Last year November was a tough month for the Auto Industry citing the effects of Demonetization. Hence the Industry grew a healthy 13.7% YoY. However, there was a degrowth of 1.8% in terms of month-on-month comparison. November generally is a lean month for the industry as the festive season (Dussehra/Diwali) would have just ended and the customers would also be anticipating year-end discounts in year end (i.e. December). However, OEMs with huge bookings base would synchronize their demand and increase their dispatches in December – Like Maruti (which grew 14% YoY & 7% MoM). The other OEMs would be struggling as the dealer stocks would have piled up and they would be apprehensive considering the upcoming year end. That’s the reason why you would see a steep Month-on-Month degrowth for OEMs like Hyundai, Honda, Mahindra, Nissan, Renault, Skoda & VW! Many OEMs also plan their annual plant shutdowns in December – hence expect the December numbers to be even lower than November.
Let’s look at the modelwise analysis here:
Captur initial numbers are not impressive. We expected the capable SUV to give a tough competition to the likes of Creta, Compass etc. However, it seems to have cannibalized Duster’s sales. Duster registered its lowest ever sales in past 21 months! It signifies tough times ahead for Renault has huge hopes are pinned on Captur to revive its overall sales. As Kwid volumes are diminishing as well, Renault may find it very difficult to sustain its growth/volumes.
Tata has dethroned Mahindra from the No.3 slot! However, it has been solely on the basis of 2 Products – Nexon & Tiago. While both the products are a class apart, the dwindling performance of the other models in the portfolio is a matter of huge concern. Any drop in the sales of Tiago/Nexon in coming months will prove detrimental to the Indian MNC.
Maruti is the only OEM in the Industry which seems sorted right now – Top 6 selling models in Nov’17 were from Maruti/Nexa. It is practically an impossible feat to achieve. Also commanding a Market Share of over 53% in a market like India is no easy task. With the launch of New Swift nearing by, we expect the OEM to scale even higher volumes in the future.
Mahindra is somehow lost right now. The refreshed TUV or the KUV Nxt hasn’t been able to garner enough attention to bring volumes on the table. The average performance of these New Models have put Mahindra under pressure to bring a capable new model launch or else it may permanently lose its No.3 slot.
Honda is fighting hard to sustain numbers from its current volume sellers (City & WRV). However, new launches in the respective segments (New Verna & New Ecosport) have made the game all more challenging.
The most exciting segment right now is Sedan – Ciaz, City & the New Verna are fighting hard to gain leadership category in the segment. While City & Ciaz have been ruling the turf for quite some time now; Verna has made a stellar start. However, it’ll not be easy to sail through for the Korean OEM. City/iVTEC fanatics will still chose the model & price conscious customers would opt Ciaz; Verna has placed its bet through features. The biggest winner indeed will be the consumer here!
Top 25 selling models of November 2017 –
Top Selling Hatchbacks (entry & mid level) –
Top Selling Premium Hatches –
Top Selling Compact Sedans –
Top Selling Sedans –
Top Selling Compact SUVs –
Top Selling MUVs –
Top Selling SUVs –