August 2019 Car Sales – Snapshot

‘Turmoil’ is the term being used for the current state of the Indian Automotive Industry. However, we would want to say that the overall economy is going through a course correction and is a resultant of multiple Government policies – Demonetization, GST, Upcoming BS-6 Implementation to name the few. The way the slump in volumes is extending has put a lot of pressure on the OEMs, Auto Component Makers, Suppliers and Dealerships to rationalize cost and reduce inventories. The same has effected the blue collar jobs the most and has resulted in massive job losses across the channel. This course correction needs to stop at a particular point and the time is now! Any more extension in the slump can be ‘deadly’.

The Passenger Vehicle Industry saw a volume of 1,95,800 units in Aug’19 v/s a sale of 2,82,809 units in Aug’18 and reported a massive YoY degrowth of 30.8%! Surprising is the fact that the drop in volumes is even after adding the numbers of 2 new entrants – MG & Kia. It is clearly evident that both OEMs and Dealerships are correcting stock levels and are highly wary that any unsold stock by March 2020 shall have a negative impact on their respective profitabilities.

  • Kia makes a grand entry and sells 6,236 units in its first month! It already garnered a Market Share of 3.2% and exceeded the volumes of the likes of Renault, Ford, VW, MG, Nissan, Skoda & Jeep!
  • Maruti+Nexa loses the highest market share and the MS dropped by 3.9% to 47.6% in Aug’19. Maruti’s loss was Hyundai’s gain and Hyundai registered a Market Share of 19.5%!
  • The next biggest market share was seen for Tata Motors. The Wholesale has really taken a backseat and the Indian OEM is consistently losing numbers month after month. Even the much touted Harrier couldn’t garner the expected volumes for the OEM.
  • MG is gaining ground slowly and is consistently doing more numbers than Nissan, Skoda & FCA. MG should now be aligning its production capacity to meet the customer demand.

Market Shares figures for Aug’19 –

7 thoughts to “August 2019 Car Sales – Snapshot”

    1. Maruti suzuki is the most pathetic car company ever.i really wonder why don’t they try aggressive strategy like hyundai.They have VITARA SUV already in international market why dont they launch it in india too.Yeah they launched the vitara in india in i think 2005 when indian car market was not ready for such a great product.and since that suv failed maruti suzuki doesn’t has a product in that range where creta was selling more than 10000 per month..before creta even duster and scorpio were selling very very well in that segment.same thing with premium hatch segment.maruti suzuki launched baleno after 5 years of i20 enjoying almost monopoly in that segment.Pathetic maruti suzuki.

  1. Kia has beaten the likes of Renault, Ford, VW, MG, Nissan, Skoda & Jeep in first month itself. Its remarkable job, Kia India`s market research are showing result . Where big shots are flopped , Kia hits jackpot with Indian buyers.

  2. All cities are too choked to drive for daily commute. Govt should seriously think about expanding city roads than boasting about the number of km played per day on highways. It is becoming more and more convenient to use a rideshare app and get some peace of mind before going to the office. OEMs should consider taking some short term pain in upgrading to new technology and not increase the prices by more than 10%. This has been the trend since last year. Consumers are used to 1 or 2 % rise in prices and not by 10% at a time. Rural market is key to any upward movement which might happen post BS6 deadline. Vague statements and policies on ICE and traffic fines are really not helping. One can understand fine for signal violation or not wearing a helmet or a seatbelt. But It should be govt. responsibility to gain technology to run the number plates for information such as registration, insurance and pollution check (seriously vague rules with in this respect). Serious changes needed in automotive sector as a whole. It is just broken as it is.

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