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

Production, sales, and exports in India  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)