Kia, Audi, Hero, Bajaj, VE and Mahindra ace the Covid-19 Dealer Support Satisfaction Study!

FADA recently conducted a study in partnership with PremonAsia (a consumer insightbased consulting firm based out of Singapore), to access the dealer satisfaction levels on the package announced in the Covid-19 era by various OEMs to their respective dealers.

The survey pan-India included online study covering dealers from all segments of the market – 4W Cars & UV (Mass market)/ 4W Cars & UV (Luxury)/ 2W (Scooters/ Bikes)/ 3W/ CV (Medium & Heavy)/ CV (Small & Light). It probed Dealer owners & Dealer CEOs of various OEMs across 6 factors –

  • Support on financial matters
  • Support on customer communication matters
  • Support on dealer manpower matters
  • Support on lockdown related matters
  • Support on re-start of business
  • Support on future business evolution

Based on the responses received; the OEMs in the respective categories were ranked and the results are as mentioned –

Passenger Vehicles (Mass Market & Luxury) – 

  • While the overall rating was weak (satisfaction levels averaging below 600 on a 1000 point scale); OEMs like Kia & Toyota met their dealer partner expectations much better than others.
  • Tata Motors & Honda Cars dealers rated the respective OEMs the least in the mass market segment.
  • Kia dealers report stronger level of satisfaction on areas of communication & dealer manpower related matters
  • While Toyota dealers reported stronger level of satisfaction on areas of financial support – aspects like expediting settlement of all claims and Financial assistance on vehicle inventory.




Two Wheelers – 

  • Hero Motocorp dealers were the most satisfied ones among the lot. However; it still managed to score only 623 points out of a 1000 point scale. This highlights the dissatisfaction levels at the dealers end due to the business loss occurred by Covid 19 and any extent of support couldn’t substantiate the losses.
  • Honda came in a close and ranked second in the dealer satisfaction survey.

Three Wheelers & Commercial Vehicles – 

  • Three Wheelers was the most affected category in the Covid-19 era and the drop in sales was one of the highest among all categories. The same is reflected in the study as well – Even the top ranked Bajaj Auto could only garner 559 points out of the 1000 scale.
  • CVs (Medium & Heavy) too had a similar plight as that of 3Ws and the Top ranked VE Commercial Vehicles could score only 449 points. Tata Motors was just a point behind VE. However; Ashok Leyland dealers were the most dissatisfied out of the lot.
  • Mahindra fared the best among LCV dealers and the dealers rated the OEM at 607 points. Surprising to see Tata Motors dealers rating the OEM the lowest in the category!

Source: Federation of Automobile Dealers Associations & PremonAsia Study

Three Wheeler Retail Sales Statistics – August 2020

Three Wheelers as a category recorded the highest YoY decline in August 2020. The sales dipped a hefty -69.5% in Aug’20 v/s Aug’19. As per the FADA report; only 16,857 three wheelers were sold in Aug’20 against 55,293 units sold in Aug’19.

OEM wise Three Wheelers Sales / Registration Figures – 

Source: FADA Research
  • Bajaj Auto maintained its Numero Uno spot. However; it registered a fall of -75.7% YoY and its market share declined too by -9.6%.
  • Piaggio YoY sales fell by -61.8% and it could sell only 3,688 units in August 2020. It anyhow recorded a Market Share increase of 4.4%.
  • Do note that ‘Others including EV’ had the lowest YoY decline and also the highest Market Share increase (9.9%). We expect that the EV’s are rapidly catching up in the 3W space and is reflecting accordingly in the sales volumes.




Statewise Three Wheeler Sales Statistics – 

Source: FADA Research
  • Bihar was the No.1 state in terms of 3 wheeler sales! Around 3,312 units of 3 wheelers were sold in Bihar alone – which is over 20% of the nation’s 3W sales volumes! Bihar is also one of the biggest markets in India for Electric Three Wheelers.
  • Bihar’s neighboring state UP came in a close second and 2,954 three wheelers were sold in August 2020.
  • Maharashtra ranked third with sales of 1,513 units. The YoY decline was a mammoth -80.3%.

Disclaimer:
1- The above numbers do not have figures from AP, AN, MP, LD & TS as all these States/UT’s are not yet on Vahan 4.
2- Vehicle Registration Data has been collated as on 07.09.20 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,242 out of 1,450 RTOs.

Commercial Vehicle Retail Sales Statistics – August 2020

Mahindra was India’s Top Commercial Vehcile  maker for August 2020 and it commanded a market share of 40.68%. Mahindra’s Market Share improved a phenomenal 17.1% in Aug’20 v/s Aug’19!

The Commercial Vehicle sales has been under tremendous pressure since FY2020 and this year the volumes have dipped to all time low levels. The Commercial Vehicle registrations dipped by -57.4% YoY and only 26,536 CVs were registered in August 2020.

OEM wise CV Sales / Registrations for August 2020 –

  • Tata Motors CV sales fell by -73.2% and it lost Market Share of -15.9%. Tata’s loss was Mahindra’s gain!
  • Ashok Leyland degrew -70.5% YoY and its market share fell by -4.7%
  • Maruti Suzuki has been able to catch up well and increased its market share solely on a single model (Super Carry). Maruti’s Market Share increased from 3.26% in Aug’19 to 6.69% in Aug’20.




Statewise CV Sales for August 2020 – 

  • Tamil Nadu was India’s largest CV consumer and around 3,832 CVs were registered in August 2020.
  • Maharashtra came in a close second and 3,654 units were retailed in August 2020. UP ranked third in the list and 2,625 CVs were sold in August 2020.
  • The Top 5 states contributed to almost 54% of the overall CV sales. Also 80% of the CVs were sold in the Top 10 states!

Sonalika overtakes TAFE to become India’s third largest Tractor OEM in Aug’20

Tractors was the only category to register YoY growth in August 2020. Tractors registration continued its positive momentum showing a growth of 27.8% in Aug’20 v/s Aug’19.

Rural market continued to show strong growth due to a good monsoon. Tractor sales was positively impacted with the monsoon progress and spread. Riding high on back of good monsoons, favorable Kharif season and increased disposal income in the rural areas majority OEMs registered high double-digit growth in August 2020 sales.

OEM wise Tractor Sales Performance for August 2020 – 

Source: FADA research
  • Mahindra + Swaraj commanded a Market Share of 39.85% in August 2020 and its market share increased by 0.6% when compared to August 2019.
  • Sonalika outsold TAFE in Aug’20 and recorded a Market Share of 12.7% in August 2020. Sonalika has been extremely consistent in the past few months and the sales growth is a testimony of it.
  • TAFE registered sales growth too and grew 18.39% in Aug 2020 v/s Aug 2019. It saw its market share decline by 0.91% and slid to the fourth spot.
  • Escorts  recorded a YoY growth of 24.96% and its market share fell by -0.23%.




Statewise Tractor Sales / Registrations in August 2020 – 

Source: FADA research
  • Maharashtra performance was exemplary in August 2020. Maharashtra YoY growth was a record 169.6%.
  • Bihar was the only eastern state in top 5! Bihar’s tractor sales improved a mammoth 44.7% in Aug’20 v/s Aug’19. The return of migrant workers in Bihar has given an stimulus to the sale of tractors in the state, with the state recording one of the highest increase in percentage terms in August 2020. As per experts opinion, the migrants are looking at agriculture as an alternate employment opportunity to compensate for loss of jobs during Covid-19.
  • Gujarat was the No.1 State in terms of Tractor Sales and it registered a YoY growth of 4% as well.
  • UP came in second and around 12,571 tractors were registered in August 2020.
  • Rajasthan ranked fourth and was 1,024 units short of Maharashtra.
  • It is also surprising to see that only 5 tractors were registered in Kerala in August 2020!

Disclaimer:
1- The above numbers do not have figures from AP, AN, MP, LD & TS as all these States/UT’s are not yet on Vahan 4.
2- Vehicle Registration Data has been collated as on 07.09.20 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,242 out of 1,450 RTOs.

Over 17% of the cars sold in India were Diesels post BS6 implementation!

Over 60k Diesel cars were sold in India since April 2020. Hyundai, Mahindra & Kia have emerged as the biggest diesel car manufacturers in the BS6 era!

It was predicted that diesel cars will be history post the implementation of BS6 emission norms. Many OEMs even gave away diesels entire from their portfolio owing to increased R&D costs and implementation hurdles. The likes of Maruti, Renault, Nissan, VW & Skoda are now petrol-only car manufacturers! The trend to be seen here is the rampant acceptance of Petrol engines – Manufacturers like Mahindra & Toyota have pretty decent sales coming in from the petrol variants. The thinning price gap between Petrol & Diesel fuel cost have also been a major factor in this shift. Across all metropolitan cities in India; the price gap between both the fuel have been <Rs.10 and consumers aren’t completely ready to pay the higher price of diesel cars during their purchase.

Fuel Price Comparison (as of 1 Sep) – 

City Petrol Diesel Gap
Delhi 82.8 73.6 9.2
Mumbai 88.7 80.1 8.6
Kolkata 83.6 77 6.6
Bangalore 84.4 77.9 6.5

Maruti is at a larger risk if the consumer shift towards petrol doesn’t happen as anticipated. Do note that over 22% of the Maruti’s sold in 2019 were Diesels! (Source) Hence, Maruti is doing everything possible to influence consumers to prefer Petrol cars over Diesel. It is also running a mega campaign ‘Calculate Kiya Kya’ highlighting the period required to recover the initial acquisition cost of buying a Diesel car.

Maruti’s Diesel multijet had a huge fan following and the departure of the engine from Maruti’s portfolio is risky for sure! However; Maruti sales hasn’t affected much post BS6/Covid era as the petrol acceptance in hatchback/compact sedans is on a rise due to the initial low acquisition cost.

This leaves an opportunity in the hands of the OEMs having a BS6 Diesel engine options. Irrespective of the price difference; there is still a large set of buyers who have opted for the pricier Diesel cars in the Mid SUV segment / Premium segment. Frequent long distance travel, punchier diesel engine and better driveability were the primary reasons for the customers opting for the Diesel variants in the segment. Hyundai & Kia emerged as the biggest beneficiaries. Both OEMs combined sold over 45% of the diesel driven cars between Apr-July 2020!



Let us see the OEM wise Petrol v/s Diesel Sales Trend for April – July 2020 – 

*Hybrid
  • Around 60,283 diesel cars were sold out of the overall passenger vehicle sales of 3,51,141 units. The diesel contribution was over 17% in the overall PV sales.
  • Petrol Driven cars now dominate over 82% of the Passenger Car Sales and has moved up from 66.9% contribution in 2019 (source). Obviously; the trend is led by the Market Leader Maruti Suzuki.
  • Toyota has the highest dependence on diesel cars; and is now followed by Ford & Mahindra. The OEM-wise diesel dependency is as ranked in order –
Rank OEM Diesel%
1 Toyota 69.3%
2 Ford 64.5%
3 Mahindra 59.0%
4 FCA 53.3%
5 Kia 46.1%
6 MG 41.5%
7 Hyundai 29.0%
8 Honda 18.8%
9 Tata 12.7%
10 Maruti 0.0%
11 Renault 0.0%
12 VW 0.0%
13 Skoda 0.0%
14 Nissan 0.0%

Will Petrol cars dominance rise with time; or else Diesel car sales are going to rise against all odds? Only time shall tell.

Note: The statistics shown here is collated from multiple sources and may not be exactly accurate.