Indian Car Sales Figures - July 2012

July 2012 Sales Figures - Pan India

HIGHLIGHTS:

·     1) Maruti Suzuki approaching Vaastu consultants to solve Manesar problem – the situation rightly requires so! The nation’s biggest automaker is facing one of the worst labor issues in the Indian manufacturing scene. The losses is in tune of crores and has not only affected MS, but has also made foreign investors reconsider to enter/invest in India. Manesar’s produce – Swift & Dzire has been worst hit with reduction in their offtake. The figures for Aug’12 would be still shoddier! (An unconfirmed news also mentions that the sprawling 600 acres of land on which the Manesar plant has been constructed, is said to have once served as a Muslim burial ground. Three temples, which existed in the 600 acres were demolished to set up the plant. – I wonder how this news have surfaced at this point of time J )

·     2) However, the positive for MS has been its LUV (Life Utility Vehicle) – Ertiga. It should be better named as LSV (Life Saving Vehicle – especially for Maruti!). Ertiga has clocked its highest offtake till date with 7091 numbers. It is growing stronger month-on-month and we wouldn’t be surprised to see it in the Top 5 within next 2 months.

·     3) Eeco volumes have gone down scaringly low. It is appalling to see how a vehicle grossing an average of 4.5k numbers have come down to 930 nos! Even the A-star fares worse than the 800 (A-star: 583 nos vs Maruti 800: 1411 nos!). The real disappointment has been SX4 – 679 offtake for this capable product is just not digestable.

·     4) Tata is seriously hurt – M&M overtaking Tata for the 3^rd position in the passenger car market during June’12 is a stern indication on how Tata could lose its position if not acted quick. However, the response from Tata is satisfactory for the moment – Sumo Indica family & Indigo family contributing for the majority numbers. Sumo Gold has again been a trump card for Tata in gaining the numbers in UV segment. The hatchback & sedan market seems too volatile – Hence, would Tata be able to sustain with the Indica & Indigo productline? I assume not – with a new compact SUV from M&M on the cards, we wouldn’t be shocked to see M&M permanently overtaking Tata in passenger car market. The solidarity in SUV growth has also backed M&M as of now.

·     5) Who could have predicted that Verna sale could be higher than Santro/Eon sales an year back! That exactly exhibits the shift in today’s consumer preference – a product can perform exceedingly well if it could exemplify “Value for money”. This holds true for vehicles in all categories! – Just imagine BMW bagging over 500 bookings for its new 3-series even before its launch.. Even Audi had achieved similar feat with its Q3 – achieved 500 booking within 5 days of its launch.

·     6) One always wonders – where does all these Boleros go??? That’s the power of Rural India. Bolero never fails to impress us with its consistency. It would be the only product in the Indian Automotive history to date to exude such popularity & acceptance – the same is evident in its sales numbers, month-on-month!

·     7) XUV500 in Top 20? YES! With production ramping up, don’t be surprised to see it surpass Scorpio’s number as well. With the opening of bookings all India, the product has garnered similar euphoria what it had achieved during its initial launch!

·     8) Indians just love NOVELTY – don’t believe me? Then take this – 12000 bookings for the newly launched Duster. The love for SUVs has again gripped Indian consumers – Duster just hitting the sweet spot. The next challenge is to ramp up supply as per demand and also expand its (Renault) dealer network.

·     9) Honda again is inconsistent – hence too difficult to rightly asses its performance.

·     10) Skoda is on a spree to reduce its dealers stocks – the number exactly explains the point with over 50% degrowth M-o-M. However, Fabia is reeling to maintain required volumes – not deserved for a product this well.

      A list of Top 20 Brands of the month -

THE FRENCH CONNECTION

Every other car site or blog is talking about the newly launched Renault duster.. Isnt it ??

So shall we make a difference here..   We are going to talk about its success… Yes it is already a success for Renault. As the marketing rule about 4p’s is concerned it has got it as cleanly as possible. Talking about the product first, it has got 3 engine options to cater a larger customer base with  Petrol and 2 Diesel options churning out 84 and 103 bhp respectively with 20.4 and 25.8 kgm of torque. Come to pricing and it’s as aggressive as ever with petrol starting 7.2L and 7.99L (ex-showroom Delhi). This is the era where a top end Volkswagen polo Diesel costs 7.5 L. That is what so peculiar about its pricing and There goes the promotions that say “apologies to all who just bought a sedan”. Perfect. We must admit!

Renault has managed to get a new segment for itself which could turn heads from a premium hatch as well as from an entry level sedan and obviously suv since it’s slighter faster than the almighty XUV500 due to its low kerb weight of 1308kg.

Renault Duster @ Auto Expo

We are not done yet; another positive vibe is that it has got 3000 pre launch bookings which is a decent number. Again there are attributes which make this a successful product and embarks a new voyage for Renault in Indian market. Especially when we see there is hardly been any SUV which didn't work in our country except a few, which is acceptable. Since we all love suv’s , maybe because of our road and driving style. Renault has got a perfect market so it will surely get first mover advantage and it has got a mesmerizing blend of a successful product. You just cant ask for more.

The only thing worrying is the low network strength of Renault (only 53 dealers all India) and the Logan ghost haunting it time and again. Renault needs to be cautioned in every step - as even the slightest mistake can cost them dear. 

As the name goes Duster, it’s time to prove its mettle and protect its name! 

(Author - Anshul Chawla - Is an automobile enthusiast who love and live cars! Can be ignited at anshul_chawla@live.com)

Indian Car Sales Figures - June 2012

June 2012 Sales Figures - Pan India

HIGHLIGHTS: 

·          1)  Alto back on top; but with a figure less than 30k doesn’t suit it. All thanks to the steepest hike in petrol a month back and also to the weak sentiments among the first time car buyers. But, does that effect Swift/Dzire – a big NO. Both the models with their Diesel variant is bringing the numbers for the company. I’m sure the way Dzire has got the response – if supplied well, would overtake Swift figures someday (we all know how value conscious Indian Market is!). WagonR with a mere ~10k numbers proves the point again – non-availability of a diesel variant can hamper the overall volumes. SX4, A-star & Estilo are almost on their ‘Decline’ stage – the sale of Maruti 800 is more than these models (with only BS3 available)!

·           2) Figo figures is consistently falling down since past 3 months – a BIGG problem for Ford. I believe it is the right time to bring Ecosport in the market. It was just a month back Ford’s 999cc eco-boost engine won the best engine award. Ecosport seems the only option to revive Ford’s fortune (similar to what Figo had done)

·           3) GM has lost its SPARK – quite literally! Even though being such a wonderful proposition Spark volumes remain a disappointment – whom to blame?? Obviously PETROL prices J Whereas Beat (diesel) has been the lifesaver for Chevy.

·          4) It is very awkward to see the Tavera sale going down – right since the Neo BS4 has been launched! The availability of BS4 in Tavera was speculated to boost its volumes, not decrease it!

·          5)  There needs to be a serious re-structuring in the Sales Planning team of Honda! The company has seen the most irregular vehicle billing in the past 15 months. Hard to digest Jazz and Brio doing mere ~600 numbers.

·           6) Scorpio numbers is the lowest in past 13 months! This has happened in a month where the mighty muscular celebrated its decade of dominance – its 10^th Birthday. Verito numbers @ 444 leaves us thinking about the possibility of a new model coming in the future. XUV 500 puts the C+ sedans to shame with the numbers it’s achieving (in the same price point).

·           7) i20 overtaking i10 sales – Possible? Surely YES! And that too with a hefty 1500 difference J Reason – As mentioned earlier, thanks to our Petroleum Minister. And even the fluidic Verna is 240 odd numbers behind i10!

·           8) Tata figures have nothing to talk about except disappointment. Aria does lesser than a only-petrol available CR-V. Indica & Indigo family has seen its worst performance in the year. Nano is still in its search of finding its true identity. The only breather remains Sumo which backed with Sumo Gold variant has done an average figure of over 2300 offtake.

·           9) Did someone mention the uniqueness of the Indian Car Market??? If not then analyze this – Fabia numbers is lower than that of Laura & Rapid! And Rapid volumes is higher than that of its older sibling Vento!

·           10) Nissan shines with its Sunny side again. Not to mention its excellent ~3000 offtake.

·           11) In a country obsessed with mileage, Audi Q3 garners 500 bookings in just 5 days! With this Audi becomes the fastest growing luxury brand in India and also the world. The German luxury carmaker has reported a 43 per cent growth in sales during the first half of the year, with total sales of 4,000 cars in the January to June 2012 period. In the corresponding period last year, Audi India had clocked sales of 2,802 units.  

A list of Top 20 Brands of the month -

Indian Car Sales Figures - May 2012

May 2012 Sales Figures - Pan India

A list of Top 20 Brands of the month - 

Product Life Cycle - Automotive

Does Product Life Cycle means anything in the Indian Automotive Space?

'Tried & Tested' - the most important attribute affecting the purchase decision of Indian consumer. Don't believe me? - have you ever seen the santros, the indicas, the altos and the boleros proudly plying on Indian roads and with increased numbers everytime you step on road. Maruti 800 still is sought after by many Indian homes and we do not see any automobile replacing its legacy.

Product Life Cycle defines that at a certain age the product grows to its peak, later it reaches saturation level and after some time it slowly phases out of the market. When you analyse this theory in the Indian automotive industry, you surely would be amazed by the uniqueness - consider Mahindras 'Bolero' which was launched over 12 years back still manages to easily outperform its young competitors. The story ain't very different in case of Maruti's Alto as well - launched way back in 2000 and emerges as the world's best selling car in 2011!

I have seen a person purchase a Hyundai Santro 3 times in his life! Every time he liquidates his old Santro - no other brand makes space in his consideration set else than a Santro again. And this ain't a special case - many Indian households have the same story.

But anythings changed recently? With over 30 new launches in past 2 years and many international OEMs jumping the bandwagon - has given a plethora of choices to the Indian consumer. Gone are the days where we had only padmini's, 800's or amby's available in the kitty. You and me are now spoilt for choices - and boy we love new cars! The younger generation is demanding freshness and novelty - this would spark and make the game more competitive. Can this change the nature of the Indian automotive scenario? - I say YES. 

Channel Strategy

When asked to any commodity selling enterprise on what is the most important enabler for the growth - the answer has always been - "Channel Partners". Name the topmost Cement, Cola, FMCG or Retail Company - you would see one thing in common that they have the best channel & distribution network. The funda remains much similar in case of Automobile OEMs - Hero Moto Corp & Maruti Suzuki have over 4000 and 5000 Sales Touch Points and they are the numero uno Bike & Car OEM in India. Garnering a network this huge is a gargantuan task and thus emerges as the USP of the OEM.

Ever wondered on the investment required to open a full fledged dealership (3S)? In a current scenario and considering the OEM quality benchmark the investment can soar upto minimum Rs. 8-10 crores. And the amount of time taken to establish a greenfield dealership could be anywhere between 8 to 12 months. All this investment has now taken a very strategic turn. OEMs need to be much industrious in enabling the profitability of its channel partners and expand productively. With ever increasing competition and razor thin margins, even Auto dealers are becoming much more choosy and wary before zeroing down on the investment - this makes a whole lot difficult for the new OEM entrants to exponentially expand in the market.

A look on how the OEM volumes co-relate to their Channel numbers -

Note: Number of dealers indicate independent dealers and not sales/service points.

In the above data it could be easily implied that the sale of a dealer is directly proportionate to its dealer network. VW & Toyota - It is imperative for you guys to understand that to emerge as a no.1 OEM, you need to hit this nail right on its head.

Channel expansion is the key - with rural markets growing then ever and less susceptible to economic vulnerability - Reaching Out will decide the fate of these OEMs. 

Indian Car Sales Figures - April 2012

April 2012 Sales Figures - Pan India

HIGHLIGHTS:
1)"When Maruti sneezes, the auto industry catches cold” – the statement stands true in any season! Maruti’s figures were the true reflection of the industry’s performance for April 2012. The Indian Auto Industry degrew by over 22% (Month-on-Month) whereas Maruti has de-grown by 20%. The reason still remains Maruti’s dominant market share and sheer size of its numbers (Maruti’s volume was an average 83000/mth in F12!).  

·        2) Alto’s numbers was at an all time low in past 6 months – with 17842 offtake. Alto had been the unbeaten no.1 of the charts since ages. A dip of 49.37% in Alto volumes M-o-M seems very gullible. The new king of the ring is the most loved Indian hatchback – Swift. With rationalized productions Maruti is not only earning volumes, but also finding place in many awaited Indian households. Seldom did anyone believe when Maruti had announced receiving more than a lakh bookings during its refresh launch. But the numbers speaks for itself.

·        3) Maruti did Dzire again! With a shorter boot, attractive price and the fact of being a 3-box car is working wonders for the brand. We Indians just love VALUE; we never get tired/bored with the same food being offered in different plates – IF it is ‘Value for Money’. With a number of 15510 figures, Dzire is whopping 9259 numbers ahead than the next highest selling sedan (i.e. Verna – 6251 nos).

·        4) 'The era of sedans is over’ – suddenly the fastest growing segment of the industry falls on its foot. These figures would need no explanation to prove the aforementioned point – Tata Indigo+Manza: 3669 nos. (degrowth of 55.76% m-o-m) & many more:

·        5) Nissan now loses its ‘Sunny’ side and ‘Micra’ doesn’t seem to do wonders as well. Rather its distant sibling Pulse has been able to steal Micra’s prospects for its more modern look and appeal. Renault’s small distribution network remains a concern and only an explosive expansion strategy could place it at a respectable position in F13.

·        6) People just seem to ‘LUV’ the new Ertiga (stands tall at 16^th spot with 5464 nos.). With over 15k bookings, and dynamic production line Maruti has created a whole new segment itself! If you thought that these figures would disturb Innova numbers, then you were totally wrong! The existing MPVs (Innova & Xylo) did their normal run without any dent on their numbers. The effect was rather seen on C-segment sedans.

·        7) Bolero – 6^th highest selling passenger car! (8205 nos.) We would get tired discussing its success; but the brand does not! Such a consistent performance is never seen in Automotive history. Even Nostradamus would fail predicting Bolero’s business cycle. Similar is the case with Maruti’s Omni – feat of 7321 offtake achieved just by selling a petrol variant! These old war horses have turned out to be cash cows for these OEMs.

·        8) Eon evolves as Hyundai’s top selling brand – a sweet spot for the OEM. But the purpose would be achieved, only when it matches Alto’s volumes – a distant dream, but quiet possible.

·        9) Rapid consistently overtakes Vento volumes. VW would surely not be happy with this.

·         Hyundai again rules the C+ segment with its Verna. It plans to extend its success with the new Sonata (but the volumes of 66 nos doesn’t speak so).

·        10) Fortuner – 1270 nos, XUV 500 – 3403 nos; I wonder how we manage to sell these with such ease. The volatility of Indian market amazes me with what it has to offer. And the love for SUV’s just seem impregnable.

·         Any predictions for May’12 ???  

A list of Top 20 Brands of the month -