October 2019 Car Sales – Snapshot

October had 2 biggest festivals of the year – Dussehra & Diwali. It had to be a big month for the Auto Industry as majority of the purchases are skewed in this part of the year. And thankfully it was a positive month – the Industry grew 1.1% in Oct’19 v/s Oct’18 and we anticipate the retails were much more stronger as a lot of OEMs would have gone for Inventory Correction in the month. Almost over 2.84L cars were sold in Oct’19 and saw Maruti sales grow YoY after a very long interval. It was also a month for new launches to scale up their volumes (Seltos, Triber & Hector proved magical for their respective OEMs).

  • The Market Leader Maruti Suzuki led the industry growth and grew a nominal 2.3% in Oct’19 v/s Oct’18. Nexa sales however continues to see a downward trend and degrew -7% YoY! However; S-Presso has helped Maruti gain the growth path.
  • Hyundai’s volumes are rationalizing with Venue numbers averaging ~9k units. Also Creta facing stiff competition from Seltos has resulted in loss of numbers for the Korean major. Hyundai also experienced a dip in Market Share in Oct’19 v/s Oct’18.
  • While Mahindra reported a all time high Retails in Oct’19; the wholesales fell -21% YoY. It also saw the second highest Market Share drop with -1.7% fall.
  • Tata has seen tremendous drop in volumes this year and has directly reflected in its falling Market Share – The MS fall was the highest at -1.9% and Tata managed the 4th spot in the ranking table.
  • Kia makes a grand entry into the Top 5 and sold a spectacular 12,854 units of Seltos in Oct’19. What Kia has done is nothing short of magic – Selling over 12.8k units of a single model is nothing but an impossible feat. The extensive variant range seems to have worked for the Korean Entrant and the OEM has gained a whopping 4.5% Market Share in just 3rd month of its sales operation!
  • Renault topples Honda and placed itself in the 7th spot. Triber has gained acceptance and the New Kwid has supported too. Sustainability shall be the key for the French automaker and we hope they don’t lose focus mid way.
  • MG’s strategy has worked wonders for the Chinese giant. Right from pricing to upward supply; the numbers are going strong and is a reflection of increasing customer affinity towards the model.

Market Share figures for Oct’19 –

Indian Car Sales Figures – July 2019

Modelwise Car Sales Figures for July’19 –

Segment Wise Sales Data – 

1. Entry Hatchback Segment:

2. Compact Hatchback Segment:

3. Premium Hatchback Segment:

4. Compact Sedan Segment:

5. Executive Sedan Segment:

6. Premium Sedan Segment:

7. Luxury Sedan Segment:

8. Compact SUV Segment:

9. Mid-SUV Segment:

10. Premium SUV Segment:

11. Lifestyle Offroader Segment:

12. MUV Segment:

13. Van Segment:

June 2019 Car Sales – Snapshot

Passenger Vehicle sales in India continued its downward spiral in June’19 as automakers curbed factory dispatches to control inventory at their respective dealerships. The retail scenario too wasn’t encouraging and the overall market dynamics was slow as well. The Passenger Vehicle sales saw a double dip of -17.7% in June’19 v/s June’18. The market in a way emulated Maruti Suzuki’s performance which saw a YoY degrowth of -17.2%. The auto industry condition is worsening every passing month and it is high time government pitches in and extend the required support to lift things up. Infact, Car sales slipped for the eighth month in a row in June and did not show any signs of revival.

We had recently presented a report on how irrational the taxation structure currently is; and requires immediate action from the Government to rectify the same. We anticipate that the Government announces some industry friendly policies and reduce the GST in upcoming Budget to support the sector. Companies and SIAM are rightfully seeking a drop in GST rate from 28% to 18% to drive in affordability.

  • Market leader Maruti sales fall for fifth consecutive month, OEM registers 14 per cent drop in June 2019 v/s June 2018! The drop in Nexa sales was even scary and dipped -28% in June’19 v/s June’18. The combined YoY fall was -17.2%.
  • Hyundai registered one of the lowest degrowth and was possible to the positive momentum for its newly launched Venue. Hyundai also started the dispatches of the electric SUV Kona in June’19.
  • Mahindra was the only OEM to register a positive YoY growth! XUV300 have performed well for the OEM and has already shipped 25,000 units from the plant.
  •  Tata places itself into the fourth spot and its sales fell by -27% in June’19 vis-a-vis the same period last year.
  • Even added Glanza volumes couldn’t help Toyota improve its ranking. It stood fifth in the table and degrew -19% YoY.
  • Honda registered one the highest YoY sales drop in June’19 and has placed it in the sixth spot in the ranking table. Decelerating Amaze volumes has made the scenario even more difficult for the Japanese major.

Market Shares figures for June’19 –

May 2019 Car Sales – Snapshot

Tough times persist for the Indian Auto Industry and even tougher times lurk ahead. The Passenger Vehicle sales saw a dip of -21% in May’19 v/s May’18. The de-growth extent is now increasing every month and has questioned the viability of many dealer establishments. Considering the stats – on an average two vehicle dealerships have shut every week over the past two years! With the Indian automotive retail sector incurring losses of at least Rs 2,000 crore in this period, over 205 dealers have wound up operations and shut 300 outlets as their business turned un-viable and an estimated 3,000 people have lost their jobs.

Source: ET

Base effect along with high finance cost and liquidity constraints has primarily pushed to subdue automobile sales in May. Lower consumer sentiment and the recently concluded general election also had a major part in sales slowdown. The high inventory levels at the dealerships has been a consistent concern and all OEMs are trying their part to lower the dealer stock which is even more hampering the monthly offtake volumes.

Let’s see how the OEMs fared in May’19 –

  • The nation’s top automaker, Maruti Suzuki reported the highest Market Share fall in May’19. It lost a staggering 3.1% MS in May’19 owing to low wholesale volumes in the month. It registered a YoY degrowth of -25.1% and Maruti’s loss was primarily Hyundai’s gain.
  • Hyundai was the biggest winner in May’19. Though it saw a degrowth of -6%; the OEM registered an increase of 2.9% in terms of Market Share. A lot of this success could be attributed to the launch of the sub-compact SUV Venue.
  • Mahindra establishes itself as a clear No.3 post XUV300’s launch and sells a staggering 7,403 units more than the 4th ranked Toyota.
  • Toyota topples Tata & Honda to become the 4th best-selling OEM. Glanza effect? We shall let you know shortly.
  • Tata grappling with low performance? Maybe yes, maybe no. Tata has recently taken a stand to lower dealer stock and is clearly visible from the recent communication it shared to its channel partners –

  • Nissan+Datsun are unable to understand on how to recover from the monthly shortfall. The OEM registered the highest YoY degrowth at -48%. No wonder; in 2017-2018 Nissan had the most number of dealers shutting shop (38 dealers to be precise)!
  • Another shocker of May’19 was the decline of FCA volumes. FCA now ranks last in the table and Skoda has effectively pushed the Italian carmaker to the bottom. Fiat is primarily on its deathbed and could sell only 14 units in May’19; while Jeep sold a meager 977 nos in the past month.

Market Shares figures for May’19 –