India (Part 2): OEMs plan to launch models with strong local potential

Stagnant Tata, Mahindra, GM, Ford and VW strive to gain market share

2014/10/31

Summary

 This report on India (Part 2) contains recent activities of OEMs operating in India. They all see great growth potential in the Indian market. Many automakers plan to launch new models and have announced medium- to long-term plans to strengthen their respective businesses and market share in India. Indian manufacturers such as Tata Motors and Mahindra & Mahindra are suffering from stagnant market share growth for the past three to four years. Foreign manufacturers such as GM, Ford and VW are also aiming to expand their market share. Thus, competition in the Indian market is expected to be fiercer.

 In October 2014, the market leader Maruti Suzuki launched the CIAZ mid-size sedan. While small cars will continue being its main line of products, Maruti Suzuki plans to expand sports utility vehicle (SUV) and multiple purpose vehicle (MPV) lines as well. The company is also considering launching light commercial vehicles (LCVs). Hyundai Motor will reduce export to Europe starting in FY 2014-15 and increase production of all-new models for the local Indian market.

 Among the local automakers, Tata Motors has been losing market shares because of sluggish sales of the Nano and supply shortage of other all-new models. The company has now decided to launch a broad range of models. Mahindra & Mahindra, another local automaker, is strengthening its area of specialty, the utility vehicles (UVs).

 As for Japanese automakers, Honda is doing well due to successful sales of all-new models that were launched in the past few years. Toyota reportedly will renew IMV (Innovative International Multi-purpose Vehicles) series of SUVs and minivans and is developing mid-size passenger cars. In March 2014, Nissan launched the Datsun GO, a strategic model for emerging markets, but it only sold 8,503 units in April-September 2014. Isuzu plans to start local production of pickup trucks in India in 2016.

 Among European and American automakers, General Motors, Ford and Volkswagen (VW) have been losing their shares. They are now planning to regain lost ground by launching new models that are compatible with India's market.

CIAZ Zest
The CIAZ mid-size sedan launched in October 2014 by Maruti Suzuki (all photos in this report were taken during the Auto Expo 2014 held in February 2014). The Zest compact sedan launched in August 2014 by Tata Motors
Etios Cross Adra Concept
The Etios Cross, Etios-based crossover model launched in May 2014 by Toyota The Adra Concept developed by GM to compete against Ford EcoSport and Renault Duster


 Please refer to the following reports about the recent trends of Maruti Suzuki, and an overview of India's market and automobile segmentation by Society of Indian Automobile Manufacturers (SIAM):


Related Reports:
Suzuki: Plans to sell 3 million units in India and increase local ASEAN production (October 2014)
India (Part 1): Extension of reform measures drives sales growth (October 2014)