Indian Autos Market in 2019 fell down 7.4% after the previous year’s all-time record, hit by deceleration of domestic economy, increased fuel price, higher interest rate. While Maruti control almost 50% of the market, the new player, Kia, already gained a place among the Top 10.
Economic Environment
Indian economic growth slowed to a six-and-a-half-year low in Q2 FY 2019, which ran from July to September, as fixed investment grew at the weakest pace in nearly five years.
Despite recent interest rate cuts by the Reserve Bank of India (RBI), a sharp moderation in bank lending growth weighed on fixed investment. On the other hand, private consumption and government consumption both grew at a faster pace in Q2.
However, consumer confidence and business confidence in the manufacturing sector both decreased in the quarter, pointing to modest private consumption and fixed investment readings.
Market Trend
Indian vehicles market is the 5th largest in the World and is very close to outpace Germany to gain the fourth.
Following five years of continuous vigorous growth, in the 2018 the Indian car passenger market hit the last all time record with 3.38 million sales, despite the introduction of the new National Automotive Plan, in mid year, had blocked the growth.
The industry was also impacted by the fall Rupee value in the international market, by the interest rates increase in interest and by fuel price increase. Consequently, since the last months of the 2018 a new trend – negative this time – is in place and the market is declining month after month.
In 2019 the market pushed the brakes, falling down 7.4% and registering 3.11 million units.
The local manufacturer Maruti, holds nea 50% of market just having progressively increased the quota during the last decade with a record of 51% hit in the 2018. In the 2019 the year to date share is just below 50% well ahead of the followers, three manufacturers producing locally, the Korean Hyundai, second, and the Indian Mahindra and Tata.
However, the key fact of 2019 is the immediate success of the last brand arrived in the market, Kia, already ranking within the Top 10.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
