F A D A Journal - December 2020

Competition Law

Competition Law Updates

G R Bhatia (ii) Market for manufacture markets and presence of other Compe on and Consumer
and sale of calipers for two players, the CCI did not Commission (ACCC) gave its
Partner & Head wheeled motor vehicles; perceive any adverse effect on assent to the 10-year or
Competition Law Practice Group compe on and cleared the 200,000 km extended
Luthra & Luthra Law Office (iii) Market for manufacture transac on. warranty sought to be
and sale of calipers for introduced by Mitsubishi
CCI approves forma on of automobiles; and Ford-Mahindra joint venture Motors Australia to increase
Honda Motor, Hitachi shelved owing to high capital the a rac veness of new
joint venture (iv) Market for manufacture requirement Mitsubishi vehicles, which may
and sale of hydraulic be availed subject to the
The CCI vide order dated combined braking systems On 31.12.2020, automakers vehicle being services only by
11.08.2020 cleared: (i) Honda for two wheeled motor Ford Motor Company and authorised Mitsubishi dealers
Motor Co. Ltd.’s acquisi on of vehicles. Mahindra and Mahindra and service centres. Mitsubishi
addi onal shares in Keihin announced their decision to filed an exclusive dealing
Corpora on, Nissin Kogyo and The CCI while analysing not go ahead with the joint no fica on with the ACCC
Showa Corpora on, thereby horizontal overlaps noted that venture announced in October seeking approval for the same
resul ng in the three en es the combined market share of 2019, which was aimed at in September 2020.
becoming its wholly owned the par es in all the relevant growth of the Ford brand in
subsidiaries; (ii) amalgama on markets iden fied was less India along with marke ng and The ACCC took into account
of the three wholly owned than 30%, and several other distribu on of Ford and factors such as Mitsubishi’s
subsidiaries into Hitachi significant players such as Mahindra vehicles in high- ability to exercise greater
Automo ve Systems, a wholly Endurance, Brembo and Hubei growth emerging markets control over its dealers and
owned subsidiary of Hitachi were present in these markets overseas. Mahindra had service centres to ensure
Limited; and (iii) acquisi on of which posed sufficient proposed to invest close to INR quality of servicing, cost
33.4% stake in Hitachi compe ve constraint. 1400 crore as equity in the JV, effec veness to purchasers of
Automo ve Systems by Honda pursuant to which they would extended warranty products,
Motor. In line with past prac ce, the acquire a 51% stake in Ford’s likelihood of triggering
CCI while assessing ver cal India business. compe ve responses from
The par es iden fied the rela onships between Honda other automakers before
following relevant markets in Motor and Hitachi Automo ve The decision to call off the deal approving the no fied
India: Systems undertook a detailed was spurred by significant conduct.
segmenta on of products on changes in global economic
(i) Market for manufacture the basis of vehicles in which and business decisions in light Further, the ACCI also noted
and sale of brake master they find applica on (two of the COVID-19 pandemic, that as Mitsubishi con nues
cylinders for two wheeled wheelers further segmented pursuant to which the high to provide equal access to
motor vehicles; into scooters and motorbikes, capital requirements could not technical informa on
four-wheeler automobiles), be met by the two companies. required to service their
and addi onally based on the Mahindra stated that the vehicles to independent
usage of each automo ve part. amount saved could be mechanics, consumers are
The CCI also examined the reallocated to other important free to opt for an a ermarket
upstream market for projects such as electric service provider of their
carbure ors and fuel pump vehicles. choice. Thus, Mitsubishi’s
modules for power products, no fica on seeking to
and the downstream market Australian an trust authority introduce the extended
for portable generators, water approves exclusive dealing warranty was approved as it
pumps and general-purpose no fica on filed by did not override any
engines, but owing to the Mitsubishi provisions of the law.
fragmented nature of the
On 18.12.2020, the Australian

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

Industry Track

December 2020: Positivism Prevails in the Auto Retails

Auto retails during against 1,273,318 units As we wrap up the year, we are happy to have
December 2020 closed on retailed a year ago. registered a 14% growth in wholesales in
posi ve note with the Dec'20, when compared to sales in the same
industry repor ng double Good Agricultural output period in 2019. We have also managed to
digit growth y-o-y due to saw tractor sales moving up retain more than 6% growth in wholesales in
many reasons viz, healthy steeply on the growth curve. the last quarter of CY 2020, when compared to
farm output a er a Aided also, among other the last quarter of 2019. This has been
favourable monsoon, things, by last year’s low possible due to our customers’ faith in the
governments’ mely efforts base, the tractor sales in the brand, as customer orders have been rising
& s mulus package; domes c market soared by significantly and retail sales (Dealer’s sale to
increased preference for 35.49% to 69,105 units in customers) have also been very encouraging
personal mobility to avoid December’20 over 51,004 which gives us the confidence to embark upon
infec on; lower base and units in December’19. a new target as we welcome 2021.
sustained demand a er
fes ve season. Other reason Unlike other segments, 3- NAVEEN SONi
for spurt in retails includes wheelers stayed in slow lane
advance purchase by some, in December ‘20 repor ng SVP - Sales & Customer Service, Toyota Kirloskar
to beat the proposed price de-growth of 52.75% at
hike by auto makers due to 27,715 units against retail of We have sold 21,173 tractors in the
rising input costs. 58,651 units in December domes c market during December 2020
last. with a growth of 23% over last year. The
Total automobile sales in wholesale volumes con nued to be strong
domes c market in Commercial Vehicle retails fuelled by restora on of channel inventory
December 2020, including at 51,454 units down 13.52% post the fes ve season, announcement of
passenger vehicles, y-o-y. The segment had hike in tractor prices by major OEMs and
commercial vehicles, 3- reported retail of 59,497 an cipa on of sustained demand on the
wheelers, two-wheelers and units in December’19. back of higher Rabi acreage, Govt of India
tractors grew by decent support in Kharif procurement & rural
11.01% at 1,844,143 units as Car market leader, Maru development schemes. In the exports
compared to 1,661,245 units Suzuki India (MSIL) saw its market, we have sold 1,244 tractors, a
in December ‘19. domes c sales gain by growth of 60% over last year.
29.61% to 130,772 units
Passenger vehicles held from 100,893 units a year hemant sikka
steady, witnessing a 23.99% earlier. This helped the
growth in domes c market company to garner market President, Farm Equipment Sector, M&M Ltd
with sales volume of share of 48.21%.
271,249 units in 2020 was a challenging year but the industry
December’20 compared The second largest car player showed great resilience and realigned their
with 218,775 units a year in Indian market, Hyundai businesses in the new normal. Quicker market
ago. Motor India Ltd (HMIL) recovery aided by increased demand for
witnessed domes c sales of personal mobility and our steady posi ve sales
Amidst new launches and 46,382 units in December momentum is very encouraging. We are
higher sales in rural India, 2020, which reflected 18% thankful to our customers who have
the two-wheeler segment growth from 39,306 units in appreciated Honda brand and look forward to
recorded a quantum jump the same month last year. welcoming more into the Honda family in the
of 11.88% in retails that HMIL’s market share during new year. With availability of novel corona
aggregated 1,424,620 units the month stood at 17.10%. virus vaccines in 2021, we expect return of
during the month as op mism to the market and boos ng the
Tata Motors retails consumer sen ment going forward.
registered a 78.29% growth
Rajesh Goel

SVP and Director - Mktg & Sales, Honda Cars

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

Industry Track

The PV industry con nued to grow robustly in in domes c sales of its in the corresponding month
Q3FY21, owing to pent up demand, strong passenger vehicles, which in 2019, thereby registering
fes ve season and shi towards personal stood at 19,669 units in a 7.66% de-growth enabling
mobility. Tata Motors PV Business has been December 2020 vis-à-vis the company to secure
witnessing strong response for its ‘New 11,032 units in December market share of 2.79%.
Forever’ range, which is being supported by 2019. This helped the
con nuous ramp up of supplies. In Q3FY21, PV company to secure market Tata Motors’ commercial
business posted a growth of 89% as compared share of 7.25%. vehicle sales in domes c
to Q3FY20- highest ever sales in last 33 market aggrega ng 19,172
quarters. We are con nuing to debo leneck Kia Motors with market units also reflected a
the supply chain and ramp up our output to share adding to 6.60% nega ve growth of 23.96% y-
meet the increased demand while addressing during the month was o-y. This helped Tata Motors
the availability of electronic components. achieved against sale of to report market share of
17,913 units in December 37.26%.
Shailesh Chandra 2020 against 10,339 units
sold in December 2019. This M&M retailed 15,128
President, PVBU, Tata Motors helped Kia Motors to report vehicles in December 2020,
73.26% gain y-o-y. registering a 2.27% slip. This
The world has witnessed mul ple challenges was against 15,480 vehicles
in 2020. However, as the most innova ve Mahindra & Mahindra Ltd registered in December
brand, Hyundai has emerged stronger out of (M&M) con nued its 2019. The company was able
this crisis, leading the way for economic excellent run, selling 15,773 to secure market share of
revival. This clearly reflected in our domes c passenger vehicles in Indian 29.40%.
sales that achieved new horizons, with market during December
Hyundai managing to increase market share 2020, which translated into Ashok Leyland posted a
for the second year in succession. a 10.37% up ck y-o-y. 18.43% decrease in
M&M’s market share during domes c sales of its CVs
S S KIM the month stood at 5.81%. clocking 6,583 units in
December 2020 as against
MD and CEO, Hyundai Motor India Honda Cars India Ltd (HCIL) 8,070 units retailed in
registered monthly domes c December 2019 which
At Mahindra we have witnessed a growth of sales of 9,411 units in helped in securing market
5% in UVs in the month of December. Our December 2020 against share of 12.79% during the
overall sales have been affected due to the 8,214 units sold in domes c month.
con nuing supply chain challenges related to market in December 2019.
the constantly changing global environment, HCIL’s market share during VE Commercial Vehicles Ltd.
more specifically the supply shortage of micro- the month was at 3.47%. recorded sales of 2,637 units
processors (semiconductors) used in Electronic in December 2020 against
Control Unit (ECUs). Renault India reported 2,698 units in December
domes c sale of 9,002 units 2019, recording decline of
Veejay Nakra during the month an 2.26 %. VECV reported
increase by 7.90% against market share of 5.12%.
CEO, Automotive Division, M&M Ltd sale of 8,343 units in the
corresponding month a year Maru Suzuki India (MSIL)
Tata Motors’ Commercial Vehicle domes c ago. The company’s market CV sales during the month of
sales in Q3FY21 at 82,155 units was 48% share during the month was 2,430 units was gain of
higher than the previous quarter and at 3.32%. 8.77% as compared to 2,234
recovered to be broadly in line with Q3FY20 CVs sold in the year last.
(-3.5%). M&HCVs and ILCVs led the recovery, Toyota Kirloskar Motor With this, the company’s
growing by 10% and 7% respec vely, over (TKM) sold 7,572 units in the market share stood at
Q3FY20, with higher demand in Indian market in December 4.72%.
infrastructure including road construc on, 2020, as against 8,200 units
mining and e-commerce. The off take
con nued to be higher than retail to
support sequen al month on month growth
in retail while ensuring healthy inventory
levels in the pipeline.

Girish wagh

President - CVBU, Tata Motors

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

Industry Track

Momentum of two-wheeler sales of 179,176 units in Piaggio Vehicles Pvt Ltd upswing in sale of tractors to
sales Y-o-Y refreshingly December 2019. This helped (PVPL), a 100 % subsidiary of 7,162 vehicles in December
headed north on back of company to register market the Italian Piaggio Group, 2020. The company had
a rac ve discounts offered by share of 14.35%. retailed 5,037 vehicles in retailed 6,075 tractors in
manufacturers during year- December’20 against 10,260 December 2019.With this the
end sales. Domes c sales of Bajaj Auto’s vehicles retailed in company’s market share
two-wheelers displayed December’19 which accrued stood at 10.36%.
The market leader Hero growth momentum by 5.60% to market share of 18.17%.
MotoCorp gaining from at 160,912 units from 152,374 John Deere India Pvt Ltd, a
fes ve and pent up demand units a year ago, repor ng During the month M&M subsidiary of Deere &
saw its domes c sales soar by market share of 11.30% retailed 1,212 vehicles while, Company registered sale of
decent 13.35% y-o-y to Atul Auto Ltd sold 1,187 5,271 tractors against 3,461
559,118 units in December Royal Enfield retailed 51,003 three-wheelers. tractors sold in December
2020 as compared to 493,266 units of two-wheelers in 2019, double digit gain of
units retailed in December’19. December 2020 against In the Tractor segment, 52.30% y-o-y. This marked a
Market share of Hero 48,057 units retailed in leading player, M&M Ltd market share of 7.63% for
MotoCorp during the month December 2019 adding to retailed 16,385 vehicles of John Deere India.
was 39.25%. 6.13% growth y-o-y. Market Tractor & 11,668 vehicles of
share for Royal Enfield during Swaraj Division Tractors Eicher Tractors retailed 4,410
The company in its press the month stood at 3.58% during December 2020 units during the month which
release stated that, “The registering y-o-y growth of was 18.96% more in
December volumes indicate Suzuki Motorcycle’s sold 29.42% and 41.02% comparison to 3,707 units
the con nuously improving 44,758 units in the domes c respec vely. The market share sold in December 2019. This
consumer sen ment and the market during the month of M&M in tractor segment helped the company to lock a
company expects the posi ve gaining by 3.60% y-o-y helping stood at 23.71% while that of market share to the tune of
trend to con nue in the new the company to notch market Swaraj Divison at 16.88%. 6.38% for the month.
year, despite challenges posed share of 3.14%. The company
by Covid-19 pandemic. had sold 43,201 units in Interna onal Tractors Ltd With economic recovery
December 2019. recorded a whopping 63.33% gaining trac on, ebbing off
The wide range of best-in- growth in domes c market uncertainty in job market,
class products and consistent India Yamaha Motors with sales of 9,380 tractors in hope for industry friendly
alignment of new witnessed a 23.23% growth in December’20 over 5,743 Union Budget announce-
technologies and services will domes c sales at 42,881 units tractors in the same period ments, new launches and the
ensure company’s strong in December 2020 against last year. This helped the effec veness of new Covid
growth impetus in 2021.” 34,797 units sold during the company to rack up market vaccine are sure to drive
same month a year ago. The share of 13.57%. growth. But headwinds
Honda Motorcycle & Scooter company’s market share created by the new strain of
India (HMSI) with its market during the month reflected Tractors and Farm Equipment corona virus , tapering of
share of 24.55% during the 3.01%. Limited (TAFE Ltd) recorded a pent-up demand, shortage of
month secured domes c sales decent growth of 40.07% in steel leading to produc on
at 349,686 units, growth by In the Three Wheeler sale of tractors y-o-y during halts and the stricter ‘Credit
12.25% y-o-y. The company segment, Bajaj Auto Ltd the month at 8,022 vehicles Control’ coming from banks
had retailed 311,529 units in posted retails of 9,570 against 5,727 vehicles sold a and financial ins tu ons may
Dec’2019. vehicles during the month year ago. This resulted in put hurdles to the flagging
against 24,347 vehicles sold a securing a market share to the recovery being experienced
TVS Motor Company year ago. This helped the tune of 11.61% during the in the auto retail. Hence,
registered total two-wheelers company to report market month. cau on must be exercised.
retail sale of 204,482 units in share of 34.53% in 3W retails
December 2020 as against during December’20. Escorts Ltd registered 17.89%

CORRIGENDUM

We wrongly published the photograph of Mr Rakesh Sidana, AVP, GoMechanic in place of Mr Rakesh Sidana,
Director - Sales, MG Motor India in the last edition of Industry Track. Any inconvenience caused due to this is deeply regretted.

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

Chart of the Month

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

Statistics

Domestic Passenger Vehicle - December 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

41.06

154.4 1,407.54 2,52,998
1,227.84 2,22,728

24.9 14.6 32.7 1,46,864 19.75
Maru 14.4 1,35,531 94,787
474.00
2.7 379.53 3.2 -18.1 8.36 79,153 13.59
Cars Total
86.38 84.12 161.82 156.86 -35.0 -31.1 UVs
Honda Mahindra
-48.3 -45.1 -46.6

3.84 7.42 16.62 30.25 118.18 40.10 30.21 98.00 119.64 74.87 65.44 24.01 34.83 11,347 8,044
FCA Ford 46.45 MG Motor 13.03 20.06 Volkswagen Vans
11.59 21.69
Kia
Hyundai Nissan Renault Skoda Toyota

Dec'20 Dec'19 Growth (%) Dec'20 Dec'19 Growth (%)

Market Share (%)

100.0 11.0 16.1 16.0 15.8 18.6 18.2 22.3 16.6 16.6 17.9 19.5 19.7 15.8
90.0 7.7 3.7 3.6 2.0 3.7 3.5 3.8 3.4
80.0 6.4 5.0 5.6 5.5 2.9 2.6 1.3 2.9 3.5 5.5 6.0 6.9 6.4
70.0 8.2 6.7 6.7 7.5 5.1 4.1 7.6 6.0 18.5 18.2 18.4 18.7
60.0 19.8 17.5 16.1 16.0 4.3 2.4
50.0 6.3 54.4 52.7 51.3 55.6
40.0 46.9 51.0 52.1 53.2
30.0 15.9 18.7 20.9
20.0 FY’18 FY’19 Dec-19 Jan-20 21.2
10.0 20.2
0.0 Hyundai Motor
Source: F A D A Research 53.2 54.1 48.5 53.5 52.4

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

Maru Suzuki Mahindra Tata Motors Honda Cars Others

56 F A D A Journal December 2020 | fada.in

Statistics

Domestic Two-Wheeler - December 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

4,250.33 31.21 11,27,917
4,120.09 10,50,038
7,44,237
33.0 52.8 6,97,819

3.6 3.2 5.2 35.1

18.0
12.5

0.9

2,420.46 -19.7
2,301.97

1,769.12
1,572.44

1,286.42 -70.6 3,23,696 3,06,550 6.65
1,241.25

-98.0 392.24 654.92 443.68 5.59 7.42
294.86 484.89 447.73 0.59
0.04 2.03 Scooter Total
Harley-Davidson 1.02 1.27 0.20 0.68 56.10 36.72 0.50 59,923 45,669 0.00
Kawasaki 61 0
Bajaj Hero HMSI Yamaha Mahindra 2W Piaggio Royal Enfield Suzuki Triumph TVS Motor Motorcycles Mopeds
Electric 2W

Dec'20 Dec'19 Growth (%) Dec'20 Dec'19 Growth (%)

Market Share (%)

100.0 6.9 8.1 9.2 9.1 9.6 7.9 5.9 5.7 6.8 6.9 6.7 7.7 10.3
90.0 3.9 3.3 2.7 4.5 5.0 2.9 3.9
80.0 2.8 12.2 13.1 10.9 14.3 14.8 3.9 3.4 2.9 3.3 3.5
70.0 14.0 13.1 14.7 15.5 15.7
60.0 14.2 13.8 15.0 11.4 11.9 13.1
50.0
40.0 9.8 11.9 11.8 11.3 14.5 11.9 11.8 11.4
30.0 11.8 11.4
20.0 27.5 27.1 24.1 25.8 21.5
Source: F A D A Research 10.0 28.6 27.0 21.9 27.9 24.4 20.0 24.1
0.0 28.3

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

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

Hero MotoCorp HMSI Bajaj Auto TVS India Yamaha Others

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

Statistics

Domestic Three-Wheeler - December 2020 (Wholesale)

Domestic Sales Comparison Segment wise Growth

(Units in Hundreds)

- 4.61 53,795

44,573

295.03 10.8
0.0

109.64 -46.7 138.15 13,329 8,797 9,222 22,126
-62.8 57.05 -58.7
39.00 53.72 - 70.10 - 58.87
Bajaj Auto Piaggio Passenger Carrier
16.89 28.65 Total

Atul Auto Mahindra 0.00 3.90 9.03 8.15 Goods Carrier
Scooters India TVS Motor

Dec'20 Dec'19 Growth (%) Dec'20 Dec'19 Growth (%)

Market Share (%)

100.0 0.4 2.5 0.7 0.8 1.1 1.1 0.2
90.0 2.6 1.8 1.5 1.9 1.7 1.6 4.3 5.6 4.9 4.1 3.1 3.6 4.1
80.0 6.2 6.1 9.9 8.7 8.4 8.3 8.4 6.4 7.6
10.3 7.3 5.6 6.9 3.5 0.1 0.7 2.1 3.1
8.6 1.5
11.9 16.3
10.1 13.4 9.3 26.1 12.9

70.0 24.0 22.1 34.0 31.9 34.9
41.9 28.7 25.8
60.0 25.9 21.0 28.2
28.3

50.0

Source: F A D A Research 40.0

30.0 58.1 66.1
20.0
57.2 54.4 57.5 52.8 43.6 51.1 52.7 49.5 47.8 45.4 49.6

10.0

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

FY’18 Piaggio

Bajaj Auto Mahindra Atul Auto TVS Others

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



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