December 2019 Car Sales – Snapshot

December’s have always been a lean month in terms of Wholesales considering year change and the bid of OEMs/Dealers push to liquidate the stock. Considering the downtrend in the Indian Auto Industry; we rate December 2019 to be a better month comparatively as the Industry was flat and didn’t degrew to the extent we had anticipated. The upcoming BS-6 norms has been a constant threat to dealers/OEMs to ward off the BS4 stock and has industry pretty hard – Even FADA (Dealer Body) had to approach Supreme Court asking for an extension on the deadline. However; the efforts are on and the industry is working hard to have a smoother transition. The winner in the overall fiasco is the customer – they are getting their favorite cars at all-time high discounted prices. The same should reflect in the retail volumes and we shall share the same in mid-month to assess the scenario better.

  • 2,34,805 cars were sold in Dec’19 v/s the same period last year. The YoY degrowth was -0.5% and industry sales was almost flat.
  • Maruti was able to regain lost ground and improve its market share by stellar 1.5%! Actually Hyundai’s loss seems to be Maruti’s gain. Hyundai clear has curbed on the dispatches and is evident in the numbers.
  • Mahindra gained too and its Market Share rose to 6.5% in Dec’19.
  • Tata registered a YoY degrowth of -10% and the Market Share dipped by -0.6%.
  • Renault has been the HERO-performer for Dec’19. While it not only registered a monumental 65% YoY growth but improved its Market Share too by 2%!
  • Kia looks to have rationalized its dispatches and shipped only 4.645 units of Seltos. Kia seems to place a bet to reduce the MY19 stock so that the cars are later not sold at a discount. However; Jan’20 performance shall give a clear picture.

Market Share figures for Dec’19 –

All about Own Damage Bike Insurance

Know Everything About an Own Damage Bike Insurance Cover to Safeguard Your Finances Effectively!

In 2018, the Insurance Regulatory Development Authority of India (IRDAI) allowed insurance providers in India to make three types of insurance policies available to two-wheeler owners in India.

These are

  1. Bundled insurance.
  2. Long-term third-party insurance cover.
  3. Long-term comprehensive cover.

To add to this, IRDAI in September 2019 has allowed insurance providers to introduce an annual own damage policy for two and four-wheeler vehicles in the country. This policy is offered at the discretion of insurance providers.

What is Own Damage Bike Insurance?

Own damage insurance for bike is a standalone bike insurance policy that provides financial protection against damages and losses to your own bike.

Some of the instances covered under this insurance policy include damages due to accidents, theft, natural calamities, fire, etc.

This policy can be availed only by someone who has an existing third-party liability cover in place.

Thus, by availing own damage cover alongside your third-party liability cover, you can make sure your financial losses are minimal in the face of unfavourable circumstances.

How Does it Work?

Unlike third-party liability cover or comprehensive insurance cover, own damage cover solely protects the insured bike against damages and losses.

Previously, own damage cover could be purchased only as a part of comprehensive bike insurance policies. But, as per new rules, you have the flexibility to purchase OD cover separately from the other two standalone covers.

It works like any other insurance cover, where the policyholder has to pay a fixed premium amount to avail financial protection for their bikes.

This policy can also be further modified with add-on covers like –

  • A zero-depreciation cover.
  • Roadside breakdown assistance.
  • Return to invoice cover.
  • Tyre protection cover.
  • Engine and gearbox protection cover, etc.

Why was this Cover Implemented by the IRDA?

This cover was implemented separately by the IRDA because it allows you to avail protection against the damages to your own bike even if you already have an existing third-party liability cover in place.

You can understand the usefulness of the policy better with an example!

Let us assume that you have purchased a bike and an accompanying third-party liability cover, which insures your bike for the next three years. Sometime later, you realise that the liability only cover is not sufficient to provide you with 100% protection against liabilities involving your two-wheeler because it doesn’t protect your own vehicle.

Under this circumstance, the own damage cover can help to protect your bike against all types of damages incurred.

Can You Buy the Cover? Look at the Eligibility Criteria!

You can purchase the own damage cover if you comply with the following criteria –

  1. If you have purchased your bike after 1st September 2018.
  2. If you have a pre-existing long-term third-party bike insurance cover.

After ascertaining that you comply with these factors, you can avail the Own Damage bike cover.

Advantages Available Under the OD Cover

The advantages from the OD cover can be illustrated in the table below –

Instance Explanation
Accidents The policy provides financial protection to your bike against damages due to accident, collision, etc.
Theft Provides financial coverage if your bike is stolen.
Fire Financially protects your bike against damages from a fire outbreak.
Natural calamity Calamities like flood, storm, lightning, etc. can cause extensive damage to your bike. This insurance policy covers the damages incurred due to these.

Since this cover can be availed with an existing third-party liability cover, it provides all-round protection for your bike, thus securing your finances more effectively.

How is the Premium Payment For this OD Cover Determined?

With third-party liability covers, the IRDA publishes fixed rates for the cover annually. These rates depend on the insured bike’s engine capacity, with no variable component.

But with the OD cover, the premium calculation is a tad bit more complicated. The quote offered by insurance companies depend on factors like –

  1. Bike’s cc (engine capacity).
  2. Vehicle’s Insured Declared Value.
  3. Vehicle’s area of registration.
  4. Bike’s make and model.
  5. Age of the bike.
  6. Add-on covers.
  7. Voluntary deductibles.

Insurance providers offer the OD cover with these factors and the premium from the third-party liability cover in consideration.

Things to Remember About the Policy

  • Insurance providers cannot offer long-term standalone OD covers. You can choose to renew your standalone cover annually.
  • Insurance providers can offer you the OD cover only if you have an existing third-party liability cover.
  • The prices for standalone OD cover are the same as the add-on OD component of a standard two-wheeler insurance cover.
  • The OD cover should contain details like your existing third-party cover’s start and end date, policy number, etc.

So, without delay, get the OD cover and secure yourself against losses today!

PS: It is a sponsored post. 

Petrol v/s Diesel Cars Sales Data

First of all; we wish our readers a very Merry Christmas! While we have been very active in sharing monthly 4-wheeler & 2-wheeler sales data; a lot of our readers have been asking for the fuel-wise split to get a better understanding of how the sales fare for the respective fuel options. As data is not regularly available; we have been inconsistent in sharing the same. However; the latest iteration of our report analyses the fuel split for the cars sold from April 2019 to October 2019. The 7 months time frame considered shall give us a clear perspective of the sales fuel wise and the OEM-wise data is as shown below.

  • Petrol models contribute the king’s share in the sales and over 67% of the cars sold in India were gasoline powered. Almost 33% of the cars sold were powered by diesel engines and only Alternate fuel cars (Hybrid/Electric) contributed a mere 0.1%!
  • India’s biggest carmaker Maruti had 78.1% of petrol-engine cars sold and 21.9% of cars sold were diesel. Maruti raised a lot of eyebrows when it announced that it is going to sell only petrol powered cars from April 2020 – However; it is reconsidering the strategy as it cannot put the 21.9% sales at stake which it is still getting. Blockbuster models like Brezza are still diesel-only models and losing out on diesel can erode its Market Share pretty heavily.
  • Hyundai’s dependency on diesel cars was higher than Maruti and 27.6% of cars from Hyundai’s stable was diesel-powered. Hyundai has anyhow announced that it is going to bring BS6 diesel engines from next year and is not shying away from the powertrain. Hyundai also made the move to explore the electric cars market with Kona and is selling just 45 units/mth. But; Kona shall give Hyundai a first-mover advantage and shall also enhance Hyundai’s brand image for selling a full fledged electric car.
  • Mahindra’s dependency on diesel is magnanimous. ~93% of Mahindra’s were diesel cars! No wonder M&M bought 50% of Ford India’s stake that shall give it the required technology on petrol cars and expand its lineup accordingly too.  M&M has been betting big on electric cars and the Reva takeover gave it the competitive edge as well. 42% of electric cars sold in India were a Mahindra and signs of getting Electric-KUV & Ford models shall help it leverage on the same.
  • More than 51% of Seltos sold in India were powered by Petrol Engines. Having GT line in petrol has helped Kia gain higher sales in Petrol portfolio.
  • More than 10% of Hector sold was powered by the Hybrid powertrain! Also almost 42% of Hector’s were powered by a petrol engine. It clearly shows why Harrier lost out on sales even though it has been such a capable product (Harrier doesn’t have either Petrol or Hybrid powertrain on offer).
  • Surprisingly Renault was the OEM which was dependent on Petrol models the highest! As Duster’s sales have dwindled; and majority of the volumes are inclined from Kwid & Triber (which are petrol only models) – the inclination on petrol portfolio is at all time high.

Electric Vehicle Sales Data – India (Cars)

We have been consistently receiving requests to cover Indian Electric Vehicle Sales reports too. However; the size of electric vehicles is so minuscule that many a times the data is either not available or is extremely negligible. For Ex: Only 1071 Electric Cars were sold in India from April 2019 to October 2019 (7 months) out of overall 16,05,549 cars sold. Electric Vehicle Sales contributed to only 0.067% of overall cars sales in India!

As usual; we are happy to present the best selling Electric Cars in India –

  • Verito Electric was the best selling electric car in the mentioned time frame. It sold an average of 62 cars/mth.
  • Tigor came in close second where it sold 389 cars in the 7 months time period and its average was 56 cars/mth.
  • Kona has made good progress and sold 227 units in the 5 months since its launch and averaged at 45 units/mth.
  • E2O has completely lost the first mover advantage and is losing out on volumes heavily. At present; only 3 cars/mth is the average sale of the model.