Snapshot – Indian Auto Industry Performance, June 2011


Highlights:

*The country’s largest car-maker Maruti Suzuki India (MSI) reported an 8.8% decline in total sales to 80,298 units in June from 88,091 units in the same month last year. It also reported a 3.8% decline in sales in the domestic market to 70,020 units from 72,812 units in June 2010. Exports also declined by 32.7% to 10,278 units from 15,279 units in the year-ago period.
*Tata Motors reported a marginal 0.7% decline in total sales in June 2011 to 66,358 units  from 66,824 in the same month last year. The firm’s total passenger vehicles sales in the domestic market stood at 21,993 units in June, a fall of 20.92% from 27,811 units in June 2010.
*Toyota Kirloskar Motor reported 94.72% jump in its sales at 12,034 units during June’11. The company had sold 6,180 units in the corresponding month last year. During the month the company sold 5,002 units of mid sized sedan Etios, 737 units of its latest small car Liva, 629 units of premium sedan Corolla Altis, 4,665 units of multi- purpose vehicle Innova, 990 units of SUV Fortuner, 9 units of luxury sedan Camry and 2 units of hybrid car Prius.
*Volkswagen India reported 166% increase in sales during June at 5,397 units as against 2,032 units in the same month last year. The compact car Polo and the sedan Vento continue to be the backbone for the brand with a total of 5,136 units sold in June 2011.

*Car maker Honda Siel Cars India (HSCI) reported sales for June at 3,455 units, a decline of 24.81% over the same period last year. The company had sold 4,595 units in the corresponding month last year. The June sales comprised 2,802 units of its flagship sedan City, 361 units of hatchback Jazz, 175 units of premium sedan Civic, 103 units of luxury sedan Accord and 14 units of its sports utility vehicle CR-V.
*Auto-maker M&M reported 29.11 per cent jump in its total sales in June, 2011 at 35,584 units.
The company had sold 27,562 units in the corresponding month of 2010. Total sales of passenger vehicles, including Scorpio, Xylo, Bolero and Verito, stood at 16,053 units as against sales of 13,316 units in June 2010, up 20.55 per cent. Sales of the Verito sedan went up by over two-fold to 1,510 units during the month 

from 563 units in the same month a year ago.

*Ford India reported 8.44% jump in its sales for June at 9,145 units, mainly on the back of its small car Figo’s numbers. The company had sold 8,433 units in the same month last year. During the month, the company delivered the 1,00,000th Figo since its launch 15 months ago. 
* Skoda Auto India today reported a 69 per cent increase in sales to 2,611 units in June this year, as against 1,639 units in the same month last year.

*The country’s largest two-wheeler maker Hero Honda reported 20.12% jump in its sales for June at 5,12,244 units, over the same month last year. The company had sold 4,26,454 units in the corresponding month last year. For the April-June period of this fiscal, the company saw its highest-ever quarterly sales at 15,29,577 units compared to 12,34,039 units in the same period last financial year, up 23.95%. 

*Chennai-based TVS Motor company reported a 14% increase in total sales to 182,456 units in June, 2011, as against 1,59,688 units in the same month last year. Total two-wheeler sales grew by 14% to 178,633 units in June 2011, in comparison to 156,685 units in June 2010. During the month, total motorcycle sales grew by 5% to 69,859 units from 66,452 units in the same month last year. Scooter sales grew by 21% to 44,281 units in June 2011, from 36,742 units in June 2010. Domestic two-wheeler sales of the company grew by 11%, with sales of 155,296 units in June 2011, as against 1,39,905 units in June 2010.

*Two-wheeler maker India Yamaha Motor today reported 29.98% increase in its total sales in June at 36,595 units. The company had sold 28,155 units in the same month last year. In the domestic market, the company’s sales stood at 27,263 units as against 21,157 units in the same month last year, up 28.86%.

Indian Car Sales Figures – May 2011


May 2011 Sales Figures – Pan India

Key Points:
1. Honda City sales again plunges down. 
2. Diesel Vehicles Ho-Ho: Hyundai does make a VERNA-cular entry!!! Market leader in its first month.. Vento’s IPL run slows down. Competition gets stiffer. C segment cars now the most interesting segment in India.
3. Tata does below-par performance.. Nano sales down by around 3500 units when compared to April’11. 
4. Production of Japanese car makers in lime light. Hugely in demand Toyota cars (such as Fortuner) does an average sale.
5. Maruti Suzuki Omni – 9333.. Can you believe that!!!

Indian Three Wheeler Industry (Performance FY 2010-2011)

The 3 wheeler Market in India is over four decades old. Initially, only 3 seater passenger autos were introduced. In eighties, lower capacity cargo carriers were introduced – 0.5 Tons open body Pick-up van. Till late eighties, 3-Wheeler market was virtually ruled by Bajaj Auto Ltd (the only manufacturer). In late eighties – early nineties, new manufacturers developed higher capacity category by introducing 6 seaters & 0.75 Tons Cargo carrier. And late nineties saw a renewed interest in the 3-Wheeler market. Optimism about growing need of free mobility as well as the need for remote and efficient distribution of the goods and services was the key factors for the same.


But the growing consumer demands for safety, comfort and space led to the evolution of 4Wheeler in this segment in the form of Tata’s ACE in 0.75 T segment (year 2005). And it offered all the advantages over a 3W. The idea clicked and the market changed drastically. The advantages included car like driving, higher speed, larger cabin space, more balanced structure and stylish looks. The market changed radically and today 4W numbers are higher than 3W.
The 4W introduced ate into the market share of 0.75T 3W more than 0.5T 3W. But, smaller 3 Wheelers were still preferred in load segment as compared to large 3 W. The primary reason for this was the higher operating cost as result of lower mileage and higher maintenance cost of the newer 4 wheeler cargo loaders.

Classification:
In the three wheeler segment, the classification is broadly in terms of carriage (load) and passenger vehicles. Since the former does have a very limited capacity to carry goods and is not preferred by many, the three wheeler manufacturers are more into the passenger three wheelers. And the cargo/carriage segment is bifurcated into 0.75T and 0.5T. And the customer groups involve market load operators and the captive customers.

                                                 
The emergence of three wheelers as an effective mode of transportation has benefited millions of Indians. Three wheelers are not only used for carrying passengers but are also used as luggage carriers. In India the three wheelers usually run on diesel and petrol but of late in some of the cities CNG run three wheelers have also come up in large numbers. The three wheelers used for carrying passengers in India are usually referred as Auto-rickshaws. Most of the state governments in the country are supporting the operation of CNG run Auto-rickshaws and also three wheelers with four stroke engines as they produce lesser harmful emissions. It has been found that most of the three wheelers running on the roads of the country come with mileage of about 34-36 km per liter of petrol.

The three wheelers have successfully helped to overcome the dearth of jobs in the country. Numerous people could be seen driving auto-rickshaws on the roads of cities like Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many more. Due to their simple construction and limited amount of investment the three wheelers as a mode of conveyance and commercial mechanism has gained popularity. What’s more, their maintenance is also quite simple. 

Majors concerns for the 3 wheeler industry:
Passenger Industry:
 4 W Impact-Bigger Aspirational Value Products (4W) have started impacting industry, Safety Norms- Can be exploited by 4 W Entrants and influence permission for 3 wheelers plying, New Permits-In Cities, almost closed. Permit Resale Cost is very high and thus is acquisition cost, No Organised Financers in Passenger Segment and Private Financers charging as much as 40% interest Rate, Rising Interest Rates and Ban on diesel as a fuel (In metro cities): Shifting Sales towards CNG and LPG.

Carriage/Cargo industry:
De-growing Industry- Industry de-grown by 40% YOY, 4 W Impact-Bigger Aspirational Value Products (4W) have started impacting industry(42% degrowth for 0.75 T), Safety Norms- Can be exploited by 4 W Entrants and influence permission for 3 wheelers plying, Interest Rates has almost doubled in last one year and Ban on diesel as a fuel: Shifting Sales towards CNG and LPG in 0.5 T Category.

All said and done, 3 wheeler still constitutes a considerable number and has its manufacturers glued to the business. Although petrol/CNG/LPG forms a major percentage share in cities, diesel 3 wheelers are rampant in remaining portions of the country.

Indian “DIESEL” 3 wheeler Sales figures for FY 2010-2011:

FY 2010-2011 performance of Diesel 3-wheeler Carriage/Load Segment
FY 2010-2011 performance of Diesel 3-wheeler Passenger Segment 

The overall Industry figure for Carriage+Passenger Diesel 3 wheeler sums up to 274233 units. Piaggio has emerged as an undoubted leader in this category.