Car sales in India (domestic sales) has crossed 3 million sales milestone for the first time in a single calendar year in 2017 as the car makers in India sold a total of 32,29,109 units in the Indian domestic market reporting a growth of 8.85 percent over sales in 2016. Strong demand of SUVs in the UV space attracted the most growth in the passenger vehicle segment. Overall in 2017, over 21.68 lakh cars were sold at a growth of 5.13 percent and sales of Utility Vehicles (UVs) registered sales over 8.70 lakh units at a massive growth of 20.09 percent in 2017. Car manufacturers in India had sold over 20.62 lakh cars and 7.24 lakh UVs in 2016.
Compound Annual Growth Rate (CAGR) in passenger vehicles sales grew by 3 percent in 2017 when compared to 2016. Despite the shift to GST and addition of cess on SUVs and luxury cars by the GST Council, the automakers have managed to post decent growth in 2017. Many automakers do believe that impact of demonetization and GST did slow down the growth rate in 2017 which otherwise would have seen a double-digit growth.
Carmakers market share in 2017 in India:
India’s largest automaker Maruti Suzuki continues to dominate in India with a massive market share of 49.6 percent in the Indian passenger vehicle space. Maruti Suzuki India sold a total of over 1.60 million vehicles in India. In the ongoing financial year the company is growing at almost 15 percent with exports almost similar to that in FY 2016-17. India’s second largest automaker is Korea’s Hyundai Motor India that crossed 5 lakh sales mark for the second time in a row. The company reported a total sales of over 5.27 lakh units and its plants in Chennai are working at full capacity to meet the growing domestic and export demands.
|Top car makers in India (2017)|
|Rank||Company||Jan-17||Feb-17||Mar-17||April – Dec 2017||Total|
|3||Mahindra & Mahindra||20096||20605||25352||176312||242365|
Society of Indian Auto Mobile Manufacturers (SIAM) also confirms that Indian automakers are running at about 60-65 percent of its total production capacity and exports are almost same as that of last years. For many automakers including Hyundai Motor India the focus to meet demands in Indian market has resulted in holding up in exports. Implementation of GST has also seen an adverse affect in car exports from India and the auto industry is still waiting for a tax refund of over Rs 2000 crore from the Government of India.
Indian automobile giants Mahindra and Tata Motors stand at third and fourth place respectively. While for Mahindra it was a year of consolidation and we only saw new facelifts and variants coming in, Tata Motors aggressively launched three new vehicles in 2017 in the form of Tata Hexa, Tata Tigor and Tata Nexon. Both the companies also won the tender to supply government with electric cars in 2017. Mahindra sold a total of over 2.42 lakh cars in India while Tata Motors’ domestic sales stood at 1.91 lakh units. Mahindra has a market share of 7.5 percent in India while Tata Motors market share has gone up to 5.91 percent.
Indian-arm of Japanese auto makers Honda Cars India and Toyota Kirloskar had a decent run in 2017 despite the frequent changes in taxation policy. Both the companies sell hybrid cars in India and with additional cess on hybrid cars, Toyota decided to temporarily halt production of its popular Camry Hybrid sedan. Honda Cars and Toyota’s market share in India in 2017 stood at 5.33 percent and 4.32 percent respectively.
Renault India’s sales in 2017 dropped to just about 1.12 lakh units with its presence in the market going up by 3.48 percent. Renault Captur was launched during the last quarter of the calendar year.
Ford India’s domestic sales have climbed up after the launch of new Ford Ecosport and overall in 2017 the company sold a total of 87,578 units with a market share of 2.71 percent. The company has accelerated its export activities from the country and is now among the top exported from India in 2017.
With interest rates dropping down in December 2017 the outlook for the last quarter of the ongoing financial year remains positive. SIAM believes that passenger vehicles sales will grown at 9 percent by the end of this ongoing FY 2017-18. Starting of the last quarter, all carmakers in India have increased its car prices across range by 3-5 percent due to rising input costs and higher commodity prices.
Globally, India’s has a very good growth rate in the first 11 months of 2017 after Brazil that has reported a massive growth of 55.18 percent by selling over 6.66 lakh cars when compared to a lower base in 2016. Going forward SIAM, Auto industry is all gearing up for Auto Expo 2018 which is when many future cars and SUVs will be showcased and expect some big announcements from all participating car makers.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.