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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 :-
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.
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.
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.
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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