World Passenger car Sales grew by 46.6% when 2015 is compared to 2005. Volumes stand at 6.63 Crore.
The other 5 in the Top 10 are UK, Brazil, France, Italy & South Korea.
These in the Top 10 contribute to 73.44% of World Sales. While the above list of Top 21 contribute to 86.71% of World Sales.
Our Next Topic is on – Why is India the Brightspot???
A look at the model-wise sales :
Interesting Statistics –
Honda is launching its Bold Runabout Vehicle (otherwise abbreviated as BR-V!) on May 5th, 2016. The company is continuing its product offensive strategy and this will be the OEM’s fifth big launch in a timeslot of 3 years! (Amaze, New City, Mobilio, Jazz). The Japanese OEM is pinning a lot of hopes on this baby and the customers are also equally excited on the offering.
About BR-V: It was initially previewed by Honda as a concept in the middle of 2015. Despite being categorized as a Compact-SUV, in Indonesia it is seen as a Crossover Utility Vehicle or CUV. The Honda BR-V is derived on the same platform as the second generation of Honda Mobilio; (which was itself based on the small eldest sibling namely Honda Brio) allowing to share mechanical components including powerplants. It is also based on the philosophy of “Active Solid Motion” to look premium and tougher in the class.
Currently popularity of Honda’s portfolio is limited to Tier-1 and Tier-2 cities. With BR-V, the company would also want to strengthen its reach to the rural consumer (the Ground Clearance 201 mm will help for the purpose). Also the Premium SUV segment in particular has grown stupendously in past few years. It started off when Mahindra launched its XUV 5oo in 2011 at a price point of Rs.10.8 lakhs. Renault was quick to jump in the game and found immense success with Duster. Partner Nissan to launched its own version through Terrano. However, no one could churn volumes like Hyundai did with Creta. The market was speculative of the high price point of the Creta and the initial sales predictions did not go >4000 nos for the Korean offering. But 63,900 Creta’s were sold in just 10 months and it attained an average sale of 6,390 units/mth! It helped the overall segment to itself to grow at staggering 39% YoY. The stats is as mentioned –
BR-V will prove to be extremely crucial for Honda. The Japanese OEM struggled with volumes in FY16 and it already has 2 non-performers in its pack (Mobilio & Brio). The OEM lost its 3rd position to Mahindra and could post a meager growth of 1.6% YoY. BR-V is already doing wonders for the OEM in the initial markets that it was launched. In Indonesia, it is currently the second best selling car! January 2016 was the first month for Honda BR-V delivery at Indonesia, it sold 6.627 units and become second best seller car in Indonesia below Toyota Avanza and above Toyota Kijang Innova. Even in Feb’16, BRV sold 5,575 units and commanded a 6.3% Market Share.
The most crucial aspect of the launch in India will be its pricing. While we expect the car to be priced near to Hyundai’s Creta; the Indonesian price comparison might be helpful – BRV is available only in petrol and the prices is as mentioned:
Hence we expect the top diesel-spec variant to cost near Rs.15 Lakhs. However, it can turnaround the segment if the initial pricing is lower than as expected above!
In 1984, Hero Cycles graduated from a Bicycle maker to a Motorcycle manufacturer by collaborating with Honda Motor Company Ltd of Japan. The first product post the collaboration agreement was launched in 1985 – named Hero Honda CD100. The rest we can say was history – By 2001, Hero Honda grew to be the world’s largest 2 wheeler company! The association churned many such milestones in the Indian market and became a household name pretty quickly. Like every marriage, this association had some bitter experiences in between and later could simply not cope up with the increasing differences. While Hero wanted to taste a bit of exports market and strengthen its inhouse R&D; Honda found it demeaning its global operations. The duo decided to separate ways and dissolve their Joint Venture in December 2010. The 26-year long pact ended on a quiet note with strong individual aspirations to dominate the local market.
Five years post the split, Honda Motorcycles did everything possible in the book to overtake the ex (Hero MotoCorp’s) dominance in the Indian market – though the effort was monumental and appreciable, the Japanese has still a long way to achieve the feat. The efforts taken by Honda for the attempt to become the market leader was mind-boggling. In past 5 years, it expanded its outlets from mere 800 nos to 4,500 sales outlets! In 2015, Honda’s global sales of all products was 28 million units out of which global 2wheeler sales stood at 17 million units. Today, 25% of the total Honda two-wheelers sold across the world come from India. 3 manufacturing plants were opened in last 4 years! – Plants opened at Tapukara Rajasthan (in 2011), Narsapura Karnataka (in 2013) and scooters only plant at Vithalpur Gujarat (2016). These drastic steps allowed HMSI to climb to a market share of over 26% and stand as a real threat to the Indian Leader (Hero Motocorp). See the climb for yourself here –
The competition was intensified with Hero Motocorp’s response in said time and the Indian MNC challenged HMSI in their own game – by attacking the baseline (scooters). Hero’s retaliation shook the Japanese major quite hard and the scooter market share statistics changed within 6-month time frame! –
In September last year, Hero expanded its scooter offering with the launch of two products — Duet and Maestro Edge. Until then, the country’s largest two-wheeler maker had two scooters to offer: Pleasure and Maestro. These scooters were indigenously developed by Hero’s R&D and the long term plan is to dominate the scooter market as well. Other players jumped into the game as well and have gained pretty significantly in past 1 year – say TVS’s Jupiter and Yamaha’s Fascino were instrumental in the growth story of their respective OEMs in the previous fiscal. The latest OEM-wise ranking and Market Share data is here –
Hero aware of the path ahead, has taken drastic measures to improve its R&D. It has set-up its first dedicated Rs 850-crore R&D centre last month. The 247-acre facility near Jaipur will have 600 engineers by the end of this year. Hero had a tiny three-acre R&D setup before the Jaipur centre came up. The centre will be led by Hero’s chief technology officer Markus Braunsperger, who came from BMW in 2014 after a 25-year-long stint in R&D, production and strategy roles.
See how both the biggies fare on various factors as on date:
While both Hero & Honda have intensified their efforts to command dominance in the domestic two wheeler market; the consumers are at advantage as they’ll receive world class products and their demand will be given paramount importance. We at Auto Punditz are happy to see the way two-wheeler industry is shaping in the subcontinent and wish that the better OEM will win the race!