Today we bring you the Indian Automobile Sales Report for the month of May, 2016. While this post covers the Passenger Vehicles and Commercial Vehicles alone, you can catch the Two Wheeler Report here.
Passenger Vehicles and Commercial Vehicles
The mass Passenger Vehicles market continues to be dominated by the four big companies— Maruti Suzuki, M&M, Tata Motors and Hyundai. These companies together who together account for more than 80% of the market. Maruti Suzuki leads the pack while Renault plays a catching up game.
Jump to the company that interests you using the list below:
- Ashok Leyland
- Atul Auto
- Force Motors
- Ford India
- Honda Cars
- Hyundai India
- Maruti Suzuki
- M&M
- Renault India
- Tata Motors
- Toyota India
- VECV
Ashok Leyland
The Chennai-based manufacturer and the second largest commercial vehicle maker in India has gained market share in the medium and heavy commercial vehicle segment mainly on the back of steady sales helped by replacement demand and the implementation of new pollution norms.
In 2015-16, the company had launched seven new products across product segments and plans to launch the Sunshine school bus followed by the Guru Intermediate Commercial Vehicle (ICV).
The company’s sales for the month of May-16 stood at 9,875 units compared to 9,290 units for the same month of the previous year. This translated into a growth of 6.3%.
The company’s sales for the period Apr-16 to May-16 stood at 20,057 units compared to 17,725 units for the same month of the previous year. This translated into a growth of 13.2%.
While the company did not disclose the breakup between Domestic Sales and Exports, our database indicates exports to be in the range of 360-460 units per month with Bangladesh, Sri Lanka as the top destinations with exports in 3 digits. (Return to List)
Atul Auto
Gujarat-based Atul Auto which gets nearly 40% of its sales from the home state and is present in both cargo and passenger three wheelers, reported a flat sales after a jaw dropping 50% fall in sales in April.
Now that the VAT issue has been resolved, the company expected momentum to be on track. The company has also added alternative fuel in the product basket.
The company’s sales for the month of May-16 stood at 3,025 units compared to 3,006 units for the same month of the previous year. This translated into a growth of 0.6%.
The company’s sales for the period Apr-16 to May-16 stood at 4,267 units compared to 5,508 units for the same month of the previous year. This translated into a decline of 22.5%. (Return to List)
Force Motors
The company operates its business under three verticals — vehicle manufacturing, component manufacturing and tooling for other original equipment makers. The vehicle business contributes 70%. Its Tempo Traveller, a multipurpose utility vehicle, has a significant share of 67% in this business.
They also supply engines to the world’s biggest competitors in luxury cars, BMW and Mercedes-Benz and their Tempo Traveller is a market leader in the segment.
Its new engine manufacturing facility near Chennai for BMW cars at a total investment at Rs 200 crore can produce up to 20,000 premium engines every year. The Chakan for producing engines for Mercedes Benz with an investment of Rs 150 crore will be operational by end of June.
The company’s sales for the month of May-16 stood at 2,392 units compared to 1,846 units for the same month of the previous year. This translated into a growth of 29.6%.
Domestic Sales growth for the month of May-16 stood at 18% (at 2,154 units compared to 1,826 units) while Exports growth was over 10 times (at 238 units compared to 20 units).
Domestic Sales growth for the period Apr-16 to May-16 stood at 22% (at 4,106 units compared to 3,365 units) while Exports growth was over 15 times (at 456 units compared to 29 units). (Return to List)
Ford
Riding on the success of EcoSport, the company continues to challenge the market share of M&M and Maruti Suzuki in the SUV segment. It has lightened its purse by over Rs. 200 crore to court customers from its rival brands.
Being built at Ford India’s Sanand manufacturing plant in Gujarat, the second-generation Figo will begin its journey to the UK from the month of October under the heavily revised European standards. The company also introduced EcoSport in a Trendy ‘Black Edition’ in the month of May.
However, not all news has been rosy. The company has issued two voluntary safety recalls for Ford EcoSport vehicles to install a new bundle clip on the fuel and brake lines while the second being that the rear seat backrest has been assembled with bolts that do not meet Ford’s material specification.
The company’s sales for the month of May-16 stood at 17,279 units compared to 11,714 units for the same month of the previous year. This translated into a growth of 47.5%.
Domestic Sales growth for the month of May-16 stood at 22.3% (at 5,780 units compared to 4,726 units) while Exports growth stood at 64.5% (at 11,499 units compared to 6,988 units).
Domestic Sales growth for the period Apr-16 to May-16 stood at 27.5% (at 12,311 units compared to 9,657 units) while Exports growth stood at 24.1% (at 21,438 units compared to 16,272 units).
Its exports growth have mainly been driven by the demand in Belgium, Spain and Mexico as exports to these countries have crossed 14,000 units in the months of April and May.
Commenting on the sales performance, Ford India Executive Director (Marketing, Sales, and Service) Anurag Mehrotra said focus on transforming “the Ford brand in India with transparency and attentiveness at its core” has paid off.
Besides our fresh and dynamic product portfolio, Ford is focused on enriching value of ownership for Indian customers through transparent initiatives like Se
rvice Price Promise and Parts Pricing Calculator which are now available on our website. (Return to List)
Honda Cars
Japanese automobile manufacturer Honda Cars India has started off on a happy note as the company received 9,000 bookings of the newly launched Honda BR-V. It recently invested Rs 380 crore to expand the annual capacity of Tapukara plant from 1.20 lakh units to 1.80 lakh.
The company’s sales for the month of May-16 stood at 10,605 units compared to 14,086 units for the same month of the previous year. This translated into a decline of 24.7%.
Domestic Sales decline for the month of May-16 stood at 25.9% (at 9,954 units compared to 13,431 units) while Exports remained flat (at 651 units compared to 655 units).
Domestic Sales decline for the period Apr-16 to May-16 stood at 21.6% (at 20,440 units compared to 26,067 units) while Exports decline stood at 23.9% (at 1,147 units compared to 1,508 units). (Return to List)
Hyundai India
Country’s second largest car manufacturer and largest passenger car exporter completed a momentous two decades in India. To commemorate this event, the company launched a 20th Anniversary Special Edition of Xcent and Grand i10.
The company is planning to build another plant which will be shared with its global subsidiary, Kia Motors, which may enter the domestic market in the next three years. Hyundai Motor India has two manufacturing plants in Chennai with a capacity of 7 lakh cars per annum.
The company’s sales for the month of May-16 stood at 41,351 units compared to 37,450 units for the same month of the previous year. This translated into a growth of 10.4%.
Overall Sales decline for the period Apr-16 to May-16 stood at 7.7% (at 95,771 units compared to 88,955 units).
While Hyundai did not reveal its export numbers for the month of May, our estimates reveal the number to be on lines with that of April.
Commenting on the May sales Mr. Rakesh Srivastava, Sr. Vice President Sales and Marketing, Hyundai Motor India Ltd. said, “In market seeing challenges of stressed rural demand & uncertainty on diesel vehicles, Hyundai volumes grew by 10.4 percent with sales of 41,351 units continuing the buildup of positive growth momentum on the strengths of strong performance of the three Indian Car of the Year brands Creta, Elite i20 and Grand i10 with heightened expectations of increase in demand on the predictions of good monsoon.” (Return to List)
Maruti Suzuki
Well, the market leader in Passenger Vehicles has had its share of events in May. From marking their entry into the light commercial vehicle segment with the launch of “Super Carry”, a face-lift to its iconic Alto 800, recall of 77,380 vehicles to upgrade the airbag controller software and replace a faulty fuel filter, emission scandal by its parent company which resulted in Chief Executive Osama Suzuki stepping down from the post of the Chief Executive, fire at Subros plant (60% air conditioner unit suppliers to Maruti), to finally the company advancing its regular bi-annual maintenance of its plant in the wake of the Subros fire.
The company’s sales for the month of May-16 stood at 123,034 units compared to 126,569 units for the same month of the previous year. This translated into a growth of 7.2%.
Domestic Sales growth for the month of May-16 stood at 10.6% (at 113,162 units compared to 102,359 units) while Exports decline stood at 20.8% (at 9,872 units compared to 12,466 units).
Domestic Sales decline for the period Apr-16 to May-16 stood at 13.4% (at 230,207 units compared to 203,068 units) while Exports remained flat (at 19,396 units compared to 19,543 units).
Maruti’s top export destinations include Belgium, Chile, Netherlands, Sri Lanka, Germany and Japan where it has shipped over 10,000 units since April. The company’s LCV “Super Carry” has currently been exported in a small batch of 17 units to Tanzania, Kenya and South Africa while the Left Hand Driver version has been exported to Jordan alone. (Return to List)
Mahindra & Mahindra
Widening its portfolio under the Electric vehicle segment, M&M launched the first electric sedan “mahindra-electric-verito-e20”, launched the XUV500 into Kenyan market and is expected to provide wider product portfolio to its customers on the hopes that favourable monsoon projections will lead to improved buyer sentiment.
The company’s sales for the month of May-16 stood at 40,656 units compared to 36,706 units for the same month of the previous year. This translated into a growth of 10.8%.
Domestic Sales growth for the month of May-16 stood at 9.7% (at 36,613 units compared to 33,369 units) while Exports growth stood at 21.2% (at 4,043 units compared to 3,337 units).
Domestic Sales decline for the period Apr-16 to May-16 stood at 11.7% (at 75,790 units compared to 67,836 units) while Exports growth stood at 17% (at 6,549 units compared to 5,597 units). (Return to List)
Renault
The French giant car market is targeting 5% mkt share by the end of 2016. The company is targeting a higher number of markets for its right hand driven KWID, Renault is looking to target countries with similar regulations as that of India. The company first wants to cement its position in the RHD market like Sri Lanka, Mozambique, Tanzania, Kenya, East Africa and Mauritius where it has had exports in the double digits before focussing on the LHD markets such as Brazil, Russia, South America, Iran and Morrocco.
While the company has had to halt production at its Oragadam plant due to engine problems, it has set itself the ambitious target to sell 10,000 KWIDs every month and had added a third shift in the assembly line for the car and also expand its dealership base to 240 by the end of the year (currently 210).
The company has also forayed into pre-owned car market with Renault Selection in Bangalore.
The company’s sales for the month of May-16 stood at 8,343 units compared to 3,601 units for the same month of the previous year. This translated into a growth of 131.7%.
The company’s sales for the period Apr-16 to May-16 stood at 20,769 units compared to 7,602 units for the same time of the previous year. This translated into a growth of 173.2%.
While the company did not reveal its Export figures our database indicates exports in the range of 150-170 units each in the month of April and May. (Return to List)
Tata Motors
The largest truck making company – Tata Motors is looking to revamp its portfolio take on M&M in commercial vehicle space. It launched 4 to 11 tonnes capacity ULTRA Business Utility Vehicle in Kenya while the company’s Jaguar and Land Rover (JLR) – the luxury car making arm is shifting focus to India in order to increase volumes and market share in India. The company has also comes out with special discounts for Central, State government employees (targeting the increased income population from the Pay Commission hike)
The company’s sales for the month of May-16 stood at 40,071 units compared to 39,469 units for the same month of the previous year. This translated into a growth of 1.5%.
Domestic Sales growth for the month of May-16 stood at 2.5% (at 35,643 units compared to 34,791 units) while Exports decline stood at 5.3% (at 4,428 units compared to 4,678 units).
Domestic Sales growth for the period Apr-16 to May-16 stood at 6.1% (at 71,276 units compared to 67,195 units) while Exports decline stood at 3% (at 8,213 units compared to 8,463 units). (Return to List)
Toyota
Reeling under the ban of registration of diesel vehicles above 2000cc in NCR, the company launched the Innova Crysta and has received close to 20,000 bookings.
The company’s sales for the month of May-16 stood at 13,190 units compared to 12,959 units for the same month of the previous year. This translated into a growth of 1.8%.
Domestic Sales growth for the month of May-16 stood at 6% (at 12,200 units compared to 11,511 units) while Exports decline stood at 31.6% (at 990 units compared to 1,448 units).
Domestic Sales decline for the period Apr-16 to May-16 stood at 13% (at 20,729 units compared to 23,836 units) while Exports decline stood at 29.3% (at 1,968 units compared to 2,782 units).
Commenting on the monthly sales, Mr. N. Raja, Director & Sr. Vice President, Sales & Marketing – Toyota Kirloskar Motor said, “We keenly look forward to a favourable decision on the ban of registration of diesel vehicles above 2000cc in NCR which has been affecting the legitimate interests of TKM and its dealers in NCR. We along with a couple of other industry players are the only ones affected. This has been affecting our sales over the last six months and we are hopeful that the Hon’ble Supreme Court will consider our pleadings and lift the ban,” concluded Mr. N. Raja. (Return to List)
VECV
Volvo-Eicher Commercial Vehicles (VECV) – Eicher branded trucks has shown a very good performance in terms of sales to both domestic and International market competing with the likes of M&M and Tata Motors.
The current plant capacity of 5,500 (number of trucks) per month is being planned to 7,000 per month by the end of the year with an eventually increase to 8,000 per month in the next 2-3 years. The company has an aspiration of achieving 15% market share in the heavy duty trucks. This is on the back of Rs. 400 Crore investment in addition to the Rs.2700 Cr that the company has invested over the past 4 years.
The company launched the Eicher Pro 6037 – multi-axle 37-tonne rigid truck segment. At present, Ashok Leyland is leading in the category with an over 75% market share in this category. In FY2015-16, the 37-tonne segment recorded sales of 11,655 units against 4,874 units in FY2014-15, growing by a massive 139%.
The company’s sales for the month of May-16 stood at 5,710 units compared to 3,962 units for the same month of the previous year. This translated into a growth of 44.1%.
Domestic Sales growth for the month of May-16 stood at 30.1% (at 4,705 units compared to 3,617 units) while Exports growth stood at 191.3% (at 1,005 units compared to 345 units).
Domestic Sales growth for the period Apr-16 to May-16 stood at 31.3% (at 9,346 units compared to 7,120 units) while Exports growth stood at 148.5% (at 1,690 units compared to 680 units).
Vinod Aggarwal, CEO, VE Commercial Vehicles, said, “The heavy duty sector is expected to touch a new peak in the current year with huge growth in the segment based on both replacements as well as additional truck requirements with a massive focus on infrastructure and core sectors in the economy. With our entry into the fastest growing 37-tonne segment, our position in the HD segment will strengthen and we will consistently grow our market share in HD segment from a current market share of around 5%.” (Return to List)
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Disclaimer
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Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.
