F A D A Journal - November 2020

Automotive Insight

trade-ins, and adjusts the price companies adjust their digital purchase. Poten al op ons obtain any needed regulatory
accordingly. A er selec ng a offerings or supplement them might include test drives from changes.
vehicle, the customer picks a with targeted in-person the customer’s home or at
finance or lease op on and, if op ons. some other convenient Dealers, too, need to move
desired, adds a protec on plan loca on, either before the quickly to align their business
such as a limited warranty or Searchable Inventory. purchase or upon delivery. At- with digital sales. Reimagine
extended-service contract. Automakers need to make home test drives will get more the used-car purchase
Once the order has been their en re inventory available consumers into vehicles and experience with an eye to how
submi ed, the customer is across mul ple local give dealers more opportunity online disruptors are changing
directed to a local dealer, who dealerships. Buyers will want to upsell. Moreover, the data the sales process. Leverage
delivers the vehicle and the to browse and filter the on conversion rates for service opportuni es to
paperwork. inventory and search for different vehicles could maximize customer loyalty
specific model builds using provide a founda on for finely throughout the ownership life
Programs like Honda’s online configura on tools. targeted marke ng that cycle. Use data to iden fy
represent a strong start to Dealers must offer similar increases sales. Finally, the when exis ng customers are
online new-car sales, but capabili es. This will create a industry must consider flexible likely to replace their vehicles,
opportuni es remain to make flood of informa on that will return policies, a large hurdle and provide personalized
the experience more seamless give automakers be er considering the rapid offers.
for consumers and to unlock insights into consumer deprecia on of new motor
more data for sellers. Even preferences and help them to vehicles and the complexity of It is more important to start by
before COVID-19 hit, more accurately forecast financing. launching an end-to-end
consumers were moving vehicle demand and develop solu on than to offer a full
research and other parts of the be er targeted marke ng. Online Financing and spectrum of products online.
buying process online, and the Payments. Dealers must Automakers should build and
pandemic has only accelerated Accurate Pricing. The digital upgrade their finance offerings launch now while changing
that trend. (See Exhibit 3.) sales process bypasses the by making the process easy consumer preferences are
haggling on the sales floor and diges ble for all crea ng momentum. The
FIVE CAPABILITIES TO UNLOCK that’s long been associated consumers. They need to build industry can start to get
ONLINE SALES with the auto industry. Dealers trust by offering mul ple feedback and adjust in the
must provide prices that online finance op ons with course of building more robust
As the industry builds a digital consumers are willing to pay. compe ve rates. Analysis of and comprehensive sales
sales model, automakers need Shoppers will expect discounts the uptake rates for various pla orms later on.
to develop five baseline such as rebates and incen ves op ons will give the industry
capabili es that will speed the to be integrated into the offer. be er consumer financial data Even under accelerated
transi on. This informa on can help the that will power be er melines, the industry should
industry to develop a more targe ng and upselling.
A Clear Buying Process. Many nuanced understanding of the be se ng up a digital sales
consumers find car buying to price tradeoffs that are BEGIN NOW AND BUILD FOR architecture that can be easily
be a confusing and some mes acceptable to consumers and THE FUTURE expanded in the future. For
frustra ng experience. That to offer more personalized example, all digital
makes it especially important incen ves. Ul mately, Automakers should take steps investments must be cloud-
to clearly communicate the automakers will be able to now to build a comprehensive na ve, with off-the-shelf APIs
process to shoppers looking to target funds to the most digital sales experience. for easy integra on. S ll, this
avoid brick-and-mortar effec ve promo ons and Star ng with a subset of the will happen in fits and starts.
dealerships. Customers must provide fewer discounts to business—such as a single car The industry’s need for a rapid
understand what can be done customers who are likely model or geography—create response will make a perfectly
online and what, if anything, willing to buy without them. high-volume packages cohesive solu on impossible
must be done in person. The a rac ve to par cular and make itera ve learning
industry should gather data to Flexible Vehicle Trials and customer segments, such as cycles essen al.
determine at what points in Returns. The industry needs to commuters reluctant to take
the process customers want allow online consumers to public transit because of the MANAGING THE TRANSITION
self-service and where they test-drive and see vehicles in pandemic. Begin in regions
want human support and person before commi ng to a where it’s easiest to quickly Much of the transforma on to
dealer input. That will help a digital sales model will
require rethinking how the

fada.in | November 2020 F A D A Journal 51

Automotive Insight

auto industry has taken its From building digital tools to more than 50% of the market brand reputa on and
products to market for a designing the processes to for premium sports sedans. customer trust.
century in the industrialized accommodate them, The BMW 3 series was a
West. Dealers and automakers automakers and dealers will distant second with less than a The COVID-19 crisis has
will have to embrace flexibility, face a great deal of uncertainty 10% share. created a window of
simplicity, and convenience in in naviga ng this new opportunity for automakers
order to meet the customer environment. Automakers must work hand- and dealers to redefine their
expecta ons established in in-hand with dealers to rela onships and collaborate
other industries. And they But incumbent players will put provide a rewarding customer to address some of the
must remain open to themselves at considerable experience. Benchmarking challenges that have made
consumer preferences risk if they fail to embrace other industries and their digi zing difficult in the past.
regarding which parts of the collabora ve change. Already transi on to e-commerce can Building and launching an
purchase are conducted online they are facing help both automakers and end-to-end digital sales
and in person. disintermedia on in important dealers define their approach. journey will allow the industry
markets. Tesla, which sells only In addi on, leveraging third to meet new customer needs
Automakers should take the online or through company par es to facilitate and unlock vast amounts of
lead by inves ng in change showrooms, is making communica on and change data that will provide a be er
management with dealers and significant inroads in management across the measure of customers, more
providing them with the California, the largest auto dealer network can help accurate forecas ng of
resources and support they market in the US. The Tesla overcome opera onal demand, and efficiencies
need to make the transi on. Model 3 compact sedan hurdles and make the process throughout produc on and
For most dealers, shi ing to outsold every other model in seamless. The biggest risks lie marke ng. Automakers and
digital sales is a departure from the state during the first in execu on. Failure during dealers must adjust now to
typical business processes. quarter of 2020, commanding the transi on will damage capturethisunique opportunity.

52 F A D A Journal November 2020 | fada.in

Industry Track

November 2020: Auto Retails Strive To Stay On Course

Strong rural sen ment, con nue to take place fully The company has been witnessing a gradual
improvement in finance consistent with all safety yet steady recovery owing to factors such as
availability, and a gradual requirements for employees pent up & fes ve season demand as well as
pickup in business and and customers. consolida on of the market at the lower end
economic ac vi es all helped due to increasing preference for personal
auto retails to give a Hyundai Motor India Ltd mobility amongst customers. An array of
sa sfactory month on month (HMIL) registered an overall a rac ve offers and finance schemes has also
performance in all segments slide of 4.85% in November helped us maintain our momentum. However,
except tractors. However, PV 2020 selling 47,162 units owing to the illegal strike called upon by the
& Tractors did well in its YOY against 49,565 units sold in members of TKM union, TKM was forced to
performance. November’19. This helped the declare a lockout at the factory which has
company to acquire market impacted our produc on & wholesale
Segment wise November ’20 share of 16.21% during the numbers.
retails were: Two wheelers at month. In October ’20, HMIL
1,413,378 units (Nov’19: had retailed 42,757 units. NAVEEN SONi
1,798,201 units); Three
Wheelers at 24,185 units Tata Motors reported total SVP - Sales & Service, Toyota Kirloskar Motor
(Nov’19: 69,056 units); CV’s at sales of 21,835 vehicles in the
50,113 units ( Nov’19: 72,863 month of November 2020, We have sold 31,619 tractors in the domes c
units); PV’s at 291,001 units( reflec ng a whopping 61.57% market during November 2020, a growth of
Nov’19: 279,365 units); and gain compared to 13,514 55% over last year. Demand con nues to be
Tractors at 49,313 units vehicles sold in November robust fuelled by an excellent fes ve season
(Nov’19: 45,462 units). Total 2019. This added up to with retails being strong during Dhanteras and
retails during the month company’s market share of Diwali. Rural sen ments remain posi ve on
accrued to 1,827,990 units 7.50% during the month. account of higher Kharif output and Rabi
against 2,264,947 units sowing. Procurement opera ons for kharif are
retailed in November last, The company’s sales in on full swing which would keep the rural cash
decline by 19.29%. October 2020 were at 18,340 flows healthy. Government’s focus on rural
vehicles. A renewed demand growth con nues and outlay under
Car market leader, Maru for its Nexon SUV, as well as Atmanirbhar Bharat 3.0 will provide further
Suzuki India Ltd (MSIL) the 2020 Tata Harrier flagship fillip to the industry.
recording domes c sales of SUV which is now also offered
143,554 PVs, gained by good with an automa c gearbox, hemant sikka
6.12% in November 2020 from has led to Tata Motors
the corresponding sales figure witnessing this strong surge in President, Farm Equipment Sector, M&M Ltd
of 135,272 PVs in the same market demand,
month last year; clocking a notwithstanding the fact that The fes ve season this year was good for us
market share of 49.33%. In the even entry-level cars like the with sales improving by 55% in Nov’20 and
preceding month the Tiago and Altroz premium contribu ng to overall industry growth. With
company had sold 124,261 hatchback are wooing new & refreshed model line-up along with
PVs. customers with their top- lucra ve offers for consumers, we were able to
safety marks achieved in crash leverage fes ve demand and register good
The company in its press tests conducted by Global sales. While the Amaze con nues to show
release stated that it remains NCAP. strong market performance, the All New City
commi ed to the health, has been fuelling the demand in mid-size
safety and well-being of all KIA Motors India Pvt Ltd sedan segment since its launch and
members across the value reported a growth of 72.74 maintaining its leadership posi on month
chain. All manufacturing, per cent in total retails to a er month.
sales and service opera ons 18,262 units in November
Rajesh Goel

SVP and Director - Mktg & Sales, Honda Cars

fada.in | November 2020 F A D A Journal 53

Industry Track 2020. The automaker had year. This added up to market
retailed 10,572 units in the share of 3.33%.
Building on the strong sales momentum that year-ago month. This helped
was driven by fes ve demand this year, HMIL KIA to notch market share of In October 2020, HCIL had
con nues to build high customer excitement 6.28% during the month. retailed a total of 7,995 units.
through a line-up of technologically advanced
and futuris c products such as the all-new i20, In October 2020, Kia Motors Toyota Kirloskar Motor (TKM)
CRETA, VERNA, VENUE, AURA and GRAND i10 India registra on tallied to announced that the company
NIOS. As the smart Indian customer con nues 16,096 units. sold a total of 9,072 units in
to make smart mobility choices, the recently the month of November 2020
introduced all-new i20 has helped carry MG Motor India reported (against 6,888 units retailed in
forward the fes ve momentum even in the retail sales of 3,043 units October’20), This was a
post Diwali period for HMIL and facilitated a during November 2020, double digit slide of 14.58%
sales growth of 9.4% in Nov’20 viz-a-viz Nov’19. recording a growth of 23.7 per over its retails in November
cent compared to the same 2019 at 10,620 units. TKM's
Tarun Garg period last year. The company market share during the
con nues to receive month stood at 3.12%.
Director - Sales, Mktg & Service, HMIL substan al bookings, with the
Hector and Gloster clocking Renault India and Ford India,
Buoyed by con nued fes val demand and the 4,000 and 2,500 bookings last the other players in the
sustained demand for the Hector and ZS EV month. passenger segment were also
alongside the successful launch of the MG in nega ve terrain registering
Gloster, we have recorded 28.5 per cent The MG Hector brand, which de-growth of 7.70% and
growth in November 2020 vis-a-vis the last includes models such as the 11.45% respec vely during
year. We expect the momentum to con nue in Hector and the Hector Plus, the month of November 2020.
December and expect to close this year on a witnessed a good sale in
strong note. November 2020, reflec ng a In the Commercial Vehicles
sales growth as compared to segment, Tata Motor ’s
Rakesh Sidana the same period last year. commercial vehicle
registra ons during
Director - Sales, MG Motor India Skoda Auto Volkswagen India November 2020 in the
registered retail sale os 2,781 domes c market added up to
I am delighted to witness the wide acceptance units. This helped the company 17,584 units, down 41.19%
we have received in India for our vehicles. to secure market share of from 29,902 units sold in
Since the Covid-19 outbreak, we were quite 0.96% during the month. November last year. Market
hopeful about the fes ve month and the share of Tata Motors stood at
results are overwhelming. Not only urban, but Mahindra & Mahindra 35.09%.
customers from er II, III, and IV markets too reported nega ve growth of
are acknowledging the need for personal 15.8% in the domes c market M&M retailed 16,876 vehicles
mobility to maintain personal safety. registering 15,951 vehicles in in November 2020, registering
November 2020 against a 19.38% slip. This was against
Kookhyun Shim 18,945 vehicles retailed in 20,932 vehicles registered in
November 2019. M&M’s November 2019. The
MD and CEO, Kia Motors India market share of 5.48%. The company was able to secure
company had retailed 12,414 market share of 33.68%.
The second quarter was about stabilizing the units in October’20.
automo ve ecosystem, the third quarter is a Ashok Leyland saw its sales
bit about recovery. He added that backed by Honda Cars India Ltd (HCIL) also skidding at 6,060 units
fes ve sen ments, Honda’s retails crossed the registered a de-growth of losing by 39.0% over 9,934
1 million units mark yet again in the two 9.03% with monthly domes c units registered in November
crucial fes val months (October & November). registra on of 9,685 units in 2019. This helped the
The celebra ons are on at Honda post-fes val November 2020 against company secure 12.09% of
as well. For the young trendse ers, the 10,646 units in the market share.
company launched the new Repsol race corresponding month last
edi ons of Hornet 2.0 and Dio scooter. In
addi on, the brand recently launched the
special 20th Anniversary Edi on of the
legendary Honda Ac va.

Y S Guleria

Director - Sales & Mktg, HMSI

54 F A D A Journal November 2020 | fada.in

Industry Track

VE Commercial Vehicles wheelers in domes c market Piaggio Vehicles Pvt Ltd Tractors and Farm Equipment
(VECV) recorded sales of during the month, which (PVPL), a 100 % subsidiary of Ltd (TAFE Ltd) recorded a
2,578 units in November 2020 translated into a back slide of the Italian Piaggio Group, growth of 13.27% in sale of
as compared to 3,216 units in 19.46% compared to retailed 4,492 vehicles in tractors y-o-y during the
November 2019 represen ng domes c sales of 242,824 November’20 against 12,076 month at 5,609 vehicles
drop of 19.8%. Company’s two-wheelers in November vehicles retailed in November’19 against 4,952 vehicles sold a
market share stood at 5.14%. last year. November’20 sales which accrued to market year ago. This resulted in
helped the company to share of 18.57%. securing a market share to the
Maru Suzuki India Ltd achieve market share of tune of 11.37% during the
(MSIL) reported registra on 13.84% During the month, Atul Auto month.
of 2,231 CVs in November Ltd sold 1,065 3-W’s while
2020 against sale of 2,672 CVs Bajaj Auto con nued to ride M&M and TVS Motor Escorts Ltd registered 5.09%
during the same month a year south with its domes c sales Company retailed 988 slide in sale of tractors to
ago. This resulted in market of two-wheelers totaling vehicles & 658 vehicle 4,753 vehicles in November
share of 4.45% for MSIL during 152,965 units slide by 30.8%. respec vely. 2020. The company had
the month. This resulted in Baja Auto retailed 5,008 tractors in
secure 10.82% of market In the Tractor segment, November 2019. With this the
In 2W segment, Hero share. leading player, M&M Ltd company’s market share
Motocorp’s total sales of retailed 11,966 vehicles of stood at 9.64%.
524,986 two-wheelers for the Suzuki Motorcycle India Pvt Tractor & 8,510 vehicles of
month of November 2020 Ltd (SMIPL), clocked a total Swaraj Division Tractors John Deere India Pvt Ltd, a
nosedived 23.2% yoy. Hero domes c sale by registering during November 2020 subsidiary of Deere &
Motocorp’s market share for 51,194 units during registering y-o-y growth of Company registered sale of
the month was at 37.14% The November 2020, registering 4.91% and 16.40% 4,238 tractors against 3,539
Company had sold 683,591 a Y-O-Y de-growth of respec vely. The market tractors sold in November
units in the corresponding 15.65%, over the 60,694 share of M&M in tractor 2020, double digit gain -
month last year. units it had sold in segment stood at 24.27% 19.75% y-o-y. This marked a
November 2019. During while that of Swaraj Divison market share of 8.59% for
Honda Motorcycle & Scooter November’20, company at 17.26%. John Deere India.
India Ltd (HMSI) market share reported market share of
of 26.89% was achieved 3.62% in retails. Interna onal Tractors Ltd With the new year-end
against 380,088 vehicles recorded a 8.03% growth in launches and a rac ve
retailed in the domes c In the Three Wheeler domes c market with sales of discount by the OEMs, it is
market contrac on by 17.33% segment, Bajaj Auto posted 5,747 tractors in November’20 hoped auto retails would
over 459,774 vehicles sold in retails of 8,795 vehicles during as compared to 5,320 tractors con nue to hold ground and
November 2019. the month against 30,711 in the same period last year. register decent retails as we
vehicles sold a year ago. This This helped the company to venture into the last month of
Another two-wheeler major, helped the company to report rack up market share of 2020!
TVS Motor Company could market share of 36.37% in 3W 11.65%.
muster sales of 195,559 two- retails.

CORRIGENDUM

We wrongly mentioned Mr Rajesh Goel's name and designation against quote of Mr Naveen Soni in the last edition of
Industry Track. Any inconvenience caused due to this is deeply regretted.

fada.in | November 2020 F A D A Journal 55

Statistics Statistics

Domestic Passenger Vehicle - November 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

17.16 2,64,898
2,53,139

56.1 50.1 1,357.75 1,391.33

24.5 28.5 1,49,949 1,54,223
10.0 9.4
2.4 8.23
- 2.4 - 6.4 1,03,525

488.00 - 16.7 88,361
446.00
- 26.0 -30.1
4.65
-50.7 53.92 99.9603.98 210.22 182.12 101.81108.82 85.0883.12 - 51.9 11,424 10,555 Total
39.91 140.05 146.33
0.691.40 14.12 29.37
7.02 6.38 41.63 32.39 10.17 14.55 10.56 12.67

FCA Cars UVs Vans
Force
Ford
Honda
Hyundai
Kia
Mahindra
Maruti
MG Motor
Nissan
Renault
Skoda
Toyota
Volkswagen

Nov'20 Nov'19 Growth (%) Nov'20 Nov'19 Growth (%)

Market Share (%)

100.0 11.0 16.1 18.3 16.0 15.8 18.6 18.2 22.3 16.6 16.6 17.9 19.5 19.7
90.0 7.7 3.7 3.7 3.5 3.8
80.0 6.4 5.0 2.4 3.6 2.0 2.9 2.6 1.3 2.9 3.5 5.5 6.0 6.9
70.0 8.2 6.7 4.0 5.6 5.5 5.1 4.1 7.6 6.0 18.5
60.0 19.8 17.5 5.5 6.7 7.5 4.3 2.4
50.0 6.3 18.2 18.4
40.0 46.9 51.0 16.9 16.1 16.0
30.0 15.9 18.7 20.9 54.4 52.7 51.3
20.0 FY’18 FY’19 21.2
10.0 20.2
0.0
Source: F A D A Research 52.7 52.1 53.2 53.2 54.1 48.5 53.5 52.4

Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

Maru Suzuki Hyundai Motor Mahindra Tata Motors Honda Cars Others

56 F A D A Journal November 2020 | fada.in fada.in | November 2020 F A D A Journal 53

Statistics

Domestic Two-Wheeler - November 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

3,300.0 22.94 16,00,379
14,10,939
5,759.57 14.90
5,059.94 10,26,705 13.43

4,126.42 8,93,538
3,732.83 9.29
5,02,561 4,59,851
1,881.96 2,477.89
1,763.37 -97.8 13.8 10.5 - 40.6 35.0 15.4 1.4 - 5.6 67.3 1,912.22

6.7 1.45 2.44 532.08 57.98 50.26 590.84582.92 574.29 608.55 0.92 0.55 29.6
394.06
70,750 57,550 0.00
0.05 2.24 0.34 0.01 363 0
Mopeds
Bajaj Scooter Motorcycles Electric 2W Total
HarleyDavidson

Hero
HMSI
Kawasaki
Yamaha
Mahindra 2W
Piaggio
Royal Enfield
Suzuki
Triumph
TVS Motor

Nov'20 Nov'19 Growth (%) Nov'20 Nov'19 Growth (%)

Market Share (%)

100.0 6.9 8.1 8.8 9.2 9.1 9.6 7.9 5.9 5.7 6.8 6.9 6.7 7.7
90.0 3.9 3.3 2.8 2.7 4.5 5.0 2.9 3.9 3.9 3.4 2.9 3.3
80.0 2.8 15.0 12.2 13.1 10.9 14.3 14.8 14.0 13.1 14.7 15.5
70.0 11.4 11.9 13.1
60.0 14.2 13.8 13.6
50.0 11.8
40.0 9.8 11.9 11.8 11.8 11.3 14.5 11.9
30.0 12.5 11.4 27.5 27.1 24.1 25.8
20.0
Source: F A D A Research 10.0 28.6 27.0 26.5 21.9 27.9 24.4 20.0 24.1
0.0 28.3

36.6 35.8 35.9 39.2 36.4 37.1 36.5 42.4 39.6 36.5 37.7 38.5 36.0

FY’18 FY’19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

Hero MotoCorp HMSI Bajaj Auto TVS India Yamaha Others

fada.in | November 2020 F A D A Journal 57

Statistics

Domestic Three-Wheeler - November 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

1.32 55,778

46,240

314.20

- 41.5 - 34.9

- 61.5 - 65.8 - 45.2 23,626

107.37 121.81 13,962 - 57.64
66.75
Bajaj - 69.81 9,664 9,538
Piaggio Passenger Carrier
65.91 -98.4

39.16 38.54 0.06 3.66

15.08 Scooters India 8.46 13.00

Atul Auto Mahindra TVS Motor Goods Carrier Total

Nov'20 Nov'19 Growth (%) Nov'20 Nov'19 Growth (%)

Market Share (%)

100.0 0.4 2.5 0.7 0.7 0.8 1.1 1.1 0.2 4.9 4.1 3.1 3.6
90.0 2.6 1.8 2.3 1.5 1.9 1.7 1.6 4.3 5.6 8.4 8.3 8.4 6.4
80.0 6.2 6.1 2.1 3.1
10.3 7.0 7.3 5.6 6.9 3.5 9.9 8.7
8.6 0.1 0.7 11.9 16.3
1.5 31.9 34.9

11.8 10.1 13.4 9.3 26.1 28.7
28.3
70.0 24.0 22.1 34.0
41.9 52.7 49.5 47.8 45.4
21.8 25.9 21.0 28.2
60.0 Aug-20 Sep-20 Oct-20 Nov-20

50.0 TVS Others

Source: F A D A Research 40.0

30.0 58.1 66.1
20.0
57.2 56.3 54.4 57.5 52.8 43.6 51.1

10.0

- FY’19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Jun-20 Jul-20

FY’18 Piaggio Mahindra Atul Auto

Bajaj Auto

58 F A D A Journal November 2020 | fada.in



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