Indian Car Sales Figures – July 2017

July’17 was a transition phase for the Indian Auto Industry from a pre-GST era to the post-GST economy. The prices of majority of the models were cut due to the change in the taxation structure. The government’s stand on Hybrid models led the steep increase in the prices of Ciaz/Ertiga SHVS, Accord Hybrid, Camry Hybrid, etc. OEMs like Toyota, Maruti, Mahindra pushed their vehicles enough to compensate June’s loss and as a matter of fact Toyota grew a stupendous 800% in July’17 when compared to June’17! Maruti’s Nexa bet has played off really well and what they have done in the Indian market is nothing short but magical. Nexa could sell 32,860 with all its models combined! – At this speed, we could see Nexa overtake Hyundai’s numbers in coming time. Also splendid is Maruti’s numbers from its traditional channel (i.e. without Nexa) – It sold 1,20,438 units from its traditional models. The Product onslaught and differentiation in brand positioning is surely a case study for the other Global MNCs.

July’17 saw a YoY growth of healthy 15% and MoM growth of over 50%! The spurt was primarily due to the upcoming festive season in August (Rakshabandhan, Varamahalakshmi, Janmashtami, Ganesh Chaturthi to name a few). As requested by one of our reader, we are happy to present both MoM & YoY analysis in this month’s post. Do see how the OEM’s fared –

In MoM performance, only 2 OEMs experienced de-growth (GM & Nissan). Also in YoY analysis – apart from Renault, Nissan & GM; all OEMs saw a growth in their volumes. While GM is out of the game; the decline in numbers at the Renault-Nissan alliance is a serious concern to their global ambitions. The Alliance is in a close competition to become the Global No.1 and their Indian performance will be vital. July’17 also saw the birth of an Iconic Product – Compass. The pricing has been sweet and has already sent terror waves amongst the rivals. The Compass saw dispatch of 935 units and helped Fiat rub shoulders with Skoda’s volumes. We are positive about Compass’s potential to revive FCA’s fate in India. Let’s look at the modelwise analysis here:

Highlights:

  • Maruti & Nexa are on a roll – and the break through success of their two key products (rather new launches) was the key. Maruti’s Brezza & Nexa’s Baleno – Both crossed 15k units and were positioned in the Top 5 selling cars of July’17. Also commendable is Alto’s performance over years – It still sold >26k copies and could easily outshine its capable competitors (namely Kwid & Eon). Dzire numbers saw a hitch (we suspect a production concern after the steering column recall) or else it would’ve been much better. Even Dzire was the fastest product in Maruti’s stable to garner over a Lakh Bookings!
  • Hyundai has been on a backfoot after not that great success of Refreshed Grand i10 & Xcent. With Compass launch, it’ll be a difficult ride for the easily selling Creta as well. Hyundai is now overly dependent on i20 & Creta. Here’s what Hyundai’s strategy is – the launch of Next Gen Verna! Yes, New Product Launch is the key to success in Indian market as of today. Hyundai has timed the launch pretty well in the festive season and we are sure that they’ve aligned to production to get the volumes on board. It’ll definitely be a tough fight in front of the mighty City & Ciaz.
  • Mahindra XUV sold over 1200 units lesser than the Fortuner in July’17. That’s how ruthless the Indian market can be! The Indian consumer is now seeking value more than cost and has become ever brand conscious. And things have turned pretty difficult for the Indian OEM – losing its UV-leader crown to Maruti and the dropping volumes. However, the strong rural demand and acceptance is shielding it from the debacle.
  • Honda’s raking the moolah with the recently launched WRV. The Compact SUV from the Japanese OEM has got a wide acceptance for being Feature-rich, Butch looks and Decent Price. It has overtaken Ecosport’s volumes for second consecutive month and has also registered itself as the best selling Honda model for the month of July’17!
  • Tata is in the news for the forthcoming launch of Nexon. The product has got some seriously good reviews and looks promising. After Hexa & Tigor’s average success; Tata has a lot riding on the Nexon. We believe Nexon has all the ingredients to seal Tata’s position in the Top 5.
  • Toyota saw the highest fall in prices of its models post GST and the same reflected in their volumes as well. It sold crazy 9369 units of Crysta in July’17 made it the No.1 selling MUV of July’17! Similar was with Fortuner’s volumes – It sold over 3400 units and placed itself as the Best Selling Premium SUV!

Look at Top 25 selling models of July 2017 –

Top Selling Hatchbacks (entry & mid level) –

Top Selling Premium Hatches –

Top Selling Compact Sedans –

Top Selling Sedans –

Top Selling Compact SUVs –

Top Selling MUVs –

Top Selling SUVs –

State-wise Car Sales Statistics – FY17

We have been closely tracking the state-wise car statistics in past 1 year. You can find the previous posts on the topic here and here. Indian demographics have always amazed us and the trend is very volatile. The same is seen in the statewise sales data as well. Ex: Kerala was the No.2 state in terms of Passenger vehicle sales in the first half of FY17, fell to No.5 position for the entire year. The other startling fact to be reiterated here is Maharashtra as a state alone sells more than 13 states in East Zone! Also there is no state from South Zone in the Top 3 states of FY17 (while South Zone is the second best zone in terms of numbers)! Also to be noted here is the volumes of Delhi market (without NCR sales) is over 2 Lakh units in previous FY.

The intent of this post is to highlight the contribution of individual states in overall passenger car sales and how seasonality effects sales in various regions of the sub-continent. A look at the Top Selling States for Apr’16-Mar’17 period:

Do find the Quarter-wise analysis here:

Export Statistics – FY17

As always, we are happy to present the most comprehensive data from the Indian Auto Industry. India has grown as a viable manufacturing hub for the Automobile OEMs and the lower costs have given the subcontinent a strategic edge. The OEMs have invested heavily in the local manufacturing facilities and Exports give them an opportunity to leverage on the Production Capacity from these plants. India had already beaten China in passenger car exports for the fiscal year 2015-16. According to numbers collated from SIAM statistics, Indian passenger car exports for FY2016 totaled to 532,053 units. This was higher than Chinese passenger car exports for the fiscal – 409,800 units – which were recorded by the China Association Of Automobile Manufacturers. The scenario was equally buoyant in FY17 and Car Exports rose upto 16% in the time period.

The rise in exports was fueled by the OEMs who were struggling in the Domestic Market and Exports was the only option for them to utilize the capacity (and hence become profitable). The Top 5 Exporters included OEMs such as Ford, Nissan & VW whose Indian sales are far from being satisfactory. However, Hyundai retained its No.1 slot and emerged to be the country’s Top Exporter in last fiscal. Find here the OEM-wise export numbers:

Notable volumes recorded by GM, Renault and Mahindra in FY17 – they have realized the benefits of having a strong export base and have taken the right steps to encash it. To our surprise, there was not a single Hyundai model in the Top 5 exported cars list (while Hyundai as an OEM was No.1!). Ecosport led the rankings and was followed by Vento. However, Beat did extremely well and jumped to the 3rd position in the rankings table. Look at the Top 30 exported cars from India:

While the exports of Cars was encouraging; 2 wheeler OEMs struggled in the previous financial year. Two wheeler exports fell by 6% in FY17 when compared to FY16. The de-growth was led by the Top 2-wheeler exporter – Bajaj Auto. Bajaj’s export volumes fell by over 16% and this came at a time where its domestic volumes was also under pressure. This would have surely hit the bottom-line of the Indian OEM and its dependence completely on bikes could be attributed as a reason. Here’s the list of the Top Two Wheeler OEMs in terms of Exports:

The OEM which grew significantly in exports was Honda – and it was led by its scooterette Dio. Also note that Dio was the only scooter in the Top 10 exported Two-wheelers (the next scooter in the rankings was TVS’s Wego and was ranked 16th!). Honda also remains India’s top scooter exporter from the country and about 36 percent of company’s overall exports are scooters! Honda also surpassed Hero’s export numbers by over 1.30 lakh units to become the third largest two-wheeler exporter from India. Hero Moto Corp exported 180,391 units in FY17.  Let’s see the Top 30 Two wheeler Export models :

TVS’s exports grew by 1.56 percent as it exported 44,572 units of scooters, over 2.99 lakh units of motorcycles and about 20,152 units of its mopeds. Overall, the company exported about 3.64 lakhs units in FY 17 as against 3.58 lakh units in FY 16. TVS currently exports to over 50 countries in Asia, Africa and Latin America!

About 12 percent of the total two-wheelers manufactured in India were exported to global markets. FY17 also saw highest ever exports of scooters at above 2.93 lakh units.

No ‘Civic’ Sense!

8th Gen Civic (Indian Model)

When Honda launched its D-Segment (Premium Sedan) offering – the Civic in the Indian Sub-continent during 2006; it never expected it’d amass such a fan following for years to come. The product was internationally the Eight Generation model and was an instant hit in India. It sold ~10,000 units in the first 6 months of the launch, a feat that the Japanese Automaker wouldn’t have even dreamt about. And yes, the model deserved the love and success it garnered then – It was generations ahead than the competition models available and it helped Honda enhance its premium brand imagery as well. Civic was Honda’s fourth offering in the Indian market – after City (1998), Accord (2001) and CR-V (2003). Civic set new records in the segment – over 17k units sold in a single calendar year and still holds the record till date. It was the segment leader in the first year of the launch itself and even the global best selling brands (like the Corollas’ or the Camrys’) couldn’t match its feat – the highest that a Corolla sold in India in a Calendar Year is ~10k units.

See how the Civic fared during the eight years of its existence in India –

The success run of Civic was halted by the global recession in 2009; and Indian consumers shift towards Diesel led them to opt for other brands (such as the Cruze). While Honda saw consistent decline year-on-year; it decided to pull the plug on the model in the year 2013. The intent was to focus on mass-volume models such as the Amaze (which was launched in Apr’2013). While we would’ve expected Honda to bring the Ninth-Generation Civic in the Indian market later; the Japanese manufacturer omitted it considering the low volumes it had to offer. However, the decision backfired and the OEM somehow weakened its tag as a premium car manufacturer. While the Civic saw an another upgrade with the Tenth Generation Avatar in 2016; Indian Consumers were kept away from it.

Honda has now shown signs of launching the Tenth Gen model in the upcoming year and it is definitely a positive sign from the Japanese Carmaker. The highlights of the latest gen Civic is as follows:

  • All New Design – Continuing the legacy; the Civic looks futuristic both from outside and inside. It has a very pronounced coupé-like roofline and a notchback rear section. It sports a bold chrome bar across the grille (which Honda terms as solid wing face design) and LED accents.
  • Engine Options – Honda is now equipped to offer both Petrol & Diesel variants in India. It has a wide range of options in hand – from a 1.0-litre turbo-petrol to a naturally aspirated 2.0-litre petrol engine, Honda is expected to bring the Civic with the new 1.5-litre turbocharged petrol engine as well. Also you could expect Honda’s 120hp 1.6-litre diesel engine that is currently on sale in international markets.
  • Better Chassis – As per Honda, the current-gen Civic uses the most sophisticated chassis in the nameplate’s history. An infusion of ultra high-strength steel has improved torsional rigidity by a massive 25 percent. This could lead to segment-leading driving dynamics.
  • Competitive Price – Considering Honda’s foothold in the Indian market for over 20 years, the OEM could stretch for enviable levels of localization and thus launch the model at a very competitive price.
10th-Gen Civic

We expect Honda to take the right call and launch the model as soon as possible. This will not only help it regain its premium badge but also enhance its overall volumes. The 16-20 Lakh Rupees segment is now devoid of options and needs a worthy product to revive the numbers – Civic could surely fit in here!

Passenger Vehicle Sales Rank – FY17

Model-wise Sales Rank for the cumulative figures of Apr’16-Mar’17 (FY17) –

SNAPSHOT –

  • 126 Brands from 17 OEMs reported sales in the previous financial year! The options are plenty in every segment and the competition was never so fierce.
  • Maruti dominates the roost and has 7 out top 10 models from its stable. Hyundai stands second and has 2 models in the Top 10 list. The only other manufacturer in the Top 10 is Renault (all thanks to Kwid).
  • India is slowly emerging to be a value conscious market – that is how Ford’s Mustang sold thrice the numbers that of Mahindra’s Vibe!
  • The overall growth for passenger cars in India was 9% and this year we surpassed Germany as the Fourth biggest Passenger Car market in the world. India is now the focus market for all OEMs – expect Kia & Peugeot to set up their shops pretty soon.