Car Sales in March 2016 - IBB Review
The month of March has been a good year for the auto industry in general. After the rise in auto prices owing to the new budget, the sales were expected to be relatively low. But surprisingly, the auto industry experienced a growth of about 5% in March! Some of the contributors to this were Mahindra and Renault. These companies not only stood out but were also among the biggest gainers of March 2016 and this was achievable owing to a couple new car launches.
This month’s trend indicated that it was the bigger model cars that are doing better than entry-level and compact hatchbacks. A growth was also visible in mid-sized sedans like the Honda Amaze and Dzire. On the other hand, entry-level hatchbacks like Alto, Eon and Nano saw a decline.
Although small cars are much favoured in the country, now the trend is towards shopping for cars that offer more space and the ones which are slightly on the bigger side.
Being the end of the financial year, a lot of companies revved up their sales plans and strategized to drive up more sales and thus attain their target and goals.
Here’s presenting to you some of the Winners and Losers of March 2016, let’s see who achieved their targets:
Maruti Suzuki, an already popular brand in India, had one of its best months in March 2016. The company sold around 118,895 units which is higher than the previous month. The launch of the new Vitara Brezza is what has aided numbers. In the first month, over 5500 cars were dispatched to dealers.
A new segment of cars, the crossover SUVs – the car with the looks of an SUV and a hatchback combined, is also doing well thanks to the Mahindra KUV100. The car and the segment both are still fresh out of the box but that hasn’t stopped the buyers. Over 5000 dispatches were made to dealers in March as opposed to 4500 in the previous month, February 2016.
A smart looking vehicle designed especially for Indian customers with highly competitive pricing, the Renault Kwid has taken the market by storm. Buyers are waiting in line and lapping up every car available. Even with the increase in production, there is a waiting period of over three months. This car has been a game changer for Renault! Renault has sold approximately 9743 units of the Kwid in March 2016.
The luxury car builder, Volvo, with a year over year growth stood out this March. With the release of the new S60 Cross Country and with 7 models in the market, the car sales are picking up. Hopefully the increase in sales will encourage Volvo to assemble cars in India – unlike counterparts, Volvo cars are entirely imported coming to India either the CKD or CBD route.
Toyota Innova sales were expected to drop sometime soon and it happened in March. The numbers of units sold are 2805 and are only likely to depreciate in the following months. The production of the Innova has stopped and the final lots have been dispatched to dealers all across the country. This was expected and the reason is that the older models were being phased out as Toyota is gearing up for the launch of the new Toyota Innova Crysta very soon.
To keep the Nano at par with competitors, Tata is constantly brushing up on the models. The facelift is competitively priced, loaded with features, has decent looks and comes with automatic transmission. Even with all this, this vehicle is just not cutting it for Tata Motors. The number of units sold is 732 much less than its nearest rivals.
Maruti Suzuki Swift, one of the favoured cars of the Indian market sold only 16,722 units and the sales dropped by 13%. But other two models – the Dzire and Wagon R exhibited a hike in sales by 4 and 5% correspondingly.
Hyundai Motors with three cars in their list, managed to only get fairly good results from one car which is the Elite i20. The other two vehicles – Eon and Grand i10 saw a decline in sales of 17% and 19%.
The light steering for in city driving and the powerful engine of the Honda Amaze has upped sales by 10%. The evergreen Honda City is still doing its rounds in the market and contributed to 3% of increase in sales.
To sum up
Automobile manufacturers these days and trying to capture the market by providing the maximum in terms of features, looks, style and size. Gone are the days when SUV prices were sky high and not affordable – now with the launch of the new crossover SUVs and cars, vehicles are affordable and serve multiple purposes including storing luggage during family trips. Not to mention the added comfort feature of a SUV is also present. These vehicles are increasingly popular due to the fact that they are available in automatic transmission and also very easy to zip around the city. The factor of parking also does not pose much of an issue as these cars are not overly big. All these reasons combined, the purchase decision of buyers has made way to this new segment. Therefore, cars like the Honda Amaze, Mahindra KUV100 and Maruti Suzuki Vitara Brezza saw an overshot of sales!
March 2016 sales have been all embracing this year and like mentioned earlier, the longing for customers to exercise choice of choosing bigger and premium cars has grown in the past year.
The choice of choosing the right SUV is not simple but visiting IndianBlueBook, there is ample information about cars which are going to release, which have been released and much more. This will definitely aid in making your decision-making and help you choose better.