India July. Maruti down 36.7% while market signs the 4th consecutive double-digits drop

Indian Autos Market

Indian Autos Market was hit by a large drop in July, registering 201.827 units (-30.2%). Maruti, the leader holding 47.8% of share, declined 36.7%. The negative trend was held by the entire Top 10, except for Volkswagen, which improved by 2.2%.


Economic Environment

Indian economic growth appeared subdued in April, although it was still likely stronger than in March. The private sector PMI averaged markedly lower in April than it did in the previous three-month period on weaker demand growth, in addition to disruption stemming from the general election. The weather also likely had an impact as workers toiled in sweltering temperatures in May.

Moreover, there was lower-than-average rainfall in June, the first month of the four-month monsoon season, which will have hit the agricultural sector. In politics, the government unveiled its final budget for FY 2019 on 5 July. The budget outlines a 13.3% spending increase, which is unchanged from the interim budget presented in February.


Market Trend

Indian vehicles market is the 5th largest in the World and is very close to outpace Germany for the 4th. In the last five years the market has taken a stable growing pathway hitting the all time record any year.

In the 2017 and 2018 the automotive industry was affected by the new Automotive policy, effective from July 1st 2017, having the Government changed vehicles duties aiming to sustain vehicles of reduced dimensions (below the 4 meters) and to reduce the emission level. However, According to data released by the SIAM, the local association of manufacturers, the 2017 ended with 3.223.429 car passenger’s sales, first time above the 3 million and up 8.7%.

In the 2018 the car passenger’s market reached a new all-time record ending with 3.381.696 sales (+4.8%), not including light commercials. However, after a spectacular start, closing the first half up 13.2%, the second part of the year have weakened due to a fall in Rupee and an increase in interest rates and fuel prices.

The very beginning of 2019 with January’s sales at 279.758 down 1.7%, was due to the weak growth of recent months. While February sales were up 3.1%  with 271.618 units.

In March sales dropped down 2.5% with 290.586,  leading to Q1 sales slightly negative (-0.5%) with 841.962 units.

In April the market keeps on falling (-16.3%), reaching 248.717 units sold. In May, the scenario has not improved (-20.3%) with 239.033 units, as well as in June (-17.5%) with 224.095 units.

In July, registrations fell sharply down (-30.2%) with 201.827, leading year-to-date figures at 1.755.141 (-13%).


Market Outlook

After the positive performances of the recent years, the Indian market continues to be seen improving in the period 2019-2025. Being considered one of the engines of the World’s growth, India will have a strong impact on the global market, together with China. Great attention is concentrated on the next May general elections. However the industry is seen positive across the period 2019-205 when will definitely overtake Germany as fourth market in the World.

Being interested to know more, give a look at this updated research. Clicking on the picture, you can see contents.



Competitive Arena

At brand-wise, year-to-date Maruti scored 881.278 sales (-14.8%) and its 50.1% market share .

Hyundai was second with 298.787 sales (-6.2%) ahead of Mahindra & Mahindra with 145.182 (+4.9%) and Tata – down 21% – with 101.177.

In fifth place, Honda with 92.268 (-10.1%), Toyota with 77.528 (-13.8%), Ford with 47.133 (-21.8%), Renault with 40.458 (-17.3%), Volkswagen with 17.835 (-18.8%) and in 10th place Datsun with 10.570 (-51.4%).

At model wise, the best-selling car is the Maruti Alto with 134.407  sales (-8.4%) followed by the Maruti DZire with 117.454  (-29.3%) and the Maruti Swift with 113.059  (-13.8%).

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Rank 2019Rank 2018BrandSales YTD July 2019Sales July 2019'+/- YTD 2019'+/- Jul 2019Share YTD July 2019Share July 2019

Rank 2019Rank 2018GroupSales YTD July 2019Sales July 2019'+/- YTD 2019'+/- Jul 2019Share YTD July 2019Share July 2019
55Honda Motor92.26810.250-10,1%-48,7%5,3%5,1%
66Toyota Group77.5288.876-13,8%-35,1%4,4%4,4%
77Renault Nissan Alliance54.6174.964-28,3%-45,0%3,1%2,5%
88Ford Group47.1336.284-21,8%-19,6%2,7%3,1%
99Volkswagen Group30.9854.370-14,0%3,5%1,8%2,2%
1011Mercedes Daimler9.4671.401-0,5%-3,3%0,5%0,7%

Rank 2019Rank 2018ModelSales YTD July 2019Sales July 2019'+/- YTD 2019'+/-July 2019
12Maruti Alto134.40711.577-8,4%-50,5%
21Maruti Dzire117.45412.923-29,3%-49,6%
33Maruti Swift113.05912.677-13,8%-36,6%
44Maruti Baleno108.62710.482-13,4%-41,6%
56Maruti Wagon R93.01815.062-7,5%5,0%
65Maruti Vitara73.7055.302-16,1%-62,6%
77Hyundai i2073.1209.012-10,2%-16,7%
814Maruti Eeco67.6919.81441,2%29,5%
99Hyundai Creta66.4286.585-5,8%-36,8%
1018Maruti Ertiga57.0229.22267,4%93,6%
118Hyundai Grand i1056.2755.081-28,8%-52,8%
1210Maruti Celerio46.2764.805-16,8%-34,9%
1316Honda Amaze44.8605.81833,7%-42,8%
1413Mahindra Bolero44.8124.446-18,2%-32,2%
15Hyundai Santro44.4135.309
1611Tata Tiago42.2814.689-21,1%-41,5%
1715Toyota Innova40.8324.865-11,8%-26,7%
1817Renault Kwid33.1472.684-13,8%-46,5%
1919Tata Nexon31.9703.3444,8%-12,9%
2022Mahindra Scorpio28.1012.864-10,3%-26,1%
21156Mahindra XUV 30027.7724.464
2220Ford Ecosport25.0933.137-27,9%-22,4%
2312Maruti Omni20.930-59,0%-100,0%
2425Honda City20.8931.921-20,4%-48,2%
2521Maruti Ciaz20.7902.397-17,0%4893,8%
2624Hyundai Verna19.3761.890-30,5%-43,6%
2731Tata Xenon15.1202.1600,0%0,0%
2823Maruti Ignis15.0371.563-51,1%-54,0%
2933Tata Ace14.4902.0700,0%0,0%
30Mahindra Marazzo14.371956