F A D A Journal - June 2018

Best Practice

Why Are Dealers Spending Too Much on Supplies and know how, don’t have the resources, or don’t have the
Services? interest or patience.
Tactical Pricing – negotiating a price that is great today, Too Many Suppliers – If there are 130 expense categories
but does not have long-term protection is a tactical price. that you can spend money in for supplies and services,
You don’t know when it will increase, but you know it will. then why do you need 500 – 600 suppliers? The short answer
A strategic or long-term approach will preclude those price is that nobody is minding the store. Too many suppliers
increases and lock down your savings long term. result in less leverage and higher prices. Too many
Lack of Purchasing Control – When everyone in the dealership suppliers result in the back office team managing and
has authority to buy or contract with suppliers, you have paying more suppliers than are needed. Too many suppliers
lost control of the commitment process and inefficiencies mean your managers are having more supplier meetings/
will occur. Purchasing policies and approval levels are lunches than are needed to effectively manage the
needed to lock down that process and limit activity. business.
Redundancies – In the marketing category alone, many There are some dealers out there that are really dialed in
dealers are paying for the same functionality with multiple on expense management. They devote the time, have
suppliers, creating redundancies and wasting money. A engaged resources managing their spend, and have the
review of the supplier base with your sales team will flesh infrastructure surrounding the team to help them become
that out…or should. Eliminate redundancies and you will successful and profitable. More often than not
reduce costs considerably. however…management just is not paying enough attention
Lack of Spend Management – Dealers manage sales and to supplier spend. If that trend continues costs will
spend a considerable effort driving sales, but there is not continue to run 26% higher than they have to be.
a comparable effort in organizing and managing expenses. Now might be the time to take a fresh approach to your
Yet effective management of expenses can increase profits spend management. The benefits can be quite compelling
at a faster rate than new sales. So why doesn’t management if you are willing to take a new approach. A 15%- 20% -
spend the time managing their spend? They either don’t 25% reduction in spend will certainly help your bottom
line. Is it worth it?

MAURYA MOTORS LIMITED

Tata Authorised Dealer for Passenger & Commercial Vehicles

Plot No. C-1, Industrial Area
Patliputra

Patna - 800 013

Phones: 92636 32685 / 92636 39260 / 92346 66948
E-mail: [email protected]
[email protected]

fada.in | June 2018 F A D A Journal 51



PASSENGER VEHICLE SALES - MAY 2018

Domestic Sales May-18 May-17 Growth Y-o-Y (%) Exports May-18 May-17 Growth Y-o-Y (%)
565
OEM 1,518 - - OEM 14 3,935.71
49 340 -85.59 FCA India 17,119
FCA India 133 42.11 Ford India 6,801 16,671 2.69
Fiat India 189 6,742 34.51 General Motors
Force Motors 9,069 361 Honda Cars 516 8,297 -18.03
Ford India 24 - Hyundai Motor 11,008
General Motors 0 11,278 -37.50 Isuzu Motors 498 3.61
HM Finance Corp 15 42,007 40.66 Mahindra 31
Honda Cars 15,864 185 Maruti Suzuki 1,242 8,257 33.32
Hyundai Motor 45,008 20,290 7.14 Nissan Motor 8,843
Isuzu Motors 170 102 -8.11 Renault India 5,095 --
Mahindra 20,621 130,248 1.63 Tata Motors 1,636
Mahindra Electric 94 3,707 -7.84 Toyota Kirloskar 308 303.25
Maruti Suzuki 161,497 8,639 23.99 Volkswagen 126
Nissan Motor 3,569 1,064 -3.72 Total 855 6,175 43.21
Renault India 6,732 12,499 -22.07 5,811
Skoda Auto 1,420 10,914 33.46 59,648 4,311 18.19
Tata Motors 19,202 3,231 53.63
Toyota Kirloskar 13,113 20.15 1,118 46.33
Volkswagen 3,108 251764 -3.81
89 41.57
Total 301,238 19.65
1,442 -40.71

10,477 -44.54

57657 3.45

Domestic Sales + Exports

OEM May-18 May-17 Growth Y-o-Y (%)

FCA India 2,083 14 14,778.57 Segment wise (Domestic Sales + Exports)
Fiat India 49 340 -85.59
Force Motors 133 42.11
Ford India 189 23,413 11.85
General Motors 26,188 8,658 -21.45
HM Finance Corp -37.50
Honda Cars 6,801 24 39.10
Hyundai Motor 15 11,776 11.44
Isuzu Motors 50,264 8.65
Mahindra 16,380 6.14
Mahindra Electric 56,016 185 -7.84
Maruti Suzuki 20,598 24.86
Nissan Motor 201 8.06
Renault India 21,863 102 -14.24
Skoda Auto 136,423 33.46
Tata Motors 94 53.54
Toyota Kirloskar 170,340 8,018 13.05
Volkswagen 9,757 -34.94
8,664 1,064 16.63
Total 8,368 12,588
1,420 12,356
19,328 13,708
13,968 309,421
8,919

360,886

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TWO-WHEELER SALES - MAY 2018

Domestic Sales Exports

OEM May-18 May-17 Growth Y-o-Y (%) OEM May-18 May-17 Growth Y-o-Y (%)
Bajaj Auto 192,543
H-D Motor 156,523 23.01 Bajaj Auto 150,052 120,592 24.43
Hero MotoCorp 258
HMSI 692,601 326 -20.86 H-D Motor 528 477 10.69
India Kawasaki 519,087 613,019 12.98 Hero MotoCorp 13,764
India Yamaha 510,381 1.71 HMSI 32,529 20,865 -34.03
Mahindra 2W 143 34.91 India Yamaha 25,728
Piaggio 67,290 106 -3.08 26,654 22.04
Royal Enfield 69,429
Suzuki 458 16,297 57.87
Triumph 5,692
TVS Motor 72,510 2,125 -78.45 Mahindra 2W 1,862 3,121 -40.34
Total 53,156
4,246 34.06 Piaggio 504 349 44.41
124 58,647 23.64 Royal Enfield 2,187
246,231 38,923 36.57 Suzuki 5,515 2,049 6.73
1,850,093 74.65
71 5,141 7.27

240,527 2.37 TVS Motor 51,904 34,899 48.73

1,694,323 9.19 Total 284,573 230,444 23.49

Domestic Sales + Exports

OEM May-18 May-17 Growth Y-o-Y (%)

Bajaj Auto 342,595 277,115 23.63

H-D Motor 786 803 -2.12

Hero MotoCorp 706,365 633,884 11.43 Segment wise (Domestic Sales + Exports)

HMSI 551,616 537,035 2.72

India Kawasaki 143 106 34.91

India Yamaha 93,018 85,726 8.51

Mahindra 2W 2,320 5,246 -55.78

Piaggio 6,196 4,595 34.84

Royal Enfield 74,697 60,696 23.07

Suzuki 58,671 44,064 33.15

Triumph 124 71 74.65

TVS Motor 298,135 275,426 8.25

Total 2,134,666 1,924,767 10.91

54 F A D A Journal June 2018 | fada.in

COMMERCIAL VEHICLE SALES - MAY 2018

Domestic Sales Exports

OEM May-18 May-17 Growth Y-o-Y (%) OEM May-18 May-17 Growth Y-o-Y (%)
Ashok Leyland 12,077
Force Motors 1,748 7,833 54.18 Ashok Leyland 1,582 1,242 27.38
Isuzu Motors Force Motors 55 24 129.17
Mahindra 151 1,630 7.24 Isuzu Motors 27 -
Maruti Suzuki 18,748 Mahindra 851 -
Piaggio Vehicles 128 17.97 Maruti Suzuki 1,707 111 100.59
1,703 Piaggio Vehicles 469 - 322.52
171 16,261 15.29 SML Isuzu 10 10
Tata Motors 26 -
428 297.90 VECVs - Eicher 3,811 160.00
3,573 586
186 -8.06 Total 606 -6.25
6,635 3.41
8,055
21.40

SML Isuzu 1,416 1,042 35.89 M&HCVs (Domestic Sales + Exports)
Tata Motors 35,093 21,962 59.79
VECVs - Eicher 5,268 33.27 Category May-18 May-17 Growth Y-o-Y (%)
VECVs - Volvo 3,953 202.94 Passenger Carriers
Total 103 34 43.06 Goods Carriers 4,446 4,395 1.16
76,478
53,457 29,395 15,844 85.53

Total M&HCVs 33,841 20,239 67.21

Domestic Sales + Exports LCVs (Domestic Sales + Exports)

OEM May-18 Category May-18 May-17 Growth Y-o-Y (%)
21.74
May-17 Growth Y-o-Y (%) Passenger Carriers 6,020 4,945 27.97

Ashok Leyland 13,659 9,075 50.51 Goods Carriers 44,672 34,908

Force Motors 1,803 1,654 9.01 Total LCVs 50,692 39,853 27.20

Isuzu Motors 178 128 39.06 Segment wise (Domestic Sales + Exports)
Mahindra 20,455 17,112 19.54

Maruti Suzuki 2,172 539 302.97

Piaggio Vehicles 181 186 -2.69

SML Isuzu 1,442 1,052 37.07

Tata Motors 38,666 25,773 50.03

VECVs - Eicher 5,874 4,539 29.41

VECVs - Volvo 103 34 202.94

Total 84,533 60,092 40.67

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THREE-WHEELER SALES - MAY 2018

Domestic Sales May-18 May-17 Growth Y-o-Y (%) Exports May-18 May-17 Growth Y-o-Y (%)
3,224 759
OEM 32,082 2,901 11.13 OEM 283 168.20
Atul Auto 4,355 17,524 83.07 Atul Auto 32,097 18,985 69.07
Bajaj Auto 13,396 7.35 Bajaj Auto 98 -41.67
Mahindra 336 4,057 24.95 Force Motors Ltd 82 168 -38.81
Piaggio 1,416 10,721 Mahindra 134 55.37
Scooters India - Piaggio 2,893 1,862 80.38
TVS Motor 54,809 - 64.08 TVS Motor 10,314 5,718
863
Total Total 46,243
36,066 51.97 27,150 70.32

Domestic Sales + Exports Segment wise (Domestic Sales + Exports)

OEM May-18 May-17 Growth Y-o-Y (%)

Atul Auto 3,983 3,184 25.09

Bajaj Auto 64,179 36,509 75.79

Force Motors Ltd 98 168 -41.67

Mahindra 4,437 4,191 5.87

Piaggio 16,289 12,583 29.45

Scooters India 336 --

TVS Motor 11,730 6,581 78.24

Total 101,052 63,216 59.85

TOTAL VEHICLE SALES SUMMARY (DOMESTIC SALES + EXPORTS) - MAY 2018

CATEGORY May-18 May-17 Growth Y-o-Y (%)

PASSENGER VEHICLES 360,886 309,421 16.63
TWO-WHEELERS 2,134,666 1,924,767 10.91
COMMERCIAL VEHICLES 40.67
THREE-WHEELERS 84,533 60,092 59.85
QUADRICYCLES 101,052 63,216 104.55

270 132

TOTAL 2,681,407 2,357,628 13.73

Source: SIAM

TRACTOR SALES - MAY 2018

SALES May-18 May-17 Growth Y-o-Y (%)

Domestic Sales 68,901 57,598 19.62
Exports 8,937 7,212 23.92
Total (Domestic + Exports)
77,838 64,810 20.10
Source: TMA

fada.in | June 2018 F A D A Journal 57





RNI No. DELENG/2002/06878 Postal Regn No. DL (ND) - 11/6038/2018-19-20
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