28th January 2024, 16:43
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| 2023: Brand-by-brand analysis of the Indian passenger car market 2023: Brand-by-brand analysis of the Indian passenger car market  With COVID-19-induced supply-side constraints behind, the Indian passenger vehicle industry grew by 8.3% in 2023 and crossed a new milestone of 4 million. The first time the Indian market clocked over 10 lakh unit sales was nearly two decades ago, in 2004. The addition of the next 10 lakh came quickly at a CAGR of 15%, despite the global recession. From there on, every additional 10 lakh mark was added at a much slower pace. 2023 has been a growth year for the Indian passenger vehicle industry, and from here onwards, we will focus on how individual brands have performed. The following sections will cover different aspects and dimensions of sales performance.
Last edited by pqr : 28th January 2024 at 17:43. |
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28th January 2024, 16:45
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market 2023 : Brand-wise growth  Volume and market share growth matrix Both of these parameters are captured in the two dimensions of the above graph, which gives a clear picture of overall performance. In addition, there is a market share and average car sales price graph to indicate the positioning of each brand in 2023.
Last edited by pqr : 28th January 2024 at 18:12. |
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28th January 2024, 16:49
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market 2023 : Body-style snapshot  SUV and crossover body-styled products have become the permanent flavor of the Indian passenger vehicle industry. Any product borrowing design inspiration from a 'brick' under the shoulder line is bound to succeed with high ground clearance, with the promise of garnering a higher car sales price too. The MUV segment remained stable with a limited product line-up. The hatchback segment continues to lose market share in 2023, along with the sedan category.  Maruti clearly dominates all body style segments, except SUVs and crossovers. Maruti reached close in the SUV/crossover segment, but then Maruti lost due to Jimmy’s sales underperformance, and Mahindra stood at the top of the podium due to some real SUVs in its portfolio.  These sets of graphs give a picture of whether brands have been choosing the right baskets to keep their eggs in.
Last edited by pqr : 28th January 2024 at 18:14. |
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28th January 2024, 16:51
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market 2023 : Fuel-mix snapshot 
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28th January 2024, 17:00
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market Legacy brands celebrating best year ever in 2023 Mahindra
 After a decade of stagnation and numerous product failures, Mahindra has uprooted a lot of non-performing old-timers from its top deck in 2020. Gave charge to the CFO (Anish Shah) to run the company along with the CMO (Rajesh Jejurikar). Top-down deep surgery was painful for many V-suite executives, but growth in the past three years has been equally remarkable. 2023 was the year of the highest ever sales for Mahindra, and it continued expanding production capacity through a huge capex budget to fulfill the long waiting list for some of its products. 2023 Product performance  The biggest growth driver for Mahindra in 2023 was Scorpio N. Scorpio (now Classic) used to be the darling of the semi-urban and rural Indian markets; however, with the changed value proposition of Scorpio-N, the Scorpio brand was able to attract customers for its non-traditional urban Indian market, thus the average sales of both put together zoomed past the 10,000 monthly mark. Another big boost to Mahindra’s sales came from the introduction of the RWD version of Thar. Very few buy Thar for its intended off-road credentials, and the large majority buy it for show-off and cheaper RWD, does that job pretty well—another great product strategy and execution from Mahindra for 2023. XUV 700 growth was in the slow lane as it reached its near peak, and Scorpio too took away some numbers due to its macho looks. Bolero was doing well in terms of growth with the renamed TUV 300 facelift (Bolero Neo). The surprise for 2023 was the revenue generated by the newly launched XUV 400 here, even with dismal sales numbers. The reason is the low GST of 5% on BEVs, resulting in carmakers pocketing a major chunk of the price as revenue vs. governments, and yes, BEVs are more expensive in the first place. Despite the facelift delay, the XUV 300 was nearly in a steady state due to huge discounts. Marazzo is nearly dead, but Mahindra still doesn’t want to pull the plug. It seems like someone’s sentiment is attached. Toyota
 Nearly a decade later, Toyota has been celebrating its best year in 2023 with over 2 lakh car sales. Nearly 42% of sales this time came from Maruti’s cross-badged products (Glanza, Hyryder, and Rumion). The partnership between Toyota and Maruti is working quite well now and benefiting each in a different way based on who is charging what royalty on a product, technology, or production facility. This is why, by mid-2023, Toyota has started 3rd shift production at its existing plant to sell more cars to customers and to Maruti (the Grand Vitara is produced at Toyota’s plant). Cross-badge products help Toyota in India keep its production plant running at full capacity, and Toyota’s dealers get to sell more cheap cars, thus spreading their fixed cost over a larger volume. 2023 Product performance  Since the Qualis-Innova transition in 2005, Toyota has taken the biggest bet in the Indian market by introducing a monocoque chassis-based Innova with a petrol strong-hybrid engine in 2023. This time Toyota took a calculated risk by continuing to sell the older generation Innova Crysta with diesel MT alongside. But then, the well-equipped hybrid Innova Hycross got great acceptance from the Indian audience again, and Innova nameplate sales were nearly 50% higher than last year, with the hybrid drivetrain contributing 46% of sales. Another highlight was the sales overdrive of the Fortuner, which reached nearly 3,000 sales per month in 2023, decimating whatever competition was left behind. These two products together bring in nearly ₹ 18,000 crore of revenue for Toyota in India. For a limited period, Toyota also sold the Landcruiser (LC300) with an ex-showroom price tag of ₹ 2.1 crore, until Toyota exhausted its entire allocation for India. With the generation transition, Vellfire saw some sales decline as Toyota was not able to deliver it during eight months of the year. Camry became the biggest beneficiary of Skoda Superb’s discontinuation in early 2023 and clocked its best ever sales in India at 1,818 units. Now coming to cross-badge products from Maruti, Glanza achieved 52% higher sales in 2023, though there were good discounts throughout the year as the hatchback segment was under pressure. 55% of Hyryder sales came from strong-hybrid, whereas it was limited to 11% in the case of Maruti Grand Vitara. The reason is the availability of Hyryder in three variants and the better acceptance of the Toyota badge in the higher price segment. Hyundai
 The biggest goal for Hyundai in 2023 was to secure the #2 position in the Indian car market, which came under threat in 2022 due to the resurgent Tata. Hyundai has updated its entire product line-up in 2023, except for its best-selling Creta. To future-proof its #2 position, Hyundai acquired GM’s defunct Pune plant in 2023, which will go on-stream in 2025. 2023 Product performance  Creta had its best year ever, despite Hyundai postponing its facelift by a year in 2023. It was also the second-highest revenue-grossing product in the industry. Venue had marginal growth in 2023 due to the facelift it received in mid-2022. Exter received a very good response due to its feature-rich offering in the new segment, and Hyundai ramped up production to meet demand. Exter certainly cannibalized sales of the refreshed i10, but this is what Exter is meant to do: transition Hyundai from the hatchback segment to the now popular crossover segment. i20 just managed a steady state in a deluge of crossovers. Tucson became another success due to the thoroughly changed value proposition of the new generation, which unlocked a new market size. It clocked 3,692 units in 2023, which is the highest for Tucson in the Indian market ever. Alcazar has been a big flop for Hyundai in recent times. Every new generation of Verna, since fluidic design days, used to top the chart of the executive sedan segment in its launch year. This time also, it was no different in the shrinking sedan segment. But the icing on the cake was its 5-star GNCAP rating, a first for Hyundai in India. They could have always achieved this for other products as well, but they didn’t, for greed. Still, they stayed on the right side of regulation, so it’s basically regulators who are at fault. Spanning over two generations, Aura (earlier called Xcent) had its best sales year in 2023; 78% of those sales came from the CNG version, mostly bought by shared mobility service providers. CKD production of the born-electric Ioniq 5 started in 2023, and it received a good response, given its price and Hyundai’s badge value. Hyundai continues to sell pre-facelift Konas in India for huge discounts, though the new generation went on sale across several markets. But then Kona was an EV guinea pig for Hyundai to test the Indian market. Tata
 Over the years, Tata has also gone through a transformation phase similar to Mahindra. The work culture has changed quite a lot at Tata Motors passenger vehicle division; young performers are put on fast track, and the results are remarkable too. The product and part development timelines have been reduced, and the company has become more result-oriented. That also means more burnout for employees, which is being compensated with better remunerations for performers and an exit door for non-performers. Green shoots are quite visible in Nexon facelifts, dual-CNG tank innovations on Punch and Altroz, and many more. I'm glad to see automakers taking constructive criticism seriously. https://www.team-bhp.com/forum/india...-0-armour.html (Chink in Tata Motors 3.0 armour) 2023 Product performance  Nexon already reached its peak in 2022, and a well-equipped facelift ensured minimal transition loss. Due to the additional EV drivetrain, Nexon became the best revenue-grossing product in the market. Though EVs still incur losses for Tata Motors as a whole. EV drivetrain (~40% mix) has also electrified languishing-Tiago sales in 2023. Sales growth for Punch (20% CNG mix) and Altroz (27% CNG mix) came from the addition of the dual tank CNG option. The CNG Tigor had a massive drop in sales (-58%), and the EV version too lost some traction, hence the poor overall show in 2023. The anticipated launch of the Harrier and Safari facelift took a big toll on sales. The updated duo has yet to show strong results, as competition is still tough. Last edited by pqr : 28th January 2024 at 18:23. |
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28th January 2024, 17:03
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market Newcomers commemorating their best year in 2023  Kia and SAIC (MG) entered the Indian market around the same time. Their approach to the Indian market was very different. Kia established the Greenfield plant in India. The first product was developed ground-up for Indian market, followed by another two launches in successive years. The result has been remarkable in the case of Kia, as it reached its full production capacity in a mere 4 years, achieved break-even in 3 years, and gained a market share of ~7% in such a short span of time. In 2023, Kia was working on production capacity expansion and a new product addition plan. SAIC took a different path; they acquired Brownfield GM’s plant, wore MG’s mask due to suspected hostility for Chinese origin, and introduced partially localized products from its global product portfolio rather than developing product ground- up for India. The result too is half decent. Due to the geopolitical situation, SAIC has to find a local partner in the form of JSW in 2023 and eventually dilute its stake to get funds to run the operation. Kia
 In 2020, Hyundai simply blindsided Kia by introducing panoramic sunroof in the Creta second generation, leaving Seltos to struggle to get past 10k monthly sales mark for four years in a row. Finally, Seltos got a panoramic sunroof with the 2023 facelift, and sales clawed back to 10k mark. Sonet sales were down in anticipation of the upcoming facelift. Sandwiched between the Ertiga+XL6 on the lower side and the Toyota Innova on the higher side of the price spectrum, Carens was doing decently well. The EV6 was doing decent numbers for its price tag, even with a high import tax due to its CBU origin. MG
 The Hector Facelift, which has the segment's largest touch-screen infotainment system, gained traction in 2023, coupled with a price cut. Astor was a flop because of its European crossover style. Comet found new homes as a supplementary car in metropolises and urban areas thanks to its tiny size and witty appearance. Comparable to any other BEV, EZS was able to generate extremely high revenue. Gloster is no match for the formidable Toyota Fortuner, even though the Ford Endeavor left the scene long time ago. Last edited by pqr : 28th January 2024 at 18:56. |
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28th January 2024, 17:10
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market Brands that missed the ship in the best year Maruti
 In 2018, Maruti celebrated its best ever sales year, but in 2023, when the Indian market reached another peak, Maruti missed the ship by a margin of 23,782 units. It seems like Jimny was supposed to bring those numbers. Throughout 2023, Maruti’s management has been talking about the strategy to reach back to 50% market share in the future. If truth be told, Maruti has been struggling to hold even 40% of the market in wake of shifting body style preferences and aggressive Korean and resurgent Indian duos. Toyota’s partnership is benefiting Toyota more, and the only solace for Maruti is incremental sales of Baleno in form of Toyota Glanza. 2023 Product performance  Grand Vitara (2022) and Brezza (2022 NG) were the major volume drivers for Maruti in 2023. Swift, in the last year of its PLC, became the best-selling car in the Indian market. Despite huge discounts, Maruti’s rest of the hatchback portfolio witnessed a decline in sales. MUV portfolio was stable, and Ertiga production was down despite good demand for the CNG version. Among new product launches, Fronx was well received in 2023, but Jimny turned out to be a massive blunder from a product planning perspective. Invicto, well, let’s say nobody has much expectation from it, including Maruti thyself. Honda
 Honda had a massive sales gap of 1,18,117 units from its best year of 2015. Several old timers (Indians) holding top positions were fired from Honda India in the past three years, and several new Japanese expat faces were introduced in the run-up to the Elevate launch. An exception was made for the sales and marketing head position, as polycentric staffing works quite well in the Indian context for MNCs having products focused on the local market. Honda discontinued the 1.5-liter diesel drivetrain in 2023, with a plan to launch an electric version of the Elevate in 2025. 2023 Product performance  Elevate had a good start in 2023 despite several shortcomings like a lack of multiple drivetrain choices, fewer features, and so on. It is pretty much visible that long-standing Honda loyalists jumped the ‘City’ bandwagon for ‘Elevate’. Finally, BRV, WRV, and Amaze owners got a worthy upgrade in the form of Elevate because it wears a proper SUV silhouette with upright styling and high ground clearance, even at the cost of fuel efficiency. Despite the timely facelift, the city suffered volume loss because the 4th Generation City and diesel drivetrain were discontinued, and Elevate cannibilized it badly. Amaze was doing decent for what it offered. Nissan
 In the hands of Carlos Ghosn (dubbed the super CEO), Nissan in India never behaved like a Japanese brand and always had to play second fiddle to Renault. After the super CEO’s departure, Nissan is yet to imbibe typical Japanese traits, which are otherwise visible in the work of Toyota, Maruti, and Honda. Nissan in India has been hanging loose by the ‘Magnite’ thread since 2021. De-growth was inevitable in the wake of a competitive landscape, but it is still not so bad. Credit goes to the steady hands of Rakesh Srivastava to steer the boat through the choppy sea. |
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28th January 2024, 17:21
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| Re: 2023: Brand-by-brand analysis of the Indian passenger car market The eternal struggle of western car brands in India  The market share of western car brands in India touched a new low of 4% in 2023. Five remaining western brands have their own stories of struggle in the growth year 2023. Poor understanding of Indian consumers, slow reaction to local market ‘needs’ and ‘wants’, lack of attention, and poor corporate strategy are major stumbling blocks for western brands in India. This culminates from headquarter-based meddling by global staff, expats on reward or punishment postings purporting to ‘know it all’ and their incompetent Indian courtiers. Almost all eastern brands have an ethnocentric approach to hiring for the top position, but look carefully, and one would realize that every eastern brand has a polycentric staffing approach for sales and marketing heads, as the latter know the local Indian market better than foreigners. This has worked quite well for Maruti, Hyundai, Kia, Honda, and Toyota so far. But Western Brand’s ethnocentric staffing approach in the sales and marketing division has yielded poor results for years. Renault
 With a 45% volume drop, Renault is back to square one in India. On top of that, Renault has the lowest average car sales price in India, a most-dreaded positioning from a future growth perspective. Renault-Nissan has a complex operating structure. RNAIPL (Renault Nissan Automotive India Pvt Ltd) owns a factory, produces cars, and sells them to RIPL (Renault India Pvt Ltd) and NMIPL (Nissan Motor India Pvt Ltd), besides exporting. NMIPL and RIPL work as sales companies in India. Here, RIPL MD Venkatarm Mamillapalle comes from a purchasing background, and NMIPL’s MD Rakesh Srivastava, an alumni of IIM Ahmedabad, Maruti, and Hyundai, has hardcore sales and marketing experience. And contrasting sales performance of Renault with three products and Nissan with only one product speaks quite well for their respective leadership; this is a good example of why people as business leaders really matter. 2023 Product performance  Kwid and Triber had been path-breaking products in terms of styling and overall packaging. But then there was a massive drop in sales of either in 2023. All need to be blamed for Reanult being a pathetic parent when it comes to product-life-cycle management. The contrasting performance of the Nissan Magnite and Renault Kiger is another case in point. Kiger looks like a grown-up hatchback, whereas Magnite has the styling of an athletic and sharp-looking crossover with high ground clearance. As mentioned above, people matter. Skoda|Volkswagen
 In 2022, Skoda celebrated its best year in India on the back of two new products launched as part of its revival strategy. However, in 2023, Skoda witnessed a 9% sales decline in the growing Indian market. As a result, another expat sales and marketing head (Petr Solc after Zachary Hollis) was called back home and replaced with another expat (Petr Janeba). The biggest trouble for Skoda Auto a.s. is that it crashed out of its biggest market, China, where sales were reduced to a mere 23,000 units in 2023 from 3,41,000 in 2018. With so many troubles on its plate in the domestic and Chinese markets, VW decided to hand over the Indian market to Skoda in 2018 and play second fiddle. It looks like that is also not working for them. 2023 Product performance  Skoda-VWs 2.0 products were struggling (The real reason why Škoda Kushaq & VW Taigun don't sell - A Case Study) throughout the year, with the exception of Virtus, which witnessed better growth in the declining sedan segment. This is largely attributed to its exterior styling, which is simple yet profound, more specifically the GTI variant. Kodiaq and Tiguan posted their best ever sales, even with a petrol-only engine. The story, though, is contrasting, as the much more expensive Kodiaq is selling 50% more than the cheaper Tiguan. Lack of determination at Skoda’s end resulted in the discontinuation of the Octavia and Superb in the BS6-RDE emission phase. Jeep|Citroen
 There were major leadership changes at Jeep India in early 2023. Aditya Jairaj was appointed as brand head, and Ashish Mansukh was made product planning head. After Ashwani Gupta’s (COO Nissan) departure from Nissan, Aditya Jairaj was also removed from Nissan America. He returned to India as Jeep India head, and in his first interview with Autocar, Hormazd Sorabjee (Editor Autocar India) just shredded his unperturbed story of Jeep India’s future. Ashish Mansukh was product planning head when GM discontinued its business in India and was behind product steering when Nissan Kicks was launched. Kicks died the very next day of its launch. The combined performance of both can be seen in Jeep India’s sales drop of 50% in 2023. Citroen introduced two more mass-market products in 2023, and each turned out to be a dud. During the festive season, Citroen India head Saurabh Vatsa was removed, another GM India alumni. At times, some believe that Citroen India doesn’t have a dealership footprint big enough to sell cars like other brands do. The fact is, at the time of product and business case planning, the right network size is also determined along with the timeline of expansion. There is a big consulting industry in India that advises on the right channel size across industries, for big bucks, of course. And the Indian passenger vehicle industry is very mature in terms of data for planning, as of now. The planning of Citroen’s Indian network was done way back in 2019, but execution was as pathetic as the planning itself, as Citroen India has left over talent pool of the industry. 2023 Product performance  Despite the launch of the FWD-9AT drivetrain combination, Compass was struggling throughout 2023 because it was outpriced in the segment and cramped interiors worsened its value proposition. Launched in 2022, Meridian turns out to be another massive flop from Jeep. https://www.team-bhp.com/forum/india...oen-india.html (Citroen C3 Aircross | Dead on Arrival | What now for Citroen in India?) Citroen has the worst product planning in the whole Indian industry. Period. Last edited by pqr : 28th January 2024 at 19:26. |
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29th January 2024, 04:47
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29th January 2024, 10:39
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29th January 2024, 12:02
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29th January 2024, 12:56
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