Monthly Report – December 2016

Automobile and Auto Components
Automotive industry de-grew by 18.6%, sharpest fall in
last 16 years, thanks to 'cash dry' economy
Passenger vehicle (PV) Commercial vehicle (CV) 2-wheelers
Volume growth (%)
80
20
0
-20
-20 0 20
All industry average
80
Value growth (%)
Volume growth (%)
60
0
-10
-20
-30
-30 -20 -10 0 60
All industry average
Value growth (%)
Volume growth (%)
150
100
50
0
(50)
(100)
(100) (50) 0 50 100 150
Value growth (%)
All industry average
• PV industry de-grew by ~1.5% due
to cash crunch owing to
demonetization
• Except Tata’s Tiago and few models
of Maruti (Breeza, S‐Cross &
Baleno) all have experienced the
downfall
• Maruti's UV segment growth (75%
YoY growth) provided some
cushioning to the free fall
• CV segment also posted negative
growth territory ; (-5.1% YoY)
• In December 2016, except for Ashok
Leyland, most OEMs reported sales
declines across segments
• While M&M posted overall positive
growth, thanks to a strong
performance by its small CVs (both
less-than-3T and above-3T vehicles)
• Freight transport demand has been
sizeably impacted due to a
slowdown in supply chains
• The overall two-wheeler segment
posted a huge decline of 22 %; the
previous record low was 19 percent
in December 2000
• Motorcycles deepened their slide in
December by 22.5%, with 50 percent
of bike sales coming from rural India,
the slowdown in that sector also
contributed to the drop
Source: CII BCG Growth Index Survey, Industry association data on automotive sales
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