts are the highest in this segment in this month).
  • Even with a YoY growth of over 34%; Tata could rank only 6th in the Top OEM table. Mahindra, Toyota & Renault are strongly holding onto their fort and only Hexa can push the Indian OEM back into the Top 3 in Jan’17!

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6 thoughts to “December 2016 Car Sales – Snapshot”

  1. What would be the average drop in retails in Dec’16 compared to Dec’15 , for the major mass-market players ?

  2. Toyota provided discounts on etios and liva models and could see how much increase the sales have converted that to. I believe its better if they can fix the price at the discounted value and it will see them consistent increases in sales of etios and liva. As an owner of Etios, I could very much see how much underrated the car is compared to other highly cosmetic cars that are sold.

  3. Highly Priced cars like Fiat, Skoda, not to mention about other Elite cars, all are affected.Reasonably better cars are available at a more reasonable price.Demonetization also decreased the flow of unaccounted money in the market. Good signs of demonetization.

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