FADA Journal - August 2017

COMMERCIAL VEHICLE SALES - JULY 2017

Domestic Sales July-17 July-16 Growth Y-o-Y (%) Exports July-17 July-16 Growth Y-o-Y (%)
-
OEM 9- OEM 1,457 1,223 19.13
AMW Motor 10,524 7 15 -53.33
Ashok Leyland 1,856 9,269 13.54 Ashok Leyland -62.58
Force Motors Force Motors 1,090 2,913 -71.29
Isuzu Motors 134 2,087 -11.07 Mahindra 89 310 175.00
Mahindra 15,027 Maruti Suzuki 55 20 -75.61
Maruti Suzuki 8 1,575.00 Piaggio Vehicles 10 41 -34.90
Piaggio Vehicles 703 SML Isuzu
SML Isuzu 239 13,168 14.12 Tata Motors 3,276 5,032 -7.53
Tata Motors 778 VECVs - Eicher 602 651
VECVs - Eicher 25,982 14 4,921.43 -35.46
VECVs - Volvo 3,714 Total 6,586 10,205

43 215 11.16 M&HCVs (Domestic Sales + Exports)

1,327 -41.37 Category July-17 July-16 Growth Y-o-Y (%)
Passenger Carriers 4,121
Goods Carriers 21,737 5,116 -19.45

22,033 17.92 19,539 11.25

3,664 1.36 Total M&HCVs 25,858 24,655 4.88
59 -27.12
LCVs (Domestic Sales + Exports)

Total 59,000 51,853 13.78 Category July-17 July-16 Growth Y-o-Y (%)
Passenger Carriers 4,168 5,040 -17.30
Domestic Sales + Exports Goods Carriers 35,560 32,363 9.88

OEM July-17 July-16 Growth Y-o-Y (%) Total LCVs 39,728 37,403 6.22
9-
AMW Motor -

Ashok Leyland 11,981 10,492 14.19

Force Motors 1,863 2,102 -11.37

Isuzu Motors 134 8 1,575.00

Mahindra 16,117 16,081 0.22

Maruti Suzuki 792 324 144.44

Piaggio Vehicles 294 235 25.11

SML Isuzu 788 1,368 -42.40 Segment wise (Domestic Sales + Exports)
Tata Motors 29,258 27,065 8.10
VECVs - Eicher 4,315 0.02 Category July-17 July-16 Growth Y-o-Y (%)
VECVs - Volvo 4,316
Total 43 59 -27.12 M&HCVs 25,858 24,655 4.88
62,058 5.69 LCVs 39,728 37,403 6.22
65,586
Total 65,586 62,058 5.69

Source: SIAM

August 2017 52

THREE-WHEELER SALES - JULY 2017

Domestic Sales July-17 July-16 Growth Y-o-Y (%) Exports July-17 July-16 Growth Y-o-Y (%)
3,223 179
OEM 21,582 3,051 5.64 OEM 129 38.76
Atul Auto 3,777 Atul Auto 20,649
Bajaj Auto 11,825 23,698 -8.93 Bajaj Auto 98 20,393 1.26
Mahindra 36 Force Motors 373
Piaggio 818 4,781 -21.00 Mahindra 122 -19.67
Scooters India Piaggio 1,772
TVS Motor 41,261 12,833 -7.85 TVS Motor 7,017 --

Total 829 -95.66 Total 30,088 2,515 -29.54

1,205 -32.12 6,755 3.88

46,397 -11.07 29,914 0.58

Domestic Sales + Exports

OEM July-17 July-16 Growth Y-o-Y (%)

Atul Auto 3,402 3,180 6.98

Bajaj Auto 42,231 44,091 -4.22

Force Motors 98 122 -19.67

Mahindra 4,150 4,781 -13.20 Segment wise (Domestic Sales + Exports)

Piaggio 13,597 15,348 -11.41 Category July-17 July-16 Growth Y-o-Y (%)

Scooters India 36 829 -95.66 Passenger Carrier 62,500 67,524 -7.44
Goods Carrier 8,849 8,787 0.71
TVS Motor 7,835 7,960 -1.57

Total 71,349 76,311 -6.50 Total 71,349 76,311 -6.50

TOTAL VEHICLE SALES SUMMARY (DOMESTIC SALES + EXPORTS) - JULY 2017

CATEGORY July-17 July-16 Growth Y-o-Y (%)

PASSENGER VEHICLES 365,375 321,569 13.62
TWO-WHEELERS 1,892,646 1,679,175 12.71
COMMERCIAL VEHICLES
THREE-WHEELERS 65,586 62,058 5.69
QUADRICYCLES 71,349 76,311 -6.50
46.05
TOTAL 314 215
11.96
2,395,270 2,139,328

Source: SIAM

TRACTOR SALES - JULY 2017

SALES July-17 July-16 Growth Y-o-Y (%)

Domestic Sales 43,755 38,248 14.40
Exports 6,755 6,957 -2.90
Total (Domestic + Exports) 11.74
50,510 45,205

Source: TMA

53 August 2017





NADA Musings

US Light Vehicle Sales Drop 7% in July

Toyota posts 3% gain; SAAR falls to 16.78 million

US light-vehicle sales dropped 6.9 per cent in July, the weakest retail volume and 35 per cent reduction in fleet business. Ram
showing yet in a year that is on track to generate the industry's and Alfa Romeo were the only two FCA brands to post higher
first decline in volume since the 2008-09 market collapse. sales in July, with volume off 12 per cent at Jeep, 30 per cent
The seasonally adjusted, annualized sales rate fell to 16.78 at the Chrysler brand and 12 per cent at Dodge.
million in July, down sharply from 17.82 million in July 2016. Volume dropped 1.7 per cent at the Honda brand and rose
SAAR has now fallen below 17 million three consecutive months. 3.7 per cent at Acura. Overall, American Honda truck sales
July marked the seventh consecutive monthly decline in slipped 4.2 per cent and car deliveries edged up 1.9 per cent.
industry volume, even as automakers pile on bigger deals and Among other automakers, July volume dropped 5.9 per cent
the general US economy continues to grow and at Kia, 5.8 per cent at the Volkswagen brand and 3 per cent at
unemployment remains low. Mazda. Deliveries rose 6.9 per cent at Subaru and 1.7 per cent
Car sales fell 15 per cent and truck volume dropped 1.9 per at Mitsubishi.
cent, the second monthly decline for popular pickups, In addition to Lexus and Infiniti, other luxury brands with July
crossovers and SUVs this year. gains were Audi, up 2.5 per cent, and Porsche, up 0.6 per cent.
Among major automakers, there was one exception to the Volume dropped 15 per cent at the BMW brand, 10 per cent
broad decline: Toyota, which tallied a 3 per cent gain. Subaru at Mercedes, 19 per cent at Volvo, 7 per cent at Jaguar and
continued to defy gravity in posting a 6.9 per cent gain. This 2.6 per cent at Range Rover.
July had one less selling day than July of 2016. Analysts say sales in the second half of the year will pivot on
At GM, sales dropped 15 per cent at Chevrolet, 31 per cent at additional incentive spending and production.
Buick, 7.3 per cent at GMC and 22 per cent at Cadillac. GM's J D Power said, incentives averaged $3,876 per new vehicle in
retail volume - which has remained strong in recent months - the first two weeks of July, a high for the month and an increase
fell 14 per cent to 202,220 in July. of 7.8 per cent from the previous July record set in 2016.
GM slashed July sales to rental car customers in the US by 80 ALG estimates new-vehicle incentives in the US averaged
per cent compared with a year ago, to just over 2,700 vehicles, $3,565 in July, or 4.7 per cent higher than July 2016. GM, FCA,
while increasing shipments to commercial fleets. US Ford and Nissan were the biggest spenders on discounts in
commercial vehicle fleet deliveries rose by 40 per cent in July July, ALG found.
to 17,300 vehicles. Fleet deliveries accounted for about 11 Even with slowing sales and rising incentives, automakers have
per cent of total July volume. managed to post solid profits because of rising transaction
The company's average transaction price in the US rose nearly prices and the steady consumer shift from cars to more
$1,000 to about $36,000 in July 2017 compared with July 2016. profitable crossovers and SUVs.
“We have strategically decided to reduce car production rather Kelley Blue Book estimates the average transaction price for
than increase incentive spending or dump vehicles into daily light vehicles in the United States was $34,721 in July, an
rental fleets, like some of our competitors,” said Kurt McNeil, increase of $573, or 1.7 per cent, from July 2016, yet down
GM's head of US sales operations. 0.3 per cent from June.
Ford Motor said retail sales in the US in July’17 slipped 1 per Barclays analyst Brian Johnson, noting that average transaction
cent to 159,492 light vehicles. The company's US sales have prices were up only 0.1 per cent in mid-July, said the industry
now declined every month this year but one, May. may be close to posting its first decline in monthly average
Toyota Motor Sales USA.'s monthly gain - only its second of transaction prices since the 2008-09 market collapse.
the year - reflected increases of 4.3 per cent at the Toyota GM's inventory rose to its highest level in a decade after its
brand and 3.6 per cent at Lexus. US sales fell 4.7 per cent in June. GM is deliberately padding
At Nissan North America, volume dropped 4.1 per cent at the stocks, as it prepares to idle several assembly plants for
Nissan brand, while Infiniti volume rose 9 per cent. July is only retooling and the introduction of new large pickups. But
the second month that Nissan's US deliveries have declined instead of the 90-day supply of new vehicles it had targeted
as the company continues to gain share in a down market. at mid-year, it had a 104-day supply at month's end, down
FCA US' July sales fell on the back of a 6 per cent decline in slightly from the end of June. The company, however, remains
on track to reach a roughly 70-day supply by year's end.

August 2017 56

NADA Musings

The Real Reason Why US Car Sales Are Falling

Vehicles haven’t been hitting the junkyard quick enough.

It’s been a tough few months in Detroit. After seven more reliable than their predecessors. The US auto industry
years of gangbuster sales, the US auto market is in a pickle, in part, because it did too good of a job.
is skidding badly.
The American car and truck segment is remarkably easy to Meanwhile, the accelerating pace of innovation may be
get a handle on, but a look at some of its indicators may making things even worse. With each advancement in
induce some head-scratching. For the past 20 years, the electric powertrains and autonomous driving, it’s easier to
number of licensed drivers has ticked up by about 2 envision a game-changing machine, the prospect of which
million a year (Uber and Lyft have failed to dent that). shifts some would-be buyers into the wait-and-see
Likewise, the number of registered vehicles has climbed by category. Why buy a new car now when the car of your
about 3 million annually. dreams is just over the horizon?
Sure, there are aberrations, but given those numbers A 2017 Toyota Camry, for example, still isn’t vastly different
and today ’s economy - with a strong labour market, from the 2007 iteration. Someone driving the early model,
relatively affordable financing, and cheap gas - it’s however, may figure a 2020 Camry will drive itself and zip
reasonable to ask why, then, are car sales tanking? around on electrons. This is one of the main reasons why
The only real wild card in the US car market is the the lease rate in the US has crept up to almost one-
replacement rate, which is to say how often cars and trucks third. Customers worried about a machine quickly
make their way to the junkyard. This is perhaps where auto becoming obsolete are choosing a three-year loaner rather
executives should have seen the slowdown coming. In the than an outright purchase.
past two decades, about 13 million vehicles were dropping Bottom of Form
out of the US fleet every year, far less than the number of Car executives, of course, know this better than anyone,
new vehicles sold over the past five years. Customers keen and no one in the C-suites of MoTown was probably
to upgrade kept the market running hot for awhile, but that surprised by the latest sales numbers. It’s just that braking
imbalance finally caught up with automakers. As more is no fun. Heeding to a slowing market means handing out
pink slips. And then there is swagger to account for. The
vehicles stayed in the driveway, fewer came off the lot. right mix of vehicles-a hot new SUV, or an electric dream
Americans still tend to own slightly more than one vehicle pod that appears in the desert-could be just the thing to
apiece, but they are keeping those vehicles longer. The buck a cyclical downturn.
average car or truck on US roads today was made in 2005. Companies like Ford and GM have many levers to pull to
They’re still on the road because, well, they’re still on the avoid a disaster- namely, a mix of lowering production and
road. Vehicles made in the past 15 to 20 years are vastly raising incentives to lure drivers back to the dealership

57 August 2017





RNI No. DELENG/2002/06878 Postal Regn No. DL (ND) - 11/6038/2015-16-17
Date of Publication: 23/24 Every Month Licence No. U (C)-259/2015-17
Posting at New Delhi PSO: 26-30 Every Month LICENCED TO POST WITHOUT PRE-PAYMENT