January 2020 Car Sales – Snapshot

Jan’20 has started with a backfoot for the Auto Industry. The overall passenger cars sales declined by -5.3% YoY and majority of the OEMs projected a negative growth. The Industry is currently reeling to liquidate BS-4 stocks and all efforts are aligned in the direction. Maruti has outpaced the Industry and prepared well for this transition – Majority of its products are BS-6 now and the same is evident in their sales figures too. Even though Maruti’s growth was flat; the Auto Major increased its Market Share by hefty 3%! The biggest losers though in terms of Market Share was – Honda Cars & Toyota. This years Budget too was lame and no sops were given to revive the Auto Industry. All eyes now on the Auto Expo for understanding the OEMs readiness in terms of upcoming products and policies.

  • Maruti commanded a Market Share of 53.3% basis Jan’20 performance. The automaker is not only fighting hard to retain >50% Market Share; but is also gaining on strongly against competition.
  • Hyundai is slowly losing sheen of Venue and numbers are dropping accordingly. The Korean Automaker degrew -8% and lost -0.5% Market Share as well (YoY).
  • Mahindra too lost volumes due to the falling numbers of Marazzo & XUV300. Need to have new launches to sustain volumes.
  • Kia stunned everyone again by crossing 15k units with a single model! While the Korean OEM’s wholesale was just 4,645 units in Dec’19; the shipments more than tripled in Jan’20. The OEMs effort to rationalize stock in year end has paid off well and both OEM/Dealers would have gained with price increase. The increased shipments would have also helped reduce the waiting period for the model.
  • MG is now averaging between 3k-3.5k every month. The Chinese OEM is gung ho with India’s success story and is attracting lot of other Chinese OEMs to go aggressive about entry to the Indian market.

Market Share figures for Jan’20 –

April 2019 Car Sales – Snapshot

The Passenger Vehicle sales saw a dip of -16.7% in Apr’19 v/s Apr’18 – This is the highest fall the Industry has seen in recent times. This is not a good sign for the first month of the fiscal year and depicts the tough time ahead for the industry. The main reason for the dip in sales are the political uncertainty and lower consumer sentiments. The slowing growth in Upcountry markets due to below-par Monsoon forecast has also been a deterrent for the overall growth. Decrease in OEM discounts for Apr’19, upcoming BS6 transition and no new model launches fueled the decline.

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

  • Only 1 OEM (Honda) reported a YoY growth in Apr’19! Rest all OEMs saw a decline in sales. Honda too saw a YoY growth owing to low base of Apr’18 (and Amaze was also not launched till then).
  • Nexa’s sole dependence on Baleno is now showing off and Nexa channel degrew by hefty -28%. Nexa performance led to the overall degrowth of -19.6% for Maruti Suzuki.
  • Hyundai fared better when compared to other mass market OEMs and degrew by -10%. However; it was able to gain a Market Share of 1.3% and its Apr’19 MS was 17.1%.
  • Mahindra too backed by XUV300 sales reduced the fall and degrew by -8%. It helped M&M gain a Market share of 0.8% in Apr’19.
  • Nissan registered the highest fall of -42.5% in Apr’19. The relentless decline in sales is worrisome from the Japanese brand and if this trend continuous Nissan may have to take serious steps to be viable. Even with new model addition (Kicks); Nissan has been unable to revive its condition in the Indian market.

Market Shares figures for Apr’19 –