Based on our readers feedback, we’ve again made a slight change in the reporting format – While we have separately mentioned the brand volumes (Maruti/Nexa/Nissan/Datsun/Fiat/Jeep); the total values are considered for the parent brand (MSIL, Nissan, FCA). We are sure this shall help us monitor the contribution of individual brands and parent OEMs together.
Sep’18 was an extremely tough month for the Passenger Car Industry. The Industry de-grew by -5.4% and reported -16,395 units sales lesser than the same period last year (Sep’17). While we expected the Industry to grow substantially owing to festive season (Ganesha Chaturthi in Sep’18 & upcoming Dussehra in Oct’18 & Diwali in Nov’18); the sales struggled throughout the month. We are scared that the drop in retail units would be even more higher! (The figures reported here is the Offtake/Wholesale data which shows the number of dispatches from the OEMs to dealers). The major reasons for the de-growth are –
- Lot of hue and cry on the rising fuel prices. Every news channel and media publications were covering this story the entire month! The discussion of insanely increasing fuel prices was the topic of discussion in every household of the sub-continent and lowered the consumer sentiments towards the new car purchases.
- Kerala Market slowdown. The state contributes to almost 8% of the national car sales (Source); and the recent floods have dropped overall automobile sales in the state. The sales opportunity lost during the biggest festival of the state (Onam) couldn’t be recovered by the OEMs.
- Inauspicious timeline during the end of Sep’18 & initial Oct’18 (Shraadh / Pitru Paksha) meant that the buyers would be wooed away for new purchases during this period.
- Increased car prices – Many OEMs had recently increased prices stating high raw material costs backfired the sales of cars.
- Erratic Monsoons again affected sales in Tier-2, Tier-3 markets.
- High Dealer Inventory – While the dealers piled up stocks considering the festivities; the slowdown in sales shot up their inventory and even Maruti Dealers inventory shot upto 40-45 days! (vis-a-vis average 30-35 days)