January 2019 Car Sales – Snapshot

The Passenger Car Sales degrew -1.8% in Jan’19 v/s Jan’18. Due to muted demand and weak consumer sentiment; the Industry is under consistent pressure and last few months have been very challenging. Even though Jan’19 had 3 bigh-ticket launches – Wagon R, Harrier and Kicks; their contribution to the respective OEM volumes wasn’t significant. It is even worrisome to imagine the condition without these new launches. It was also very disappointing to see that there were no major announcements in today’s budget that could have supported the Auto Sector.

Let’s see how the OEMs fared in Jan’19 –

  • The Top 4 OEMs posted a positive / flat YoY growth in Jan’19.
  • Maruti Suzuki reported a meager 0.2 per cent increase in its domestic sales at 1,39,440 units in Jan’19 v/s 1,39,189 cars sold in Jan’18.
  • Nexa seems to be struggling while it reported a -25% degrowth in YoY sales. Even with the launch of New Baleno; Nexa wasn’t able to recover the volumes and post a positive growth.
  • Hyundai could grow 1% in Jan’19 v/s the same period last year. Even post Santro launch; Hyundai hasn’t gained significant numbers. However; Santro has helped Hyundai survive in tough times and maintain its volumes.
  • Honda pips Tata as the 4th Biggest OEM for Jan’19! Honda has registered the highest YoY growth of 23% in Jan’19! Amaze has done wonders for the Japanese OEM and helped it gain considerable volume since launch.
  • Tata posted a degrowth of -13% even post the Harrier launch.

How the Market Shares fluctuated in Jan’19 v/s Jan’18 –

  • Maruti was again successful in garnering >50% Market Share. The Market Share has grown by 1% YoY
  • Tata has lost the highest Market Share at -0.8%.

7 thoughts to “January 2019 Car Sales – Snapshot”

  1. Looks like Honda is following the footsteps of Maruti Suzuki and is working wonders for them -> keep the kerb weight of the vehicle low and still manage a smooth ride quality. This automatically leads to better mileage without stressing the engine leading thus increasing the reliability. Like a 4 wheeler version of splendor.

    And what about safety??
    While, all go ga-ga over safety in various forums, practically in indian roads, you travel at 10-40 kmph as against say 60-100 in first world conutries. You dont need to have a great built quality, when your speeds are 10-40kmph. Of course, if you hit the highway regularly, then safety should be no. 1 priority and one should choose a good built quality car like a Tata, Volkswagon, Fiat, Skoda

    Essentially, I believe Maruti Suzuki has done a marvelous job in having a great lineup in the city sweet spot of 10-40 kmpl. Thier cars are super light, easy to drive in traffic, reliable, affordable and spare parts readily available in every nook and corner of the country. No wonder they comma d a 50% market share.

    1. Welcome to the forum. Some thoughts on your comments: There is no first world and another world in driving. There are just city driving and highway driving in any world. It is better to buy a better-built car than buying two cars for different driving conditions. 90 percent of people excluding drivers do not wear seatbelts in India. So at least built quality should be enforced on OEMs. Maruti Suzuki is doing well in India due to legacy advantages just like Hero Motorcorp. Suzuki pulled out of USA and doing very bad in European Market. Fiat is never known for built quality and even Jeep fares poorly in Euro NCAP tests.

  2. Continuing on my previous comment, I strongly believe Tata Harrier and Creta do not fall in the same segment inspite of neck to neck to neck pricing. Rather, Harrier is pitted right against Compass, Captaur, XUV.

    Creta, weighs around 300 kilos less than the harrier (better mileage, even after 5yrs) thus even with a smaller engine, it is a pleasure to drive in chaotic city conditions. Harrier, on the other end is a long trip friendly vehicle (on both highway stretch and in pothole filled bad patches during long trips).

    w.r.t. off-roading capabilities, I believe, its just an enthusiast’s wishlist. A typical family, am using family and not a student/bachelor, as TG at these price points are financially settled families. This TG typically prefer good roads anr not no-roads/off roads!!

    Coming back, Creta is good, established, reliable, good brand and ideal for 20-60kmph drive. Harrier has “road presence” ( also readable as huge and bulky), depending on the conditions of road in your city, eg B’lore, Mumbai where you literally crawl, the “Road presence” can be a bane than a boon. Harrier should be good for 50-100 kmph drives and safe too at these speeds.

    With this, after the first few hype months, Creta should continue to do 9-10k (unless maruti launches a direct rival) and Harrier should settle at ~1500 – 1800 a month.

    This is my first day posting here. Requesting views / counter-views / comments from fellow amigos 🙂

    1. TBH the Harrier disappoints in many ways. In today’s world where features and safety are getting more common in every trim of a car model, the base Harrier is very very bare bones. This segment demands an automatic they had the brilliant Hexa auto box IDK what stops them (don’t go begging to Hyundai!). Some other nitpicks/essentials? You decide. No rear disc brakes, no sunroof. A torsion beam rear suspension seriously? They are pitching it as an “SUV above all” so why isn’t there no AWD? Like me many had to cancel their bookings just because it didn’t have an automatic and Tata seriously needs to polish their dealers sales management teams. Instead of giving me a rundown of the features and other things about the car they are more busy in telling me that this is “basically a Land Rover”! and when I ask him about the drive modes and colour options, that guys is blank

      1. Can’t edit the comment but a little correction to my above comment. Tata cannot use the Hexa auto trans because it’s application is for longitudinally mounted engines, the Harrier is a transverse front wheel drive car that needs a transaxle (read: FWD car transmisson) and at the moment Tata doesn’t have an auto trans for transverse application

  3. No rear disc brakes, no sunroof. A torsion beam rear suspension seriously? They are pitching it as an “SUV above all” so why isn’t there no AWD? Like me many had to cancel their bookings just because it didn’t have an automatic and Tata seriously needs to polish their dealers sales management teams.

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