2020 has proven to be a very tough year for Indian Passenger Vehicle Industry in India. It witnessed 17% drop in volume from 2019, which was a bad year in itself. Indian economy too has technically slipped into recession since Q2 2020, due to country wide lockdown, imposed to control the spread of COVID-19 induced pandemic.
2020 started with headwinds from slowing GDP and consumption slowdown effect cascading from 2019, and later compounded by BS6 transition. But lockdown in April 2020 has brought factories to grinding halt, and lead to no- production, as well as no-consumption. But from May 2020, industry started picking up with disrupted supply chain. Demand too picked up, largely a sign of pent-up demand. As, those who migrated to shared mobility were stranded during lock down, and among those who can afford, have had bought personal car post lock down, either new one or the used one. Automakers too have flooded the market with discounts and other buying schemes in festival season to keep their factories running and cover the fixed cost. Pent up-demand, and supply side incentive were strong enough to reflect positive double digit growth in later half of 2020, though on lower base.
Manufacturer wise Volumes and Market Share for the Year 2020 –
- New entrant, KIA and MG, posted strong growth with product onslaught, and of course low 2019 base
- Tata Motors posted positive growth, largely on account of new product –Altroz, and better performance by updated products – Nexon and Harrier
- Renault was helped by Triber’s performance
- Creta, Venue and Aura had significantly arrested Hyundai’s fall
- Twin brand strategy is working quite well for Hyundai – as a parent company – now it commands combined market share of 23%, up from nearly stagnant value of 16% to 17%, since 2008
- Mahindra did suffered badly due to BS6 transition of almost all diesel powered portfolio, and lost rank in the tally
- Toyota lost considerable traction for its key products – Innova and Fortuner – due to numerous reasons like BS6 transition, facelift transition, supply chain issues and plant lock out in 2020
- What really came to Toyota’s rescue was Maruti’s rebadged products – Glanza and Urban Cruiser
- Luxury car market too took a deep plunge, Mercedes and BMW too suffered over 30% volume loss
Best Selling Cars of 2020 (Top 30) –
- Since 2005 Alto has enjoyed #1 position, with only exception of 2018, when 3rd generation Dzire took away the crown
- In 2020, Swift took the crown of best-selling car
- This was largely supported by pent up demand, as those who can afford had went straight for 6 lakhs+ price band, Baleno is just another example
- Also, Alto lost 1.0 K series engine and K10 variant
- S Presso brought into replace K10’s role, didn’t quite match up and landed as unsuccessful by Maruti’s performance yardstick
- Amazingly, first 7 top ranking products are from Maruti’s stable
- Vitara Brezza and Dzire suffered in absence of diesel powerplant
- High margin – Creta and Seltos easily made to top 10
- Beside sub 4m sedan, no other sedan could make place in top 30
- Top 30 cars contributed near to 74% of the cars sold in India for the year 2020!