Power Pack

Automobiles

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•2 Wheelers

• Industry Overview :3

• Segmental and Competitive Analysis :9

•Cars and Uvs

• Industry Overview : 18

• Segmental and Competitive Analysis : 22

• Commercial Vehicles : 30
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 Industry Overview

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 Between 2010-11 to 2017-18, motorcycle sales increased at a modest 9%
compound annual growth rate (CAGR), scooter sales accelerated at a
strong 20% CAGR.
Scooters
INDUSTRY GROWTH TRENDS

Motor-Cycles

Mopeds

• Size of 2-wheeler market in 2017-18

•By Value: Rs. 1021bn
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•By Volume: 20.1 mn units
 FACTORS INFLUENCING GROWTH
Motor cycles
•Rural demand constitute 46-48% of the
motorcycles sales.
•Two consecutive years of El-Nino for FY
15 and FY 16, resulting into back-to-back
drought situation in rural areas which
affected Motorcycles growth
• Growth picked up in 2016-17 due to:
•Good Rainfall
•Improvement in MSP of both Kharif
and Rabi
•Increase demand in urban areas due
5 to pay commission pay-outs
Why Scooters are growing fast?
• Improved road network in Tier 2 and
Tier 3 cities and lack of public
transport
•Reducing mileage gap between
motorcycles and scooters
•Gender-neutral positioning
•Launch of new models
•Steady expansion in players'
dealership network
•Capacity expansion by leading
players
 FACTORS INFLUENCING GROWTH

MOPEDS
• Demand for mopeds mainly comes from small businessmen, shopkeepers and
farmers in rural and semi-urban areas.
• Geographically, AP and TN contribute the highest sales.
• Over the last few years, Kinetic Engineering, Majestic Auto etc have shut their
moped businesses and as a result, TVS Motors is the only player in the segment
• There was a decline in moped sales in the last 2-3 years as erratic rainfall led to
poor farm income.
• But in 2016-17, TVS launched its new four stroke XL 100.This model has been
very well received in the market. The newly launched model is also being well
received in the northern states
• In 2016-17, Moped sales accelerated 23% over a low base in 2015-16 as a result of
improved rural demand and a well-received new model launch.
 The share of motor- cycles sales has dropped from 77% in 2010-11to 63%
in 2017-18. In contrast, the share of scooters has increased from 17.5% to
33% in the same period

SEGMENTAL MIX CHANGE

Source: Crisil Research

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OVERALL MARKET SHARE

Player Market Share

2010-11 2017-18
Hero 44.8% 36.6%

HMSI 13.2% 28.6%

Bajaj Auto 20.5% 9.8%

TVS 13% 14.2%

Royal Enfield 1% 4%
Others 7% 9%

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 Motor-Cycle review

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 HMSI has been gaining market share at the expense of Honda and
Bajaj.

MOTORCYCLES : DOMESTIC MARKET SHARE

Source: SIAM, Crisil Research

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MOTORCYCLE SUBSEGMENTS
•Motorcycles are classified as

economy, executive and premium,

depending on their launch price

and engine capacity.

• Share of premium and economy

sub-segments are on the rise while

that of Executive sub-segment is on

the decline.
Source: SIAM, CMIE
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 Though Hero leads with 58.5 % share, Bajaj increased the share from
24.9% to 29.6% post the launch of CT-100 and Platina models

MOTORCYCLES SUB-SEGMENTS •Hero continues to dominate the

ECONOMY economy sub-segment with its CD
Dawn Deluxe range of models.
•Bajaj Auto, which had gradually lost
its market share to Hero, now
accounts for 30% of the economy
sub-segment, post the launch of CT-
100 in 2015and Platina in 2018.
•In the absence of new models, TVS
Motors too, lost its market share in
the segment from 20% in 2012-13 to
12% in 2017-18.
Source: SIAM, Crisil Research
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 Hero is the undisputed market leader in the Executive sub-segment

MOTORCYCLES SUB-SEGMENTS
EXECUTIVE • Hero is the undisputed market

2017-18 leader with 2 top-selling models –

Splendour and Passion Plus

• HMSI increased the share through

primarily due to Honda Shine.

•Bajaj lost considerable market share

despite launching several models of

the Discover series

Source: SIAM, Crisil Research

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 Though Bajaj is the market leader in the premium segment, it’s market
share has dropped to 29% while Royal Enfield’s share has increased to
28%
MOTORCYCLES SUB-SEGMENTS • Bajaj is the market leader

PREMIUM with top-selling models like

Pulsar and Avenger variants
• Enfiled is the second largest
player
• Yamaha captured 3rd
position through different
variants of FZ series.
• TVS increased it’s share
through Apache
• Hero did not have any
successful model after Karizma
Source: SIAM, Crisil Research
14 ZMR and CBZ Extreme
 Scooters and Mopeds

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 HMSI has 57% share in the scooters segment.

Scooters Market Share • HMSI is the market leader

with Activa with a huge lead
over others.
•Honda Grazia also has had a
successful launch ( 1 lakh units
sold in the first 5 months).
•TVS gained market share after
2013-14 with the launch of
Jupiter, Scooty and Zest
•Hero is the third player with
models like Maestro, Pleasure
and Duet
•Yamaha has become the 4 th
player with models like Ray,
Source: SIAM, CRISIL Research
Alpha and Fascino
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 Cars & UVs

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 Industry Overview

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 Small cars constitute about 60% of the Indian passenger car market.

SEGMENTAL MIX

Source: Crisil Research, SIAM

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 Maruti holds the leadership position in both Cars and UVs

MARKET SHARES

Source: Crisil Research, SIAM

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 New launches contributed to good proportion of sales between 2015
to 2017.

SHARE OF NEWLY LAUNCHED MODELS IN INDUSTRY SALES

Source: Crisil Research, SIAM

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 SEGMENTAL ANALYSIS
– SMALL CARS

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SMALL CARS
• The small cars segment comprised

61% of the domestic PV industry in

fiscal 2019 YTD (April-December)

• The top two players- Maruti

Suzuki and Hyundai Motors,

accounted for 80% of the segment's

sales during this period.

Source: SIAM
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 SEGMENTAL ANALYSIS
– SEDANS

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 Market share in the sedan segment is very volatile with players
gaining and losing the market share significantly over short period of
time.
SEDAN : MARKET SHARE

Source: SIAM
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 Hyundai and Toyota have been the major gainers in the last couple
of years.

SEDANS: COMPETITION
• Maruti Suzuki's share in the large cars segment started declining post GST
implementation, which imposed a higher cess on hybrid vehicles than earlier tax
rates.
• It has only one model i.e. Ciaz in this segment which is available in the hybrid
variant.
• Also, it received stiff competition from Hyundai Motors' Verna, Toyota's Etios,
and a range of large cars from other manufacturers.
• Hyundai has been able to extend its share as Verna sales improved after it was
relaunched in August 2017.
• Verna has ~21% market share in the large cars segment as of fiscal 2019
• Toyota gained ~7% market share in fiscal 2019 to reach 20% from 13% in fiscal
2018
26 due to the launch of its feature-laden Yaris model in May 2018.
 Utility Vehicles

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 Mahindra’s share has fallen drastically in the last 5 years while Maruti
and Hyundai has gained considerably.

UV : MARKET SHARE

Source: SIAM, Crisil Research

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 Why M& M lost it’s share?

RISE OF COMPACT UVs  UV segment witnessed a major shift in

customer preference with the launch of
compact UVs such as Duster and Ford EcoSport.
 Popular models such as Maruti's Brezza,
Hyundai's Creta, Mahindra's XUV, Tata's
Nexon and Fiat’s Jeep Compass have upped
competition in the UVs segment further
 The launch of these models caught the fancy of
the urban buyers as they also come up with
Petrol version while M&M had predominantly
Diesel powered vehicles.
 M&M's TUV 300 was expected to arrest its
contraction in market share .
 However, it managed to garner only about 5%
share in the compact UV segment.
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Source: SIAM, Crisil Research
 Commercial Vehicles

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 Tata Motors has lost significant market share since 2005-6 while
M&M and Ashok Leyland have increased their share.

COMMERCIAL VEHICLES: OVERALL MARKET SHARE

Source: SIAM, Crisil Research

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 COMMERCIAL VEHICLES: SEGMENTS

Medium and Heavy

Light Commercial
Commercial Vehicles
Vehicles (LCVs)
(MHCVs)

• Sub- one ton vehicles (GVW< 2T) • Intermediate Commercial

• Pick-ups (GVW 2 to 3.5 T) Vehicles, ICVs (GVW 7.5 T to 12T)

• Upper-end LCVs (GVW 3.5 to 7.5T) • Medium Commercial Vehicles,

• LCV buses MCVs (GVW 12T to 16.2T)

• Heavy Commercial Vehicles

(GVW>16.2T)

• MHCV buses
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MARKET SHARE: SUB-ONE TONNE SEGMENT

• Tata Motors is the market leader

with more than 66% share.
• Maruti Suzuki, with its only model
in commercial vehicle segment,
“Suppercarry”, has close to 10%
share.
• The launch of the CNG variant of
Jeeto in the second half of fiscal 2017
is expected to have led to M&M
regaining its share which it lost in
fiscal 2017.
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Source: SIAM, Crisil Research
MARKET SHARE: PICK-UPS (GVW 2 to3.5T)
• M&M introduced schemes such as
guaranteed resale value and two
years of free maintenance on the
Bolero pick up and Maxitruck range
in February 2018, besides
introducing the Supro Maxitruck
heavy duty series.
• Ashok Leyland, too, is slowly eating
away market share of Tata Motors
with the launch of Dost+ in H2FY18.

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Source: SIAM, Crisil Research
MARKET SHARE: UPPER END LCVS (GVW 3.5T TO 7.5T)
• In the upper-end LCV segment,
VECV- Eicher was able to eat away
Tata Motors' share between 2013
and 2018.
• In response, Tata Motors
announced the nation-wide launch
of next-gen light commercial
vehicles under the brand Ultra in
the upper end LCV segment apart
from the previously launched Ultra
1518 ICV.
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Source: SIAM, Crisil Research
MARKET SHARE: ICVs(GVW 7.5T to 12T)

• Ashok Leyland has been able to

increase it’s market share due

to the launch of 2 successful

models – Boss and Guru

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Source: SIAM, Crisil Research
MARKET SHARE: MHCVs(GVW >12T)
• Ashok Leyland has gained in
this segment at the expense of
Tata Motors.
• Tata Motors introduced Signa
brand with the intention of
replacing the current
generation of mainstream
trucks in the next two years.
• This helped Tata Motors to
gain 2 percent share between
2017 and 2019.

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Source: SIAM, Crisil Research