Industry de-grew by 1.5%. December generally a good month for Automobile OEMs; this time couldn’t perform as per expectations. 2 main reasons to be attributed for this – Mr. Modi & Maruti. While the market is still reeling under ‘Demonitization’ effect; Maruti’s drop defined the industry degrowth as well. Hyundai’s YoY performance was similar to that of Maruti as well (-4.3%).
Luxury Brands are under ‘tremendous pressure‘. The segment has literally taken a beating – First with the TCS (Tax Collected from Source) and now government’s policy of scrutinizing every luxury car purchase (after demonitization). The buyers in the segment are literally scared to finalize their purchase. Otherwise, December used to be a blockbuster month for luxury cars (as discounts are the highest in this segment in this month).
Even with a YoY growth of over 34%; Tata could rank only 6th in the Top OEM table. Mahindra, Toyota & Renault are strongly holding onto their fort and only Hexa can push the Indian OEM back into the Top 3 in Jan’17!