No Rejoice this festive season for the Automakers!
A lot was riding on the Dussehra festivity to boost car sales. However, the month proved to be a dud and both OEMs & dealers kept on gasping to get more customers on to their showrooms. Rising Fuel Prices, Higher Insurance Costs, Volatility of Rupee & Negativity in the stock market were the primary reasons for lower consumer sentiment. The carmakers had stocked up dealer inventory anticipating the festive rush; however the market response was subliminal. The silver lining again was only new launches – Santro, New Aspire, Marazzo helped their respective OEMs gain a significant growth in Oct’18 v/s the same period last year.
Maruti’s sales was flat and could post a growth of meager 0.6% in Oct’18 v/s Oct’17. The nation’s biggest carmaker too was affected by the lower customer sentiment and the wholesale volumes were normalized as the dealers were already loaded with higher stock levels.
Hyundai India registered its all time highest sales owing to wonderful response of the New Santro. The New Santro garnered 28,800 bookings in just 22 days which is the highest ever for any brand in its segment!
M&M was able to retain its 3rd spot and Marazzo critically helped the OEM for the purpose. However, Tata has been dangerously close and with the announcement of initiation of Harrier bookings – Tata’s chances have gone stronger!
Let’s see how the Market Shares fluctuated in Oct’18 v/s Oct’17 –
Maruti’s market shares dropped by -0.6%! We have been habituated to see Maruti’s Market shares above 50%; however the drop wasn’t expected considering their capacity expansion and aggressive campaigns. Possibly launch of the New Santro has made some effect in the entry-hatch segment (which has always been Maruti’s stronghold).
Hyundai gained significantly owing to Santro launch. However; the increment in Market Shares was just 0.5%. Infact Tata’s market share increase was very similar!
Considering low base in Oct’18 & launch of refreshed Aspire; Ford’s Market Share increment was a whopping 1.7%. Will Ford sustain this?