The most comprehensive analysis on Indian Passenger Vehicle Sales for FY2019-20

We had published the modelwise sales for FY2020 v/s FY2019 earlier – here.

We now have bracketed all the models into their respective segments and and collated the volumes for better understanding. This shall give us a glimpse on how every OEM have placed their models in the Indian sub-continent and how they fare vis-á-vis the competition.

First let us see the number of offerings of every OEM in the segments –

  • Maruti has the highest number of models in its portfolio and was present in 10 out of 13 segments shown in comparison here! Do note that Maruti is primarily non-existent in >₹ 15 Lakh vehicle segments (Premium Sedan, Luxury Sedan & Premium SUV).
  • Hyundai has 10 models in sales in India and is able to cover 8 out of 13 segments. Hyundai here has attempted to make a presence in >₹ 15 Lakh segments (Premium Sedan & Premium SUV).
  • Do observe that Mid-SUV had the highest number of offerings (15 nos) in FY2019-20. Also MUV had the third highest number of offerings (after compact hatch) and sold 13 models in FY2019-20.
  • Overall 96 models have been taken into the consideration and have been divided into their respective segments in the aforementioned list OEM-wise.




Let us now compare the combined sales performance of the models in the segments –

  • The Top 3 segments in terms of volumes as shown above is – Compact Hatchback (23%), Premium Hatchback (13%) and Compact SUV (13%).
  • Maruti Suzuki is the undisputed market leader for the past so many years & one of the key reasons being its range of products. Also note the volumes Maruti sells in the respective segments.




Let’s study segmentwise sales contribution by the respective OEMs and which OEM topped in those segments –

  • Maruti Suzuki was the undisputed leader in FY1920 and led in 8 out of 13 segments (Entry,Compact, Premium Hatchbacks; Compact & Executive Sedan; Compact SUV, MUV, Van) and these segments contributed 88% of the car volume in 2019-20
  • Honda was the leader in Premium Sedan- 3rd smallest segment of the Passenger Car Industry
  • Skoda was the undisputed leader in Luxury Sedan- the smallest segment of Car Industry
  • Hyundai was the market leader in Mid SUV but facing tough fight from Kia which is just behind by 0.2%share
  • Toyota had a clear lead in Premium SUV segment with Fortuner
  • Mahindra was the leader in Lifestyle/ Offroader segment with the Thar



Pictorial Representation of the segment leaders –

Segment-wise Performance for February 2020

We have been assessing the segment wise trend for quite sometime and figured out that there has been huge shift in the segment wise sales and the consumer preference too has shifted variably in the recent past. While Compact Hatchback segment still rules the roost; MUV’s have gain very strong traction in the past 1 year and was the second biggest segment in terms of volumes in Feb’20. MUV segment also gained strength with 5 new launches/upgrade in the past 1 year.



Let’s see how the segments fared in Feb’20 –

  • Sedans have suffered tremendously in recent times. Executive Sedan segment in particular has witnessed one of the steepest falls with a YoY drop of -49! With the upcoming City & Verna Facelift; can the segment see a upswing? Seeing the fall; OEMs are avoiding entering the segment and no new launches is anticipated in the future.
  • Even the Compact Sedan category has fell drastically. The likes of Amaze, Aura, etc are trying exhaustively to make a presence but are falling behind of Dzire by a huge margin.
  • Compact SUVs are slowly nearing Premium Hatchback numbers and may soon overtake them. With Renault & Kia planning to enter the segment; the competition is surely going to intensify further.
  • Entry Hatch is Maruti’s forte and over 85% of segment’s volumes is dominated by Maruti models. With S-Presso in the list; Maruti has just strengthened its position in the segment and did close to 27.8k units in Feb’20 itself (Alto + S-Presso).
  • Eeco is sole runner in the Vans segment. Maruti has combined all efforts to make Eeco recover Omni’s shortfall; but it’s practically impossible to do the same. However; Eeco alone sold over 11k units in Feb’20 and also fared as the 7th best selling car for the month.

Segmentwise Car Sales Analysis – 2019

Further to our car sales analysis for 2019; find the detailed segment wise car sales performance in this post.

  • Out of all segments; the Premium Sedan grew the highest at 28%! The segment volumes being small grew incredibly post the addition of Civic. Honda’s Civic was also the Best Selling Premium Sedan for 2019!
  • Compact SUV Segment has grown very strong in the past few years. As a matter of fact; it has emerged to be the 3rd biggest segment in terms of volumes in 2019! It was just 2,143 units short of the second largest segment (Premium Hatchback). 2 new models made entry in the segment in 2019 – Mahindra’s XUV 300 & Hyundai’s Venue. Both the new models fared well for their respective OEMs. 2020 should see Kia & Renault entering the segment too.
  • MUVs have got attention of the OEMs and exciting offerings / concepts are available with the customers now. While XL6 was offered as a premium offering with captain seats; Triber really ticked the boxes in Rs.6-9L range. The New Ertiga too got many takers and was also one the Top 10 selling cars in many months in 2019. Kia shall introduce the Innova-competing Carnival in 2020 and heat up the segment even further.
  • Mid-SUVs saw the highest excitement in 2019! Kia & MG launched their entry model in the sub-continent in the segment. Both the models did much better than expected and led to the growth of the segment. Even Skoda shall be showcasing its offering in the segment in the upcoming Auto Expo.




Segment Wise Sales for 2019 –

Premium Sedan Segment:

Compact SUV Segment:

MUV:





Mid-SUV:

Luxury Sedan Segment:

Premium Hatchback Segment:

Compact Hatchback Segment: 





Premium SUV Segment:

Entry Hatchback Segment:

Vans Segment:





Compact Sedan Segment:

Executive Sedans Segment:

Lifestyle Offroaders:

Indian Car Sales Figures – December 2019

OEM-wise Sales Snapshot –





Modelwise Car Sales Figures for Dec’19 –





Top 25 Selling Cars of December 2019 –





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. MUV Segment:

12. Van Segment:

13. Lifestyle Off-roader Segment:

2018 Passenger Car Market Growth Analysis

Slowdown in growth rate of 2018, has spilled over in 2019. With growth at risk, 2019 could prove to be a very challenging year for all the manufacturers, including luxury brands.

Body Style

  • Hatchbacks not only grew at the slowest pace but also ceded market share
  • In other segments, growth was driven by few products
  • MUV growth was driven by the new entrant in the market – Mahindra’a Marazzo
  • Sedan growth was driven by incremental volume of Maruti Dzire and new Honda Amaze
  • SUV growth was led by incremental volume of Tata Nexon, Hyundai Creta, Maruti Brezza and facelifted Maruti S-Cross




Vehicle Size

  • India continues to be a small car market, with 77% of cars sold are less than 4m in length
  • In over a decade (after 2006 Government’s new policy), car manufacturers definitely learnt to package the car in such small footprint
  • In medium (4m-4.5m) segment, its only Hyundai Creta and Maruti S Cross, that brought incremental volume, rest just suffered
  • In large car segment it’s the MUV segment which grew (Toyota Innova & Mahindra Marazzo), rest saw a decline



Body style deep down analysis

For this analysis, product classification is primarily based on length, which ideally should define the in cabin space available for the buyers. Further, sub classification is based on the value proposition manufacturers bring to the table, to differentiate their product.

Hatchback Segment

  • Entry level hatchbacks seems to be out of favor now
  • It seems buyers are opting for larger hatch even as first time car purchase
  • New launches too didn’t brought much excitement in small hatchback segment
  • Case is Hyundai Santro, which is averaging around 8,000 per month, since launch
  • Much lower than its premium (- relatively) cousins – Elite i20 (12,000) & Grand i10 (11,000)
  • One more reason for Santro’s low number is heavy discounts being offered on outgoing cousin Grand i10
  • Carmakers need to seriously revisit small hatchback product strategy
  • For small cars, margin is usually low and automakers thrive on volume, which is shrinking now
  • Honda has shown some prudence, in line with the growth trend by discontinuing Brio, and no plans to bring its successor in India , which is already launched in ASEAN region, thus making Jazz and Amaze as entry level product
  • With demise of Tata Nano, it seems there is less value in serving bottom of the pyramid, as Indian car buyers are moving to high value cars or sometime – ‘no car at all’ in crowded metros, by opting for Mobile App based shared mobility service



Sedan

  • Except for sub 4m sedan, every other sedan segment was in decline mode
  • Growth of sub 4m was led by incremental volumes from Maruti Dzire followed by new gen Honda Amaze launched in mid-2018




SUV

  • SUV data has been split, based on chassis, to gain better understanding of SUV growth
  • Monocoque SUV/Crossover segment has grown much faster

SUV – Monocoque body

  • It is quite apparent that new age more urbane SUV/Crossovers took the charge of leading the segment
  • Very high growth of the two premium (-relatively) segments is attributed to low base
  • Mahindra very cleverly has had positioned its SUV in a sweet spot, by offering large car for less money
  • Now its territory is being invaded by Tata’s Harrier, later in the year will be followed by MG Hector and Tata H7X

SUV – Ladder chassis

  • By splitting data, it is apparent that ‘real’ SUV are not selling so well
  • High stance surely gives them the formidable and imposing image but they aren’t quite urban jungle friendly
  • Moreover, body roll is too high, which robs the driving experience
  • Thus more and more urban buyers are opting for monocoque body construction
  • Tata Safari’s sudden growth is not a sign of revival, but it was due to its supplies to Indian Military

  • Surprisingly, Toyota’s mighty Fortuner suffered decline in sales
  • Reason could be entry of new SUVs in similar price bracket, like – Skoda Kodiaq (Monocoque chassis), Honda CRV (New diesel engine), and little bit of Mahindra Alturas




MUV-Monocoque

  • Drop in Maruti Ertiga’s volume was due to generation change which has impacted the segment growth rate
  • For Maruti, volume decline was compensated by the growth of Eeco

MUV – Ladder Chassis

(The article is written by Rohan Rishi. You can connect with him at emailrohanrishi@gmail.com)