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| India Infoline Sector Reports | Thu, 11-Dec-2003 11:57:29 IST (GMT+5:30) | |
| Automobile - Cars | ||
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July Flash - August 3rd, 2000 In July 2000, the passenger car segment has registered a 16.5%yoy decline in sales to 45,109 vehicles from 52,564 vehicles in July 1999. The decline in sales was led by Maruti Udyog Ltd (MUL), whose sales dropped by 28.4%yoy to 26,797 vehicles during the month. However, this represented a 84% growth over its previous month’s sales of 14,543 vehicles. Also its market share has risen to 60% from 41% in the previous month. The growth was mainly driven by the economy size segment, with Maruti 800 and Omni together recording a total sales of 18,830 vehicles, followed by Zen and Wagon-R with combined sales of 6,552 vehicles. Also the luxury models Esteem and Baleno did well with total sales of 1,415 vehicles. However, this growth figures should be seen in the context that MUL underwent a 15 day shutdown for maintenance purposes during June 2000. Hyundai Motors India Limited has sold 7,265 vehicles in July 2000, as compared to 6,116 vehicles in June 2000, thus recording a 19%mom growth in sales. The company has also posted a 54%yoy jump in sales over its corresponding period last year. Of this, Hyundai’s small car Santro has clocked sales of 5,464 units while its mid sized car Accent has recorded sales of 1,451 units. The company is looking forward to achieve a 15% to 20% jump in turnover during the current fiscal. General Motors has recorded a robust 196%yoy growth in sales to 648 vehicles in July 2000 from 219 vehicles in the corresponding period of the previous year. Of this, Opel Astra and Opel Corsa accounted for 224 units and 424 units respectively. During the April-July period, the company’s sales have gone up by 186%yoy to 2,384 vehicles from 833 vehicles in the corresponding period last year. In June the company had sold 401 units of Opel Corsa and 202 units of Opel Astra. Contrary to the above performances, Honda Siel sales dropped by 28.7%yoy for the month of July 2000. Honda sold 606 units in July 2000 against 850 units in the corresponding period last year. However, when the accumulated figure of the April – July period is considered, the company has recorded a 11%yoy growth in sales to 3,233 units from 2,914 units in the same month of the previous year. The story is the same for Fiat India too. The company posted a fall of 10.6%yoy in volume sales to 1,330 units in July 2000. The company sold 1,012 units of its 'Uno' model and 318 units of its 'Siena' model during the month. Another player in the mid-sized segment, Ford India, has posted a fall in sales in July as compared to last month. The firm sold 1,502 units of its 'Ikon' model as compared to 1,728 units last month. June update - July 27th, 2000 Table 1: Volume sales of passenger cars
Is the euphoria of FY2000 over? It would seem so if the June figures are anything to go by. As expected, the passenger car industry went through a rough period during the month of June 2000. The reason could be directly attributed to the recent implementation of the uniform sales tax rate of 12% across the country. Market leader Maruti Udyog Ltd (MUL) has posted a fall of 34%yoy in sales in June. The company would like to argue that this has something to do with the 15 day long maintenance shutdown in the company's plant. However, the figures for the first quarter also does not add up to anything substantial. Sales are down 17.6%yoy. However, the company has just about managed to maintain its lead in the higher end of the small car segment. During the first three months of FY01, it sold 16,822 units of its Zen model as compared to 16,465 units of Hyundai Santro and 14,836 models of Daewoo Matiz. (Daewoo's plant was also closed for a 7 day period for maintenance purposes) Following them is Tata's Indica with sales of 14,383 units. Sales of MUL's other model - WagonR - has touched 5.765 units for the quarter. Among the losers, is Fiat Uno whose sales have consistently fallen on a month to month basis. Table 2: Volume sales of economy sized cars
In the mid-sized car segment, Ford's Ikon was the market leader with sales of 5,017 units. Following it closely was Hyundai Accent with sales of 4,517 units. In fact, sales of Accent was more than that of Ikon's in the first two months of FY01. However, in June, when all companies faced the brunt of depressed demand, Ikon sales continued to go up. MUL's Esteem has clearly lost its numero uno position and sold only 2,864 units. It's other model Baleno has not enthused the market and sales of the model have fallen from month to month this year. For General Motors India, its Corsa model has given it something to cheer about. Sales have been rising since April 2000 and the recent move to lower the price of its higher end 1.6 liter Opel Corsa by 7% or Rs49,000 will make it more competitively priced at Rs636,000 (ex-showroom Delhi). However, GM's older model - Astra - continues to languish. Yet another model to face a poor market is Fiat's Siena. Clearly, the recent decision to lower its price has not had the required effect and it has more or less been nullified by the rise in sales tax. Honda Siel's sales have also dropped on a month-to-month basis in the first quarter of FY01. Table 3: Volume sales of mid-sized cars
Source: Auto Car India Table 4: Volume sales of multi-utility vehicles
If the story in the MUV segment can be defined in only one word, it is 'QUALIS'. Sans this vehicle, the segment may have well posted a negative growth. Just within the first six months of its entry in the country, the company has succeeded in producing its 10,000 vehicle. It seems that the initial verdict about the model's 'boxy' looks did not hold water for long? Buyers who are going in for the vehicle swear by its driving comfort and overall look and 'feel'. For many, a Toyota Qualis has as much brand value as a Honda City and Mitsubishi Lancer and also falls within a broader price range. Feeling the heat is the market leader M & M. It has seen its sales fall every month in FY01. The only other player to remain in positive territory is Telco. It has recently introduced six new versions of its 'Sumo' model. Each one of these models cater to various segments. One of them is called the 'Spacio'. It is priced competitively and comes with a direct injection diesel engine. This would make it a favorite in the semi-urban and rural areas as running costs would also be low. Sumo's deluxe version has also been upgraded to match the Qualis. The strategy appears to have paid off as the sales figures of 'Sumo' would seem to suggest. Sales of this model has risen by 18.5%yoy to 5,607 units during the three month period. On the other hand, sales of 'Safari' and 'Sierra' have posted a negative growth. To counter this, Telco has planned to launch a refurbished 'Sierra' and a cheaper version of the 'Safari'. May 2000 update - June 28th, 2000 Table 1: Volume sales of passenger cars
The story for May continues to be discouraging for the passenger car industry. Sales have been affected in the later half of the month mainly because of rise in prices effected due to the uniform sales tax regime. Market leader Maruti Udyog Ltd (MUL) has been affected the most as its major market of Delhi and surrounding areas saw a rise in sales tax from 6% to 12%. The company has reported a sales drop of 18.3%yoy. The fall was mainly due to lower sales of its Maruti 800 model. 11,137 units of Maruti 800 were sold as compared to 16,854 units last year. The Maruti 'Omni' also did not fare any better. Sales were 4,557 units as compared to 6,977 units in May 1999. However, the Maruti 'Zen' continues to top its segment with 6,516 units sold as compared to 7,030 units in May 1999. The 'WagonR' has also picked up with sales of 2,221 units. In the same segment, Hyundai Motor sold 5,851 units of its 'Santro' model and the other player, Daewoo Motors, sold 5,830 units of 'Matiz'. Action continued in the mid-sized car segment. May sales in this segment constituted 14.6% of total car sales, up by 6% since August 1999. But here too, Maruti's Esteem continues to fall behind in the competition. The space left by MUL has come to be occupied by the 'Ikon's and Accent's. (Read our article - Big is beautiful) As against sales of 948 units, Hyundai sold 1,710 Accent's and Ford sold 1,697 units of its Ikon model. Honda Siel Cars Ltd has sold 903 cars during the month as compared to 726 models in the corresponding period last year. The news was not good for Fiat too. Fiat sold 1,101 cars during the month as compared to 1,614 units last year. This would indicate that the recent price cut on the company's 'Siena' model hasn't worked out. Daewoo's 'Nexia' and 'Cielo' models trailed behind with just 203 models. During the month, MUL
also announced its results for FY2000. As expected, turnover growth
at 18.2%yoy to Rs96.7bn was good due to higher volume sales.
However, net profit has dipped by a large 36.7%yoy to Rs3.3bn. The
appreciation in the value of yen against the dollar by more than
12% during the year resulting in increased material cost, higher
depreciation burden arising out of investments of more than Rs18bn
made by the company in last two years on expansion and introduction
on new models and the full year impact of the downward revision in
prices effected on January 1, 1999 resulted in profits for the
year Table 1: Car sales in May 2000
Source: Auto Car magazine Table 2: Volume sales of multi-utility vehicles
Similar to what has taken place in the mid-sized passenger car segment, growth in the utility vehicle segment during the first two-months of FY01 has been entirely due to sales of one model, namely Toyota's Qualis. All other players, except Telco, have seen their sales fall during the two month period. The highest fall has been that of Maruti Udyog, perhaps, due to the fact that it has got no new orders from the government. Sales of Bajaj Tempo was affected due to a labor strike during the month and the ensuing loss of production. Market leader M & M's fall in sales could be due to the fact that it has started feeling the heat of competition from its closest rival Telco. The latter has recently introduced six new versions of its 'Sumo' model. Each one of these models cater to various segments. One of them is called the 'Spacio'. It is priced competitively and comes with a direct injection diesel engine. This would make it a favorite in the semi-urban and rural areas as running costs would also be low. Sumo's deluxe version has also been upgraded to match the Qualis. The strategy appears to have paid off as the sales figures of 'Sumo' would seem to suggest. During the first two months of FY01, Sumo's sales have increased by 25%yoy to 3,584 units. On the other hand, sales of 'Safari' and 'Sierra' have posted a negative growth. To counter this, Telco has planned to launch a refurbished 'Sierra' and a cheaper version of the 'Safari'.
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