Car sales
during the first six months of 1999-2000 had hit a record 300,419 according to the latest Society of Automotive Manufacturers report. 46% ahead of the same period last year. Actually the demand
is greater as many automakers are unable to produce enough. With
a flurry of new car entries, the full year may see sales of about 650,000 units or 58% ahead of last years total. During
this period, the sale of trucks and busses rose by 42% though the
sales of motorcycles, LCV's and MUV's were only a bit less impressive.
October 1999 not only marked the end of a long period of political
uncertainty but pointed to a period of rapid economic growth. During
the first six months of 1999-2000, the stock market boomed and sales
of the automotive sector were high after three years stagnation.
The Indian economy seems to fluctuate every three years from periods
when nothing sells to periods when nothing is unsaleable.
Car sales had been rising from 42,000 in April to 57,000 in September
with marked changes in market behaviour. Last year there was just
one small car segment with the Zen seen as just a deluxe Maruti
800. Now the segment had split into two. The micro, or economy,
models like the M800 and the Omni and the mini segment of Zen sized
cars. The latter segment had exploded from 10% of the market last
year to 43% with the competitive inroads of Santro, Indica, Matiz
and Uno models and many buyers were going straight to this mini
segment leaving the micro models to be mostly bought as basic non-air-conditioned
utility vehicles. This growth had been triggered by many better
new models marketed aggressively at competitive prices.
During the second half of the year we may see a similar invasion
of exciting new larger models. The first will be the Hyundai Accent
in October followed by the Ford Ikon. We will probably see the Opel
Corsa in December and the Maruti Baleno in January. Toyota will
also launch their new model positioned between a car and a minivan
in January.
As all of them are expected to be aggressively priced they will
unsettle the present larger models like the Maruti Esteem, the Honda
City, Mitsubishi Lancer, Fiat Siena, Daewoo Cielo and Nexia Opel
Astra and Ford Escort. These 7 models presently command about 9%
of the market and aggressive marketing could see this segment doubling
next year. Like the small cars, this prestige segment could also
split into smaller models costing less than Rs. 6 Lakhs and more
luxurious ones costing over Rs. 7 Lakhs.
These models will probably spawn several variants. Shorter hatchbacks,
longer estate models, sporty 2-door coupes and several engine and
other choices. By the end of the year 2000 there may be 25 main
models and as many more variants and the automobilisation of India
will have been well launched. The complete the process will require
a reduction of the heavy taxation to enable India's auto industry
to face second-hand imports under WTO pressures as well as a long
overdue improvement in India's roads and road management.
Sales trends among some of the major brands:
| MODEL |
A-Sept
sales |
% |
Sept
sales |
% |
| M-800 |
101,346 |
34.5 |
18458 |
32.5 |
| Omni |
41,991 |
14.3 |
7601 |
13.4 |
| MICRO
CARS |
146,337 |
49.8 |
26059 |
45.9 |
 |
| Zen |
42024 |
14.3 |
7479 |
13.2 |
| Santro |
31,849 |
10.8 |
7214 |
12.7 |
| Indica |
21,285 |
7.2 |
5044 |
8.9 |
| Matiz |
12,373 |
4.2 |
2501 |
4.4 |
| Uno |
8791 |
2.7 |
1638 |
2.9 |
| MINI
CARS |
124,764 |
42.5 |
25,438 |
44.8 |
|
| Maruti
Esteem |
8601 |
2.9 |
1521 |
2.7 |
| Honda
City |
4890 |
1.7 |
1002 |
1.8 |
| Mitsubishi
Lancer |
4336 |
1.5 |
1001 |
1.8 |
| Fiat Siena |
2580 |
0.9 |
826 |
1.5 |
| PRESTIGE
CARS |
25,767 |
8.8 |
5314 |
9.4 |
|
| TOTAL |
300,419 |
100.0 |
56,187 |
100.0 |
|
