Tata Bolt New car launched

Tata has launched its hatchback car in India at attractive price and advance features. It is having four variants.

Autobei Consulting Group

Autobei Consulting Group

European Car Sales Analysis 2014

Europe - that land which is a world apart and yet right next door. Apart from the Harry Potters and Hipsters and the supremely beautiful monuments, Europe is greatly famous for its automobile manufacturing companies that spread out across the whole continent from Germany to Great Britain to Italy to France. Europe is the world’s motorhead big brother. European car sales started to give growth sign after 6 years.

Evidently, the German market share is normally greater than the other countries. Interestingly, for both the years, 2013 and 2014, market shares in all the European countries have been almost neck to neck, showing very minor changes and all the brands, except Honda, have shown positive numbers in production of units.

Only the Langa/Chrysler and Alfa Romeo shows decreased sales in 2014, but the market share of the former stays the same; while Fiat and FCA group shows a decrease in market share by 1%. Toyota group, Toyota and Lexus were seen increase in production in 2014, along with increased, though negligible, market share. The Jaguar and the Jaguar Land Rover Group has maintained its market share for the years 2013 and 2014, with the Land Rover selling more units in 2014.

Volkswagen is the market leader with 25%, PSA second largest player with 10.7% market share and the third one is Opel with 7.1% market share in 2014.

According to our study, most households in Europe, especially Italy, France and Spain have been noticed to buy the more middle level cars such as Volkswagen or Renault. Luxury cars are more commonly bought in Sweden while the more basic price range cars are confined, for the most part, to Austria and Switzerland. Germany is the biggest market for Premium cars. Volkswagen & PSA portfolio and product position target mass market of middle level segment. 

Sweden is the only European country keen on premium and luxury brands and on the contrary Austria and Switzerland prefer automakers offering cars of basic range. Interestingly, most other European countries stick to middle ranged brands.

Most European countries see larger sales in sedans than any other type of vehicle, which is understandable as sedans deliver functionality, fluidity as well as design. MUVs and SUVs are purchased primarily in Austria while convertibles mainly in Germany. Apart from sedans, the United Kingdom and Spain also see a decent amount of Coupes sales. This also shows customer buying behavior of Europe.

The Sedan has the largest market share in Spain while the MUV/SUV, convertible, etc have negligible presence in Germany , UK, Austria and Switzerland and almost nil presence in countries like Sweden Italy, France and Spain.

German manufactures are heading car market in Europe with around 37% market share. Tata Group around 1% share.

Volkswagen Group Sales Overview:

Volkswagen group sales was 3,036 thousand units in 2014 with 25% market share. Audi is the second largest brand of the group. 

In 2014, Audi deliveries increased by 17.7 per cent to 578,900 cars in China (incl. Hong Kong). Audi AG thus became the first premium carmaker to deliver over a half a million units in China within a single year. Mercedes, on the other hand, sold 1,650,010 vehicles in 2014 alone. Impressive? Their strongest sales month saw a sale of 163,171 units.

PSA Group sales Overview:

French manufacturer PSA group, Pegeot contributed 6% sales compare to around 5% market share. Group sales has increased in 2014.

Renault Group Sales Overview:

Renault sold 1,238 thosand vehicles in 2014. Renault car is contributing majority of sales compare to Dacia brand. Dacia comes under low level price range.

Daimler Sales Overview:

German car manufcatures Daimler having two product brand. Mercedes and Smart. Mercedes is having 5% market share coompare to Smart product brand.

Global Sales overview of Daimler car sales:

BMW Group Sales:

BMW market share is almost flat in 2014 and 2013.

Global Sales:

The BMW Group delivered more than two million vehicles to customers in 2014, the company’s fourth record year in a row. Interestingly, the BMW group has maintained its market share of 5.4% in 2013 as well as 2014, and also shownan increased production of 4.6% in 2014. A total of 2,117,965 BMW, MINI and Rolls-Royce vehicles were sold, more than ever before in the group’s history. All of the company’s brands finished the year strongly with sales in December up 15.2% - a total of 215,217 vehicles were delivered in the last month of the year, a whooping 28,431 more than the previous year. For BMW, 2014 has been the year of increase in the number of units, with market share remaining the same.

Italian giant automobile group Fiat also maintain its previous year market share. There is no major changes in last year. Its Afa Romeo is struggling to make some good profit in  the group.

Jaguar LandRover Sales Overview:

Indian Luxury Brand Jaguar and Land Rover presence only in luxury or premium segment. Jaguar regsitered better sales compare to LandRover.

Opel Group Sales:

Chevrolet Brand is truggling in Europe. Along with decline in sales, it is also strugglin on other fronts also. In one year its market share changed from 1.1% to 0.3%.

World's market leader in car sales Toyota is having less than 5% market share. Its premium brand Lexus had 0.2% market share in 2014.

Automobile sales and purchases in Europe have always been in a bullish market. What with fluid designs and flawless engineering, the entire world counts on Volkswagen, BMW, Mercedes and the lot. Europe itself sees a gigantic internal trade on automobiles. 

As more of the world’s population has been entering the middle class, the want of a good vehicle has surpassed its need and this shows up significantly in the data. No one would ever complain. The companies see sky rocketing sales and households see happy car owners. The beauty of an automobile conquers the illusion of greed.

Source: Autobei

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Bajaj witness 4% sales decline in April 2014

The total sales for Bajaj Auto for April 2014 including exports stood at 331,529 units against 344,178 units in April 2013 registering 4% de-growth.

Motorcycles sales stood at 299,6361 units in April 2014, marginally higher than 300,827 units sold in April 2013. Three wheeler sales declined by 26% at 31,893 units in April 2014 against 43,351 units during the same month of previous year.

Bajaj has previously ended financial year 2013-14 with cumulative sales decline of 9% where sales stood at 3,870,090 units during the period against 4,237,162 units during FY 2012-13.
Source - Autobei

Underperforming MAN has the potential to become a major brand in Indian Market

MAN Truck & Bus, the company headquartered in Munich, Germany is the largest subsidiary of the MAN SE Corporation and one of the leading international providers of commercial vehicles. In this article, we will talk about the origin of this company, how it came into India and some of the ways for its re-return into India in its full glory. MAN Truck & Bus revolutionized the Indian Truck Industry by creating a new mid modern segment. German media has given good coverage about this new Joint venture of MAN in India.

A case study was done on the product range, price position and coordination were the aspects studied and analyzed between the offices at Munich and Pune. One of the aspect which was given major consideration in this study was the working days and time which highly varied between the two offices. This resulted in a lot of days in a week when one of the offices were closed thus affecting productivity. To add to the troubles were factors like lack of communication and time difference between the two places. The overall business was rather complicated.

In the year 2000, MAN was a global company but its knowledge was local to begin with. The company decided to expand the growth and make the presence of the company globally. After nine years of planning and dedicated efforts, MAN now has collaboration with giant companies like CNHTC China. It has purchased Volkswagen Brazil Commercial Vehicle Business, and established JV with Force Motors in India.

Although being a highly reputed brand and a globally known company, MAN could not establish itself in India as well as one had hoped. Let us understand why this happened which will further help us in building its position once again. Before Force Motors collaborated with MAN, it used Mercedes Engine for making Tempo Traveller. While looking for a reliable Indian partner, the company started looking for a company like MAN, Munich to get commercial engines. In the year 2006, MAN Force Motors Ltd was formed. The development of the military vehicle “Shaktiman” has been credited to vigorous efforts of Mr Schumacker who was the first official appointed executive in India.

In the year 2008, MAN made the decision of opening a separate office in Mumbai which had MAN Diesel facility. Three people from MAN Munich Office who worked towards making this dream of a separate office come true are Mr Atul Singh Chandel, Mr Franz-Xaver Polster, and Mr Neundlinger. Even though the initial plan was to build an operation to sell the premium TGX/TGA-WW products in India but this dream had a short life as the office in Mumbai was later closed down due to several reasons.

Intercultural dimensions of two countries was also one of the issue during JV

MAN Trucks India Private Ltd

Between the years of 2006 and 2011, there have been numerous changes in the company. While it started out as a joint venture in the year 2006 with contribution from Force Motors. The plant was inaugurated in April 2006. In the same year, delivery of the first batch of MAN trucks happened in the month of August. The month of October in 2007 saw the first export vehicle and in March of 2012, JV was taken over by MAN and was renamed as MAN Trucks India Private Ltd. Now the company is a full subsidiary of MAN Truck & Bus AG, Germany.

With the headquarters located in Pune, Maharashtra and plant in Pithampur, Madhya Pradesh, the company has over thousand employees. Some of the famous slogans used by the company to promote their brand are India’s Future is Riding the New Expressways, harnessing the world’s Best Technology, Introducing India’s New Benchmark of Reliability, Performance, Efficiency, Safety and Endurance; and Tomorrow’s vehicles manufactured in India only.

Product Launch:

In the beginning stages of the company, the product was launched with the Force product brand later the company realized that this could hamper MAN’s progress and its brand image. Even convincing customers about the premium brand value was not possible.

The company entered into tipper segment after launching tractor head to toe tractor segment with Product brand of MAN.

MAN Buses: In the category of buses, MAN has an AIROBUS, which is a 45 Seater Luxury AC Coach.

MAN Sales Performance

The sales performance of the MAN Company has been steadily growing since the day it started and continued till 2010. But since then the sales have dropped. This is itself is a big signal to the company to re-think its strategies to improve the growth.

BharatBenz, which is another German brand to enter into the Indian Maker has performed much better than the MAN in recent years if sales performance is judged.

MAN product Analysis:

Product Support

Some of the options in case of free service are:

1. If you buy the Haulage, you get six free services at intervals of 15,000 kms or 60 days whichever is earlier.
2. When you buy Haulages with 2VCR&VP44, you get six free services at intervals of 20,000 kms or 75 days whichever is earlier.
3. In case of Tippers and Special Application, you get six free services at interval of 450 hours or 30 days whichever is earlier.

Warranty Policy

For Haulage, the warranty policy stands at 24 months or unlimited kms. In case of Tippers, it is 18 months or 3000 hours, whichever happens earlier. Whereas bus has a warranty policy of 24 months or 200,000 kms, whichever occurs earlier.

The company also offers warranty for the separate parts and works with the goal always being maximum customer satisfaction. The warranty for the parts is available for 6 months or 1000 hours or 40,000 kms whichever happens earlier from the date of purchase from MTI Dealers.

Pan India Service Network

With a wide network of dealers who are spread nationwide, the company provides prompt and efficient after-sales service. The dealers have all the facilities necessary for them to work their best, like mobile service on the spot. All the dealers are situated along the Golden Quadrilateral. In case of large operations, the company also provides customised “on site” support. While they give forty sales, service and spares; the service and spares stand at 35.

Product & Price

When the company first came into the Indian market, the strategy was something like this, 65% Tractor Head product and 35% Tipper sales plan, whereas they had places a price of 24 lacs for 49.280 & 40.280 Tractor head. Initially the customers took interest in the product due to its brand value and the hope that the collaboration which happened between the two companies will reduce the prices in turn due to production of the components in the country itself. At this time, the product support came from Force Dealers and MFTPL dealers who were exclusively brought for this purpose. These MFTPL dealers were from seven places in India namely Bangalore, Chennai, Coimbatore, Jaipur, Mumbai, and Gurgaon.

However due to poor service network, the market of Haulage with its initial plan completely collapsed and this lead to huge disappointment among the customers. Later, the MFTPL changes their track and went towards Tipper models with a capacity of 280 HP and 25 Ton which came under the mining segment and thus stood against Higher HP vehicles like Actros and Volvo but also the ones having vehicle cost. This step slightly improved their plan and increased their Tipper sales. However, in today’s market the competition is with giants like BharatBenz and Tata who have already proven their worth in India with respect to customer prices. The bottom line that comes out of all this is that ultimately after waiting with expectations for a long period, the customers have been forced to move on from MAN to other known brands as they were never satisfied.

Applications

In India, maximum commercial vehicles are utilized in various projects like irrigation work, road construction, mining, RMC for Tipper models, soil and blue metal transportation and Logistics movement for Haulage and Tractor Head models. During the early stages of their entry into India, customers bought the MAN products due to the very high brand value that it held and the reliability and safety of the products. However this did not work as their products started going into wrong places for application like Tippers in Mining segment. On the other hand, the Tipper vehicles that came with a Gear box had technical failures due to the same in the market in the state of Kerala. After conducting lots of trials to validate the vehicle, MAN AIRO bus was launched in India.

Promotion

The promotion techniques used by the company have been just about the basics like the road shows, advertisements and campaigns for creating awareness about the brand. This did some work for them in terms of positive impact of sales.

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Disclaimer
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgement. Neither ACG nor any other member of the organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Source: Autobei

Eicher Commercial vehicle sales minor declined in May 2014, Export registered 200% growth

The total sales for Eicher Trucks and Bus for May 2014 were 3,685 units against 3,687 units in May 2013, registering 0.05% decline of sales. The domestic sales for the month decreased by 12% as 3,064 units were sold against 3,488 units sold during the same month of previous year. Exports for the month were 621 units against 199 units exported during May 2013.

Recently  VECV launched its new product range the Eicher Pro series of light and medium duty trucks . It is modern truck with new features and upgrade technology. VECV is expecting to get more market share by launching its Pro Series. Eicher Pro Series is a new and enhanced range of light and medium duty trucks in the 5-49T segment with low maintenance and best in class fuel efficiency.

Source: Autobei

Mahindra Sales registered de growth in May 2014

The total sales for Mahindra and Mahindra in Automotive sector for the month of May 2014, stood at 37,869 units recording a decline of 13% as compared against 43,460 units sold in May 2013. The domestic sales for May 2014 stood at 35,499 vehicles against 42,104 units in May 2013, marking a 16% drop. The exports units for the month were 2,370 units; 42% increase as against 1,356 units during May 2013.

Total automotive YTD registered 13% declines, export is registered 58% de growth.

Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd. said, "Auto sales continue to remain subdued for many players, at the back of yet another challenging month for the industry. Post the electoral mandate, we expect to see improved sentiments resulting in a better economic situation which we hope will lead to a gradual increase in demand.  We are happy to have achieved a growth of 75% in our export volumes during May".
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Mahindra Two Wheeler has shown strong growth with 131%.
Speaking on the monthly performance, Viren Popli, Chief of Operations, Mahindra Two Wheelers said, “We are happy to maintain the demand momentum of our 2-wheeler division during May 2014 with a growth of 131% in the domestic market, which is indicative of the growing acceptance of our product portfolio especially our flagship brand, the Centuro. With a positive upsurge in socio-economic sentiments and on the back of improved demand, we hope to remain on the growth trajectory going ahead”.

Sales of Mahindra's tractors in the domestic market rose 3 percent in May 2014. Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, Mahindra & Mahindra Ltd. said, "We have registered a sale of 23132 tractor units in the domestic market during May 2014. We do hope that the onset of monsoon would add buoyancy to the farmers’ morale and lead to growth in the agricultural sector".

Source: Autobei

Tata Motors Sales down by 24% in May 2014

Tata Motors’ total sales; (including domestic and exports sales) witnessed 24% decline in May 2014 at 37, 525 units sold against 49,304 units sold in May 2013. The company’s domestic sales for May 2014 were 34,334 nos., 24% decline over 34,334nos. sold in May last year.

Passenger Vehicle Sales Overview

Sales of passenger vehicles for May 2014 stood at 11,134 units, lower by 17% in comparison with 9,230 vehicles sold in May 2013. Sales of the Nano/ Indica/ Indigo range in May 2014 declined by 22% against May 2013 while the sales of Sumo/ Safari/ Aria/ Venture range rose by 4%.

Sales of commercial vehicles for May 2014 in the domestic market were 23,229 units registering drop of 27% as compared to 34,296 vehicles sold in May last year.

Source: Autobei

Maruti and Hyundai Domestic Sales up in May 2014

Maruti sold 100,925 units in May 2014 against 84,677 units in May 2013, registering growth of 19%. Domestic sales rose by 16% in May 2014 with 90,560 units against 77,821 units sold in May 2013. The exports for the month increase by 51% with 10,365 units against 6,856 units in May 2013.

The passenger car sales rose by 12% in May 2014 at 74,536 units against May 2013 sales of 66,342 units. The Utility segment which includes Gypsy, Ertiga and Grand Vitara, registered sales of 5,253 units in May 2014 against 4,307 units sold in May 2013 registering 22% growth. The sales of Maruti Vans – Omni and Eeco stood at 10,771 units in May 2014 marking 50% growth against 7,172 units sold in May 2013.

The Mini Car Segment which includes M800, Alto, A-Star, WagonR witnessed 25% sales decline as Dzire (Super Compact) sales fall by 25%. Compact Car Segment which includes Swift, Estilo, Ritz and Celerio had registered growth of 54%. Sales of SX4 (Mid-Size) suffers a huge decline of 76%.

Hyundai Cumulative Sales declined by 9%

Commenting on the May sales Mr. Rakesh Srivastava, Sr. VP- Sales and Marketing, HMIL said, “Hyundai with a volume of 36,205 units has grown by 12.8% over last year which is in line with this year’s objective to grow in market share and volume. The phenomenal success of Xcent, Grand and Santa Fe increased volumes creating positive momentum. We foresee to maintain this positive trend by strengthening our product portfolio and improving channel efficiencies.”

Source: Autobei