Year 2019 Passenger Vehicles Sales Analysis – India

Year 2019 in numbers

With Indian economic growth in tailspin, 2019 saw one of the worse decline in passenger vehicles sales.

Manufacturers

1. Almost every major PV manufacturer suffered from 2019 consumption demand slowdown

2. Luxury market too saw a decline in demand by 13%

3. New product launch which helped respective manufacturer to fair better than industry decline : Hyundai Venue, Mahindra XUV300, Mahindra Marazzo, Nissan Kicks and Renault Triber

Body style

1. Almost all segment witnessed de-growth and slight growth in UV segment is due to new or upgraded product launch

2. MUV growth was powered largely by new generation Maruti Ertiga and its derivative XL6 and to certain extent by Renault Triber

3. SUV growth can be attributed to Mahindra XUV300 & Hyundai Venue in lower price band and MG Hector & Tata Harrier in middle price band

Sedan – sub segments

Monocoque Chassis SUV – sub segment

Ladder Chassis SUV – sub segment

Hatchback

MUV

1. Diesel penetration was at its peak in 2012 when diesel was highly cross subsidized

2. With narrow difference in petrol diesel price, low running cost of diesel is not good enough to offset higher purchase cost of diesel cars over petrol ones

3. Thus higher inclination for petrol cars in recent times

1. Petrol penetration has improved across the segments

2. Diesel is still preferred choice for large MUV and SUV

1. 1200cc petrol engine is still dominant due to differential tax structure

2. Large diesel engine spread is quite uniform due to UV segment

1. Maruti-Hyundai together dominates 78% of the petrol powered car

2. With 1.25L FCA diesel engine gone, Maruti’s lion share in diesel segment is up for grab for other players

3. But do other players have the capability to capitalize on Maruti’s loss or will the share go up in thin air

1. 81% cars sold in Indian market were having a price tag of under ₹ 10 Lakhs (Ex-showroom)

2. High indirect tax rate makes India a low value car market, as major chunk from buyer’s valet goes to Government(s)

3. Only 6% buyers could afford a car that cost more than ₹ 15 Lakhs (Ex-showroom)

4. This indicates low level of purchasing power, wealth growth and higher wealth concentration in hands of few

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