“The primary factor fuelling the demand for vehicles is credit – once the gold bubble burst vehicles was the only remaining collateral based lending available for financial institutions so some of the excess liquidity fuelled partly by foreign borrowings went into vehicles – when the larger banks started offering leases at interest rates ranging from 9-10% demand skyrocketed,” the report stated.
Vehicle registration momentum continued into August although in most categories the numbers were lower than the all-time records set in July. Total registrations were 50,555 in August lower than 62,221 recorded in July – the main contributor to the slowdown was a fall in 2-wheeler registrations, it said.
Motor car registrations were 8,869 units in August lower than 9,736 units recorded in July but significantly higher than 2,361 units recorded 12 months ago.
Brand new car registrations were 4,990 units in August lower than 5,773 units recorded in July but significantly higher than 788 units recorded 12 months ago. Small cars (<1,000 cc) accounted for 94% share of brand new registrations. Maruti’s accounted for 4,075 units down from 5,024 units recorded in July but significantly higher than 380 units recorded 12 months ago. Maruti financing share was 61.2% lower than 68.4% recorded in July, which may explain the slow down. Micro Panda accounted for 402 units up from 238 units in July.
Pre-owned car registrations recorded 3,879 units in Aug down from 3,963 units in July but significantly higher than 1,573 units recorded 12 months ago. Toyota accounted for 1,550 units (Aqua – 843, Prius – 240, Axio – 374), Suzuki 1,109 units (Wagon R – 1080) followed by Honda 779 units (Fit – 614). Financing share was 64% in Aug. slightly down from 68.4% recorded in July.
Premium brands recorded 102 units in Aug.ust slightly up from 99 units recorded in July and up from 86 units recorded 12 months ago. Mercedez accounted for 34 new units (C-class 19, E-class 9, S-class 4) and 12 pre-owned units (C-class 3, E-class 6). BMW accounted for 20 new units (5-series 16, 3-series 2) and 12 pre-owned units. A notable item is a Rolls Royce Ghost EWB – EWB stands for Extended Wheel Base.
SUVs recorded 635 units in Aug. down from 776 units in July and down from 805 units 12 months ago. Honda Vezel accounted for 176 units significantly down from 1,271 units recorded in January. Toyota accounted for 193 units (Prado 150, Harrier 33), Mitsubishi 103 units (Outlander PHEV 89) and Nissan 64 (60 X-trail hybrids). Financing share was 56.9%. Of the 776 units recorded in Aug.ust 392 were crossovers (less than 2,000cc and mostly 2WD) and 243 units were SUVs (>2,000 cc engines and 4WD).
Hybrid vehicles cumulatively were 3,813 units in Aug.ust down from 4,077 units in July and 2,045 units 12 months ago. Motor cars accounted for 3,813 units, SUVs 342 units and Vans 36 units. Financing share was 69.4%.
Electric cars recorded 378 units in Aug.ust down from 284 units in July and a mere 8 units 12-months ago. Nissan Leaf accounted for 271 units, amongst the notable models under other are 2 BMW I3s, 2 units of Mitsubishi MIEV and 1 units of VW E-Golf.Vans recorded 1,224 units in Aug. up from 1,189 units in July and significantly up from 169 units 12 months ago.
Of the 1,224 units in Aug.ust, 528 units are mini vans (engine <1,000 cc) and the balance 696 units are mid size (>1,000 cc). Toyota accounted for 521 units followed by Suzuki with 390 units and Nissan with 109 units. Most of the pre-owned Diesel Hiace Vans are almost 4-5 years old and have mileages in excess of 100,000 km – the reason being the excise duty is yet 240%.
Three -wheelers recorded 10,273 units in Aug. down from 12,248 units recorded in July and 7,047 units recorded 12 months ago. Bajaj continued to maintain its dominance claiming 86.5% share. Finance share was 91.6%.
Two-wheelers recorded 25,655 units in Aug. down from 33,722 units in July but up from 18,997 units recorded 12 months ago. Bajaj segment share has dropped to 35.1%, followed by Hero and Honda who each have 20% of the market and TVS with 14.6%. Financing share was 57.4%.
Pickup Trucks recorded 325 units in Aug. down from 374 units in July and 237 units 12 months ago. Tata claimed 69.5% of the market (207DI – 111, Xenon – 115). Financing share was 86.5%.
Mini trucks (<1 MT) recorded 1,362 units in Aug.ust down from 1,569 units in July and 1,094 units 12 months ago. Tata accounted for 698 units (Ace 475, Super Ace 224) followed by Mahindra with 500 units (Maxximo 345, Maxi truck 120). Financing share was 94.1% in line with the normal monthly trend.
Lite trucks recorded 565 units in Aug. down from 696 units in July but up from 314 units 12 months ago. Mahidra claims a 66% share (Bolero Maxi truck) followed by DFSK (Chinese brand). Financing share was 93.5%.
Medium trucks recorded 239 units in Aug. slightly up from 219 units in July and up from 169 units 12 months ago. Financing share was 68.2%.
Heavy trucks recorded 129 units in Aug. down from 173 units recorded in July and similar to 128 units recorded 12 months ago. Financing share was 87.6%.
Buses recorded 240 units in Aug. up from 214 units recorded in July and up from 170 units recorded 12 months ago. Financing share was 93.3%. (Ceylon Finance Today)