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
2016/08/30
- India Market Overview
- Passenger vehicle market by segment: Small SUV sales grow
- Passenger vehicle market by manufacturer: Honda's shares plunges, strong Kwid sales result in expanded share for Renault-Nissan
- Passenger vehicle market sales rankings by model: Maruti Suzuki occupies the top 3 positions
- Export units by segment: 756,000 units in fiscal year 2015-16, year-over-year increase of 6.7%
- Export units by manufacturer: Hyundai continue to decline, Ford and VW increase
- Top passenger vehicle exports
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
FY2010-11 | FY2011-12 | FY2012-13 | FY2013-14 | FY2014-15 | FY2015-16 | April-July | |||
---|---|---|---|---|---|---|---|---|---|
FY2015-16 | FY2016-17 | ||||||||
Production | Passenger vehicles | 2,982,772 | 3,146,069 | 3,231,058 | 3,087,973 | 3,221,419 | 3,413,859 | 1,125,081 | 1,175,718 |
Commercial vehicles | 760,735 | 929,136 | 832,649 | 699,035 | 698,298 | 782,814 | 235,981 | 268,682 | |
Total | 3,743,507 | 4,075,205 | 4,063,707 | 3,787,008 | 3,919,717 | 4,196,673 | 1,361,062 | 1,444,400 | |
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 |
Commercial vehicles | 684,905 | 809,499 | 793,211 | 632,851 | 614,948 | 685,704 | 199,552 | 218,809 | |
Total | 3,186,447 | 3,439,338 | 3,458,226 | 3,136,360 | 3,216,184 | 3,475,382 | 1,075,513 | 1,175,648 | |
Exports | Passenger vehicles | 444,326 | 508,783 | 559,414 | 596,142 | 621,341 | 653,889 | 201,541 | 220,665 |
Commercial vehicles | 74,043 | 92,258 | 80,027 | 77,050 | 86,939 | 101,689 | 33,411 | 36,364 | |
Total | 518,369 | 601,041 | 639,441 | 673,192 | 708,280 | 755,578 | 234,952 | 257,029 |
Source: SIAM | |
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. |
Related Reports:
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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