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   India Infoline Sector Reports Thu, 11-Dec-2003 11:57:28 IST (GMT+5:30)
   Automobile - Cars

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Industry Structure

The Indian car industry can be classified, based on the price of the car, into the 'small' car or the economy segment (upto Rs0.25mn), mid-size segment (Rs0.25-0.45mn), luxury car segment (Rs0.45-1mn) and super luxury car segment (above Rs1mn).

The models in the car market can be fitted to different segments as given below :-

Category

Models

Economy segment (up to Rs0.25mn)

Maruti Omni, Maruti 800, Padmini

Mid-size segment (Rs0.25-0.45mn),

Premier 118NE, Ambassador Nova, Fiat Uno, Zen, Hyundai Santro, Daewoo Matiz, Tata Indica, Maruti 1000, Contessa

Luxury car segment (Rs0.45-1mn)

Peugeot 309, Tata Estate, Tata Sierra, Maruti Esteem, Ceilo Executive, Honda City, Mitsubishi Lancer, Ford Ikon, Opel Astra, Fiat Siena, Opel Corsa, Daewoo Nexia, Hyundai Accent

Super luxury segment (Above Rs1mn).

Mercedes Benz and other imported models

The demand for passenger cars can be segmented on the basis of the user segment as those bought by taxi operators, government/non government institutions, individual buyers etc. A major portion of the demand in India accrues mainly from personal vehicle owners. 

The distribution of car sales in FY2000 in terms of the above mentioned segments is as given in the chart below.

Segment

Market Share (%)

Economy

90.2

Mid size and Luxury

9.8

Source : SIAM/Auto Car India

The table shows that sales in the economy segment still rules the roost with a large number of entrants purveying their wares in the segment and with a great degree of success too. However, in the past several months, sales in the mid-sized car segment has also picked up thanks to the wider choice set available and a steady rise in income levels. A look at the table below will suffice.

Month

Economy cars

Mid-sized cars

% of mid-sized car sales

Aug-99

51,355

4,858

8.6

Sep-99

52,113

5,394

9.4

Oct-99

44,065

3,250

6.9

Nov-99

47,299

3,678

7.2

Dec-99

45,300

6,533

12.6

Jan-00

45,503

6,141

11.9

Feb-00

47,322

6,828

12.6

Mar-00

59,259

10,101

14.6

Apr-00

45,654

7,587

14.3

May-00

43,396

7,447

14.6

Source : Auto Car India  

The last ten months saw sales in the small/economy car segment stagnate while that in the mid-sized category have picked up barring a two-month period of October and November 1999 when it fell below 4,000 units. If the percentage of mid-sized cars sold in August 1999 was 8.6% it jumped to 14.6% in May 2000.

Regionwise car sales

In terms of car sales by region, the north leads by cornering 43.9% of the total car sales in 1998 for which latest data is not available. The western and southern regions come second and third with a market share of 25.3% and 19.5% respectively. The distribution of sales in terms of region is as given below.

 

States

Quantity in Nos.

North Zone

 

Delhi

45,832

 

Himachal Pradesh

3,302

 

J & K

4,308

 

Punjab

20,376

 

Haryana

9,004

 

Chandigarh

14,512

 

Uttar Pradesh

23,054

West Zone

 

Goa

2,716

 

Gujarat

20,925

 

Madhya Pradesh

9,387

 

Maharashtra

28,334

 

Rajasthan

8,149

South Zone

 

Andhra Pradesh

10,640

 

Karnataka

14,190

 

Kerala

11,263

 

Pondicherry

25

 

Tamil Nadu

17,366

East Zone

 

Assam

3,349

 

Bihar

6,319

 

Orissa

3,064

 

West Bengal

14,985

 

Tripura

120

 

Sikkim

111

 

Nagaland

1,367

 

Mizoram

359

 

Meghalaya

404

 

Arunachal Pradesh

674

 

A&N Islands

13

 

Manipur

113

 

Others

63

 

Total

274,324

Source: SIAM  (Note: The above given figures are exclusive of Maurti Udyog sales and exports)

Delhi leads the others in terms of sales with 38% of sales in the northern region happening there. Its share of nationwide sales is 16.7%. Maharashtra follows next with 10.3% of national sales. 

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