Indian Automotive Retail Figures – February 2019

FADA (Federation of Automobile Dealers Associations) released the February 2019 Vehicle Registrations statistics today. Please note that these are the vehicle registration data (delivery of Invoiced vehicles from dealers to end customers) and clearly indicates the vehicle sales movement. Otherwise we have always been tracking the vehicle offtake data (billing of vehicles from OEM to authorized dealers). FADA releases number based on VAHAN data which covers about 75 per cent of nation’s RTO.  As usual; we thank FADA for publishing the retail data and providing much realistic data about the actual sales of vehicles.

As seen above; majority categories (PVs, 2Ws & 3Ws) saw a massive decline in registrations. The sole exception was CV segment which posted a growth of 4.92%. The total sales for the Industry touched 14,52,078 units and the overall automotive industry registered a YoY de-growth of -8.06 percent!

With slowing retails; Dealers are facing over-stocking issues and the Inventory levels have shot over the roof. Basis dealer fraternity feedback; PV dealers are carrying stocks upto 60 days and 2-Wheeler dealers are stocking upto 3 months Inventory! The scenario is pushing both OEM and dealers to continue offering excessive discounts and liquidate the stock. The condition is going to worsen ahead – with a deadline of ensuring no BS4 inventory is left till April 2020; OEMs and dealership are bound to go under the panic mode.

Tough times ahead for Passenger Vehicle OEMs & Dealers. While OEMs will have to scale up investment to meet the upcoming emission and safety norms; Dealers will have to ensure that the stock vehicles are moved out as soon as possible. Maruti has already announced that it shall have its entire portfolio of cars BS6 ready by end of December 2019. New Entrants like Kia & MG are already planning to bring BS6 cars since day 1.

Domestic Sales v/s Exports Statistics – FY19 MTD

While the domestic sales of passenger vehicles have slowed down; the exports statistics has been disappointing too this year. The Domestic volumes have grown by a meager 3.27% in the past 11 months and Exports have dropped by a hefty -10% in the same timeline. We are not sure if India’s losing the competitive advantage in terms of production and this could hamper the sub-continent’s plan of becoming Asia’s production hub.

Stats for Apr’18 to Feb’19

Snippets from the statistics shown above:

  • Hyundai is leading the Export OEM Rankings and was ahead of Ford with a margin of just 1,573 units. Mar’19 exports volumes will decide on who’ll Top the rankings table for FY18-19.
  • Ford exports almost 1.7 times the volumes that it actually sells in the country. Making India a export base has helped Ford to rightly utilize the production capacity and ensure loses are minimized.
  • Similar to Ford; the OEMs whose exports are higher than the domestic sales are  – GM, VW & Nissan. In fact; GM is using its Talegaon facility only for exports as the domestic operations have ceased.
  • Maruti Suzuki’s export numbers are minuscule when compared to its domestic volumes. With capacity expansion in place; we were expecting the exports volumes to grow for India’s biggest automaker.

Indian Car Sales Figures – February 2019

Feb’19 was one of the toughest month’s for the industry and again saw a negative growth (-0.6%). Country’s biggest carmaker Maruti Suzuki reported a flat growth in Feb’19 and has actually lowered its FY19 sales projections seeing the downward trend. Overall Passenger vehicle sales declined owing to  weak consumer sentiments, tightening liquidity after the IL&FS crisis and increased insurance costs hampering purchases. With the upcoming BS6 norms and general elections; all OEMs are wary about the slowdown in the market.

  • Nexa loses the highest Market Share in Feb’19 and also reported a YoY degrowth of 14%. Apart from Baleno, all other models in its portfolio seems to be slowing down.
  • Nissan+Datsun volumes have almost halved! The Japanese conglomerate posted a YoY degrowth of 41.8! The volumes have not grown even post the launch of much anticipated Kicks and the situation is worrisome.
  • Mahindra holds the third spot with the help of Marazzo & XUV300.
  • Tata Motors regains the 4th spot by dethroning Honda. Harrier launch has given Tata the platform to scale up volumes and reduce the gap with M&M.
  • With a low base of Feb’18; Honda could project a staggering growth of 16% YoY. But the Japanese OEM saw a drop of -26% in Feb’19 v/s Jan’19! Honda is launching its global best seller in Mar’19. It’ll be interesting to see on how this model could help revive both Honda’s and segment’s Sales.

A look at Modelwise Sales Figures –

Top 25 selling cars of Feb’19 –

  • Alto regains the Numero Uno spot with a big margin. Alto sold over 6k units more than the second ranked Swift.
  • Dzire has not only lost the top spot; but has pushed to the 4th position. It suffered a YoY degrowth of -24% and the fall was highest among the Top 10 selling cars.
  • Baleno facelift helped it grow 14% and also helped it maintain the Third spot in the rankings table. But Baleno is the sole representation from Nexa in the Top 25 List! Ciaz, S-Cross & Ignis are now out of the top 25 selling cars and emerges as a big concern for Nexa network of dealers.
  • New Wagon R has helped the model post 12% YoY growth and places it in the 5th spot.
  • i20 was the best selling Hyundai for Feb’19 and ranked 7th. However; the sales dropped -14% YoY for the model.
  • Creta is faring really well for Hyundai and sold more units than the much lower priced Grand i10.
  • Tiago continues its success run and sold 8,286 units in Feb’19. It is now undoubtedly the backbone of Tata Motors monthly volumes in the subcontinent.
  • Ertiga’s numbers have picked up really well and sold 7,975 units in Feb’19 and registered a YoY growth of 72%!
  • XUV300 makes an entry at the 20th rank and sold 4,484 units in Feb’19.