Auto Sector Downturn Continues – Hyundai, Renault, Kia Excel Against All Odds

Auto Sector Downturn Continues – Hyundai, Renault, Kia Excel Against All Odds

In the PV space Kia, Hyundai, Renault and Volkswagen are reporting positive figures for November; Bajaj Auto has recorded their highest ever exports for November 2019 and Suzuki Motorcycle has also recorded a growth of nearly 24 % for this month

After briefly witnessing upward sales trends in October 2019, the Indian auto sector is once again reporting a drop in sales across segments. While a few segments are performing better YoY, the overall market sentiment remains poor as seen in monthly auto sales data in India. However, Hyundai Motor India is an exception as it appears to be beating the downturn and has reported a growth over last year’s figures for the month of November 2019.

Indian auto major, Maruti Suzuki has sold 150,630 units for the month of November 2019. While its Mini, Mid-Size, UV and Vans segments have reported a drop in sales, the Compact and LCV segments have reported positive figures on a MoM basis. The compact segment that constitutes a majority of Maruti Suzuki’s sales has reported a growth of 7.6 % over figures reported in November  2018. The company retails models such as the new WagonR, Swift, Celerio, Ignis, Baleno and Dzire in this segment. The Super Carry, Maruti Suzuki’s LCV has also witnessed growth over last year’s period with sales up by 6.5 %. Exports for the OEM have fallen by 7.7 % over the same period last year. Overall sales for the Maruti Suzuki in November 2019 fell by 1.9 %, primarily offset by growth witnessed in the compact segment.

Maruti Suzuki has also achieved a new milestone in the month of November 2019, reporting a total sales of 20 million passenger vehicles cumulatively in India. Maruti Suzuki is the only OEM in India to achieve this landmark figure. The company, who has been retailing cars since December 1983, took 29 years to achieve sales figures of 10 million PVs and the next 10 million was achieved in only eight years, marking a tremendous growth.

Other major players in India such as Tata Motors, Mahindra, Honda and Toyota have all recorded an overall dip in sales over the corresponding period last year. On the other hand, Hyundai Motor India has recorded a growth of 7.2 % for the month of November 2019. As per the OEMs car sales report for India, it has recorded domestic sales of 44,600 units and 15,900 units for export with a cumulative figure of 60,500 units in November 2019. The company’s domestic sales grew by 2 %, while its exports grew by 25.2 % over last year’s figures for November. Hyundai has reported that its Grand i10, Nios, Creta and Elite i20 have showcased a good sales performance this month, making these some of the best-selling cars in November 2019.

Mahindra & Mahindra reported sales of 14,637 units in the PV space for November 2019, dropping from 16,188 units in November 2018. The company also sold 17,384 units in the CV space in November 2019 as opposed to 19,673 units in November 2018, recording a drop of 12 % in the segment. The M&HCV segment saw a decline of 26 % in sales. Cumulatively (domestic + export) the company sold 41,235 units in November 2019, as opposed to 45,101 units in November 2018. Veejay Ram Nakra, Chief of Sales & Marketing, Automotive Division, M&M stated that the month after the festive season is usually a lean period for the auto sector. The company is hopeful that the auto industry will witness improved sales numbers for the month of December.

New entrants in India have also been faring well. Kia Motors has been sweeping across the list sitting at the fourth highest sales figure among OEMs for November 2019, with total reported sales of 14,005 units. The Korean auto OEM had previously attained fifth position in the overall sales for the month of October 2019. With the latest figures, the OEM has jumped three slots and is presently sitting ahead of major players such as Honda, Toyota and even Tata Motors. MG, on the other hand, has also been reporting decent numbers with its Hector SUV. The company has reported sales of 3,239 units, which is down from 3,536 units that it had sold in October 2019.

With the launch of two new products the new Kwid and the Triber, Renault India has also bounced back on the charts to grab the last berth in the top five. The company has clocked sales of 10,800 units for November 2019, marking a growth of 76 % over last year’s figures.

Tata Motors has now slipped to sixth position, with figures falling by 39 % for cars sales in November 2019. In the commercial vehicle space, the company has reported a drop in sales by 19 % over the corresponding period last year. Tata Motors has stated that its retail sales were more than wholesale sales by around  15 % and added that this has helped the company reduce network stock by nearly 35 % this fiscal. With new product launches of the Nexon EV, Altroz and Gravitas right around the corner, the company is looking to bounce back from the shackles of this prolonged slowdown in sales. Tata Motors recorded overall sales of 41,124 units in the domestic and international market in November 2019 as opposed to 55,074 units in November 2018.

Another company that has not fared too well, Honda Cars India has reported sales of 6,459 units for November 2019, slipping to the eighth slot in November 2019. Honda had previously sold 10,010 in October 2019 and for 13,006 in November 2018. As per Rajesh Goel, Senior Vice President & Director – Sales and Marketing, Honda Cars Indi posted sales numbers better than their plan for the month.

VE Commercial Vehicles reported overall sales of 3,594 units in November 2019. The joint venture between Volvo Group and Eicher Motors has reported a decline of 23.9 %, with the company recording 4,720 unit sales over the same period last year.

Volkswagen has reported a growth in sales performance for the month of November 2019. The German auto major has recorded sales of 2,937 units in November 2019, with sales improving by 17 % versus the same period last year. Toyota Kirloskar Motor, has also recorded a drop in sales by around 19 %, with domestic sales falling over last year’s period and exports improving. 

In the two-wheeler space, major players such as Bajaj and TVS have been reporting negative growth. TVS recorded sales of 249,350 units in November 2019. The company has reported a drop of more than 50,000 units over last year’s period. In the domestic market, sales fell from 260,253 units to 191,222 units in November 2019. Further, in the motorcycle and scooter space the company has noted a drop of sales in both segments as well.

Bajaj, on the other hand, reported a drop of 14 % in domestic sales and a growth of 18 % in exports. The company noted that in November 2019, it has recorded the highest-ever exports. Overall drop in sales for November 2019 for Bajaj Auto was only 1 % that was primarily offset by buoyant exports.

On the other hand, monthly automotive sales data in India has indicated that Suzuki Motorcycle India has reported an increase in sales over last year’s figures. The Japanese two-wheeler maker has clocked sales of 60,855 units in November 2019, as opposed to 56,531 units over the corresponding period last year. The company reported a growth of 23.39 % this month.