Indian Car Sales Figures – July 2013

July 2013 Sales Figures – Pan India
Highlights –

·         July fares as per the expectation – Being an inauspicious timeline (hindu calendar – Ashada) where most of the customers prohibit any financial decision; car industry is the worst hit during the period. July also saw huge discounts floating in the market to revive consumer interest and struggled to arrive at the current position! The industry reportedly dropped over 7% vis-à-vis last year and is expected to report the lowest numbers in the current calendar year. July 2013 would also be the NINTH consecutive month where the auto sector has witnessed de-growth!
·         The Indian Auto Industry was never so competitive and volatile. It is a period of “ONE PRODUCT WONDER” – OEMs such as Maruti, Renault, Ford & Honda could post growth only riding on the sales of their Wonder Products (Dzire, Duster, Ecosport & Amaze respectively). The industry has also been harsh on segments – in a time where we expected MUV/SUV to grow despite the turmoil; the Government imposed SUV taxes curbed this part of the success story too. The worst hit automaker from the policy proved to be M&M – its passenger car division saw a decline of 29 percent. The SUV major is forced to have planned plant shutdowns and announce non-production days to rationalize the lowered demand.
                                                               
Source : Business Line
·         Although Maruti Suzuki domestic sales grew by 5.8 percent, the growth cannot be justified – as Maruti had faced low production rate owing labour dispute during the month. However, Dzire proved to be savior again with an offtake of 15249 units. Alto family supported will with over 18k units. The performance of Swift and Ritz was the biggest disappointment with the brands de-growing 8% & 23% YoY respectively. The new found LUV (Ertiga) too had to face the heat and de-grew by a hefty 36% YoY in July (can you guess who’s “ENJOY”ing the scenario?). Zen Estilo, A Star & SX4 remains the pain brands for the automaker and show no hopes for their revival. Petrol-only Wagon R surprised all with an offtake of 13409 units.
·      Hyundai also took the planned periodic annual maintenance shutdown of its production facilities to cater the reduced demand. No wonder the Korean OEM de-grew by 6%. Eon, i10 & Elantra proved to be the heroes in distress and displayed significant Yoy growth of 39%, 10% & 709% respectively. It also means that petrol models are still fighting out the battle for survival.
·   The Indian UV major M&M may soon lose the touted third spot to Toyota. The gap between the 2 auto makers has reduced to just over 1k units. Mahindra’s dark horse Bolero too seems to reel under pressure – It is the first time in past 22 months that the brand has witnessed an offtake of less than 7k units!!! (Previously reported in Aug 2011 – 6554 nos.). Scorpio still stands till tall in its segment and refuses to bow to Duster (Scorpio – 3256 units, Duster – 3089 units). Quanto may soon follow Aria’s footstep – a capable offering to fail, owing to market dynamics. Verito + Vibe posts a disappointing tale – combinedly does 1027 units (Dzire & Amaze galore!). XUV 500 bounces to 2k figures – thanks to the reduced excise duty and an effective price revision of over 33000 rupees.
·  Toyota is leaving no stone unturned in terms of reviving Liva & Etios – the brands still performs far below expectation and manages to cross 2k and 2.5k units respectively. Innova too ends up performing over 4.5k volumes. Fortuner emerges as the star performer with 1669 nos and ends up awing us all (don’t be surprised to see Fortuner volumes overtaking Liva & Etios figures in some months!)
·   Honda is reaping its seasonal fruit – the much awaited first diesel offering from Honda performs as expected and posts its all-time highest offtake! The Brio too joins the party and contributes 2.6k units. City lies low and manages to near 2k nos. In overall – Honda reported a sales growth of 156 percent during July selling 11,223 units, compared with 4,386 units in the corresponding month in 2012. All thanks to Amaze – the company now plans to start a third shift from November to reduce the waiting period.
·  Following Honda’s footstep is Ford – it made us wait over 18 months to launch the Ecosport – since it was showcased in Auto Expo. The compact SUV has taken the consumers by storm and is now commanding a waiting period of over 8 months. Who said the industry was facing a slowdown! Ford’s Domestic sales also went up by 26.15 per cent to 7,867 units in July this year as against 6,236 units in the same month last year. The company now seems to shift its entire focus on Ecosport – other brands such as Figo, Fiesta & Endeavour seems to be forgotten – bad move Ford!
·  General Motors announced India’s one of the largest vehicle recall in July’13 for Tavera. It is also experiencing trouble in manufacture of Sail twins. However, the impact was low and the US automaker managed to post a 10.73 percent decline in sales at 6,503 units, compared to 7,285 units in the same month last year.  The fight was well supported by Beat & Enjoy. The newly launched MUV is sailing at an average ~2.2k units and its success is very much required by its OEM.
·  Renault’s multi-crore pan India campaign of 2 years celebration offer couldn’t pull the volumes to grow significantly. In a Month-on-Month comparison (July’13 v/s June’13) – Duster, Scala, Fluence & Pulse degrew by 32%, 52%, 41% & 95% respectively. The new brand ambassador of Pulse (Anil Kapoor) also failed to revive the brand. Renault would have a tough time once Terrano is showcased in August.


Considering the current scenario, August too seems tough and the auto makers would be in tremendous pressure to perform. Be assured of high-discounting and heavy marketing of cars this festive season! The only positive in the entire fiasco would be – “It is the best time to be a car buyer – plenty of options and equally lucrative discounts J”.

Indian Car Sales Figures – June 2013

June 2013 Sales Figures – Pan India
HIGHLIGHTS:
·         The country’s largest car-maker Maruti Suzuki India reported 12.6 per cent decline in total sales in June this year at 84,455 units.The company had posted a total sales of 96,597 units in the corresponding month last year. For June 2013, MS reported 7.8 per cent decline in domestic sales at 77,002 units, over 83,531 units in June 2012.
Diesel v/s Petrol June’13
OEM
Brand
Diesel
Petrol
Maruti
Dzire
8097
4451
Ertiga
3316
1634
Ritz
2080
1177
Swift
12040
5196
SX4
176
138

·         Trend to watch for – Petrol starts contributing to over 50% of diesel sales and is catching up fast. But, with incessant price increase of gasoline make the trend as volatile as mercury!
·         Hyundai’s domestic sales stood at 30,610 units during the month, up 0.52% from 30,450 units in June 2012. Surprisingly the old warhorse Santro saves the day for the Korean major by posting its highest offtake number in past 15 months. i10 & i20 dutifully performs with over 8k and 5.5k figures. Sonata breaks the 20 nos jinx and has a offtake of 14 nos. Verna drops to below 4k numbers for the first time in past 6 months. Has the Ecosport already haunted the touted opponent? Eon sustains the 7.7k figure.
Diesel v/s Petrol June’13
OEM
Brand
Diesel
Petrol
Hyundai
Elantra
271
120
i20
2731
2897
Verna
2878
1001

·         M&M reports a double digit de-growth after a longgg time. Total sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, stood at 17,232 units as against 19,792 units in June, 2012, down 12.93%. No wonder the ‘Car of Steel’ – Bolero led the drop of 18.4% MoM. The MoM de-growth of other products is surprising as well – Quanto (-30.3%), Rexton (-33.6%), Scorpio (-29.8%), XUV (-35.8%) & Xylo (-29.5%). The UV major which was shielded from the downfall in the industry had to succumb at last and has made the OEM shock with awe. The Indian automaker has strong plans of recovery with the launch of new low-priced XUV (reduced the GC and save on the SUV tax!); also the OEM is all set to announce hefty schemes for all its models.
·         Toyota Kirloskar Motor reported 19.45% decline in its domestic car sales at 13,805 units in June 2013. Can anyone explain the consistency of Fortuner volumes in this tough times? – The top premium SUV garners offtake volume of 1561 nos effortlessly. Innova bounces to ~5k nos. India-made Liva & Etios continue to disappoint.
Diesel v/s Petrol June’13
OEM
Brand
Diesel
Petrol
Toyota
Corolla
179
204
Etios
1456
669
Liva
1234
717

·         Tata Motors passenger vehicle sales in the domestic market stood at 11,804 units in June, down 31.54% from 17,244 units in the same month last year.
·         Honda Cars India Ltd reported over three-fold increase in its domestic sales for June 2013 at 9,297 units. The company had sold 2,667 units in the same month last year. Read the statement by Mr. Sen (Senior VP – Honda) to know the reason – “We are extremely delighted with the consumer response to Amaze which has surpassed all expectations and is further gaining momentum. We already have more than 18,000 happy Amaze customers and we hope to add many more going forward.”
·         Ecosport making ripples? – Ford India sales up 20% in June within the first month of Ecosport’s billing!
Diesel v/s Petrol June’13
OEM
Brand
Diesel
Petrol
Ford
Ecosport
3429
573
Fiesta Classic
281
83
Fiesta
208
25
Figo
1669
835
·         GM records a negative offtake! According to reports, a surprise check by the Automotive Research Association of India (ARAI) this month led to the discovery of issues with the BS III diesel motors in the Sail saloon and hatch and the Tavera. While the 2.5-litre direct injection Tavera engine did not match up to emission norms, the Fiat-sourced 1.3-litre common-rail diesel engine in the Sail saloon and hatch is facing ignition problems. The issue has a major blow of over 2500 numbers for the US major with a drop of volumes of ~1.5k in Tavera and ~1k in Sail. Meanwhile, GM has ramped up the production capacity of its BS-IV Tavera. The Tavera sells around 1,500-2,000 units every month, of which 70-80 percent are BS-III.
Diesel v/s Petrol June’13
OEM
Brand
Diesel
Petrol
GM
Beat
1528
553
Enjoy
2295
283
Sail Sedan
-30
1028
Sail U-VA
-24
533
Fiat
Linea
121
53
Punto
580
21
Skoda
Fabia
82
50
Laura
144
0
Rapid
940
202
Superb
51
75
VW
Jetta
182
25
Polo
1949
1251
Vento
1542
403
·         One sentence to sum up June’13 performance – “DOMESTIC CAR SALES STAY IN SLOW LANE”. Only the new launches could rev the engines up for the respective OEMs.
Source: ET
Kindly find mentioned the sales figure for the month of June’13 –
TOP 20 Selling Cars

Caroll Shelby – Motorsport Legend

Usually we write about monthly industry sales and updates along with the new car launches and since we are quite young in the business we never really got a chance to write about all time classic cars. Then on a Sunday morning we decided to go back to history write about cars that made the difference. Interestingly though we wrote about something else, someone who was behind such cars, someone who made cars with just one mission which is brutal power and till now his cars carry forward his legacy. The most renowned name in the automotive space, He is Caroll Shelby.
Born in texas, Shelby suffered heart valve leakage problems at the age of 7 and spent most of his childhood in bed depending largely on nitro glycerin pills. That’s probably why one day he decided to become a racing driver and in a decade long career as a racing driver he was driver of the year for 1956-57 by sports illustrated and also competed in 8 world championship races. And he is very well known as a co-driver in Aston martin DBR and took it to victory in 24 hours of le Mans racing. In fact Carroll Shelby is the only man to have won the prestigious Le Mans race as a driver, team owner and automotive manufacturer. Later on he found out that a small company called AC was struggling to find an engine for its racing car the ACE. Shelby strikes a deal with ford to supply the mighty V8 and that spermed to what we know as the ACE cobra and at that time it become the fastest road car for a while in England. And In America the success with cobra paved the way for many great cars in partnership among ford and Shelby.

Remember the GT40! Going further back when in 1963 Ferrari pulled back of the deal at the last minute Henry ford actually ordered his designers to built a car that could snatch the prancing horse. And in 1966, 1967, 1968 GT40 did exactly what it was born to do. Moreover what made GT40 “The GT40” Shelby had a big role to play after its suspension failure at the Nurburgring 1000km race. And since GT40 was a landmark in the lives of carol Shelby, Henry Ford and everyone associated with it, rather every auto enthusiast.

That was just the beginning for carol Shelby, Then started the era of Shelby 350 and since then GT’s have been ruling hearts from a school going kid with the poster in his bedroom to the movie producers and GT350 was itself a style statement and that is why from Jim Morrison to Bill Clinton almost every famous icon bought this masterpiece.

Further came the GT500 powered by another mighty V8 which delivered 540 brake horses of power also embarked 40thanniversary editions later on with scoops and vents, twist-lock hood pins. These additions were so popular that every car modification had it. It was a common rage to see the flamboyance characteristics of Shelby GT500. last  may 2012 at the age of 89 when he died, Just before he passed away he got to see the all new GT500 powered by the supercharged V8 engine  which produces 662 bhp and 631 lb-ft of torque, and a claimed top speed of 325 km/h. It is in fact the most powerful going V8 ever made in the history.

 And carrying foreword a little bit of his legacy as he said  “Yesterday’s History, Tomorrow’s a Mystery, So live for today.”  As an auto lover we expect carol Shelby international to take foreword the legacy.

(Author – Anshul Chawla – Is an automobile enthusiast who love and live cars! Can be ignited at anshul_chawla@live.com)

Indian Car Sales Figures – May 2013

May 2013 Sales Figures – Pan India
HIGHLIGHTS:
·        1) It was a “May Day” mode for all Auto OEMs last month. The offtake figures projected heavy stock corrections done by both dealer and OEMs to save on the inventory cost. Toyota’s deputy MD & chief operating officer Sandeep Singh was found quoting – “The domestic market continues to be sluggish. We have corrected the dealer’s inventory levels and have been able to bring it down to less than 30 days.” The trend seems discouraging and the market seems to require great pull for the targeted sale. The slowdown has impacted dealer profitability as well and in a recent survey was found that one in five dealers in India are expected to take a financial loss in 2013 more than the double the number of dealers in 2012. The survey conducted by JD Power had this to say – “Declining profitability for dealerships in India not only highlights the impact that the slowdown in new-vehicles sales has on the viability of a growing number of dealers, but also underlines the importance placed on automakers to provide adequate support to their respective networks”

·         2) It is said that when Maruti sneezes, Indian Auto Indutsry catches cold. The situation is similar for Alto as well – when the highest contributor of the OEM defaults, the overall numbers take a hit. The top performer fell short of over 8k numbers from its average – Is it the Alto customers are upgrading to Swift/Dzire? However, Dzire dethroned Alto and rose to become the new numero Uno selling brand. Surprisingly the LUV (Ertiga) is falling short of the love from its prospects – the numbers have taken a steep fall to 4306 units from an average of 6k figures. However, Wagon R has supported well with 12952 offtake – proof that petrol-only models are giving a fight to sustain. Also the launch of Amaze did not bother the supremacy of Dzire – so, where did Amaze gather its numbers from? High-end hatchbacks I believe!
·         3) Need to appreciate the Korean Major – Hyundai on its attempts to continuously maintain its offtake. The OEM has strongly occupied the second slot and is the only automaker in the current times which has the potential to challenge the leader – Maruti. Eon, Santro and i10 maintain its average figures and re-instate that petrol cars are here for a very long run! It is extremely difficult to understand the reason on how Sonata is consistently faring 20 numbers from the past 9 months! I believe the Brand Manager has a target of 20 nos/month and is just doing his job well J Verna delivers again and emerge segment-best with over 4.7k figures.

           4) M&M is successful in achieving a positive growth in tough times. The SUV maker is backed by its old work horses Bolero & Scorpio. Scorpio proves its mettle by overtaking Duster volumes (Scorpio – 5165, Duster – 5146). No wonder it has started giving nightmare to other cars! (as depicted in the ad). However, the newer entrants XUV, Quanto & Xylo disappoint with its falling numbers. The company would be in a trouble if either Scorpio / Bolero falters. However, Verito shows significant growth in its volume over last month – 1371 numbers vis-à-vis 568 – all thanks to the Vibe shipped under Verito brand at the end of  May.
·         
      5) Honda AMAZEs all with its all time highest offtake figures and pips Toyota the FOURTH spot. Honda’s first diesel offering contributed to over 53% of Honda’s sales and shows-up as the awaited SAVIOR for the Japanese major. The company is now focusing to ramp up its production capacity to gradually increase its volumes.
Source: ET
·         6) Even Tata overtakes Toyota in May – however, the Indian manufacturer degrew by an hefty 46%. With no new products in pipeline, revamp of sales seems unattainable at the moment.
·         Toyota with its intention of rationalizing the stocks takes a hit on its volumes. However, Fortuner maintains its dominance with over 1300 units billed in May.
·         7) GM seems to be “ENJOY’ing the moment – the extremely value for money MUV has pumped volumes to the brand with its younger sibling Sail sedan – and has made the US giant grow by 40% in the month.

Source – ET
·         8) Ford registers a degrowth of 34% and the OEM seems unshaken by that – no wonder when you have the most awaited launch of the year – ECOSPORT to be launched in June’13.
Kindly find mentioned the sales figure for the month of May’13 –
TOP 20 Selling Cars


Amazingly Amaze!

With the low sentiments in industry, there comes in a catalyst to galvanize fortunes for the Japanese car maker and certainly will effect auto industry in a good way. Honda entered the Indian auto market way back in 1998 and since then we have liked almost every single offering from them. Ain’t we? We rely on the Honda brand certainly because of its benchmark petrol engine and the prestige it gets along.
Now it’s time for Honda to love us back (The brio concept) and amaze us with its diesel offering. Since past few weeks Honda amaze is the buzz of the town. Looking at the exterior of the car in the first place itself you like it because of its congruous proportions. It makes you believe that it’s a sedan, not a boot attached with a hatchback. The front chrome grill distinguishes it from the brio and fog lamp sculpture on the bumper makes it look wide. The chisel streak on the side gives it some character and at the back tail lamps gives a hint of derivation from Honda city.  As you step inside interiors are taken straight from brio without any tweaks, which is a bit of let down. The real differences when you sit behind you never get a feeling that you are in a sub 4 meter saloon. Be it under thigh support or head room it’s the best in the class.  And 400lt boot again impresses you with space Honda has carved in with its proportionate designing.
Under the bonnet is the 1.5litre diesel engine which is a result of Honda’s Earth dreams Technology. It churns out 98bhp and 200NM of torque and above all it gets pretty friendly on your pocket with 25.8km/lt of fuel. As the commercial says you are eating chips and are not getting fat. Right on the money, you get the power and the mileage both best in the segment. Honda uses very special engine oil called 3D engine oil and honestly we don’t have much to say about it since they are Japanese.
Now when you drive the car it is smooth as expected, comfortable but not quite as expected. And the surprising part is when you turn ignition off the car shakes violently which remains a concern. It’s these small bits that effects a great deal. Since Honda has got almost everything right. Now with aggressive pricing for a product like this, it is bound to keep Honda busy running on full capacity and its showrooms crowded for a while. Moreover it will make other car makers busy either trying to justify their counter parts or developing strategy for the new ones.
The entry level sedan from Honda’s stable which would “Badlegi Honda ki Duniya!”. The much awaited FIRST diesel offering from the Japanese major has put Honda back into the race and has left nothing to Desire J

(Author – Anshul Chawla – Is an automobile enthusiast who love and live cars! Can be ignited at anshul_chawla@live.com)

Indian Car Sales Figures – April 2013

April 2013 Sales Figures – Pan India

HIGHLIGHTS:

Source: ET

·         Let’s all observe two minutes silence considering the debacle Industry has observed in April 2013. The race to put forward a respectable score for F13 (April 2012-March 2013) had led most of the OEM’s to push maximum number of vehicles to dealers in March 2013. The ripple effect was seen immediately in April – these are the brands who experienced their worst offtake figures in last 6 months or even a year in many cases! – Chevy (Spark, Beat, Captiva), Ford (Figo), Mitsubishi (Pajero Sport), Honda (Brio, Accord), Hyundai (Accent, Elantra, Santa Fe), Mahindra (Verito, Quanto, Xylo, XUV 500), Maruti (Alto, Ertiga, A-star), Nisaan (Micra, Evalia, Sunny), Renault (Fluence, Pulse, Scala, Koleos), Skoda (Fabia, Superb), Tata (Nano, Indigo+Manza, Safari+Storme), Toyota (Liva, Innova), VW (Vento, Passat).

·         Ufff, the list was never ending. If you observe, there ain’t a single OEM which has escaped the tide. The blue-eyed brands – be it the from Ertiga to XUV500, or Innova to Elantra have taken a hit. The only respite being the stellar performance of the newcomers – Sail sedan is slowly gaining ground and Honda has literally AMAZEd us all! The mantra for 2013-2014 is quiet simple – it’s not ‘Only the best survive’; but it is ‘only the NEWest survive!’. Novelty is the need of the hour and the OEMs with the new product in the kitty would have a significant advantage over competition. A glance on the upcoming products of the year which are set to change the game for the respective OEMs – Ford Ecosport, Chevrolet Enjoy, Mahindra Verito Vibe, Tata Nano Diesel, Manza CS, Skoda Octavia, Mercedes A-class, CLA, etc

·         For April 2013, domestic sales of Maruti Suzuki amounted to 90,523 units, a marginal rise over the 90,255 units it sold in April 2012. This was led by the ‘Dzire’able performance of its swift sibling. The brand has launched a mega campaign across 30 cities – Dzire Mileage Rally to fight for its turf against Amaze. Also a special top-end variant ‘REGAL’ was launched to up the premiumness of the brand. Its new found LUV has shown signs of distress – the brand Ertiga which was hovering around average ~7k nos has dropped to ~5.1l figures. The A-star has lost its sheen. Even the Alto figures left much to desire for!

·         Hyundai has shown strength in its character by growing significantly in tough times. The Korean auto major reported 4.30 per cent rise in total sales at 56,954 units in April 2013. Eon & i10 are contributing steadily and the petrol price rationalization has helped the brands. i20 figures average has seen a dip, can we call it an AMAZing effect? Verna repeatedly delivers its fluidic performance! Accent is in its last stages of the life cycle. However, it is interesting to note the consistency of Sonata volumes – 20 nos repeatedly from past 8 months!

·         The third largest auto maker had a real tough time – its flagship XUV 500 saw a 29% drop in Month-on-Month offtake volumes. Is this the sign of the cheetah slowing down? Verito again proves its name wrong – how can a product with such ability & truth fall? Who could imagine that its distant sibling – the Duster with the same engine and similar interiors has become the largest selling SUV! Quanto on the other hand seems living the weekend life and is not being accepted by the people who consider the weekdays more important! The elder brother Xylo also had a meek month and the platform volumes has seen a considerable dip in overall. Has the Igatpuri strike taken a toll on the volumes?

·         Bolero proves again why it is the most loved SUV of the country with an easy 9766 figure. Scorpio also establishes on the reason for it being the most feared SUV with reliable 4.4k mark.  

·         Tata Motors jump back to 4th place as a part of the fate and not design. Thanks to TKM for the 37% degrowth and allowing Tata Motors the position. Indica+Vista brand seemed to supported the OEM by contributing to 50% of the OEM volumes. Sumo which was averaging @ 2.8k figures at one time has gone down drastically to 1.7k volume. Storme wasn’t able to bring any kind of storm in the market. Aria & Nano have become perfect examples of how not to market / price an excellent product!

·         Toyota registers a 37 per cent sales decline in April 2013. The company sold 9,007 units in the domestic market in April 2013 as compared to 14,378 units in the corresponding month in 2012. This was heavily attributed to the decline in its Innova volumes. No reason to be surprised here! – the brand has touched 8.4k in March’13 and hence the rationalization HAD to happen in April. Etios siblings contribute equally to the decline – the refreshed avatar haven’t changed much for the brands. Fortuner still remains strong with over a 1.1k mark.

·          Honda experiences an AMAZing comeback. The OEM has left no stone unturned in terms of marketing its FIRST diesel offering in the sub-continent. With over 22000 bookings within weeks of its launch, it surely has left nightmares amongst its competition – right from Manza to Dzire!


·         ‘Make the right move’ my friend – says Fiat India. But the customer yet again is not moving towards the potent brands. Punto & Linea still suffer from low acceptance in the market.

·         With over 80% of Renault volumes being achieved through Duster sales; it becomes pretty evident how a single RIGHT product can change the OEMs fortune. The brand has surprised us all and has easily become the most accepted SUV for the year.

List of Top 20 Brands of the month –
TOP 20 Selling Cars

Indian Car Sales Figures – March 2013

March 2013 Sales Figures – Pan India

HIGHLIGHTS:

Source : Business Line

·         Levying heavy tax would discourage the acceptance of the road-occupying, extra-polluting SUV’s? Mr. Chidabaram – Indian consumer has outrightly snubbed your decision. The SUV sales figure for the month of Mar’13 would shame the Finance Minister. This not only proves that the SUV’s still enjoy the equity of higher value proposition among Indian car buyers, but also highlights that the SUV-craze is here to stay. Bolero, Fortuner & Innova registered their all-time best sales figures. Scorpio, Pajero Sport, Rexton, Xylo & Sumo performed abover average as well!

·         March 2013 had an another advantage – lot of customers purchasing the vehicles for depreciation purpose. Also all OEM’s had to achieve the Financial Year targets as well. This was the last chance for these OEMs to ramp up the offtake numbers to project a happy picture for the FY. See the stock value of OEM’s rising based on the financial years performance? I bet Yes.
·         However, in concise for F13 – Indian Automobile Industry has been in one of the most difficult times. We have seen the most promising OEMs (name Tata, GM, etc) tumbling in their sales charts and the market has aptly thought a lesson – ADAPT & EVOLVE is the key and being agile is the need of the hour. The growth trajectory of every OEM was dependant on having an exciting NEW offering in the portfolio – the product being a SUV/MUV can be the icing on the cake.
·         “The slowdown of economy is impacting vehicle sales. Against large base of last year, there was a sharp drop in conversion of enquiries in the absence of any positive stimulus andsentiments,” HMIL Vice President (Sales and Marketing) Rakesh Srivastava said. Any proof on why Indians are termed ‘sentimental’? Yes, negative sentiments can shake an entire industry in the country. The point to be noted is decline in Enquiry levels and also poor conversion ratio of the received enquiries.
·         Maruti Suzuki – Can you believe that Maruti Suzuki posted a de-growth after selling 1.19 Lakh units (including exports)? The situation would have been worse if the UV portfolio wouldn’t have been introduced with Ertiga. The Life Utility Vehicle has proved to be the life-line for MS. Ertiga clocked >6k numbers after a long time. Maruti introduced discounts for the first time for the star model. Dzire exceeding the offtake numbers of Swift – this was predicted well before. Value consciousness has gone to a different level. The increase can also be attributed for MS focus on increasing Dzire supplies in lieu of the launch of Honda’s Amaze. Alto creates a new benchmark in the industry – It’s been only four months (124 days to be precise) that Maruti Suzuki launched the all new Alto 800, and the model sold over 1 Lakh units. Wagon R, Alto, Ritz volumes prove that petrol models have regained traction and still can emerge victorious.
·         Hyundai had a lackluster performance – with extensive promotion and schemes i10,Eon, Santro, i20 & Verna had average numbers. To mark crossing of 12 lakh sales worldwide of the model Hyundai launched a special edition of i10 (i Tech). Santro had a surprise to offer – with over 4k numbers sold, the model had its best volumes in past 6 months.
·         M&M had its own set of highs and lows – while Bolero clocking its ever highest billing volumes, Quanto & XUV 500 saw its 3 consistent decline in past 3 months. The volumes of Quanto went below Xylo’s number – not exactly a good sign. XUV 500 had a earnest recall for replacing some parts and was appreciated by all – but did it affect the new customer confidence? The decline in its volumes posed a serious concern for the OEM. Rexton offtake figures were laudable – the brand has gained respectable volumes of over 450 numbers consistently and has proved to be a worthy opponent to the mighty Fortuner.
·         Toyota surprised us all – Over 8k figures for Innova proved that the new kids in the block (say Duster, Ertiga or XUV) couldn’t shake the old stalwart. Fortuner had a mean smile for the increased excise duty – over 1.7k numbers for the premium SUV is just WOW (the volumes are higher than its half priced Storme!). 30 nos. for Landcruiser – It happens only in India J The upgraded Etios and Liva siblings ensured 70% & 129% growth month-on-month for the brands respectively.
·         Amaze is the new mantra for Honda. The OEM just amaze’d us all with its stellar performance among all brands. Brio, City & Accord had its best offtake in past 6 months. However, the news of discontinuing Jazz & Civic was a blow to Honda lovers. But, the invent of diesel engine is the day we all were waiting for. Honda is ensuring its leaves no stone unturned in terms of promoting its new baby – iDtec diesel engine. 2552 nos of Amaze has already been shipped to all dealers (launch scheduled on April 11). The product is expected to turn the fortunes for the auto maker – and promos speak for itself.


·         Renault has Dusted off the competition in the right spirit – Duster, Fluence & Scala have their best till date offtake figures. The OEM has started off in the perfect dream fashion.

List of Top 20 Brands of the month –

Could Scorpio’s new commercial been better?

The new ad shows the mighty muscular saving the day! That too in the night 😉 It is first time the brand has not emphasized on the ‘Nothing else will do’ philosophy. The ad is more focused on projecting the off-roading traits of the car and shouts of being the bully to the sports coupe. Storyline does not have anything new to offer and is very predictable! The shots are badly taken and the light projected from the headlamps seem all animated. This is what I’m talking about –

The ad looks something like this (Director’s cut) –

Mahindra Scorpio’s ad have always been famous for its flashy, flamboyant style and had a certain amount of class in it. The brand communication was very clear – “a vehicle of class over substance” and made it a car of  desire rather than a mode of transportation. Who could forget this ad –

However, we love to see the TVC from the brand after a longgg time and wished to have retained the ‘Nothing else will do’ philosophy. Lets hope the Scorpio fans love the ad and the ad helps the brand get more fans 🙂

Indian Car Sales Figures – February 2013

February 2013 Sales Figures – Pan India

HIGHLIGHTS:

·         1) Although the Budget 2013 was held at the fag end of the month and had nothing much impact on the sales figures, but it did shock the Automobile fraternity. The reeling industry was seeking rebate from the Government and the got disappointment in return. We had a new learning in February – “SUVs occupy greater road and parking space and ought to bear a higher tax.”! Mr. Finance Minister – With this philosophy, the taxes for buses should have been much higher. We do not see a reason on investing heavily in JNNURM as well.
·        2) Renault and M&M emerged the lone 2 companies who posted growth in the month. The chartbusters of the OEM’s portfolio were the ‘road-occupying’ SUV’s.
·        3) Maruti Suzuki misses the 1Lakh mark with a 2k odd whisker. The Alto figures seems stabilizing at the 23k-25k numbers. The Swift, Dzire and the Ertiga trio repeated their stellar performance. Both Swift & Dzire registered their best offtake figures for past 9 months. The gap between the two brands is reducing and we wouldn’t be surprised to see Dzire equaling or even overtaking Swift figures in some month. Ertiga has successfully put Maruti in MUV roadmap and would be interesting to see if the Excise hike affects the brand. The Wagon-R facelift has considerably contributed to the OEM’s numbers. SX4 does dismal numbers – heard about the upcoming facelift? A-star & Estilo still stumble – time to bring better products in the same platform?
·        4) Hyundai – ‘The culture of Fluidic Sculpture’ has worked wonders for the Korean automaker. Elantra & Verna maintain their leadership spots in the respective segments. Eon, i10 & i20 contribute decently. The performance of petrol only models seems encouraging (Eon, Santro & i10). It is also time for Hyundai to lauch the new Santa Fe – Indian market should be treated with priority.
·        5) M&M amazes the fraternity yet again! With a 13.8% growth in the gloomy month; the share prices did see the upward trend on 1 March (after the debacle post budget announcement). Bolero impresses all with its consistent numbers – the Brand crosses the 1 Lakh figure for F-13 with a month to spare. However, the variation in Scorpio & XUV 500 stats is a concern – any slowdown in these brands would impact the OEM significantly. Xylo & Verito fails to impress – can anyone tell what went wrong with these potent brands? Quanto dips to 2k level – has it started living its weekend life?
·        6) Mahindra Ssangyong wouldn’t have had a better start than this – registering 476 offtake with availability is select cities is no easy task. Rexton has proved to be the perfect launch model in India for the duo. With increased availability, we expect aggressive promotion of the brand in March’13.
·        7) As predicted earlier, Toyota pips Tata of its fourth slot. With stellar numbers from Innova & Fortuner, the Jap major continues its dream run. But can it sustain? I doubt. Etios & Liva has to be re-jigged to  gain the required momentum. Learn from your Japanese counterpart (Suzuki) – any compromise in the product would kill the brand. Cost-cutting in the name of ‘India’nizing the product is a major let down. Instead build quality products and export to the first grade countries (Europe) would be a much better strategy!
·        8) Tata Motors is in its saddest phase ever. With over 74% de-growth the automaker is in the most challenging time of its history. This is the junction where Mr. Cyrus Mistry can prove himself and build his legacy. We all remember, how Mr. Ratan Tata pulled Tata group from the murk and gained the credibility. We expect something similar from the new flag-bearer – say why not bring a brand like Scorpio (which did wonders to M&M). It is high time the company dawns its thinking hats and start working in the right direction. It is the time to stay confident and the same time apprised of the situation.
·        9) Ford – Are we even interested to discuss anything else than Ecosport JWith the lauch just round the corner – the marketing campaign have flew off with style. The ‘Urban Discoveries’ is a great way to connect with its audience. All the time we thought that only offroad trails and off-city travel was suitable for SUV’s. Ecosport just wants to change that!
·        10) The only product which has been consistent in GM’s portfolio is ‘______’. Any guesses? It is Tavera. The old workhorse is loyally serving the automaker. Sail Sedan seems a value offering, but the numbers are not that great. U-VA dips just within 4 months of its launch.

Snapshot of the Budget implications on the Indian Auto Industry –
Ø  Excise duty on SUV’s hiked from 27 to 30%.
Ø  High-end customers for imported luxury cars to shell out higher with the FM’s decision to increase the duty on CBUs to 100% (up from 75%). Effective levies thus go up to about 160% for CBUs.
Ø  Duty on high capacity motorcycles (800cc or more) has been increased to 75% (from the existing 60%).
Ø  Subsidy benefits for electric cars remain in place till 31st March 2015. Expecting Mahindra e2o launch round the corner?
Ø  The duty on second hand vehicles has been raised to 125% (from 100%).
Ø  The allocation for JNNURM is proposed to go up to Rs 14,873 crore from the Rs 7,383 crore provided this year (see smiling faces of executives from Tata Motors & Ashok Leyland).
List of Top 20 Brands of the month –