Two Wheeler Sales Snapshot – September 2020

Around 18,49546 two wheelers were dispatched in September 2020 from OEMs to their respective dealerships. The Industry recorded a growth of 11.4% in Sep’20 v/s Sep’19 in anticipation to the festive season.

Two Wheeler OEM Performance for September 2020 –

Rank OEM Sep’20
1 Hero MotoCorp 6,97,293
2 Honda 5,00,888
3 TVS 2,41,762
4 Bajaj Auto 2,19,500
5 Suzuki 65,195
6 Yamaha 63,052
7 Royal Enfield 55,910
8 Piaggio 5,537
9 Harley Davidson 176
10 Kawasaki 125
11 Triumph 71
12 Mahindra 2W 37
Total Two Wheeler Sales 18,49,546

OEMwise Sales Snapshot –

  • The Two Wheeler Sales had a double digit growth of 11.6% in Sep 2020 v/s Sep 2019. The overall two wheeler sales managed to cross 18 Lakh units in Sep 2020.
  • Hero Moto Corp was the No.1 Two Wheeler manufacturer in Sep’20 and the OEM sales grew by 16.1% YoY. Its Market Share increased too by 1.46% to 37.7%.
  • Honda registered the Market Share fall of -1.61% even though the sales grew by -9.9%.
  • Bajaj Auto volumes shot up the highest by 23.8% YoY and it was able to increase its market share by 1.16%.
  • Suzuki Motorcycles volumes was almost flat and market share dropped to 3.52% as well!




Market Share Graph –

The Race to become the No.3 OEM in India!

The jugglery of the No.3 OEM spot in 2020 has been quite amazing and 3 OEMs are claiming the position – Tata Motors, Kia & Mahindra. But; which OEM can seal a permanent spot there?

  • Maruti has been India’s largest automaker for a very long time and commands a market share of almost 50%. It has been the consistent No.1 OEM and has actually increased its stronghold over the years.
  • Hyundai has been trying to follow Maruti’s footsteps and has a model in almost every segment Maruti is present. However; it has not been able to break Maruti’s dominance in the hatchbacks segment and settles at No.2 spot. It has held to this position for over a decade now and is currently invincible in the same.
  • The combined Market Share of Maruti+Hyundai is a humongous 68% in the Indian market!
  • Mahindra had been the Third biggest OEM in the calendar year 2019 (source) and was ahead of the No.4 Tata Motors by quite a big margin (66,719 units).
  • However; things changed during the BS6 transition and the incessant lockdowns due to Covid 19. The No.3 OEM jugglery over the past 8 months is as shown –

  • The No.3 OEM monthwise has been highlighted in yellow in the above table. Do note that Mahindra was the No.3 OEM in January & May 2020. However; Kia Motors India took the spot in Feb’20 & Mar’20. Also since June’20 – Tata Motors has consistently held the position as India’s third biggest automaker.
  • In CY2020; as of now Tata is the clear No.3. But with the Sonet launch in Sep’20; Kia has a strong chance of bouncing back to No.3.
  • Similar to Maruti (No.1) & Hyundai (No.2); will we ever have a stable No.3? Only time shall tell. Also do we require a stable No.1 & No.2 too? In a consumer centric market/economy – having a tough competition is always preferable.

Tractor Sales Statistics – September 2020

Tractors was the category to register the highest YoY growth in September 2020. Tractors registration continued its positive momentum showing a growth of 80.4% in Sep’20 v/s Sep’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 September 2020 sales.

Source: FADA Research
  • Mahindra + Swaraj commanded a Market Share of 39.47% in September 2020 and its market share reduced by -0.49% when compared to September 2019.
  • Sonalika outsold TAFE again in Sep’20 and recorded a Market Share of 12.8% in September 2020. Sonalika has been extremely consistent in the past few months and the sales growth is a testimony of it. It has also recorded highest ever H1 Sales of 63,561 Tractors & 26,520 implements in FY21 (Source).
  • TAFE registered sales growth too and grew 86.27% in Sep 2020 v/s Sep 2019. It saw its market share increase by 0.36% and slid to the fourth spot.
  • Escorts  recorded a YoY growth of 76.9% but its market share fell by -0.21%.




Statewise Tractor Sales / Registrations in September 2020 – 

  • Maharashtra performance was exemplary in September 2020. Maharashtra YoY growth was a record 219.4%.
  • Bihar was the only eastern state in top 5! Bihar’s tractor sales improved a mammoth 84.3% in Sep’20 v/s Sep’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 H1 FY2021.
  • Uttar Pradesh was the No.1 State in terms of Tractor Sales and it registered a YoY growth of 58.6% as well.
  • Rajasthan ranked third and was 3,234 units short of Maharashtra.

Note:

  1. The above numbers do not have figures from AP, MP, LD & TS as all these States/UT’s are not yet on Vahan 4.
  2. Vehicle Registration Data has been collated as on 06.10.20 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,254 out of 1,461 RTOs.

Luxury Cars Sales Statistics – September 2020

While the overall passenger vehicle registrations had grown by 9.8% YoY; Luxury Car Sales remains in red and recorded a fall of 22% YoY.

OEM wise Luxury Cars Sales in September 2020 – 

Source: FADA Research
  • As per the registration figures released by the Federation of Automobile Dealers Associations of India (FADA), majority luxury brands registered significant sales decline in Sep’20 as compared to Sep’19.
  • Mercedes Benz remained the undisputed No.1 Luxury Car maker in India and recorded a Market Share of 35.5% in Sep’20. However; the sales fell by -26.8% YoY against Industry average of -22%.
  • BMW India too reported a 22.16 per cent sales decline, from 600 units in Sep’19 to 467 units in Sep’20.
  • Audi India has been on a product offensive and is giving it some positive results as the base was much smaller last year. It has a strong new launches product line up too (Q2, Q8 Celebration model) and the company is claiming that the business is now back on track (Source).
  • JLR recorded the steepest YoY fall and only 135 vehicles were registered in Sep’20. Its Market Share drop was the highest too (-4.9%).
  • Ferrari could sell only 1 vehicle last month as compared to 2 units in Sep’19. Bentley, which had sold 4 units in Sep’19, couldn’t sell even a single unit last month.

Note:

  1. The above numbers do not have figures from AP, MP, LD & TS as all these States/UT’s are not yet on Vahan 4.
  2. Vehicle Registration Data has been collated as on 06.10.20 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,254 out of 1,461 RTOs.

Sonalika Group Chairman LD Mittal among the Top 75th Wealthiest in India!

Mr.LD Mittal (aged 89 yrs) the Chairman of Sonalika Group of Companies, based at Hoshiarpur in Punjab remains among top 75th wealthiest Indian having worth of  $1.9B.

For the 9th consecutive year; Mr. Mittal is the only person in the list belonging from Punjab! Forbes had recently released 2020’s list of the top 100 richest Indians. Amid the coronavirus pandemic which hit India hard, half of the nation’s 100 richest on the 2020 Forbes India Rich List saw gains. “Their collective net worth rose 14% to $517.5 billion from a year earlier. In 2012 Mr.Mittal Debut among 100 richest Indians, started his business career in 1990 at age 60 after retiring from the PSU Life Insurance Corporation of India. Today his Sonalika Group is India’s third-largest tractor maker by market share (source). Japanese firm Yanmar has a 30% stake in his tractor outfit International Tractors, having world largest manufacturing capacity of 3 lakh tractors under one roof at Hoshiarpur. At the age of 89 years Mittal has handed over operations to his sons Amrit Sagar and Deepak and grandsons Raman, Sushant and Rahul, but attends office every day.

Sonalika has registered an excellent sales record this year. It has recorded it highest ever H1 Sales of 63,651 Tractors and 26,530 implements in the first half of FY2021! Sonalika Tractors has also broken all of its previous monthly sales records as well as outperformed the tractor industry sales performance in Sep’20. Strong positive domestic sentiments coupled with healthy demand from overseas markets has led Sonalika to register highest-ever overall sales of 17,704 tractors in Sep’20.

“In a tumultuous year for the global economy, India’s richest preserved their wealth. LD Mittal remains the among top 75 wealthiest Indian for the 9th year in a row. Third largest tractor manufacturer Sonalika have exort presence in 120 countries,being largest exporter from India. On  9th consecutive year among top 75 richest Indian,Mittal reaction is very simple and humble, “ farmers based our customers strength make us  local to global.All credit goes to the loyality of farmers towards us.”