|September 2012 Sales Figures – Pan India|
|September 2012 Sales Figures – Pan India|
To highlight the point have a look at this –
|*Sales figures for both petrol and diesel models . Upto 80% of the total sales in 2012 are in the diesel variant (models which offer both petrol & diesel variants)|
The numbers have significantly gone down for prominent models in Sedan and Hatchback category. But the original food for thought is –
Even in the most adverse conditions, SUV’s & MUV’s have grown against the market expectations. On a lighter note the answer is – “Because it has Yuvi (UV) in it!”. As our Yuvi, Yuvraj Singh fought the deadly cancer and hopped back to the Indian team; the UV’s have proved their mettle in the diseased economic scene.
The performance of UV’s is quite evident from –
The radical change is not overnight due to the increase/difference in petrol prices in comparison to diesel. The basic reason is the evolution of the Indian customer. The number of kilometres usage has increased, the normal Indian car buyer also wants to go on an outing with his family/friends once in a while, accommodation of more people within the car matters. The icing on the cake is when you get all these within your budget and then with an attractive mileage! No wonder Ertiga has over 35k bookings, Duster with over 16k bookings and XUV500 with over 15k bookings as of now.
|August 2012 Sales Figures – Pan India|
· 1) Maruti Suzuki approaching Vaastu consultants to solve Manesar problem – the situation rightly requires so! The nation’s biggest automaker is facing one of the worst labor issues in the Indian manufacturing scene. The losses is in tune of crores and has not only affected MS, but has also made foreign investors reconsider to enter/invest in India. Manesar’s produce – Swift & Dzire has been worst hit with reduction in their offtake. The figures for Aug’12 would be still shoddier! (An unconfirmed news also mentions that the sprawling 600 acres of land on which the Manesar plant has been constructed, is said to have once served as a Muslim burial ground. Three temples, which existed in the 600 acres were demolished to set up the plant. – I wonder how this news have surfaced at this point of time J )
· 2) However, the positive for MS has been its LUV (Life Utility Vehicle) – Ertiga. It should be better named as LSV (Life Saving Vehicle – especially for Maruti!). Ertiga has clocked its highest offtake till date with 7091 numbers. It is growing stronger month-on-month and we wouldn’t be surprised to see it in the Top 5 within next 2 months.
· 3) Eeco volumes have gone down scaringly low. It is appalling to see how a vehicle grossing an average of 4.5k numbers have come down to 930 nos! Even the A-star fares worse than the 800 (A-star: 583 nos vs Maruti 800: 1411 nos!). The real disappointment has been SX4 – 679 offtake for this capable product is just not digestable.
· 4) Tata is seriously hurt – M&M overtaking Tata for the 3rd position in the passenger car market during June’12 is a stern indication on how Tata could lose its position if not acted quick. However, the response from Tata is satisfactory for the moment – Sumo Indica family & Indigo family contributing for the majority numbers. Sumo Gold has again been a trump card for Tata in gaining the numbers in UV segment. The hatchback & sedan market seems too volatile – Hence, would Tata be able to sustain with the Indica & Indigo productline? I assume not – with a new compact SUV from M&M on the cards, we wouldn’t be shocked to see M&M permanently overtaking Tata in passenger car market. The solidarity in SUV growth has also backed M&M as of now.
· 5) Who could have predicted that Verna sale could be higher than Santro/Eon sales an year back! That exactly exhibits the shift in today’s consumer preference – a product can perform exceedingly well if it could exemplify “Value for money”. This holds true for vehicles in all categories! – Just imagine BMW bagging over 500 bookings for its new 3-series even before its launch.. Even Audi had achieved similar feat with its Q3 – achieved 500 booking within 5 days of its launch.
· 6) One always wonders – where does all these Boleros go??? That’s the power of Rural India. Bolero never fails to impress us with its consistency. It would be the only product in the Indian Automotive history to date to exude such popularity & acceptance – the same is evident in its sales numbers, month-on-month!
· 7) XUV500 in Top 20? YES! With production ramping up, don’t be surprised to see it surpass Scorpio’s number as well. With the opening of bookings all India, the product has garnered similar euphoria what it had achieved during its initial launch!
· 8) Indians just love NOVELTY – don’t believe me? Then take this – 12000 bookings for the newly launched Duster. The love for SUVs has again gripped Indian consumers – Duster just hitting the sweet spot. The next challenge is to ramp up supply as per demand and also expand its (Renault) dealer network.
· 9) Honda again is inconsistent – hence too difficult to rightly asses its performance.
· 10) Skoda is on a spree to reduce its dealers stocks – the number exactly explains the point with over 50% degrowth M-o-M. However, Fabia is reeling to maintain required volumes – not deserved for a product this well.
A list of Top 20 Brands of the month –
|June 2012 Sales Figures – Pan India|
A list of Top 20 Brands of the month –
‘Tried & Tested’ – the most important attribute affecting the purchase decision of Indian consumer. Don’t believe me? – have you ever seen the santros, the indicas, the altos and the boleros proudly plying on Indian roads and with increased numbers everytime you step on road. Maruti 800 still is sought after by many Indian homes and we do not see any automobile replacing its legacy.
Product Life Cycle defines that at a certain age the product grows to its peak, later it reaches saturation level and after some time it slowly phases out of the market. When you analyse this theory in the Indian automotive industry, you surely would be amazed by the uniqueness – consider Mahindras ‘Bolero’ which was launched over 12 years back still manages to easily outperform its young competitors. The story ain’t very different in case of Maruti’s Alto as well – launched way back in 2000 and emerges as the world’s best selling car in 2011!
I have seen a person purchase a Hyundai Santro 3 times in his life! Every time he liquidates his old Santro – no other brand makes space in his consideration set else than a Santro again. And this ain’t a special case – many Indian households have the same story.
But anythings changed recently? With over 30 new launches in past 2 years and many international OEMs jumping the bandwagon – has given a plethora of choices to the Indian consumer. Gone are the days where we had only padmini’s, 800’s or amby’s available in the kitty. You and me are now spoilt for choices – and boy we love new cars! The younger generation is demanding freshness and novelty – this would spark and make the game more competitive. Can this change the nature of the Indian automotive scenario? – I say YES.
Ever wondered on the investment required to open a full fledged dealership (3S)? In a current scenario and considering the OEM quality benchmark the investment can soar upto minimum Rs. 8-10 crores. And the amount of time taken to establish a greenfield dealership could be anywhere between 8 to 12 months. All this investment has now taken a very strategic turn. OEMs need to be much industrious in enabling the profitability of its channel partners and expand productively. With ever increasing competition and razor thin margins, even Auto dealers are becoming much more choosy and wary before zeroing down on the investment – this makes a whole lot difficult for the new OEM entrants to exponentially expand in the market.
A look on how the OEM volumes co-relate to their Channel numbers –
Note: Number of dealers indicate independent dealers and not sales/service points.
In the above data it could be easily implied that the sale of a dealer is directly proportionate to its dealer network. VW & Toyota – It is imperative for you guys to understand that to emerge as a no.1 OEM, you need to hit this nail right on its head.
Channel expansion is the key – with rural markets growing then ever and less susceptible to economic vulnerability – Reaching Out will decide the fate of these OEMs.