Report Card of Cars launched in 2017

Let us have a look at the performance of the cars launched in the year 2017. Why now? As manufacturing and logistics activity usually stabilize after 6 months from launch date, based on demand-supply situation. Only new generation and new products are considered here, not the mid-life refresh ones.

Hyundai Verna

3rd generation has brought Verna nameplate back in the game, in a segment which is reeling under SUV onslaught. Remember how, once, 2nd generation fluidic design Verna brought aspirational Honda City on its knees. City reclaimed its position later but that was quite an interesting show. Verna’s position seems to be safe till new City comes in 2020.

Tata Nexon

After pretty long time, Tata Motors is showing good growth with an all new productline. Credit should go where it is due, to erstwhile Chairman of Tata Motors – Mr. Cyrus Mistry and the then Managing Director Mr. Karl Slym, and their  Horizonext strategy, rolled out in 2012-13. They transformed the organization and made Tata Motors future ready and put the company on growth trajectory where it is today.

“This strategy rests on the pillars of intense product focus, benchmarking to world-class manufacturing practices, enriched customer purchase experience, consistent and outstanding service and a technology-intensive aftermarket support. With this, we strive for the next level in design, driving experiences, fuel economy and connectivity” – Tata Motors Annual report 2013-14.

Maruti Dzire (sub 4m)

Dzire needs no introduction, it is the best-selling car of 2018. With every new generation it became much more desirable, and yes, Honda’s latest attempt to dethrone it, is not quite successful yet.

Tata Tigor

Tigor couldn’t emulate the success of Tiago. Underpowered engine and body styling is not very well accepted by Indian market. It seems Tigor got some numbers from Zest, and later is pushed into fleet segment.

Volkswagen Tiguan

Tiguan is 6th best-selling car across the globe (2018). But conservative design language is not helping the case of Tiguan in India. Even more expensive cousin Kodiaq is doing better numbers than Tiguan.

Maruti Ignis

Currently it is slowest selling hatchback in Maruti’s portfolio. Other car makers will be more than happy to have such sales numbers, but as per Maruti’s standard, it is a flop. Looking at its some of near predecessor, we can easily gauge in our crystal ball (graph below) where it is heading to. In fact, predecessors had much better start as well. Over-priced perception, polarizing rear end design, and close positioning between Swift (aspirational) and Wagon R (Value for money) has taken toll on its number. So, for all those who believe that Maruti badge stamped on any car can sell, please take a note. Primarily, it is always product and price.

Volkswagen Passat

Previous generation of Passat was launched to build premium brand image for Volkswagen in India. It did fairly well for its part. But current generation couldn’t even hold candle to its cousin Superb. Car is loaded with all bells and whistles, but it looks very bland from all angles and it’s no brainer for customers to go for its stylish cousin. By the way segment is dying way too fast.

Skoda Kodiaq

Overpriced perception and underpowered engine (148 bhp) took a toll on Kodiaq’s number. Its direct competitor Honda CRV brought in newer generation car with even more underpowered (120 bhp) engine. What is going on, a race to bring underpowered engines at insanely high price. Surprisingly, body on ladder frame cars too lost some of steam this year.

Honda WR-V

India’s craze for SUV and sunroof was very well adapted by Honda with minimal investment. But numbers are going down now, and upcoming Mahindra XUV 300 will hurt the weakest first, and very promising Hyundai 4m SUV will hit everyone hard.

Tata Hexa

Hexa is nothing but repackaged Aria. Seems more like a bridging product, till the launch of H5X (2019) and H7X (2020). In competitive landscape it may not have performed that well but in isolation it has really done the job what it is meant to, compared to its super flop predecessor, thanks to Horizonext strategy.

Jeep Compass

It was the most awarded car in 2017. Had a grand opening, as it was tremendous value for money product, given the Jeep brand and heritage. Then what happened?

Lot of product issues, high maintenance cost and below par channel partners (dealerships) are the major reason cited by customers for not going for such an appealing product on paper and in metal. This resulted in bad word of mouth, and numbers just corroborate that. Jeep needs to be very cautious with upcoming Renegade.

Renault Captur

In Europe, Duster is sold under Dacia (Romania) brand, well regarded as no nonsense functional car. And European Captur is sold as premium crossover, based on Renault Clio (Hatchback)- a Maruti Baleno sized car. Both are well differentiated products sold under different brand and have distinct image and customer segment. Then what Renault India has set out to achieve by offering two products having similar dimension and catering to same customer segment, but one of them asking for price premium over other for no apparent reason. Besides that interior plastic is hard, that may work for Duster but not for so called premium Captur, and from outside it looks like grown up stylish Kwid rather than rugged looking SUV (read Duster) or sophisticated looking SUV (read Hyundai Creta). Result is quite apparent.

Nissan is playing the same trick now with Kicks slated for January 2019 launch. Leather trim on dashboard looks upmarket but besides that, all plastic parts looks like carried over from Duster/Terrano/Captur, which is hard and feel cheap. If they price it over ambitiously like Captur, then we know the result beforehand, similar to above numbers.

(The article is written by Rohan Rishi. You can connect with him at

Statewise Two Wheeler Sales – H1 FY19

Thanks to our readers for the overwhelming response on the Statewise Car Sales report. We received multiple requests to share a similar report for two wheelers as well. We are happy to present the same with this post. The format of the reporting is very similar to our previous post and we have tried to add the additional analysis of the top 2 players in the Industry as a bonus.

Around 1,04,96,415 Two Wheelers were sold in the first 6 months of previous financial year (Apr’17-Sep’17) – source. The Industry volumes have grown over 10% and have registered a volume of 1,15,31,359 (over 1 crore fifteen lakh bikes sold in the first 6 months of FY this year !!!). No wonder, India is the world’s largest two wheeler market.

Statewise Two Wheeler Sales Data (FY19 v/s FY18 comparison) –

  • West Zone ranks No.1 in terms of overall sales and is similar to statewise car sales data. Even other Zone ranking are similar to the car sales data (South being No.2; North at Third position & East at last).
  • However East’s overall contribution to India’s Two Wheeler sales is significantly higher (vis-a-vis trend seen in car sales). This clearly signifies the importance of smaller cities in Two Wheeler sales. The dependence on Rural markets is clearly visible and defines the way various OEMs operate.

Ranking of States basis volumes:

  1. The Top 10 states contributes to >70% of Nation’s Two Wheeler Sales!
  2. UP sells more two wheelers than Gujarat+Karnataka combined (PS: Both Gujarat & Karnataka are in Top 5 selling states for Two Wheelers)! There is a saying in Indian Politics that the Party which has clear majority in UP can easily win national elections. The scenario is something similar here as well – The OEM with major Market Share in UP has a tremendous competitive advantage – And this is what is giving Hero Moto Corp the leading edge.
  3. The Zone Wise bifurcation Top 5 states is – West Zone (2 states), South Zone (2 states) & North Zone (1 state).

Hero v/s Honda –

This is the most interesting competition the automobile industry will ever witness. Honda has grown exponentially in the past few years and was expecting to near the gap with Hero Moto Corp this year. However; Hero’s stronghold in North Zone has become a pain area for Honda and not having a strong offering in Entry-Motorcycles is hitting Honda badly.  However do note that Honda has overtaken Hero Moto Corp in 19 out 33 states in comparison here!

  • Hero + Honda enjoy an enviable 66% Market Share in the Largest Two Wheeler Market of the world. The scenario again is somewhat similar to Passenger Cars Market share where Maruti + Hyundai combined contribute ~68% of the Market Share.
  • However; the Market Share difference between Hero & Honda is just 6%. If you study the statewise comparison; the biggest gap and deciding state is Uttar Pradesh where Hero has a clear majority with 55% Market Share and Honda is reeling at just 15% Market Share. Having low market share in the Biggest Two Wheeler selling state of India is pulling down Honda’s aspiration to inch towards the Top Slot.

November 2018 Two Wheeler Sales – Snapshot

A look at YoY Growth of the Two Wheeler OEMs and the Industry –

  • Two Wheeler Industry grew a healthy 7.2% v/s the same period last year.
  • Hero Moto Corp stands at the Pole position and with improving sales of Motorcycles has been widening the gap with Honda Motorcycles. Hero grew just 2.1% YoY and was able to cross 6 Lakh unit sales in Nov’18.
  • TVS & Bajaj have both shown exemplary growth this year. TVS has pepped up its scooter sales and was able to scale up its volumes pretty significantly. Both Jupiter & NTorq have been doing well in 110cc & 125cc segments. While Bajaj with its dynamic pricing of entry level two wheelers have escalated its sales numbers impressively.
  • Royal Enfield volumes are kind of stagnating and have actually de-grew -4.1% YoY. We hope that 650cc Interceptor & Continental will change the scenario for this iconic Two Wheeler maker.

Market Share Graph:

  • The Top 4 Two Wheeler manufacturers capture ~90% Market Share! This speaks volumes about the dominance well-established brands have in India. Even the Top 2 OEMs (Hero+Honda) cater to >60% of Two Wheeler sales in India!

Statewise Car Sales – H1 FY19

We have been analyzing statewise car sales statistics for quite some time and here we present the report for the sales of the first 6 months of this financial year; i.e. from Apr’18 to Sep’18. Snippets as below:

    • 17,41,234 cars have been sold in the first six months! Pl note that the statistics do not include the big festive months and Dec/Mar sales which are the biggest months in terms of automotive sales. Going by the trend; we expect the passenger car sales in India to go beyond 35 Lakh units for entire FY18.
    • West Zone has emerged as the Top Zone and is significantly ahead than the South & North Zone which have been placed No.2 & No.3 respectively.
    • Maharashtra retains the No.1 State Rank and contributes to almost 10.5% of national volumes! UP stands second with 8.7% contribution to the sub-continent’s numbers.

Sales Statistics of the States, Zone-wise:

      • The Zonewise Toppers are as mentioned: Maharashtra tops West Zone; Kerala for South; Uttar Pradesh for North & West Bengal for East.
      • Though East Zone has the highest number of states; the car sales volumes are the least in India. Even the Top Selling State of East; i.e. West Bengal stands in 13th place in terms of overall statewise ranking and contributes to just 3.3% of national volumes. Even the Bottom 7 states belong to East Zone.

Top Selling States Ranking:

We have gone a step further this time and tabulated Maruti’s & Hyundai’s Market Share in the respective states:

      • Maruti + Hyundai contribute to ~68% of passenger car sales in India! The Jodi has made the life of other OEMs pretty miserable as the rest of the OEMs have to fight for the remaining pie (30% of market).
      • Maruti has an overall market share of 52.2% for H1. Maruti’s dominance is clearly seen in majority of the states – Maruti has a Market Share of >50% in 22 out of 33 states! Maruti enjoys clear majority in North Zone and has a Market Share of whopping 54.2%. Even the weakest Zone – South has a market share of 49.7%.
      • Hyundai has a overall Market Share of 15.7%. Hyundai enjoys maximum acceptance in West Zone with 17.1% Market Share!

FY19 v/s FY18 statistics:

    • Only 6 out of 33 states have seen dip in volumes for FY19 when compared to FY18. The trend seems positive in the remaining states.

November 2018 – Top Selling Compact Sedans / Compact SUV’s / Sedans

Top Selling Compact Sedans:

  • Maruti is leaving no stone unturned to maintain its dominance in the segment and has been able to successfully maintain an average of >20k units in FY18-19. As a matter of fact; Maruti sold an average of 22,767 units of Dzire between Apr’18-Nov’18!
  • Honda’s Amaze put forth a tough fight to the segment leader at the time of launch. However, it was not able to match Maruti’s counter attack of increased supply and enhanced offers. The volumes are gradually getting rationalized at ~5k units.
  • Rest of the cars in the segment are just not showing any positive growth – the segment degrew by 0.1% in Nov’18 v/s Nov’17. The segment has seen a flat growth even though 2 models have got a fresh avatar (Amaze & Aspire).

Top Selling Compact SUVs:

  • Brezza is growing strongly and shows no signs of leaving any scope for other players to come anywhere near to it. It has significantly increased its production and is consistently averaging ~15k units/mth.
  • Nexon has been impressive with its consistency and has been regularly faring at No.2 spot in the list. It was significantly ahead of the No.3 contender (WRV) and looks to have stabilized with its volumes.
  • WRV & Ecosport sold almost equivalent volumes in Nov’18.

Top Selling Sedans:

  • The segment is going through a tough time. While Yaris could undoubtedly touted as the biggest failure of the year in terms of new launches; even the Ciaz hasn’t been able to gain significant volumes with the facelift – Ciaz degrew 4% in Nov’18 v/s Nov’17.
  • City continues to garner significant volumes in the segment and ranks 2nd in the list. Honda has been offering lucrative discounts for the model to match it’s price with the counterparts.
  • Verna stands third and sold just over 2.5k units in Nov’18.

Top 10 Selling Cars of November 2018

  • Maruti + Nexa again dominate the Top 5 slots. It has barely allowed any other marque to enter the Top 5 ranking!
  • Swift emerges the No.1 selling car of Nov’18 with sales of 22,191 units! It overtakes Dzire with quite a margin and it’s doesn’t seem to fizzle down any time soon. Practically if you see; even Dzire & Baleno are made on the Swift platform and collectively all three brands combined sold a massive 61,877 units!
  • Baleno recently crossed 5 Lakh units sales and was probably the fastest 5 Lakh units sold in the Indian Automotive space (span of 38 months)!
  • Alto was pushed to No.4 spot! Alto has been losing and gaining the Top Slot alternatively and is wisely played by Maruti Suzuki to highlight its other models!
  • Santro marks its entry to the list of Top 10 selling cars within the second month of its launch! Santro’s new avatar has garnered tremendous response and has a crucial importance – This should be the 4th model from Hyundai which could consistently list in the Top 10 selling cars (against the usual 3) and should also fulfill Hyundai’s vision of garnering collectively 50k units sales/mth.
  • i20 was the best selling Hyundai in Nov’18 and was the only Hyundai model to have crossed 10k sales!

November 2018 Car Sales – Snapshot

Tough Times for the Indian Auto Industry!

Source: Livemint

The Industry has seldom seen a dull festive season and the slowdown during Dussehra & Diwali has taken a lot of Indian OEMs by surprise. While the dealers anticipated festive rush and had stocked up pretty well; the negative sentiment led to lower conversions in the consumer end and the pile up of stocks was inevitable. This had a strong and visible impact on the Nov’18 Industry volumes. While we primarily share the Wholesale data (units dispatched from the Manufaturing Plant/OEM to Dealerships); we would want to highlight the FADA study which had published the end Retail Data (sale of car from Dealership to Customer). The Federation of Automobile Dealers Associations (FADA) published the vehicle registrations data of this year’s festive period; i.e. from 10 Oct’18 to 20 Nov’18 and compared with previous year’s festive period (21 Sep’17 – 1 Nov’17). The Passenger Vehicle sales de-grew a clear 14% and is a BIG reason for concern. The FADA report is as shown below –

The effect of the dull festive season was pretty evident in Nov’18 figures and almost all OEMs registered a YoY de-growth! The Passenger Vehicle sales fell by over 3% in Nov’18 when compared to Nov’17. Let’s see how the OEMs fared in Nov’18 –

  • Maruti Suzuki registered a de-growth of 0.3% and was led by the fall in Nexa volumes. Anything below 1.5L volumes for Maruti+Nexa looks insufficient.
  • Even with the launch of New Santro; Hyundai couldn’t avoid the fall and de-grew by 1%. While Hyundai posted a sales of >52k units in Oct’18; it struggled to achieve >43k units in Nov’18
  • Tata again overtakes Mahindra to position itself in the No.3 OEM spot. However the volumes fell by 1% in Nov’18 v/s Nov’17
  • With 2 launches in past 2 months (Marazzo & Alturas); Mahindra has been fighting hard to enhance its numbers. It has been able to maintain a flat growth with the new launches; but has lost the 3rd Rank. It’ll be interesting to see how things turn out post launch of S201 & Harrier for both the Indian OEMs.
  • Honda with its low base in Nov’17; was successful to register the highest growth amongst all OEMs (10%).

Let’s see how the Market Shares fluctuated in Nov’18 v/s Nov’17 –

  • Even with a degrowth in YoY volumes; Maruti has registered a high Market Share of 54.6%. Infact; the Market Share has grown by 1.7% in Nov’18; thanks to its high volumes and higher degrowth in other OEMs.
  • If observed clearly; the Top 5 OEMs have registered a positive Market Share growth; while rest ALL OEMs have declined! It clearly indicates that over a period of time; it shall be extremely difficult for the lower ranked OEMs to survive. Tough market dynamics shall test even the biggest OEMs and the race to profitability isn’t an easy one!