Year 2017-18 has ended in March and it’s been a great year as Indian Automobile industry grew in production and sales while many new launches were happened. The Indian automobile industry produced a total 26,402,671 vehicles including passenger, two wheeler, commercial etc including all segments. It showed 14.41% growth in production. Let’s find out who succeeded more and who grew while which segment stayed unaffected.
Sale of passenger vehicle grew by 8.04% including all type of passenger vehicles. Overall commercial segment grew by 19.11% while LCV segment grew highest, HCV reported good growth but sales of Bus vehicles still remains a worry. Three wheeler segment reported growth of 14.47% compared to last year.
Two wheeler segment grew by 14.47% in which scooter segment grew by 21.18% while motorcycles grew by 12.66% , scooter segment is growing faster due to urban and rural demand while reliability of scooters has increased. Moped segment DE grown mainly due to less demand and entry level motorcycles becoming cheaper while scooter also replacing mopeds.
In 2017-18, overall automobile exports increased by 15.81%. Two and Three Wheelers Segments registered a growth of 20.30% and 37.02% respectively, while Passenger Vehicles and Commercial Vehicles declined by 1.80% and 13.26% respectively over the same period last year.
Though push to Make in India and many company producing in India, still passenger vehicle segment is decreasing in export, where we thing government should rethink taxes levied on CKD and made in India vehicles.
(courtesy of SIAM India. )
Passenger Car Segment
India’s favorite car brand Maruti Suzuki grew by 15% with 160598 units sold, which is showing that “low maintenance (service and spares) and economy” is still preference for buyers. While mini car segment also grown for Maruti Suzuki, Baleno and new Swift lineup continues to grow and cover the lost market. But Ciaz sedan has decline of 12% due to competitive refreshed models and increased craze of compact SUVs.
M&M sold 62,077 units which is 10% higher than last year in march but given less range in small car segment and nonexistent in sedan segment, they have topped UV segment in sales and growth. While in farm segment company has surprisingly 50% growth compared to march last year.
TATA motors has growth of 35% over last year with 69,440 units sold. This success is believed due to strong sales from refreshed lineup and success of Hexa in UV segment. While TATA group registered 23% growth including cars and commercial vehicle business.
Ford India’s combined domestic wholesales and exports in March recorded 27,580 vehicles, compared to 24,832 vehicles in the same month last year, an increase of 11 %. The company’s domestic wholesales stood at 9,016 vehicles in March, up from 8,700 vehicles in the same month last year. Exports in the past month grew to 18,564 vehicles from 16,132 vehicles in March 2017. Ford is taking benefit of Make in India scheme and plans to grow export even further.
There are almost every manufacturer growing with a good pace but surprisingly two big car houses had decline last year both belongs to Japanese territory. Toyota Kirloskar Motor registered domestic sales of 13,537 units in March 2018, compared to 14,432 units in the same period last year, a decline of 6.2 %. It sold 12,539 units in the domestic market in March 2018, and exported 998 units of the Etios series this month, clocking a total of 13,537 units. Yaris launch is expected to improve situation as currently there is very less sales from Etios brand in small segment while company has no other models in compact cars or sub 4 meter sedans.
The premium cars manufacturer Honda Cars India (HCIL) registered domestic sales of 13,574 units in March 2018, compared to 18,950 units in the corresponding month last year, a degrowth of 28.3 %. This is worrying news for car maker but good part is compared to last year, yearly sales has grown by 8% and launch of new amaze has expectation to bring growth.
Two Wheeler Industry
Honda motorcycles & Scooters India (HMSI) registered staggering growth of 22% over the last year with sales of 6,123,886 units. They are marching ahead to become no.2 two wheeler brand after Hero, trying to dethrone Bajaj Auto.
Royal Enfield posted a strong sales of 76,087 motorcycles in the month of March 2018, closing the financial year by recording a growth of 27 % over the same period last year. Bajaj Auto country’s one of oldest and biggest auto maker reported a 23 per cent jump in total sales at 334,348 units in March against 272,197 units in the same month last year. Overall domestic sales increased 20 per cent to 203,600 units against 169,279 units in March last year.
Riding the growth curve into the month of March as well, Suzuki Motorcycle India recorded a sale of 51,858 units (domestic and exports), with a y-o-y growth of 23.2 per cent over last year. The subsidiary of Suzuki Motor Corporation, Japan, has registered a year-on-year growth of 43 per cent in the domestic market, clocking a highest sale of 501,226 units in FY2017-18.
Commercial Segment (Heavy Vehicles)
Commercial segment mainly dominated by two giants Tata Motors and Ashok Leyland has seen many new entrants and also success. While TATA motors continues its rank as 5th world’s largest commercial vehicle manufacturer.
Tata commercial vehicle has seen growth of 37% while sold 49174 units in march 18. New rules and pay load increase is helping TATA growing more as it’s most sought after brand while used in heavy usage in commercial segment.
Second biggest manufacturer Ashok Leyland continued its growth run in March, with a surge of 20 per cent. The CV manufacturer posted total sales of 22,453 units, compared to sales of 18,701 vehicles in the same month last year. Medium and Heavy Commercial Vehicles were up by 12 %, with sales of 17,057 units, compared to 15,277 units in March 2018.
A Volvo Group and Eicher Motors joint venture, VE Commercial Vehicles Ltd. recorded the highest ever sales for a month with 9411 units in March 2018 as compared to 7327 units in March 2017, recording a growth of 28.4%. This includes 9245 units of Eicher brand and 166 units of Volvo brand. Eicher branded trucks & buses have recorded sales of 9245 units in March 2018 (YTD 64866) units) as compared to 7088 units in March 2017 (LYTD 57566 units), recording a growth of 30.4%.
M&M registered 11% growth with sales of 25496 units. Their HCV products catching up market while manufacturer continues innovation for giving better product.
While all this has been done, in month of May predictions are good and everyone is betting big on new launches to increase sales as well as market share.
*Note : all data taken from company financial results and news websites, figures and images are property of their respected owner.