Top 10 Passenger Vehicle OEMs for 2018 – China

Probably, you may be thinking on why are we covering Chinese Car Sales for 2018? – The reasons are:

  1. To highlight the magnitude of car sales in China. The Top 2 OEMs sold more cars than all OEMs combined in India! However; if you notice China’s Top OEM SAIC_VW sold over 20 Lakh cars and was only 3 Lakhs more than India’s Biggest Carmaker (Maruti has sold 17,31,179 cars in 2018).
  2. If all SAIC Brand Collaborations are combined together (VW+GM+Wuling); SAIC as a group sold a whopping 53,90,980 cars!!! With SAIC entering the Indian market this year (in name of MG Motors) – It shall be interesting to see how the Chinese OEM grab a considerable pie here.
  3. VW is the dominant brand otherwise. Its tie-up with SAIC & FAW combined garnered a sale of over 41 Lakh units last year. Considering VW’s India sales, VW is doing negligilbe volumes in Indian market.

2018 – Slowdown in luxury car market growth

In 2018, luxury car market has grown at the slowest rate compared to last 10 years. Only, if we overlook 2016 growth rate because of one-off exceptional event, when 2000cc + diesel engine cars were banned for limited period in New Delhi.

Growth rate has moderated, from being exponential during the period of 2009-2013, to more linear in last five years (2014-2018).





GDP growth rate in last 5 years has remained a mixed bag. So, in economic terms what could be the possible reason for luxury car market’s phenomenal growth rate tapering in recent past?

  • Has propensity of conspicuous consumption come down? This cannot be true, given the past growth trend. So answer lies somewhere else.

Either

  • World’s fastest growing large economy is not creating enough wealth (read – $ Millionaires/$ Billionaires) to fuel demand for luxury cars.

Or

  • Wealth is getting concentrated in hands of few, indicating economic prosperity is not very wide spread.

Or

  • GDP growth data is not in line with ground reality.

For relative reference we looked at how Indian Luxury car market leaders are performing in world’s largest car market – China.

In 2007, Mercedes Benz China were selling 3 times more car than Mercedes Benz India, now in a decade time, it reached to almost 30 times.





Audi China is selling more cars in a month then whole Indian luxury car market combined annually. To put things in perspective, Audi China (Luxury car maker) annual sales is higher than India’s second largest car manufacturer Hyundai India (mass market player with ~16% market share).





BMW though 3rd in German manufacturer ranking in China, is still churning phenomenal numbers.

This data set shows how world’s second largest economy has created huge wealth and exponential luxury car market growth rate shows penetration level is high, indicating wide spread prosperity.

To understand economic relation and for apple to apple comparison, a more suitable economic indicator is considered over here – $ GDP per capita. Since India and China has very close population size, higher GDP size of China shows Chinese are relatively more wealthy and prosperous, which reflects in their purchasing power.

Till late 80s, India’s and China’s economic progress was comparable too, but after that, with rapid transformation, China achieved exponential growth rate.

For now, Chinese economy is reaching a saturation level and struggling to find newer growth engine, but it is something which is bound to happen.

Indian GDP per capita has very long way to go and so is luxury car market size. Luxury car makers and their component suppliers need to carefully plan their expansion plans in India. What one couldn’t ignore during planning phase is, Indian economy, too, is highly vulnerable to global economic churning due to trade war, gradually slowing Chinese economy and its impact on world economy and last but not the least, volatile and unpredictable global crude oil prices.



Major Luxury Car Manufacturers Sales data at a Glance

(The article is written by Rohan Rishi. You can connect with him at emailrohanrishi@gmail.com)

Luxury Car Sales – 2018

  • The Luxury Car Sales too had a tough time in 2018 and 2 biggies – Audi & Mercedes reported a negative and stagnant growth respectively. The overall industry could grow a modest 3% in 2018 vs 2017.
  • Mercedes-Benz retains the No.1 position for the year 2018. However; the YoY was growth was stagnant and couldn’t gain any significant increase in volumes during 2018.
  • BMW+Mini had an impressive 2018 and grew 13% which was the highest growth reported in the Top 3 OEMs. BMW is currently on a product offensive and has a lineup of 12 launches in 2019 as well. Hope the German OEM gives a tough competition to its other German counterpart (Mercedes).
  • Volvo has given not only safe; but beautiful cars as well recently. XC40, XC90, V40 cross, S60; etc – The lineup is now comprehensive and is well accepted in terms of looks and features. The Chinese owned (Geely) brand is slowly and steadily gaining volumes.
  • Tata owned JLR too did a moderate 16% growth and was only 404 units short of 5k.

2018 Car Sales Statistics – India

Modelwise Car Sales Statistics for 2018 –





Top 25 selling models of the year 2018 are –





Top Selling Compact Sedans of 2018:





Top Selling Compact SUVs of 2018:





Top Selling Sedans of 2018:

Best Selling Car of 2018 – Maruti Dzire!

Maruti Dzire dethrones Maruti Alto after 13 years; and emerges as India’s highest selling car of 2018!

In a reflection to consumers preference over bigger cars; Dzire emerged as the Sub-continent’s best seller. It is the first time in the Indian Automotive history a compact sedan would’ve been throned as the nation’s best selling car. Dzire sold 2,64,612 units in 2018, a growth of 17.6 percent over 2017 and was higher than Alto’s tally of 2,56,661 units that was stagnant over the previous year. Dzire has been closing in on the Alto over the last 3 years showcasing a growing trend among consumers to opt for bigger, more feature rich cars against bare bones entry level models that depend on lower price point.



A look at the Top 10 Selling Cars of Year 2018 –

  • Dzire’s facelift in May 2017 has helped it register all time high sales.
  • Alto is now under its peak annual sales of 2011 when it hit 3,11,367 units and also now became the best selling small car in the world in a single market between 2011-14.
  • Swift and Baleno did impressive volumes each and crossed >2 Lakh sales in Calendar Year 2018. The time is not far where these cars shall overtake Alto volumes as well! Also to note here that both Swift & Baleno clearly outsell its much cheaper sibling Celerio.
  • The tall boy Wagon R had a forgettable year dropping out of the top 5 for the first time ever with a 8.9 percent decline in sales at 1,52,020 units. It was replaced by the company’s compact SUV Brezza in the top five. However, the refreshed Wagon R is expected to change the scenario this year.
  • Value Conscious Indian buyer is now ready to spend higher – Hyundai’s Elite i20 for example found more customers at 1,41,104 units than the Grand i10 that clocked 134,249 units.