FADA Journal - January 2017

THREE-WHEELER SALES - DECEMBER 2016

Domestic Sales Dec-16 Dec-15 Growth Y-o-Y (%) Exports Dec-16 Dec-15 Growth Y-o-Y (%)
2,128 428
OEM 13,060 3,950 -46.13 OEM 55 678.18
Atul Auto 3,458 Atul Auto 9,120
Bajaj Auto 9,730 23,204 -43.72 Bajaj Auto 154 18,003 -49.34
Mahindra 734 Force Motors 202
Piaggio 794 4,177 -17.21 Mahindra 180 -14.44
Scooters India Piaggio 1,259
TVS Motor 29,904 13,500 -27.93 TVS Motor 4,599 28 621.43

Total 908 -19.16 Total 15,762 864 45.72

1,155 -31.26 6,865 -33.01

46,894 -36.23 25,995 -39.37

Domestic Sales + Exports

OEM Dec-16 Dec-15 Growth Y-o-Y (%)

Atul Auto 2,556 4,005 -36.18

Bajaj Auto 22,180 41,207 -46.17

Force Motors 154 180 -14.44

Mahindra 3,660 4,205 -12.96 Segment wise (Domestic Sales + Exports)

Piaggio 10,989 14,364 -23.50 Category Dec-16 Dec-15 Growth Y-o-Y (%)

Scooters India 734 908 -19.16 Passenger Carrier 37,140 64,220 -42.17
Goods Carrier 8,526 8,669 -1.65
TVS Motor 5,393 8,020 -32.76

Total 45,666 72,889 -37.35 Total 45,666 72,889 -37.35

TOTAL VEHICLE SALES SUMMARY (DOMESTIC SALES + EXPORTS) - DECEMBER 2016

CATEGORY Dec-16 Dec-15 Growth Y-o-Y (%)

PASSENGER VEHICLES 305,138 292,521 4.31
TWO-WHEELERS 1,110,418 1,382,209 -19.66
COMMERCIAL VEHICLES
THREE-WHEELERS 61,965 65,694 -5.68
QUADRICYCLES 45,666 72,889 -37.35
164.29
37 14

TOTAL 1,523,224 1,813,327 -16.00

Source: SIAM

TRACTOR SALES - DECEMBER 2016

SALES Dec-16 Dec-15 Growth Y-o-Y (%)

Domestic Sales 30,038 27,898 7.67
Exports 6,859 7,686 -10.76
Total (Domestic + Exports)
36,897 35,584 3.69

Source: TMA

January 2017 52

Upgrades & Variants

Tata Motors Unveils New Xenon Yodha Range of Pick-Ups

Tata Motors launched its first product of the year, the new With an output of 53.7 kW (72 HP) in BSIII & 63.4 kW (85 HP)
Xenon Yodha, in the presence of its newly appointed brand in BS IV, the engine delivers high torque of 223Nm in BS III &
ambassador, Akshay Kumar on January 3. 250 Nm in BS IV. For better mileage, the smart pick-up has a
Xenon Yodha comes with impressive features that give it a reliable and rugged gear box, for a flat curve at 1600-2200
competitive edge. The smart pick-up is available in multiple rpm.
variants – 4x2 & 4x4 and in single & double cab options. One of the key highlights of the new Xenon Yodha includes
Powered by a common rail diesel engine, the new Xenon Yodha high gradability, enabling the vehicle to negotiate any terrains
delivers high power and torque, for varied business in loaded conditions, supported by bigger 16-inch tyre. The
requirements, for ease of day-to-day operations. durable body is supported by 4-mm chassis frame, with
Speaking at the launch, Ravi Pisharody, ED – CVBU, Tata reinforcements and a strong rear axle with unitized double
Motors, said “With the introduction of the new Tata Xenon bearing. The additional strong suspension – 5-leaves at the
Yodha, we atTata Motors have a new range of smart pick-up’s, front & 9-leaves at rear, ensures better safety in loaded
which offers customers with a winning combination of high conditions and at high speeds.
profitability and lowest total cost of ownership. The new Comfort & Convenience
Xenon Yodha is an ideal work horse for diverse commercial The Tata Xenon Yodha promises to offer great cabin comfort
usage and with this new range, we are confident of extending with a Power Steering and an adjustable steering column. The
our lead in the LCV category, complementing the success and interior of the new smart pick-up reinforces numerous
popularity of the Tata Ace range of small commercial vehicles.” specially designed utility spaces inside cabin, which are ideal
Ravi Pisharody further went on to add “I am happy to have for a convenient and comfortable travel. The cabin also
Akshay Kumar here with us, for the launch of the new Xenon includes high intensity cabin lights and complete carpet
Yodha – the first Tata Motors commercial vehicle, the actor is flooring for better aesthetics. The Xenon Yodha has a high
making an appearance with. Tata Motors’ association with load body with internal length of 2,550 mm and width of 1,750
Akshay Kumar will be supported by a high-decibel, 360 mm, with a double paint coat and high gauge thick material,
marketing campaign, starting with the Xenon Yodha. Besides ensuring enhanced life.
products and solutions, Akshay will be actively involved in a Safety & Security
host of innovative marketing and customer experience The smart pick-up has been designed to meet global standards
initiatives, to be rolled out by Tata Motors CV division." of safety. The vehicle is fitted with antiroll bars for better
Performance & Ruggedness stability in loaded conditions at high speeds & loaded off road
The new Tata Xenon Yodha has the best ground clearance of conditions. Other safety features like the unique 3-layered
210 mm, courtesy inclusion of a Tubular front axle, which also body construction, crumple zones, a collapsible steering
ensures best manoeuvrability both on and off road. Powered column, retractable seatbelts and side intrusion beams, will
by a 3.0-litre engine, Xenon Yodha is characterised by power. protect passengers in the event of a side impact collision.

53 January 2017



Upgrades & Variants

Ecosport ‘Platinum Edition’ Introduced

Ford India introduced a technology & feature rich features, including music and video playback. The new
'Platinum Edition' of its compact SUV Ford EcoSport on infotainment system features Satellite Navigation system
January 19, further enhancing its imposing stance and as well as a rear view camera to improve customer
driving dynamics. convenience.
Boasting sharper technology and attractive exterior changes, Enhanced Comfort & Convenience
Ford EcoSport Platinum Edition was unveiled for the first time The smarter, sharper Platinum Edition introduces Cruise
at the Autocar Performance show in Mumbai. It has been Control that boosts EcoSport’s well-established fun-to-drive
priced at INR 10.39 lakh (Ex-Showroom, Delhi) for petrol credentials. The feature allows drivers to set a fixed speed at
variant and INR 10.69 lakh (Ex-Showroom, Delhi) for the which the vehicle automatically cruises without the need to
diesel engine powered variant. The new Platinum Edition will keep the accelerator pressed during long drives and further
be sold with a choice of two powertrains — Ford’s trusted enhances customer convenience.
1.5L TDCi diesel engine as well as a globally-acclaimed 1.0L A complete package
EcoBoost petrol engine. Packed with outstanding power and unmatched quality, Ford
"We are ushering in the New Year with a great product to EcoSport Platinum Edition sets new benchmarks in the
delight all compact SUV lovers," said Anurag Mehrotra, compact SUV segment with its premium styling and several
Executive Director - Mktg, Sales & Service, Ford India. "The best-in-segment features such as:
Platinum Edition is in keeping with our commitment to • Six airbags for an enhanced level of protection for the
introduce products that Indian customers want and value. It
introduces several upgrades that accentuate EcoSport's bold driver and as well passengers
design, enhance customer convenience and improve the • Unmatched peak power of 100 PS (73.8 kW) &
driving dynamics of our compact SUV."
A Head Turner outstanding fuel economy of 22.27 km/l with 1.5L TDCi
Ford EcoSport Platinum Edition introduces aggressive and diesel engine
sophisticated dual tone exterior design, featuring an • Greater choice with Ford’s globally renowned 1.0l
impressive black roof, bigger 17-inch wheels, wider tyres with EcoBoost petrol engine that delivers 125 PS of power
brand new alloys as well new rear and front bumper and fuel efficiency of 18.88 km/l
appliques. • Brand new 8-inch touchscreen infotainment system with
Always the Smart Choice satellite navigation and rear view camera as well as video
Step inside and the EcoSport Platinum Edition welcomes and music playback capabilities.
you with a fresh and appealing 8-inch touchscreen India’s most awarded vehicle Ford EcoSport topped global
infotainment system that allows users to control several automotive research firm J D Power’s Initial Quality Study in
the SUV category for two consecutive years

55 January 2017

NADA Musings

EPA Locks in 2025 Fuel Efficiency Rules, Industry Protests

US Environmental Protection Agency chief Gina McCarthy reduction without compromising consumer affordability
on January 13 finalized a determination that the landmark and vital auto-sector jobs," she said.
fuel efficiency rules instituted by President Barack Obama Automakers hope to work with regulators and California,
should be locked in through 2025, a bid to maintain a key Bergquist said, "to see whether we can find a prudent
part of his administration's climate legacy. compromise path forward that avoids an unnecessary and
Major US and foreign automakers have appealed to counterproductive regulatory collision."
President-elect Donald Trump, who has been critical of
Obama's climate policies, to review the rules requiring NADA Wants EPA's Final Determination on Fuel
them to nearly double fleet-wide fuel efficiency by 2025, Economy to be Reversed
saying they impose significant costs and are out of step
with consumer preferences. NADA President and CEO Peter Welch issued the following
As part of a 2012 regulation, EPA had to decide by April statement in response to the Obama Administration's
2018 whether to modify the 2022-2025 model year vehicle issuance of a final midterm evaluation of light-duty
emission rules requiring average fleet-wide efficiency of greenhouse gas standards for model years 2022-2025:
more than 50 miles per gallon. In November, the agency "The Obama Administration today just made new cars and
moved up the timetable for proposing that automakers trucks thousands of dollars more expensive for America's
can meet the 2025 standards. working men and women. Expensive and unaffordable
McCarthy said in a statement her determination, a legally new cars will drive Americans into less efficient, less clean
binding decision to maintain the fuel efficiency rules, rests and less safe used cars – undermining the very goals of
on an extensive technical record. this policy. We urge the incoming Trump Administration
McCarthy said in her determination the rules are "feasible, to withdraw today's action, and we look forward to
practical and appropriate" and in "the best interests of working with the new Administration to ensure that
the auto industry." working families can choose the cleaner, safer new cars
She told automakers the EPA could consider adopting new and trucks they need at prices they can afford."
rules "to provide additional incentives for very clean
technologies or flexibilities that could assist Environmental groups praise the decision
manufacturers with longer term planning."
In 2011, Obama announced agreement with major Ken Kimmell, president of the Union of Concerned
automakers to raise fuel efficiency standards to 54.5 miles Scientists, said the standards were working. "Automakers
per gallon. This, the administration said, would save have the technologies to continue their progress in a cost-
motorists $1.7 trillion in fuel costs over the life of the effective way. It will keep us on track to reduce oil use by
vehicles, but cost the auto industry about $200 billion over 2.4 million barrels a day, cut global warming emissions
13 years. and keep American-made vehicles competitive in a
In July, EPA said because Americans were buying fewer rapidly-changing global market," he said.
cars and more SUVs and trucks, it now estimated the fleet Legal experts have said it will be more difficult for the
will average 50.8 mpg to 52.6 mpg in 2025. Trump administration and Congress to undo the
Gloria Bergquist, a spokeswoman for the Alliance of determination than to unwind other regulatory actions
Automobile Manufacturers, a trade association issued by the Obama administration during its final
representing General Motors Co., Ford Motor Co., Toyota months in office.
Motor Corp, Volkswagen AG and others, criticized the The 2025 determination is not a new regulation, so the
decision. EPA, under Trump, would likely have to go through an
"Our fundamental priority remains striking the right extensive process before withdrawing the determination,
balance to continue fuel economy gains and carbon and could face lawsuits from environmental groups if they
took that step.
Sierra Club Executive Director Michael Brune said in a
statement "a new administration is no reason to shift
progress to reverse."

January 2017 56

NADA Musings

NADA Tells Automakers to End 'Unfair' Incentive Programs

NADA CEO Peter Welch called on automakers to end “unfair” put vehicle ownership out of reach for many Americans.
incentive programs and get parts to dealers faster to repair Last year, the average price of a new vehicle was about
recalled vehicles. $34,000. The average monthly new-car payment was $508 on
Welch said automakers should end stair-step incentive a 68-month loan. Factoring in other related costs and it can
programs, which he dubbed “trust killers.” cost a consumer about $750 a month to own a car.
Many consumers are aware of prices from researching vehicles “Over the past 20 years, the single biggest driver of vehicle
on the Internet. Yet, stair-step programs, which require dealers price increases has been government regulations and
to hit a sales goal to earn factory incentive money, encourage mandates,” Welch said.
some dealers to undercut their competitors, often with big Luxury goods?
discounts toward the end of the month. This makes many Welch hearkened back to 100 years ago, when a group of new-
customers “skeptical of what dealers tell them.” car dealers traveled to Washington, DC, to successfully oppose
Parts problems a then-proposed luxury tax on cars. The group gave rise to NADA.
He also said manufacturers need to do a better job of getting During the last century, Welch said, vehicles have become
dealers replacement parts to fix recalled vehicles. economic “necessities” and not luxury goods. Therefore,
Dealers can make repairs, Welch said, but many automakers dealers must continue to fight to keep vehicles affordable for
are failing to get dealers parts. This hurts dealers’ future sales consumers.
and the brand. The risk, he said, is that lawmakers impose more regulations,
Sales stoppers including a new luxury tax, and destroy consumers’ demand
Welch predicted US new-vehicle annual sales will be between for vehicles.
16 million and 18 million for the next few years. “I understand the reluctance in some quarters not to be seen
But he warned, “There will be serious challenges” to keep as too eager to push the regulatory pendulum back in the
sales going. One is the potential for rising prices that would other direction just because a Republican is soon to be in the
White House.”

Rising Used-Vehicle Supply Seen Pushing Prices Down in 2017

Used-vehicle prices could fall this year, as the number of off- has been the stability,” Manheim said. “After a sharp rise in
lease and other used vehicles is slated to increase, said Tom wholesale pricing in 2009 and 2010 coming out of the
Webb, Cox Automotive’s chief economist. recession, the absolute y-o-y change in pricing was less than
Webb said, used-vehicle sales are set to rise again in 2017 2 percentage points in each of the last six years,” making it
after jumping 4 percent last year, the fastest pace since the the least volatile period the index has measured since it began
Great Recession. in 1995.
Despite the projected sales increase, demand is unlikely to Manheim attributed the stability in pricing to “better, and
keep up with rising wholesale vehicle supplies, as more off- more efficient” practices among remarketers that have
lease vehicles return to the market. As a result, yes, there will “enabled commercial consignors to anticipate, respond to,
be downward pressure on used-vehicle prices, he said. and, thus, minimize impending swings in wholesale pricing.”
Despite a glut of off-lease vehicles beginning to enter the used The stability in wholesale pricing in recent years does not
market over the past year, pricing has remained relatively extend to every used-vehicle class. Over the past four years,
stable since values spiked during the recession. adjusted wholesale prices for pickups have jumped 28 percent,
The Manheim Used Vehicle Value Index, released on January compared with a 14 percent drop in compact car pricing.
10, closed 2016 at 124.9, up 0.2 percent from November and “Blame it on the tremendous consumer preference shift
down 0.6 percent from December 2015. The index is adjusted toward crossovers and away from small sedans,” Manheim
for vehicle mix, mileage and time of year. said. “The supply of used compact cars has been higher than
“The most notable aspect of wholesale pricing in recent years what consumers demanded in recent years, and as a
consequence, residuals suffered.”

57 January 2017





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