India: car sales growth slows to 1-3% in FY2012

Suzuki, Honda, Renault-Nissan, Hyundai and Ford boost capacity of diesel engines

2012/11/22

Summary

Vehicle production, domestic sales and exports for India

Market share of passenger vehicles in India

 In FY2011 (from April 2011 to March 2012), India produced 4.04 million vehicles and sold 3.43 million units, which is ranked 6th in the world. However, the growth rate of new vehicle sales slowed down from 28.3% in FY2010, to 7.6% in FY2011, and further to 6.2% in the first half of FY2012. According to the estimate (announced in October 2012) by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales (excluding SUVs and vans) will increase only by 1-3% in FY2012. SIAM says that this is caused by the slowdown of India's economic growth as well as higher gasoline prices due to the lifting of price controls and the persistently high auto loan rate.

 In India, compact cars that are 4 meters or shorter in overall length, which bear a low excise tax accounted for 60% of the market, but the rate declined to nearly 50% in the first half of 2012, while sales of midsize or larger passenger cars and Utility Vehicles including SUVs increased. Various OEMs are introducing a wide variety of new models including compact cars, which are the core models in India, and midsize cars and SUVs.

 The market expansion has been slowing down, but the increase in demand in India is still expected to be large in the future and many OEMs are currently enhancing production of vehicles. Maruti Suzuki, the largest OEM that holds a 38% share of the passenger vehicle market, will build a new plant in Gujarat that is capable of producing 250K vehicles/year in order to prepare the production capacity of 2 million units in 2015-2016. Toyota will boost production capacity of its two existing plants from 210K to 310K units/year while Nissan will increase production capacity of its joint venture plant with Renault to 400K units/year. Isuzu plans to construct a plant that is capable of producing 100K units/year by 2016. Among US OEMs, Ford is currently building a new plant that has a production capacity of 240K units/year in Gujarat.

 As India maintains price controls on diesel fuel, the demand for diesel vehicles that have low fuel cost has been increasing; more OEMs are introducing diesel models in the market and boosting production capacity of diesel engines.

 



Launch of new passenger vehicles: Introduction of SUVs and MPVs is increasing

India: Compact passenger cars to be launched in 2012 and scheduled to be launched in the future

OEM Model Launch Outline
Maruti Suzuki Alto 800 Oct. 2012  The Alto 800 is a compact hatchback. The model is Maruti Suzuki's entry model that replaces the Maruti 800. It comes with a 3-cyilinder 0.8-liter gasoline/CNG engine. The fuel economy of a gasoline model is improved by 15% to 22.74km/L. The price is 244,000-356,000 rupees. Maruti Suzuki plans to export the model to Latin America and Africa starting in January 2013.
Honda Amaze FY2013  The Amaze is a compact sedan based on the platform of the strategy car Brio for emerging markets. The model comes with a petrol engine or a newly-developed diesel engine.
Mahindra &
Mahindra
Quanto Sep. 2012  The Quanto is a compact SUV. It is shorter than 4 meters and, though the model is an SUV, its excise tax rate is equal to that of a compact car. The model comes with a 1.5-liter diesel engine and a 5-speed MT. The selling price in Mumbai is 582,000-736,000 rupees.
GM New
Chevrolet Spark
Oct. 2012  The New Chevrolet Spark is a compact hatchback. It comes with a 1.0-liter 4-cylinder engine and a 5-speed MT. The price of the gasoline model is 326,000-381,000 rupees and that of the gasoline/LPG model is 382,000-415,000 rupees.
Chevrolet
Sail U-VA
Nov. 2012  The Chevrolet Sail U-VA is a compact hatchback. The model uses a platform that Shanghai GM developed for compact cars to be marketed in the emerging markets. GM Technical Center-India in Bangalore spent about two years designing it for India. The model comes with a 1.2-liter gasoline/1.3-liter diesel engine and a 5-speed MT. The price ranges from 587,000 rupees. The sedan version will be launched in the near future.
Renault A Entry
(Code name)
2014-15  The model is a compact car that competes with Maruti Suzuki Alto, Hyundai Eon, and Chevrolet Spark. It seems to come with an 800cc engine.
(Note) 1. The above models are compact cars that are core models in India (less than 4 meters in overall length, engine capacity: less than 1.2 liters for gasoline engines/less than 1.5 liter for diesel engines). The excise tax rate for compact cars is 10% while that for midsize and large vehicles is 22% plus 15,000 rupees per vehicle.
2. The prices of the already released cars are the prices in Delhi unless stated otherwise (same in the following table). In early November 2012, 1 rupee is about 1.47 JPY.

 

India: Models to be launched in 2012 and scheduled to be launched in the future (passenger vehicles not included in the above table. Pickups included)

OEM Model Launch Outline
Maruti Suzuki Ertiga Apr. 2012  The Ertiga is a 3-row, 7-seat compact MPV. The model is designed in Japan for India. With this model, Maruti Suzuki enters the Utility Vehicle segment and also creates a new category of a compact 3-row seat model. The model comes with a 1.4-liter gasoline/1.3-liter diesel engine. The price is 589,000-730,000 rupees for a gasoline model and 730,000-854,000 rupees for a diesel model.
Toyota New Camry Aug. 2012  With the launch of the New 7th-generation Camry, local production began. The model comes with a 2.5-liter VVT-i gasoline engine and a 6-speed AT. The price is 2.38 million rupees.
Nissan Evalia Sep. 2012  The Evalia is Nissan's first multi-purpose vehicle in India. It is a 7-seat model. Its Japanese name is the NV200. It comes with a 1.5-liter 4-cylinder diesel engine and a 5-speed MT. The price is 849,000-999,000 rupees.
Two models
under
Datsun brand
2014  The price of the models are planned to be less than 400,000 rupees.
Renault Duster Jul. 2012  The Duster is an SUV. It comes with a 1.6-liter gasoline/1.5-liter diesel engine. The price is 719,000-819,000 rupees for a gasoline model and 799,000-1.129 million rupees for a diesel model.
Scala Sep. 2012  The Scala is a sedan. The model shares the platform and multiple parts with the Nissan Sunny. It comes with a 1.5-liter gasoline/diesel engine and a 5-speed MT. The price is 699,000-786,000 rupees for a gasoline model and 869,000-957,000 rupees for a diesel model.
Tata Motors Xenon Sep. 2012  The Xenon is a pickup truck. A 2-seat single cab model and a 5-seat dual cab model are available. The Xenon comes with a 3.0/2.2-liter diesel engine. The price of the single cab model ranges from 544,000 rupees and that of the dual cab model from 634,000 rupees.
Safari Storme Oct. 2012  The Safari Storme is additionally introduced to the lineup of the Safari SUV. The model is considered to be the main model of the Safari. The Safari Storme comes with a 2.2-liter diesel engine and a 5-speed MT. It can be shifted to a 2-wheel-drive/4-wheel-drive mode. The model competes with the Mahindra XUV500, Scorpio, and Toyota Fortuner. The price is 995,000-1.366 million rupees.
Mahindra &
Mahindra
New Verito Jul. 2012  The New Verito is a remodeled version of the Verito, which was renamed from the Logan in April 2011, when Mahindra & Mahindra dissolved its partnership with Renault. The model comes with a 1.4-liter gasoline/1.5-liter diesel engine. It competes with Maruti Suzuki DZire and Toyota Etios. The price is 527,000-549,000 rupees for a gasoline model and 626,000-714,000 rupees for a diesel model. The hatchback version will be launched in the near future.
SsangYong Rexton Oct. 2012  The SsangYong Rexton is a high-end SUV of SsangYong Motor, which Mahindra & Mahindra brought under its umbrella in 2011. This is the first time SsangYong model has been introduced in India. The model comes with a 2.7-liter diesel engine and a 5-speed AT/MT. The selling price in Mumbai ranges from 1.967 million rupees for an AT model and from 1.767 million rupees for an MT model.
Hyundai Motors New Sonata Feb. 2012  The New Sonata is a sedan. It comes with a 2.4-liter GDI engine and a 6-speed MT/AT. The price is 1.859 to 2.067 million rupees.
Elantra Aug. 2012  The Elantra is a sedan. With the release of a model in this segment, Hyundai offers a full lineup of models in India. The model competes with the Toyota Corolla and Chevrolet Cruze. It comes with a 1.8-liter gasoline/1.6-liter diesel engine. The price is 1.251-1.474 million rupees for a gasoline model and 1.291-1.585 million rupees for a diesel model.
BMW New 3 Series Jul. 2012  The New 3 Series is a high-end sedan. Four diesel models and one gasoline model are available. Both the diesel and gasoline engines are either 2-liter or 3-liter engine. The selling price in Mumbai ranges from 2.89 million rupees.
Daimler B-Class Sep. 2012  The B-Class is a premium compact hatchback. It comes with a 1.6-liter 4-cylinder engine and a 7-speed dual-clutch transmission. The selling price in Mumbai is 2.149-2.487 million rupees.
VW New Touareg Sep. 2012  The New Touareg is an SUV. The model is one size larger than the former model. It comes with a 3.0-liter 6-cylinder diesel engine and an 8-speed AT.
GM New
Chevrolet Cruze
Jun. 2012  The New Chevrolet Cruze is a sedan. It comes with a 2.0-liter diesel engine and a 6-speed MT. The price is 1.385-1.533 million rupees.
Ford EcoSport Around
Feb. 2013
 The EcoSport is a compact SUV. The model was developed by Ford's Brazil Studio based on the Fiesta. Ford plans to market the model in 100 countries worldwide. It comes with a 1.0-liter Ford EcoBoost engine and a 5-speed MT. The Ecoboost engine has horsepower equivalent to that of a 1.6-liter engine, but its CO2 emission is 140g/km or less. This is the first time the EcoBoost has been introduced in India.

 

 



Maruti Suzuki/Toyota/Renault-Nissan/Isuzu/Ford boost production capacity

India: Major auto manufacturers' production facilities

Plant Annual
production
capacity
(1,000
units)
Models being produced
Maruti Suzuki India Ltd. Gurgaon
(Haryana State)
900 Alto 800, Ertiga, Eeco, Ritz (Splash), Wagon R, Omni (Every), Gypsy (Jimny), Estilo (based on the MR Wagon)
Manesar
(Haryana State)
600→850
(2013)
SX4, Swift, Swift DZire, A-Star (Suzuki Alto/Nissan Pixo)
Mehsana
(Gujarat State)
0→250
(2015)
(To start operations in 2015-16)
Toyota Kirloskar Motor Pvt. Ltd. Bangalore 1
(Karnataka State)
90→100 (2013) Toyota Innova, Fortuner
Bangalore 2
(Karnataka State)
120→210 (2013) Toyota Corolla, Etios, Etios Liva, Camry
Honda Cars India Ltd. Greater Noida
(Uttar Pradesh State)
100 Honda City, Civic, Accord, Jazz, Brio
Renault Nissan Automotive India Pvt. Ltd. Oragadam
(Tamil Nadu State)
400→800
(2015-16)
Nissan Micra (March), Sunny, Evalia (NV200),
Renault Fluence, Koleos, Pulse, Scala
Isuzu Motors India Pvt. Ltd. Chennai
(Tamil Nadu State)
0→100
(2016)
(To build a new plant in 2016)
To produce pickup trucks
Hyundai Motor Sriperumbudur 1
(Tamil Nadu State)
300 Hyundai Santro (Atoz), Accent (Verna), Sonata,
Elantra XD (Avante), Getz (Click), Eon
Sriperumbudur 2 300 Hyundai i10, i20
Volkswagen India Pvt. Ltd. Chakan
(Maharashtra State)
110 VW Polo, Vento,
Skoda Fabia, Rapid
Skoda Auto India Pvt. Ltd. Aurangabad
(Maharashtra State)
30 Skoda Octabia, Superb, Laura, Fabia, Yeti
VW Passat, Jetta, Audi A6, A4, Q5, Q7
Fiat India Automobiles Ltd. Ranjangaon
(Maharashtra State)
200 Fiat Palio, Linea, Grande Punto
Tata Indica Vista
BMW India Pvt. Ltd. Chengalpattu
(Tamil Nadu State)
10 BMW 3-Series, 5-Series, X1
Mercedes-Benz India Ltd. Chakan
(Maharashtra State)
6.2 M-Benz C-Class, E-Class, S-Class, M-Class,
(From 2013) GL-Class
Daimler India Commercial Vehicles Ltd. Oragadam
(Tamil Nadu State)
36 BharatBenz medium-/heavy-duty trucks
General Motors India Pvt. Ltd. Halol
(Gujarat State)
110 Chevrolet Optra, Tavera, Aveo, Cruze,
(From the end of 2012) Micro-van based
on SAIC-GM-Wuling's CN100
Talegaon
(Maharashtra State)
160 Chevrolet Spark, Beat,
Sail U-VA (developed by Shanghai GM)
Ford India Pvt. Ltd. Maraimalai Nagar
(Tamil Nadu State)
200 Ford Fusion, Fiesta, Endeavour, Figo (2013-) EcoSport
Sanand
(Gujarat State)
0→240
(2014)
(To start operations in 2014)

 

India: Local auto manufacturers' production facilities

Plant Annual
production
capacity
(1,000
units)
Models being produced
Mahindra & Mahindra Ltd. Chakan
(Maharashtra State)
320 Mahindra XUV 500, Maxximo, Genio
SsangYong Rexton, Navistar truck
Kandivali
(Andhra Pradesh State)
60 Maxx pickup, Thar
Nashik
(Maharashtra State)
160 Mahindra Scorpio, Bolero, Xylo, Verito, Quanto
Zaheerabad
(Andhra Pradesh State)
85 Bolero Maxi Truck
Haridwar
(Uttarakhand State)
150 Mahindra Gio, three wheelers
Mahindra Reva Electric Vehicles Bangalore
(Karnataka State)
30 Mahindra Reva, Reva L-ion
Hindustan Motors Ltd. Thiruvallur
(Tamil Nadu State)
24 Mitsubishi Lancer, Lancer Cedia, Pajero,
Outlander, Pajero Sport
Uttarpara
(West Bengal State)
25 Hindustan Ambassador, Winner(light truck)
Pithampur
(Madhya Pradesh State)
7.5 Winner (CNG version)
Ashok Leyland Ltd. Encore
(Tamil Nadu State)
150.5 Various models
(From 2013) Ashok Leyland Stile
(sister model of Nissan NV200)
Hosur
(Tamil Nadu State)
Ashok Leyland Nissan Dost
(LCV jointly developed by Nissan)
Bhandara
(Maharashtra State)
CVs
Alwar
(Rajasthan State)
CVs
Pantnagar
(Uttarakhand State)
CVs
Tata Motors Pune
(Maharashtra State)
544 Tata Indigo/Indica, Xenon XT, Aria, Venture,
Safari Storme, CVs, Land Rover Freelander
Jamshedpur
(Jharkhand State)
144 Prima-series trucks, medium-/heavy duty CVs
Lucknow
(Uttara Pradesh State)
90 Buses
Pantnagar
(Uttarakhand State)
500 Tata Ace/Magic
Sanand
(Ahmedabad State)
250 Tata Nano
Dharwad
(Karnataka State)
90 Tata LCVs, ACE Zip, Magic Iris
Tata Marcopolo Motors Ltd. Dharwad
(Karnataka State)
30 Tata Marcopolo buses

 

 



Suzuki/Honda/Renault-Nissan/Hyundai/Ford have been boosting production of diesel engines

 In India, the government lifted the price control of gasoline in June 2010, which resulted in skyrocketing gasoline prices. In mid 2010, the price was around 50 rupees per liter, which was raised to more than 70 rupees in mid 2012. In the meantime, the government continues to control the price of diesel fuel, which is kept at about 40 rupees.

 Therefore, the demand for diesel vehicles has been growing. The ratio of the diesel models among the new passenger cars has increased from about 20% in FY2008 to 50% in FY2011. In order to boost vehicle sales in India, various OEMs have been enhancing the introduction of diesel vehicles and the production of diesel engines.

India: Preparation of production and purchasing structure of diesel engines by each OEM

Suzuki  In January 2012, Suzuki started purchasing from Fiat 100K units of MultiJet (75hp) 1.3-liter diesel engines per year. Fiat supplies the engines from its Ranjangaon plant. Maruti Suzuki is currently producing this diesel engine at its engine plant, Suzuki Powertrain India (SPIL), under license, but the number of the engines produced is not enough. Therefore, Suzuki directly procures the engine from Fiat.
 In March 2012, Maruti Suzuki announced that it would invest 17 billion rupees in the construction of a diesel engine plant within the Gurgaon plant. The diesel engine plant will have production capacity of 150K units a year in mid 2013 with a plan to increase the capacity to 300K units in the future.
Honda  In September 2012, Honda unveiled that it invested 30 billion JPY to construct a diesel engine plant. The plant is to be constructed within the site of its powertrain/stamping plant in Topukara, Rajasthan. Operations will begin in 2013. The new plant will produce around 1.5-liter diesel engines for the Brio, the City and the Amaze, a new sedan based on the Brio. Currently, Honda is not marketing diesel vehicles in India.
Renault-Nissan  Renault-Nissan built a new diesel engine plant within the site of its Oragadam plant in Tamil Nadu State and started production in 2012. The new plant is capable of producing about 400K engines/year. It supplies engines to Renault Scala, Pulse, Duster, and Fluence, and Nissan Micra, Sunny, and Evalia.
Hyundai Motor  In November 2012, Hyundai announced that it would invest USD300 million to build a new engine and a stamping plant within the site of its Sriperumbudur plant in Tamil Nadu State. The new engine plant is a flexible plant that is capable of producing gasoline and diesel engines. Hyundai aims to start operations in FY2013 with a total production capacity of 300K units/year.
Ford  In July 2012, Ford announced that it had boosted the production capacity of its existing engine plant in Maraimalai Nagar by 36% to 340K units/year. The engine plant has production capacity of 260K and 80K units of gasoline and diesel engines per year, respectively. Ford plans to export 40% of the production from the plant in the future as a manufacturing and export hub of compact engines.

 

 



Activities by Japanese OEMs (Suzuki/Toyota/Nissan/Isuzu)

Maruti Suzuki: production facilities

Riot, shutdown,
and reopen at
the Manesar plant
 On July 18, 2012, a riot by some workers occurred at the Manesar plant. The plant was shut down from July 21 to August 20 as the safety of workers could not be assured. On August 21, the plant was reopened to resume operations. Since the leaders of the riot had been arrested and about 500 workers involved in the riot had been fired, Maruti Suzuki determined that the safety of workers could be ensured.
 The Manesar plant produced about 1,700 units a day before the riot and the loss due to the shutdown of the plant is estimated to be 600-700 million rupees per day. Before the riot, the plant employed about 4,500 workers, but in mid-October 2012, it operates with about 3,000 workers (2 shifts); its production volume recovered to 1,400 units a day.
Construction of
a new plant
 In June 2012, Maruti Suzuki announced that it had concluded a basic agreement with the government of Gujarat on the acquisition of a new plant site. Maruti Suzuki will invest 40 billion rupees in the construction of a vehicle plant that is capable of producing 250K units a yea in Mehsana City. Operations will begin around 2015-2016. Since the new plant is close to the port of Mundra, Maruti Suzuki also plans to make the plant into an export base.
Total annual
production capacity
 Maruti Suzuki is currently adding a new production line that is capable of producing 250K units a year to the Manesar plant. Combined with the new plant, it expects to have production capacity of 2 million units/year in 2015-2016.

 

Toyota to boost production capacity to 310K units/year in India in 2013

Production capacity
of 310K units a year
 In July 2011, in line with the expansion of the vehicle market in India, Toyota announced a plan to boost production capacity in the country. Toyota will first invest 4.9 billion JPY to increase the production capacity of its first plant from 80K to 90K units and that of the second plant from 80K units to 120K units by the first half of 2012. Then, it will invest 17.2 billion JPY to boost the production capacity of the first plant to 100,000 units and that of the second plant to 210K units by 2013, thus preparing production capacity of 310K units/year. (It is also reported that Toyota is considering the construction of its third plant.)
Export of vehicles
to South Africa
 In April 2012, Toyota started exporting the Etios and the Etios Liva to South Africa. Both are the strategic models for emerging countries which are manufactured in India. The models customized for South Africa are exported from the port of Ennore in the vicinity of Chennai. Toyota plans to export 20K units/year. This is the first time Toyota has exported vehicles from India. Toyota will utilize India as a supply base of vehicles and transmissions in the future.
Operation of a
gasoline engine plant
 In August 2012, Toyota Kirloskar Auto Parts (TKAP) started operations of a gasoline engine plant within the site of its existing plant. The new plant is capable of producing 100K engines a year. It produces gasoline engines to be used in the Etios and the Etios Liva. The investment is worth about 5 billion rupees. Toyota also seems to be considering the construction of a diesel engine plant as the demand for diesel vehicles has been increasing in India.
Construction of
a transmission plant
 Toyota is also constructing a new transmission plant that is capable of producing 240K units a year. Operations are scheduled to start at the beginning of 2013.

 

Renault-Nissan to boost production capacity of its joint venture plant from 400K units to 800K units a year

Market share target  Nissan is targeting an increase to its share of the vehicle market in India from 1% with 31K units in 2011, to as much as 8% by FY2016. Renault targets to the sales of 100K units a year in FY2013-2014 to take a 5% share of the market.
Production capacity
of 800K units
a year in FY2015
 In March 2012, Renault-Nissan boosted the production capacity of the Oragadam plant in Tamil Nadu from 200K units to 400K units per year. It is reported that Renault-Nissan will build a second plant by FY2015 to increase the capacity to 800K units a year. In 2011, about 80% of the products made at the Oragadam plant were exported. Renault-Nissan will cultivate the market in India in the future with a plan to sell 60-70% of the products in India and to export 30-40% by 2016.

 

Isuzu to introduce pickups in India

 Isuzu announced that it would market pickups in India starting in 2013 (June 2012). The models to be marketed have not yet been identified, but it was reported that the D-Max pickup (the former model) and the MU-7 SUV are likely to be launched. This is the first time a foreign OEM will sell pickups in India. In August 2012, Isuzu invested 300 million rupees to establish a local affiliate, Isuzu Motors India. At the outset, the local affiliate will market the product through the import of vehicles from Thailand or KD production. The 2013 sales target is 1,500 units. It plans to build a new plant that is capable of producing 100K units a year in 2016. Currently, only local manufactures are marketing pickups in India. The scale of the market is about 100K units.

 

 



Activities by Indian OEM (Tata Motors)

Tata activities in its commercial vehicle business

Introduction of six
heavy-duty trucks
 In September 2012, Tata introduced six heavy-duty truck models with a gross vehicle weight in the 31-49 ton-class. It added two new models with engines of a maximum output of 380hp and two new models that come with a 230hp engine to the Prima series - its core medium-/heavy-duty trucks. Tata also introduced a 37-ton cargo truck and a 31-ton dump truck.
Establishment of a
new plant for LCVs
 Tata invested about 9 billion rupees to build a production plant for light commercial vehicles in Dharwad, Karnataka. Production began in June 2012. The plant produces the ACE Zip, a light truck with a payload of 600kg, and the Magic IRIS minivan. The plant has production capacity of 90K units a year with a plan to increase it in the future.

 

 



Activities by European OEMs (Ford/Daimler/VW/Fiat)

Ford built a new plant that is capable of producing 240K vehicles a year

 Ford invested about USD1 billion and started construction of a new plant in Sanand, Gujarat in September 2011. Operations are scheduled to begin in 2014. The new plant is capable of integrated production from stamping, welding, painting, to assembly. A new engine plant will also be built. The production capacity will be 240K vehicles and 270K engines per year. The plant will produce products for India and export. After the new plant starts operations, Ford's production capacity will increase to 440K vehicles and 610K engines in total.

 

Daimler started production of medium-/heavy-duty trucks under BharatBenz brand

Heavy truck  In April 2012, Daimler India Commercial Vehicles completed the construction of a commercial vehicle plant in Oragadam, Tamil Nadu, in which it invested 44 billion rupees. In September of the same year, the plant started production of three heavy truck models (cargo trucks with GVW of 25/31 tons, a 25-ton dump truck) under BharatBenz brand. The three models use the platform of M-Benz's heavy truck - the Axor.
Medium truck  In October 2012, Daimler started production of three medium-duty trucks (cargo trucks with GVW of 9/12 tons, a 12-ton dump truck) under the BharatBenz brand. The three models use the platform of Mitsubishi Fuso's Canter light truck or Fighter medium-duty truck and are designed and localized through the assistance of Mitsubishi Fuso.

 

Audi to boost production capacity from 6K to 9K units

 Audi will invest 30 million Euros to construct a production facility (with production capacity of 3K units/ year) exclusive for Audi models within the site of Skoda's Aurangabad plant. The construction is scheduled to be completed in 2012. Audi will boost production capacity by 50% to 9K units. In 2011, Audi sold 5,500 vehicles in India. It aims to sell 8K units in 2012 to exceed the sales by BMW and M-Benz and to become the top manufacturer of high-end models.

 

Fiat dissolved its alliance with Tata in the field of sales and will also introduce Chrysler models

Revision of the
sales alliance
with Tata
 In May 2012, Fiat announced that it would re-construct its alliance with Tata in the field of sales in India. Their alliance began in March 2006; Tata was in charge of the marketing of Fiat models in India. Fiat will establish a new sales/service company in India in the future. Yet, their alliance in the field of production will continue.
Introduction of
Fiat-Chrysler models
 Fiat announced that it would introduce Fiat-Chrysler models in India in March 2013 or later (July 2012). It says that it would open more than 100 showrooms in India by the end of 2014 to introduce models under all brands including Chrysler, Jeep, and Fiat Commercial.

 

 



In the 1H FY2012, production grew by 3.1% y/y to 1.97 million units while sales in India increased by 6.2% to 1.66 million units

 In India, vehicle production in the first half of FY2012 grew by 3.1% y/y to 1.97 million units. The sales volume in India increased by 6.2% to 1.66 million units. (In FY2011, vehicle production and sales volume increased by 7.8% and 18.2% y/y, respectively.) Both production and sales growth slowed down due to sluggish development of the Indian auto market and Maruti Suzuki's lock-out at Manesar plant for one month following large-scale violence.

 During the same period, exports of vehicles grew by 2.6% to 310K units. As a consequence of the slumping sales in Europe, which is India's largest export destination, and Maruti Suzuki's lock-out, the growth rate of exports fell significantly from 15.7% in FY2011. Most OEMs aim to increase exports further, diversifying its export destinations including Africa and Latin America.

 

Vehicle production, domestic sales and exports for India

(units)
FY2008 FY2009 FY2010 FY2011 Apr.-Sep.
2011
Apr.-Sep.
2012
Production in India Passenger vehicles 1,838,593 2,357,411 2,982,772 3,123,528 1,484,399 1,562,916
Commercial vehicles 416,870 567,556 760,735 911,574 430,793 411,078
Total 2,255,463 2,924,967 3,743,507 4,035,102 1,915,192 1,973,994
Sales in India Passenger vehicles 1,552,703 1,951,333 2,501,542 2,618,072 1,195,559 1,278,763
Commercial vehicles 384,194 532,721 684,905 809,532 371,894 385,673
Total 1,936,897 2,484,054 3,186,447 3,427,604 1,567,453 1,664,436
Exports Passenger vehicles 335,729 446,145 444,326 507,318 260,341 267,544
Commercial vehicles 42,625 45,009 74,043 92,663 43,194 44,017
Total 378,354 491,154 518,369 599,981 303,535 311,561
Source: SIAM (Society of Indian Automobile Manufacturers)
(Note) 1. FY2011 is from April 2011 to March 2012.
2. " Passenger Vehicles" include Passenger Cars, Utility Vehicles (UVs), and Multi Purpose Vehicles (MPVs).

 

 



(Reference) Sales volume in the passenger vehicle market in India by OEM

Sales volume in the passenger vehicle market (including UVs/MPVs) in India by OEM

(units)
2008 2009 2010 2011 Jan.-Sep.
2011
Jan.-Sep.
2012
BMW 2,905 3,619 6,246 8,042 7,152 3,046
Fiat 4,383 22,757 21,950 16,733 14,573 9,938
Ford 28,564 29,452 83,887 96,271 73,796 67,562
GM 65,702 69,071 110,361 111,056 83,672 71,035
Hindustan Motors 10,411 9,757 10,728 5,686 4,820 3,236
Honda 54,136 62,337 62,872 47,548 38,968 57,096
Hyundai Motor 245,397 289,863 356,717 373,709 276,192 294,050
Mahindra Renault 18,976 6,456 8,163 3,289 3,289 0
Mahindra & Mahindra 102,498 143,609 164,496 223,008 161,722 215,345
Maruti Suzuki India 697,850 836,886 1,065,732 997,281 785,478 794,642
Mercedes-Benz India 3,445 3,385 5,819 5,634 5,634 2,284
Nissan 133 7,164 22,893 15,619 38,191
Renault 864 15,836
Tata Motors 231,132 260,113 343,695 350,184 254,516 291,319
Toyota 52,807 54,320 74,762 136,148 95,482 137,537
VW Group 16,188 17,225 55,589 113,869 85,064 82,972
Others 9,324 6,646 8,647 8,032 5,054 5,291
Passenger cars/UVs/MPVs total 1,543,718 1,815,629 2,386,828 2,519,383 1,911,895 2,089,380
Commercial vehicles total 436,436 448,557 652,689 774,906 573,146 622,831
Grand total 1,980,154 2,264,186 3,039,517 3,294,289 2,485,041 2,712,211

Source: SIAM (Society of Indian Automobile Manufacturers)

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