Car Sales Analysis H1 2020

Market Comparison – China, US, Germany and India

Global automotive industry faced one of its worst ever performances in the first half of 2020, with car sales declining in every region. This was as expected, as most part of the world was well under lockdown for at least half of H1 2020, and is still reeling under the impact of the deadly virus. Though the virus has still not left the world, most regions have re-started economic activities, and the automotive sector is a no exception.

The Indian automotive industry was already under huge stress before the lockdown, and the virus just made things worse. The story is not very different across the world. All that matters more is the recovery after the hit. We present you with some facts and figures concerning the automotive industry’s performance in H1 2020 in India and across the globe.

Speaking on recoveries, it is obvious that China is far ahead than the rest of the world, and has shown impressive performance in the months of April and May. We can notice a “Sharp V curve” in China; India and Germany are more or less similar with a “Not so sharp – V curve”. This means that though the markets are recovering, it might definitely not be at the pace at which China is recovering. The US market seems to have the widest V curve of the lot.




India Market Analysis – H1 2020 – Deep Dive

Facts and figures pertaining to just the Indian automotive market is shown in this section with more depth.

The comprehensive summary of total sales of each company this year is presented in the table below –




  • VW is the only OEM to have recorded more sales in May-June than the pre-covid times. Though their recovery is impressive, it has still not matched its own performance during 2019.
  • Renault is the only company to have posted positive growth YOY during the first two months of the year, comparing with the previous year.
  • It also appears to be fast recovering from the pandemic, and has closed the gap very much with last year’s sales volumes. But, it must also be noted that its overall volumes still remains low.
  • Apart from Renault, OEMs such as Skoda, MG Motors and Tata seem to have gained an almost perfect V-Curve, swiftly catching up the volumes and would soon be better off than their pre-Covid times, if the same trend is expected to continue in the forthcoming months.
  • Maruti, Hyundai, Kia and Toyota have achieved a “not-so-perfect V-curve”, but are steadily on their road to recovery. This is mainly because of their volumes, as together they account for more than 70% of the total car sales in the country.
  • Recoveries of Mahindra and Ford are similar but poor, with their curve becoming wider. It is high time the JV partners work out some strategy to come out stronger together.
  • Nissan, Honda and FCA seem to have missed the bus entirely, and are at the bottom of the table. Their curves are almost flat at the bottom, and whatever their strategy is – does not seem to be working. Unless there is a shift in their approach, they potentially risk getting buried in the mess caused by the pandemic.

Most OEMs appear to be on their road to recovery, some being quicker than the rest. But, in terms of volumes, the gap is large and would require a considerable amount of time to at least match the pre-covid era performance.

The Indian automotive industry, if not better, is at least on par with the global markets as far as the recovery from the impact of corona virus on the industry is concerned. It is almost certain that the total sales this entire year can definitely not match last year’s performance, but will the recovery trend continue marching upwards? We may have to wait and watch, and we hope it does.

(The article is written by Karthick. He is an auto enthusiast, and an engineer by profession, currently employed in an auto MNC at Chennai; has a craving on new tech and a particular interest on the Indian automotive market.)

 

Commercial Vehicles Sales Trend – India

India is one of the leading manufacturers and exporters of commercial vehicles (CVs) in the world. Commercial Vehicles hold almost 4% of the total market share of all vehicles sold in India. This is in comparison to a 13% market share for passenger vehicles, 3 percent for three wheelers and a massive 80 percent held by two wheelers. The CV Industry has seen a seen a lot of ups and downs in the past few years and hence we present the sales analysis of the past 4 FYs for better interpretation.

The Commercial Vehicle Industry saw an upswing in the recent years owing to exponential growth in online retailing and logistics services, improving road & infra corridor and increase in development activities across the country. But the spike in the operating costs of running these vehicles, increasing customs duty, and lack of demand in the market due to the current liquidity crisis in the economy are some of the factors impeding the growth of the market. The ongoing Covid-19 outbreak has hurt the economic activities even further and the CV sales are on a free fall! The Commercial Vehicle sales have been going down for more than one-and-a-half years and looks to drop even further in FY21.

Lets us assess the category-wise CV sales in the past 4 Financial Years – 

  • Based on the product type, the commercial vehicles market in India can be segmented into Light Commercial Vehicles (LCVs) and Medium & Heavy Commercial Vehicles (M&HCV). They are further categorized into Load/Goods or Passenger Carriers basis their usage.
  • In FY 2020, the Light Commercial Vehicles segment accounted for ~68.7% of the total sales volume of commercial vehicles! M&HCVs contributed to ~31.3% of the overall commercial vehicle sales.
  • The Commercial Vehicle Industry saw a steady growth between FY17 to FY19 where the overall volumes rose from 7.13 Lakh units in FY17 to 10.07 Lakh units in FY19. However; the Industry registered a massive decline of -28.7% in FY20 v/s FY19! Ongoing liquidity crunch, Goods and Services Tax (GST) implementation , BS-IV inventory correction and economic slowdown were the primary reasons for the degrowth.
  • The Load Carriers category (Trucks) was specifically hit with freight capacity increasing due to the new axle norms and limited support from freight demand.

Graphical Analysis of the CV Sales in India – 




LCVs Sales Trend India – 

Passenger Carriers (LCVs)

  • Force Motors commanded the No.1 position in the LCV Passenger Carriers category with a Market Share of 37.1%. Force Traveller has been the favorite vehicle for operators and been consistently selling well over the years. The vehicle has an increased acceptability in a wide range of operations – such as ambulance, school bus, feeder bus as well as app-based city transport. However; the overall sales of Force Motors Passenger Carriers has dropped consecutively in the past 4 FYs!
  • Tata Motors presented a stiff competition in the LCV Passenger Carrier category and commanded a Market Share of 36%. It was just 508 units short of market leader Force Motors in FY2020.
  • Volvo Eicher ranked 3rd in the category and registered a Market Share of 11.8%. The volumes for the brand has been varying over the past 4 years.
  • Swaraj Mazda had a similar performance to that of VECV. It could garner a Market Share of 8.7% in FY20.
  • M&M has lost the volumes to a larger extent in the category and would be extinct if the trend continues!

Load Carriers (LCVs)

  • M&M has been the undisputed leader in the category with a Market Share of over 42% in FY2020. M&M toppled the erstwhile leader Tata Motors way back in 2015 and has been holding the fort since then. Mahindra has a wide product range in the category – Bolero Pick-up, Jeeto, Supro, Bolero Maxxi Truck, Camper and Jayo.
  • Tata Motors ranked second and recorded a Market Share of 39.3% in FY2020. The fight between Mahindra & Tata for the throne in LCVs has always been interesting.
  • Ashok Leyland’s Dost & Partner have been fighting hard for gaining share in LCV segment. They were able to garner a market share of 9.8% for Ashok Leyland in FY2020.
  • Maruti Suzuki’s Carry has gained volumes exponentially in the past 4-5 years. However; the OEM wasn’t shielded from the downturn last year and recorded a degrowth in FY20 v/s FY19.




M&CVs Sales Trend India – 

Passenger Carriers (M&HCVs)

  • Ashok Leyland was the Market Leader in the category for FY2020 with a Market Share of over 45%. Surprisingly; it was the only OEM to register a growth in FY20 v/s FY19!
  • Tata Motors recorded a Market Share of over 35% and along with Ashok Leyland commanded over 80% of the market!
  • VECV & Swaraj Mazda Isuzu Limited came in 3rd & 4th rankings respectively. However; their volumes in the category are way behind the likes of Leyland/Tata.

Load Carriers (M&HCVs)

  • Tata Motors in M&HCVs in like the Maruti Suzuki of passenger cars! Its market share in Load Carriers segment has been a whopping 52.8% in FY2020 and sold almost 1.8 times that of second ranked Ashok Leyland!
  • Ashok Leyland registered a massive YoY fall of -53.9% in FY20 v/s FY19! It was able to register a market share of over 28% in FY2020.
  • VECV ranked third and recorded sales of 25,187 units in FY2020 along with a Market Share of 13.6%.
  • The likes of M&M, SML and Volvo have been fighting to gain a hold in the segment.

Product Lifecycle Analysis – Hyundai Motor India

Do read our article on the Product Lifecycle for Maruti Suzuki & Tata Motors models.

Hyundai Motor India Ltd is India’s second largest passenger car manufacturer with 17.6% market share as of FY2020 (Source). It is a wholly owned subsidiary of the Hyundai Motor Company headquartered in South Korea. Hyundai Motor India Limited was formed on 6th May 1996 and was an unknown brand in India at that time. While Hyundai entered India  there were only five major automobile manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo too had entered the Indian market with Cielo just three years back while Ford, Opel and Honda had entered less than a year back. Hyundai brand value was much more lower than the likes of Ford, Honda, Toyota which entered the Indian market in a similar timeline. However; Hyundai had one big advantage when compared to other new entrants. That was Hyundai’s understanding about the Indian market and obviously its launch model – The Santro.

We shall explain through the Lifecycle Analysis on how the Hyundai Models made the brand it its today – 

1. Discontinued Models:

  • Hyundai Santro (Oct’98 to Dec’15) – Though the Santro nameplate is still alive in India; we have bifurcated Sales of 1st & 2nd generation in list of discontinued models as it was derived from the Atos Prime model while third generation is practically a standalone model.
    • The Hyundai Santro was launched on 23 September 1998 and was a runaway success! Within a few months of its inception; HMIL became the second largest automobile manufacturer and the largest automobile exporter in India thanks to the model.
    • The first generation Santro was also sold in Europe as the Atos Prime and in South Korea and Indonesia as the Kia Visto. It was known as the Santro Zip in India from 1998 to 2006 and has been India’s one of the best selling models in its time.
    • After the Kia Visto was replaced by the Kia Picanto in 2004 globally, the Santro was launched in its second generation avatar in 2003. While the 2003 facelift was marketed as part of the first generation, Hyundai India has produced the 2003 Santro as a second generation model with tweaks to the car platform, and new features. It was known as the Santro Xing in India from 2003 to 2015.
    • The sales trend for the Santro is plotted here for reference –

    • Santro saw its sales peak in 2006-07 and it was in mid of its lifecycle. Even during the end of its lifecycle it was selling decent numbers – It sold over 36k units in the last 12 months with an average of 3,054 units/mth.
  • Hyundai Accent (Nov’19 to Sep’13) – It was primarily the global second generation model that was launched in India in October 1999 as the “Accent” and was still in production after some minor facelifts; the car was phased out in Sep 2013. Accent future led way to the inception of Verna both globally and in India. Rather the third generation Accent was termed ‘Verna’. In India; both Accent and the costlier Verna were sold together!
  • Hyundai Sonata (July’01 to Dec’14) – The model sold 9,541 units in the 14 years its existed in India. The model sold in India was fourth & fifth generation models.
  • Hyundai i10 (Oct’07 to Dec’16) – The i10 replaced the Hyundai Atos in the global model line-up. The second generation of the car was presented in August 2013 and released in the beginning of 2014. The first generation i10 had its world premiere on 31 October 2007, in New Delhi, India. The car was targeted primarily at the Indian market and intended for production in India, given the popularity of hatchback subcompacts in the country and was also intended to replace the Santro.
  • Hyundai Eon (Sep’11 to Nov’18) – The Eon was designed jointly between the Hyundai R&D centers in Namyang, South Korea, and Hyderabad, India. In August 2018, Hyundai announced that the Eon would be discontinued as the car was not compliant with new safety regulations that will be implemented in October 2019 and the Bharat Stage VI emissions regulations that will be enforced in April 2020. Its replacement, the third generation Santro, had been released before the festive season of 2018.
  • Hyundai Getz (Sep’04 to Apr’10) –  The model was manufactured in the Hyundai Motor India factory in between 2004 and 2009. It sold 71,882 units in the 68 months of its sales in India.
  • Hyundai Terracan (Aug’04 to Nov’06) – The model actually featured a chassis derived from the second generation Mitsubishi Pajero!




2. Models currently on Sale in India:

    • Hyundai Aura (Jan’20 till date) – It is a sedan based on the Hyundai Grand i10 Nios, and was designed primarily for the Indian market. It is the successor to the Hyundai Xcent, a different nameplate is used as the Xcent continued in production mainly for fleet and commercial customers. The Aura was launched on 21st January 2020 in India.
    • Hyundai Venue (May’19 till date) – The Venue is Hyundai’s smallest crossover! It fits below the Hyundai Kona in Hyundai’s international lineup and below the Hyundai Creta in India and other markets where the Creta is sold. The Venue was launched on May 21, 2019 in India and occupies the sub 4-meter SUV category, benefitting from the Indian tax benefits for cars shorter than 4 meters.
    • Hyundai Kona (June’19 till date) –  In the year 2019, Hyundai launched an Electric Lite version as Kona Electric in India. It was India’s first electric SUV!
    • Hyundai New Santro (Oct’18 till date) – Santro marque single handedly made Hyundai as India’s second biggest car manufacturer. While the nameplate was discontinued in 2015; Hyundai revived it in 2018 to cash on the brand. It would also mark 20 years for the nameplate in India and the brand was so revered that even a stamp was released in India!

    • Hyundai Creta (June’15 to date) – The Creta is sold in the Indian market since 2015 and has been the country’s best selling Mid-SUV since then. Initially intended for the Indian market, the Creta was launched subsequently in China and Russia. It is manufactured by Beijing Hyundai, Hyundai India (from 2015), Hyundai Brazil, Hyundai Rus and Algeria’s TMC (from 2016), but not marketed in Europe. The model was based on the Hyundai–Kia platform that underpins the Kia Soul, Hyundai i30, Hyundai Elantra and Kia Cee’d / Seltos.
    • Hyundai Xcent (Mar’14 till date) – The Xcent was launched on March 12, 2014 to compete with the Tata Zest, Honda Amaze and the Maruti Suzuki Swift Dzire. The Xcent is currently sold alongside the Aura as a fleet sales only.
    • Hyundai Grand i10 (Aug’13 till date) – It slotted between the first generation i10, which was continued to be manufactured for the Indian market, and the i20. The third generation i10 was unveiled in India on 7 August 2019 as the Grand i10 Nios. It was launched on 20 August 2019 and offered in 10 variants across petrol and diesel engines as well as manual and automatic transmissions.
    • Hyundai i20 (Dec’08 till date) – The i20 replaced the Getz in nearly all of Hyundai’s markets. The i20 used a completely new platform that was created at Hyundai’s European technical centre in Rüsselsheim to allow Hyundai to move into Europe’s highly competitive subcompact B segment. The second generation i20 was launched in August 2014 in India as the Elite i20. It eventually won the 2015 Indian Car Of The Year (ICOTY) in December 2014. The model has been one of the best selling premium hatchbacks in India right since inception.
    • Hyundai Elantra (Apr’04 till date) – The global third generation model was launched in 2004. The model sales has been extremely slow since launch and even the latest 6th gen model couldn’t bring volumes. Infact it sold just 692 units in FY2020.
    • Hyundai Verna (Sep’06 till date) – It was nothing but the third generation Accent. However; it fared much better than the Accent and could fare in the list of best selling Executive Sedans even as on date. The current model is the fifth generation model (of Accent).

Interesting Facts Series – Mahindra & Mahindra

Do read our earlier post on the series here – BMW, Toyota and Tata Motors.

We shall be covering Interesting Facts pertaining to Mahindra & Mahindra in this post. Mahindra & Mahindra (M&M) Limited is an Indian multinational vehicle manufacturing corporation headquartered in Mumbai, Maharashtra, India. M&M is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. M&M brands its products as “Mahindra” and produces SUVs, saloon cars, pickups, lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles and tractors.

1. The company was established on 2nd October 1945 as Mahindra & Mohammed by Mahindra brothers in collaboration with Ghulam Mohammed.The Company was renamed Mahindra & Mahindra Limited (M&M) in 1948, when Ghulam Mohammed left for Pakistan to be its first Finance minister.

2. Mahindra & Mahindra was founded as a steel trading company on October 2, 1945! The company joined hands with Willys Overland Corporation in 1954 to assemble Jeep-type vehicles in India.

3. In 1963, the International Tractor Company of India Limited was incorporated  as a joint venture among the Company, International Harvester Inc. (now part of Case New Holland) and Voltas Limited to manufacture tractors in India.  In 1977, ITCI merged with the Company and became its tractor division.  The Company entered into technical collaboration arrangements with Peugeot in 1979 for the manufacture of diesel engines and transmissions and with KIA Motors in 1982 for the manufacture of transmission assemblies.  In 1982, the International Harvester brand was discontinued and the “Mahindra” brand was born.

4. In  the year 1991, the company introduced the Commander range of vehicles and the Armada range of vehicles was unveiled in 1993.

5. Mahindra & Mahindra became the first Indian auto manufacturer to launch the Common Rail Diesel Engine (CRDe), offering it in the Scorpio in 2005.





6. Mahindra Bolero has been HIGHEST selling UV for Mahindra!

7. Mahindra & Mahindra bought 55% in Reva to power electric car biz on 26 May 2010. It also renamed it to Mahindra Electric in 2016 following taking 100% ownership.

8. Mahindra bought 70% in South Korea’s SsangYong Motor Company on January 20, 2013. 

9. Mahindra bought Pininfarina for $28 million on Dec 14th 2015. M&M and affiliate Tech Mahindra , through a special purpose vehicle (SPV), bought a 76.06% stake in Italian car designer Pininfarina SpA, for around Rs.186.7 crore.

10. Mahindra picked up 36.63% stake in Meru Dec 5, 2019. It invested an amount of 44.71 crore for the said equity share capital of Meru.

12. Mahindra Scorpio was a $120 million development project (a lot for a company like M&M, if relatively inexpensive by Western standards) and the SUV assembled an engine by Renault, axle from Dana Corporation and metal coatings from Visteon! Scorpio had had all of its major systems designed directly by suppliers, with the only inputs from Mahindra being design, performance specifications and program cost. The design and engineering of the systems were carried out by suppliers, as well as testing, validation and materials selection. Sourcing and engineering locations were also chosen by suppliers!

Statewise & Citywise Compact SUV Sales in India – FY2020 (Part 4)

Find the earlier posts in the series here –  Part 1, Part 2 and Part 3.

We shall cover the Compact SUV sales for FY2020 in the South & East Zone in this post. South Zone was the third largest zone in terms of Compact SUV Sales in FY2020. It contributed near to 25% of the sales of Compact SUVs sold in India. The States / UTs considered in the South Zone are – Karnataka, Telangana, Kerala, Tamil Nadu, Andhra Pradesh & Pondicherry. The Statewise contribution to the Zonal volumes is as highlighted –

 

  • Karnataka was the No.1 state in terms of C-SUV sales for FY2020. ~24k Compact SUVs were sold in Karnataka in the previous fiscal and became the top state by a huge margin from second in line Telangana.
  • Telangana too was impressive in Compact SUV sales and outdid Kerala which was the No.1 state in terms of Hatchback Sales for FY2020 (Source).
  • Kerala & Tamil Nadu both sold ~16k Compact SUVs in FY2020 and ranked 3rd & 4th respectively in terms of volumes for the South Zone.
  • Andhra Pradesh could manage to sell 9,659 units of C-SUV’s in FY2020 and ranked 5th. Pondicherry/Puducherry being a UT ranked last in the table.




Let us now look at the South Zone Statewise & Modelwise Compact SUV Sales/Market Share for FY2020 –

  • Hyundai’s Venue was the best selling Compact SUV for FY2020 in states like Karnataka & Tamil Nadu. Venue outsold the Brezza by a comfortable margin in both the states. However; Hyundai Venue garnered its best Market Share in Tamil Nadu.
  • Brezza had a clear lead in markets like Telangana and Andhra Pradesh. It registered its highest market share of 49% in Telangana.
  • Tata Nexon was the best selling Compact SUV in Kerala! It managed to outsell the likes of Brezza & Venue in the state. It also recorded its highest market share in Kerala for FY2020.
  • Ford’s Ecosport fared well in Pondicherry & Kerala where the market share was 18% & 16% respectively.

We now present the Top 20 cities in South Zone for Compact SUV Sales in the FY2020 – 

  • Hyderabad was the No.1 City in South India in terms of Compact SUV sales for FY2020! It managed to oust Bangalore to gain the top spot. Hyderabad’s love for SUVs is clearly visible.
  • Bangalore came in second in the ranking table. However; models like Venue, Nexon, Ecosport & XUV300 registered their best sales figure in South in Bangalore! Bangalore’s customers sure have better acceptance for these models.
  • Chennai was a distant third and could manage to sell 6,889 units of Compact SUVs in FY2020. Chennai’s liking for Honda’s WRV was visible and the model recorded its best sales figure in the city.
  • Kerala’s Cochin (Kochi) & Calicut (Kozhikode) fared in the Top 5 cities. Do note that Tata Nexon was the best selling Compact SUV in both the cities for FY2020.
  • Notable sales seen in Coimbatore, Vijayawada, Vizag & Trivandrum.




East Zone was the fourth largest zone in terms of Compact SUV Sales in FY2020. It contributed near to 10% of the sales of Compact SUVs sold in India. The States / UTs considered in the South Zone are – West Bengal, Assam, Bihar, Orissa, Jharkhand, Manipur, Arunachal Pradesh, Nagaland, Mizoram, Meghalaya, Sikkim, Andaman and Tripura. The Statewise contribution to the Zonal volumes is as highlighted –

  • West Bengal was the No.1 State in terms of C-SUV sales in East Zone and around 7,128 units were sold in FY2020. For comparison purpose – Chennai as a city alone sold almost equivalent amount of C-SUVs that West Bengal all cities sold combined!
  • Assam ranked second with sale of over 6.4k C-SUVs in the previous fiscal. Bihar & Orissa followed at third and fourth rank respectively.

Let us now look at the East Zone Statewise & Modelwise Compact SUV Sales/Market Share for FY2020 –

  • Hyundai’s Venue had a stellar acceptance in the Eastern part of the country and outsold the Brezza by almost 2 times! While Venue commanded a Market Share of 32% in the East Zone; Brezza could rake in just 15% Market Share!
  • Mahindra too had a splendid performance in this part of the country. XUV300 outsold the likes of Nexon & Ecosport and recorded a Market Share of 18%. Mahindra’s best markets in terms of Market Share were Manipur & Tripura.
  • Honda recorded significant market share in Andaman & Nicobar where the model outsold the likes of Brezza & Nexon!

We now present the Top 20 cities in East Zone for Compact SUV Sales in the FY2020 – 

  • Kolkata was the No.1 city in terms of C-SUV sales in FY2020 for the Eastern Zone. Models like Ecosport, XUV300 and WR-V sold better than the likes of Brezza & Nexon in Kolkata.
  • Guwahati ranked second and over 2.6k C-SUVs were sold in the city in FY2020.
  • Bhubaneshwar from Orissa and Patna from Bihar ranked third and fourth respectively.
  • Notable sales registered in cities like Ranchi, Siliguri, Jamshedpur & Imphal.