No.1 & No.10 selling car belong to the same segment in July’18 – Compact Sedan! Dzire & Amaze combinedly sold ~35,800 units! The segment has seen a huge upward movement post the New Amaze launch and has suddenly caught attention of buyers (we expect lot of customers from premium hatch segment to have moved to compact sedan as well!). Amaze makes into the Top 10 list for second consecutive month.
OEM-wise penetration in the Top 10 – 5 models from Maruti stable, 3 from Hyundai and 1 from Nexa & Honda!
Maruti+Nexa dominates the Top 6! No other OEM is even close – Do note that the difference in volumes between the 6th & 7th best selling car is 3,359 units!
Hyundai now consistently fares with 3 models in the Top 10 list – i20, Grand i10 & Creta.
Apart from Swift & Tiago, all other models degrew in July’18 v/s July’17.
No new launches expected in this segment this year. The segment which used to be one of the most sought after segment in terms of volumes has slowly been losing heat. However, it still contributes to ~35% of the passenger vehicle volumes.
Premium Hatches sales performance –
The 4 models in the segment now contributes to 1/9th of overall car sales! Tata’s 45X shall be launched in the segment and will be crucial launch for the Indian OEM.
The New Jazz 2018 (launched on July 19th) couldn’t help the model revive volumes and degrew the highest at 37%.
Polo is consistently losing numbers and is now averaging at ~1.5k nos/month. Any further drop in volumes shall be detrimental for brand VW.
MUV sales in July’18 –
Nothing exciting in the segment currently. However, the New Ertiga has shaped up really well and was recently showcased in Indonesian Auto Expo – We expect the model to create a considerable rage in the segment and shall take the already well performing model to higher volumes.
Let’s see the Top sellers in the Compact SUV & SUV space –
Almost all models in the segment degrew in July’18. So, where are the segment customers going? Possibly to compact sedan (say New Amaze) or Crossovers (say Freestyle)?
Ecosport beats Nexon & WRV to stand 2nd in the ranking. No one is even close to segment topper Brezza – However, the race to be No.2 has gone very competetive and Ford/Tata/Honda are fighting hard for it.
TUV300 along with its plus iteration hasn’t been doing really well. The sales are limited to Tier-3 & Tier-4 cities. (TUV sold 1457 units & TUV Plus sold 634 units).
S-Cross has been on a roll post the facelift. The model has been doing unbelievably well and the sales have almost doubled from the same period last time.
Creta is the dominant model here and sells considerably more than any other offering in the segment. However, the New Creta degrew 1% in July’18 v/s July’17.
The new iteration of XUV500 has helped the model jump back to ~3k volumes. It has also got significant lead over Jeep’s Compass.
Duster = Captur (quite literally in sales volumes too). With meager difference in pricing and no significant value proposition difference between the two models has put Renault India in a tricky situation.
Ford has attempted to revive a dying segment and also gained sales in the process. With the sloping volumes of Figo hatch, Ford took a daring turn with Freestyle and seems to have worked positively as of now for the American carmaker.
Compact sedans have suddenly caught a lot of attention for primarily 2 reasons –
The best selling car in the segment (Dzire) is also India’s best selling car this year (Jan-July)! Maruti’s Dzire has out-beaten the next best Alto by quite a margin! Dzire sold 1,66,088 units between Jan’18-July’18 v/s 1,46,761 units of Alto within the same time.
Honda’s Amaze has emerged as the biggest launch of 2018! The Compact Sedan has worked wonders for the Japanese OEM and recorded >10k volumes just within 3 months of launch. Infact, Amaze is the first model in Honda Cars India’s history to cross 10k sales mark in a month. Amaze also contributed to ~51% of Honda’s overall sales in July’18!
Amaze has posed a real challenge to Dzire and has now bought Maruti on its toes. Maruti is now on a defensive mode and has already initiated a counter attack to avoid losing it’s sales to Amaze by:
Ensuring a steady supply and reduce the waiting period. Dzire had commanded a waiting period of 3-6 months since its launch. However, Maruti has planned production of extra batches of Dzire to allow immediate availability of the variants.
Aggressive promotions (TV/Print/Hoardings/Social Media) of Dzire across markets to enhance visibility amongst prospects.
Dzire has already initiated discounts to woo price-conscious buyers. Honda had surprised all by announcing a breakthrough price for Amaze – In some variants Amaze was almost Rs.35k cheaper than the counterpart Dzire (Amaze VX Diesel v/s Dzire Zdi+). Without Amaze, no one would have even thought about discounts on a Dzire!
In short, the race to be the most ‘Dzire’able car in the segment has got hotter and Maruti has now found a real competition in Amaze:
The C-segment Sedan segment has also seen a major upswing – Ciaz has fallen down to the bottom of the list! Yes, Maruti was rationalizing the stocks of the outgoing Ciaz and was making way for the Facelift model (slated to be launched on 20th Aug). In the process, City has gained the throne and ranked 1st in the segment. City was ahead of the next best selling car in the segment (Verna) by almost 350 units.
City tops the chart with 3,709 units! However, the model has degrown 24% vis-a-vis the same period last year.
The overall segment degrew 26% owing to the low volumes of the outgoing Ciaz. The numbers are surely bound to bounce back in August.
Yaris has been a big setback for Toyota. With a average of 2,500 units/mth planned initially; the model dropped to 1,400 volumes just within 4 months of its launch. The pricing and the perceived value package has worked against the model.
Rapid & Vento siblings are fighting hard to maintain its volumes.