Product Lifecycle Analysis – Hyundai Motor India

Do read our article on the Product Lifecycle for Maruti Suzuki & Tata Motors models.

Hyundai Motor India Ltd is India’s second largest passenger car manufacturer with 17.6% market share as of FY2020 (Source). It is a wholly owned subsidiary of the Hyundai Motor Company headquartered in South Korea. Hyundai Motor India Limited was formed on 6th May 1996 and was an unknown brand in India at that time. While Hyundai entered India  there were only five major automobile manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo too had entered the Indian market with Cielo just three years back while Ford, Opel and Honda had entered less than a year back. Hyundai brand value was much more lower than the likes of Ford, Honda, Toyota which entered the Indian market in a similar timeline. However; Hyundai had one big advantage when compared to other new entrants. That was Hyundai’s understanding about the Indian market and obviously its launch model – The Santro.

We shall explain through the Lifecycle Analysis on how the Hyundai Models made the brand it its today – 

1. Discontinued Models:

  • Hyundai Santro (Oct’98 to Dec’15) – Though the Santro nameplate is still alive in India; we have bifurcated Sales of 1st & 2nd generation in list of discontinued models as it was derived from the Atos Prime model while third generation is practically a standalone model.
    • The Hyundai Santro was launched on 23 September 1998 and was a runaway success! Within a few months of its inception; HMIL became the second largest automobile manufacturer and the largest automobile exporter in India thanks to the model.
    • The first generation Santro was also sold in Europe as the Atos Prime and in South Korea and Indonesia as the Kia Visto. It was known as the Santro Zip in India from 1998 to 2006 and has been India’s one of the best selling models in its time.
    • After the Kia Visto was replaced by the Kia Picanto in 2004 globally, the Santro was launched in its second generation avatar in 2003. While the 2003 facelift was marketed as part of the first generation, Hyundai India has produced the 2003 Santro as a second generation model with tweaks to the car platform, and new features. It was known as the Santro Xing in India from 2003 to 2015.
    • The sales trend for the Santro is plotted here for reference –

    • Santro saw its sales peak in 2006-07 and it was in mid of its lifecycle. Even during the end of its lifecycle it was selling decent numbers – It sold over 36k units in the last 12 months with an average of 3,054 units/mth.
  • Hyundai Accent (Nov’19 to Sep’13) – It was primarily the global second generation model that was launched in India in October 1999 as the “Accent” and was still in production after some minor facelifts; the car was phased out in Sep 2013. Accent future led way to the inception of Verna both globally and in India. Rather the third generation Accent was termed ‘Verna’. In India; both Accent and the costlier Verna were sold together!
  • Hyundai Sonata (July’01 to Dec’14) – The model sold 9,541 units in the 14 years its existed in India. The model sold in India was fourth & fifth generation models.
  • Hyundai i10 (Oct’07 to Dec’16) – The i10 replaced the Hyundai Atos in the global model line-up. The second generation of the car was presented in August 2013 and released in the beginning of 2014. The first generation i10 had its world premiere on 31 October 2007, in New Delhi, India. The car was targeted primarily at the Indian market and intended for production in India, given the popularity of hatchback subcompacts in the country and was also intended to replace the Santro.
  • Hyundai Eon (Sep’11 to Nov’18) – The Eon was designed jointly between the Hyundai R&D centers in Namyang, South Korea, and Hyderabad, India. In August 2018, Hyundai announced that the Eon would be discontinued as the car was not compliant with new safety regulations that will be implemented in October 2019 and the Bharat Stage VI emissions regulations that will be enforced in April 2020. Its replacement, the third generation Santro, had been released before the festive season of 2018.
  • Hyundai Getz (Sep’04 to Apr’10) –  The model was manufactured in the Hyundai Motor India factory in between 2004 and 2009. It sold 71,882 units in the 68 months of its sales in India.
  • Hyundai Terracan (Aug’04 to Nov’06) – The model actually featured a chassis derived from the second generation Mitsubishi Pajero!




2. Models currently on Sale in India:

    • Hyundai Aura (Jan’20 till date) – It is a sedan based on the Hyundai Grand i10 Nios, and was designed primarily for the Indian market. It is the successor to the Hyundai Xcent, a different nameplate is used as the Xcent continued in production mainly for fleet and commercial customers. The Aura was launched on 21st January 2020 in India.
    • Hyundai Venue (May’19 till date) – The Venue is Hyundai’s smallest crossover! It fits below the Hyundai Kona in Hyundai’s international lineup and below the Hyundai Creta in India and other markets where the Creta is sold. The Venue was launched on May 21, 2019 in India and occupies the sub 4-meter SUV category, benefitting from the Indian tax benefits for cars shorter than 4 meters.
    • Hyundai Kona (June’19 till date) –  In the year 2019, Hyundai launched an Electric Lite version as Kona Electric in India. It was India’s first electric SUV!
    • Hyundai New Santro (Oct’18 till date) – Santro marque single handedly made Hyundai as India’s second biggest car manufacturer. While the nameplate was discontinued in 2015; Hyundai revived it in 2018 to cash on the brand. It would also mark 20 years for the nameplate in India and the brand was so revered that even a stamp was released in India!

    • Hyundai Creta (June’15 to date) – The Creta is sold in the Indian market since 2015 and has been the country’s best selling Mid-SUV since then. Initially intended for the Indian market, the Creta was launched subsequently in China and Russia. It is manufactured by Beijing Hyundai, Hyundai India (from 2015), Hyundai Brazil, Hyundai Rus and Algeria’s TMC (from 2016), but not marketed in Europe. The model was based on the Hyundai–Kia platform that underpins the Kia Soul, Hyundai i30, Hyundai Elantra and Kia Cee’d / Seltos.
    • Hyundai Xcent (Mar’14 till date) – The Xcent was launched on March 12, 2014 to compete with the Tata Zest, Honda Amaze and the Maruti Suzuki Swift Dzire. The Xcent is currently sold alongside the Aura as a fleet sales only.
    • Hyundai Grand i10 (Aug’13 till date) – It slotted between the first generation i10, which was continued to be manufactured for the Indian market, and the i20. The third generation i10 was unveiled in India on 7 August 2019 as the Grand i10 Nios. It was launched on 20 August 2019 and offered in 10 variants across petrol and diesel engines as well as manual and automatic transmissions.
    • Hyundai i20 (Dec’08 till date) – The i20 replaced the Getz in nearly all of Hyundai’s markets. The i20 used a completely new platform that was created at Hyundai’s European technical centre in Rüsselsheim to allow Hyundai to move into Europe’s highly competitive subcompact B segment. The second generation i20 was launched in August 2014 in India as the Elite i20. It eventually won the 2015 Indian Car Of The Year (ICOTY) in December 2014. The model has been one of the best selling premium hatchbacks in India right since inception.
    • Hyundai Elantra (Apr’04 till date) – The global third generation model was launched in 2004. The model sales has been extremely slow since launch and even the latest 6th gen model couldn’t bring volumes. Infact it sold just 692 units in FY2020.
    • Hyundai Verna (Sep’06 till date) – It was nothing but the third generation Accent. However; it fared much better than the Accent and could fare in the list of best selling Executive Sedans even as on date. The current model is the fifth generation model (of Accent).

Interesting Facts Series – Mahindra & Mahindra

Do read our earlier post on the series here – BMW, Toyota and Tata Motors.

We shall be covering Interesting Facts pertaining to Mahindra & Mahindra in this post. Mahindra & Mahindra (M&M) Limited is an Indian multinational vehicle manufacturing corporation headquartered in Mumbai, Maharashtra, India. M&M is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. M&M brands its products as “Mahindra” and produces SUVs, saloon cars, pickups, lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles and tractors.

1. The company was established on 2nd October 1945 as Mahindra & Mohammed by Mahindra brothers in collaboration with Ghulam Mohammed.The Company was renamed Mahindra & Mahindra Limited (M&M) in 1948, when Ghulam Mohammed left for Pakistan to be its first Finance minister.

2. Mahindra & Mahindra was founded as a steel trading company on October 2, 1945! The company joined hands with Willys Overland Corporation in 1954 to assemble Jeep-type vehicles in India.

3. In 1963, the International Tractor Company of India Limited was incorporated  as a joint venture among the Company, International Harvester Inc. (now part of Case New Holland) and Voltas Limited to manufacture tractors in India.  In 1977, ITCI merged with the Company and became its tractor division.  The Company entered into technical collaboration arrangements with Peugeot in 1979 for the manufacture of diesel engines and transmissions and with KIA Motors in 1982 for the manufacture of transmission assemblies.  In 1982, the International Harvester brand was discontinued and the “Mahindra” brand was born.

4. In  the year 1991, the company introduced the Commander range of vehicles and the Armada range of vehicles was unveiled in 1993.

5. Mahindra & Mahindra became the first Indian auto manufacturer to launch the Common Rail Diesel Engine (CRDe), offering it in the Scorpio in 2005.





6. Mahindra Bolero has been HIGHEST selling UV for Mahindra!

7. Mahindra & Mahindra bought 55% in Reva to power electric car biz on 26 May 2010. It also renamed it to Mahindra Electric in 2016 following taking 100% ownership.

8. Mahindra bought 70% in South Korea’s SsangYong Motor Company on January 20, 2013. 

9. Mahindra bought Pininfarina for $28 million on Dec 14th 2015. M&M and affiliate Tech Mahindra , through a special purpose vehicle (SPV), bought a 76.06% stake in Italian car designer Pininfarina SpA, for around Rs.186.7 crore.

10. Mahindra picked up 36.63% stake in Meru Dec 5, 2019. It invested an amount of 44.71 crore for the said equity share capital of Meru.

12. Mahindra Scorpio was a $120 million development project (a lot for a company like M&M, if relatively inexpensive by Western standards) and the SUV assembled an engine by Renault, axle from Dana Corporation and metal coatings from Visteon! Scorpio had had all of its major systems designed directly by suppliers, with the only inputs from Mahindra being design, performance specifications and program cost. The design and engineering of the systems were carried out by suppliers, as well as testing, validation and materials selection. Sourcing and engineering locations were also chosen by suppliers!

Electric Scooter Sales Statistics – FY2020

Do read our analysis of Electric Vehicle Sales for FY2020 before going through this article – here

Electric Scooter sales has been slowly picking up and a lot of OEMs are entering the segment. Even the likes of Ola has bought e-Scooter makers like Etergo and planning to bring the offerings to the Indian market in near future. With gradually improving charging infrastructure; the industry is foreseeing a respectable demand in coming times. However; a higher price of the models compared to IC counterpart, lesser availability of charging options and lower range has affected the overall sales of electric two wheelers.

Over 24k electric scooters were sold in India between April 2019 to March 2020. Okinawa Electric became the No.1 Electric Scooter manufacturer for FY2020 and commanded a Market Share of 42.2%! The OEM wise e-Scooter sales for FY2020 is as shown –

Source: AutocarPro
  • Do note that only high-speed electric scooter sales is considered here. Sales of low-speed electric scooters (speed lower than 25 kmph) has been excluded. Majority of the sales in the e-Scooter space comes from the low-speed scooters.
  • Okinawa topped the list of the OEMs selling high-speed electric 2 wheelers in India for FY2020. It was also the only OEM to cross 10k  sales for the previous fiscal year.
  • Hero Electric came in second position with sales of 7,399 units. Hero Electric has been in this space for quite a long time and has strong overall volumes in the overall electric 2w segment. Hero Electric also has one of the highest dealership network among all other manufacturers.
  • Ather Energy recorded sales of 2,908 units and ranked third in the list. Ather 450 has been the enthusiasts choice in the segment and has a good demand from cities like Bangalore, Pune, Chennai etc.
  • Ampere registered sales of 2,499 units and Revolt came in 5th with sales of 1,062 units.




OEM-wise Electric Scooter Sales & Market Share for FY2020 – 

OEM FY2020 Mkt Share
Okinawa 10,133 42.2%
Hero Electric 7,399 30.8%
Ather Energy 2,908 12.1%
Ampere 2,499 10.4%
Revolt 1,062 4.4%

  • Okinawa & Hero Electric combined commanded a Market Share of 73%!
  • Ather & Ampere could cross 10% Market Share each.
  • Revolt started off late and could grab a Market Share of 4.4% in FY2020.

Bajaj Auto has emerged as India’s largest 2 and 3 wheeler manufacturer in terms of revenue for FY2020!

After the announcement of its corporate results for FY 2019-20, Bajaj Auto Ltd has emerged as the largest 2 and 3 wheeler manufacturer in India measured in terms of revenue. Bajaj Auto Ltd. posted revenues of INR 29,919 crores in FY 2019-20 with operating EBITA margins of 17.6% at INR 5,253 crores and PBT of INR 6,580 crores. The company has clocked a CAGR of 10% over the last decade (2010 – 2020), with revenues moving up from INR 11,509 cr. in FY 2009-10 to INR 29,919 cr. in FY 2019-20.

Bajaj Auto pioneered the sports motorcycling segment in India with the launch of the Pulsar in 2001. Eighteen years later, Pulsar continues to be the market leader with a wide portfolio of models. In 2019-20, Pulsar expanded its franchise through the launch of the Pulsar 125 and further expanded in the Sports segment along with the top of line Dominar 400 and the newly launched Dominar 250.

The last 12 months has witnessed the launch of new models in the commuter segment too – the Platina H-gear and the CT110. Bajaj Auto has also been successful in further increasing its leadership market share of the Intra-City Business Unit comprising the RE, Maxima & Qute brands of 3 wheelers and quadricycles. The Company has built a strong portfolio of ‘alternate fuel’ engine vehicles to ensure leadership for its range of RE small 3 wheelers. Notably, Bajaj Maxima attained leadership in the large 3 wheelers passenger segment in FY 19-20.

FY2020 also saw the Qute, India’s first quadricycle, successfully start operations in partnership with Uber to provide convenient, affordable and comfortable public transportation options to customers in Bengaluru.

Bajaj Auto continued to lead Indian automobile exports, accounting for over 50% of the country’s 2 wheeler and 3 wheeler exports with a turnover of INR 11,845 crores. In FY 2019-20, 47% of Bajaj Auto’s production was exported to over 79 countries. With a cumulative 15 million vehicles exported till date, Bajaj is one of the most visible Indian brands across the globe, truly making it “The World’s Favourite Indian”. The company’s global sales have earned over US$ 13 billion of foreign exchange in the last decade.

Bajaj Autos growth and presence in India and in global markets has been on the back of its own brands as well as its partnership with KTM. The Bajaj Auto – KTM alliance has enabled KTM AG to become the largest European motorcycle manufacturer. New products co-designed with KTM and manufactured at Bajaj Auto’s Chakan plant near Pune have opened new product market segments for this partnership. Bajaj Auto has now further expanded the franchise through the KTM 125 range and has also introduced another premium brand from the KTM stable – Husqvarna.

In FY 2019-20; a non-equity alliance was announced between Triumph of UK with an aim of co-developing new products to address new segments and geographies across the world.

Last October, Bajaj Auto brought back the iconic Chetak scooter in an all new electric avatar. Bookings opened in January 2020 in Pune and Bangalore and deliveries commenced in early March, with initial customer feedback being extremely positive.

Commenting on this performance, Mr. Rakesh Sharma, Executive Director, Bajaj Auto, said, “While FY 2019-20 was indeed a challenging year, we are delighted to note that not only have we  emerged as the overall leader in our segment, we have also put in place several initiatives that will build momentum. This achievement is testimony to our unwavering focus and relentless pursuit of our three pronged strategy – using our R&D to develop innovative products and create differentiated brands; building a global business and leveraging principles of TPM to simplify operations and deliver top class quality. Despite the uncertainties surrounding the immediate future, we are confident that our strategic path will serve our ambitions of global leadership and business success.”

Commenting on this performance, Mr. Soumen Ray, CFO, Bajaj Auto, said, “Our reach in global markets coupled with a diverse & evolving product portfolio has helped us de-risk our business as we are not overtly reliant on any one geography or product. Consequently, our revenues and profits are not dependent on any specific sets of products or geography. Our strong operating performance is a combination of our export performance, product mix and Forex, which allow us several levers to protect our industry leading margins.”

Statewise & Citywise Compact SUV Sales in India – FY2020 (Part 4)

Find the earlier posts in the series here –  Part 1, Part 2 and Part 3.

We shall cover the Compact SUV sales for FY2020 in the South & East Zone in this post. South Zone was the third largest zone in terms of Compact SUV Sales in FY2020. It contributed near to 25% of the sales of Compact SUVs sold in India. The States / UTs considered in the South Zone are – Karnataka, Telangana, Kerala, Tamil Nadu, Andhra Pradesh & Pondicherry. The Statewise contribution to the Zonal volumes is as highlighted –

 

  • Karnataka was the No.1 state in terms of C-SUV sales for FY2020. ~24k Compact SUVs were sold in Karnataka in the previous fiscal and became the top state by a huge margin from second in line Telangana.
  • Telangana too was impressive in Compact SUV sales and outdid Kerala which was the No.1 state in terms of Hatchback Sales for FY2020 (Source).
  • Kerala & Tamil Nadu both sold ~16k Compact SUVs in FY2020 and ranked 3rd & 4th respectively in terms of volumes for the South Zone.
  • Andhra Pradesh could manage to sell 9,659 units of C-SUV’s in FY2020 and ranked 5th. Pondicherry/Puducherry being a UT ranked last in the table.




Let us now look at the South Zone Statewise & Modelwise Compact SUV Sales/Market Share for FY2020 –

  • Hyundai’s Venue was the best selling Compact SUV for FY2020 in states like Karnataka & Tamil Nadu. Venue outsold the Brezza by a comfortable margin in both the states. However; Hyundai Venue garnered its best Market Share in Tamil Nadu.
  • Brezza had a clear lead in markets like Telangana and Andhra Pradesh. It registered its highest market share of 49% in Telangana.
  • Tata Nexon was the best selling Compact SUV in Kerala! It managed to outsell the likes of Brezza & Venue in the state. It also recorded its highest market share in Kerala for FY2020.
  • Ford’s Ecosport fared well in Pondicherry & Kerala where the market share was 18% & 16% respectively.

We now present the Top 20 cities in South Zone for Compact SUV Sales in the FY2020 – 

  • Hyderabad was the No.1 City in South India in terms of Compact SUV sales for FY2020! It managed to oust Bangalore to gain the top spot. Hyderabad’s love for SUVs is clearly visible.
  • Bangalore came in second in the ranking table. However; models like Venue, Nexon, Ecosport & XUV300 registered their best sales figure in South in Bangalore! Bangalore’s customers sure have better acceptance for these models.
  • Chennai was a distant third and could manage to sell 6,889 units of Compact SUVs in FY2020. Chennai’s liking for Honda’s WRV was visible and the model recorded its best sales figure in the city.
  • Kerala’s Cochin (Kochi) & Calicut (Kozhikode) fared in the Top 5 cities. Do note that Tata Nexon was the best selling Compact SUV in both the cities for FY2020.
  • Notable sales seen in Coimbatore, Vijayawada, Vizag & Trivandrum.




East Zone was the fourth largest zone in terms of Compact SUV Sales in FY2020. It contributed near to 10% of the sales of Compact SUVs sold in India. The States / UTs considered in the South Zone are – West Bengal, Assam, Bihar, Orissa, Jharkhand, Manipur, Arunachal Pradesh, Nagaland, Mizoram, Meghalaya, Sikkim, Andaman and Tripura. The Statewise contribution to the Zonal volumes is as highlighted –

  • West Bengal was the No.1 State in terms of C-SUV sales in East Zone and around 7,128 units were sold in FY2020. For comparison purpose – Chennai as a city alone sold almost equivalent amount of C-SUVs that West Bengal all cities sold combined!
  • Assam ranked second with sale of over 6.4k C-SUVs in the previous fiscal. Bihar & Orissa followed at third and fourth rank respectively.

Let us now look at the East Zone Statewise & Modelwise Compact SUV Sales/Market Share for FY2020 –

  • Hyundai’s Venue had a stellar acceptance in the Eastern part of the country and outsold the Brezza by almost 2 times! While Venue commanded a Market Share of 32% in the East Zone; Brezza could rake in just 15% Market Share!
  • Mahindra too had a splendid performance in this part of the country. XUV300 outsold the likes of Nexon & Ecosport and recorded a Market Share of 18%. Mahindra’s best markets in terms of Market Share were Manipur & Tripura.
  • Honda recorded significant market share in Andaman & Nicobar where the model outsold the likes of Brezza & Nexon!

We now present the Top 20 cities in East Zone for Compact SUV Sales in the FY2020 – 

  • Kolkata was the No.1 city in terms of C-SUV sales in FY2020 for the Eastern Zone. Models like Ecosport, XUV300 and WR-V sold better than the likes of Brezza & Nexon in Kolkata.
  • Guwahati ranked second and over 2.6k C-SUVs were sold in the city in FY2020.
  • Bhubaneshwar from Orissa and Patna from Bihar ranked third and fourth respectively.
  • Notable sales registered in cities like Ranchi, Siliguri, Jamshedpur & Imphal.