|October 2012 Sales Figures – Pan India|
|October 2012 Sales Figures – Pan India|
Just few dozen months back the Automotive Market was gripped by the monopoly of the entry level htachbacks. This particular segment bought in volumes and hence used to define the superiority of an OEM. Maruti Suzuki had an offtake of 38,065 numbers of Alto in March’11 – the figures of Alto had superseded the overall volumes of Hyundai’s all models combined in the particular month! (31,822 nos.). The sale figures of other entry-level hatchs just strengthened the situation (i10 – 14215 units, Wagon R – 14885 units). A surge in these numbers were supported by the fact that the First Time buyers were inclined towards these smaller hatchbacks and hence the monopoly. The situation had been similar since ages – no one can deny the supremacy of the A-segment cars in Indian Automotive Scenario since its inception.
Padmini Premier, Maruti 800, Tata Indica, Hyundai Santro, Maruti Zen were some examples which had strongly heralded the growth of Automotive Industry in India. We expected the future to be similar – and then the wheels of fortune turned.
|Source – ET|
Even though the A-segment cars were able to withhold volumes, they were losing their market share in the overall pie. Their numbers had suddenly stagnated and the effect was seen with an increase in the volumes of B and entry level C-segment cars. We saw the higher priced i20 consistently garnering more volumes than i10! Swift & Dzire now became the blue-eyed boys of Maruti Suzuki. Figo is successful in heralding the turnover story for Ford. Brio allows Honda to experience 3 digit growth. A lot of this was sparked by the ‘dieselisation’ of the economy and also with the changing preference of the First Time Car Buyers. This segment was up for change and wouldn’t mind purchasing a pricier product offering which provided a better value. The rise in disposable income just reinforced the consumer psyche.
|Source – Business Line|
The following trend had the Auto Pundits shocked – ‘UV’ology grips the automotive scene like a wildfire. The category saw the most successful launches in past 1 year (XUV 5oo, Ertiga, Duster, Quanto) and has a long waiting list – ready to flee into the market (Ecosport, Enjoy, etc). The segment is reportedly growing at a pace of 52-58% and has proved to be a number churner. Not only that, they are more profitable to their OEMs (as they offer higher margins!). These offerings had significantly snatched the pie from their C-segment and D-segment counterparts. Even Renault wouldn’t have the answer on why Scala cannot sell more than Duster?, while Scala has far equal features as that of a Duster! (Though suggestions from our readers are welcome!)
It clearly signifies that even in the tight economic scenario, customers are open for product offerings which could provide a sense of excitement and value. Price is slowly losing its USP. No wonder luxury car manufacturers are undeterred by the slowdown and are able to perform well. The quote stands very suitable currently – ‘ADOPT OR DIE’. In the volatile scenario OEMs need to rise according to the customer requirements and change.
|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 –