India Market Analysis: Record sales in fiscal year 2015-16, strong trend continues in current year
Sales growth for small SUVs, strong results for Suzuki, Hyundai, and Renault
India Market Overview
India domestic automobile (passenger vehicles + commercial vehicles) sales set a new record in fiscal year 2015-16 (April 2015-March 2016) with 3.48 million units (8.1% year-over-year increase). This was a result of robust economic growth, aggressive marketing of new cars by each company, and falling fuel prices.
The sudden introduction of the "Infrastructure Objective Tax (Infrastructure Cess): Tax rate 1-4%)" for automobile sales by the government in April, the beginning of the 2016-17 fiscal year, is expected to have a significant impact. From April to July 2016 a total of 1.18 million units were sold, a 9.3% y/y increase. This is attributable to factors including continued economic strength and rising wages.
The Society of Indian Automobile Manufacturers (SIAM) predicts that total passenger vehicle sales for FY 2016-17 (passenger vehicles = passenger cars + utility vehicles + vans) will increase 6-8% y/y (as of April 2016). Sales of utility vehicles, for which new models will continue to be launched, are expected to grow more than other passenger cars such as sedans/hatchbacks.
Exports have been growing steadily, with a rise of 756,000 units in FY 2015 - 16 for a 6.7 increase y/y. In the total for April-July 2016, there was a 9.4% y/y increase of 257,000 units, and the uptrend is continuing.
In addition, automobile production exceeded 4 million units for the first time in 3 years due to record domestic sales and exports of 4,200,000 units (7.1% year-on-year increase) in FY 2015-16. In the total for April-July 2016, there was a 6.1% y/y increase of 144,000 units, and the uptrend continues.
Production, sales, and exports in India
|Domestic sales||Passenger vehicles||2,501,542||2,629,839||2,665,015||2,503,509||2,601,236||2,789,678||875,961||956,839|
|Notes; 1.||FY 2015-16 is from April 2015 through March 2016.|
|2.||"Passenger vehicles" means total passenger vehicles including utility vehicles and vans.|
|3.||BMW, Audi, JLR, and Mercedes-Benz vehicles are not included from FY 2012/2013.|
India (Part 1): Auto industry envisions quadrupling in next ten years (Jan. 2016)
India (Part 2): Suzuki builds new plant and sets up premium car sales channel (Jan. 2016)
India (Part 3): Tata rebuilding passenger car business (Feb. 2016)
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