India June 2017: GST price drop anticipation sinks market down 11%
The Hyundai Grand i10 ranks #2 in India for the first time.
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India is currently going through its most significant tax reform this century with a reorganisation of the GST. This has had a devastating impact on wholesales of cars this month, as both customers and manufacturers are holding off buying and ordering new stock in anticipation of a steep price decrease following the new GST implementation. As a result, the Indian market is down a very unusual 11% year-on-year to 197.204 units, yet the year-to-date tally is still up a solid 8% on the same period in 2016 to 1.524.621 units. The Indian market should however bounce right back in July and for the remainder of the year as reduced prices will draw customers into dealerships en masse.
The Honda WR-V breaks into the Indian Top 20 in June. Picture hindustantimes.com
Never failing to impress, market leader Maruti Suzuki ignores the surrounding gloom and posts a 1% sales increase to 47.2% share, however two percentage points below its YTD level. In 2nd place, Hyundai is down 6% but posts a stunning 19% market share, to be compared to 16.6% YTD. Mahindra (-4%) holds onto the third place while Honda signs a brilliant 12% gain to 6.5% share thanks to the success of the new Civic and WR-V. Tata evolves like the market at -11%, Renault crumbles down at -42% as it is now completely dependent on the score of the Renault Kwid – also down 42% in June. Ford also struggles at -35% but not as much as Toyota, down a devastating 85% to just 1.973 sales as the manufacturer holds off on despatching new stock of models that will feature some of the largest price drops in July, including notably the Fortuner.
Hyundai Elite i20. Picture zeegnition.com
The Maruti Alto remains the most popular nameplate in the country, dropping slower than the market at -6% to 14.856 wholesale deliveries. The surprise this month comes from the Hyundai Grand i10, up three spots on May to a record-breaking 2nd place. The only other time the Grand i10 ranked on the Indian podium was exactly a year ago (#3 in June 2016). The Maruti DZire is back up 5 ranks on last month to #3 but freefalls 23% year-on-year ahead of the Maruti Wagon R down 11%. The Hyundai Elite i20 soars 18% to reclaim the best-selling premium hatch title at #5 vs. #7 for the Maruti Baleno (+30%). The Maruti Vitara Brezza continues to impress at +24% in 8th place, distancing the Hyundai Creta (-16%) in the SUV race.
The Renault Kwid is down 42% in June, pulling Renault down with it. Picture motorbeam.com
Further down, the Mahindra Bolero leaps up 70% to #11, the Tata Tiago is up 29% year-on-year and five spots on May to rank #13, equaling its best posting also held last November, the Honda City is up 45% and the Maruti Ertiga up 80%. Among recent launches, the Honda WR-V impresses, breaking into the Top 20 at #1 with 4.243 sales, its best monthly volume so far. The Tata Tigor is stable at #26 and the VW Ameo is up 9 spots to #33.
Previous month: India May 2017: Maruti Vitara Brezza breaks record in market up 8%
One year ago: India June 2016: Hyundai Grand i10 on podium, Renault Kwid up to #5
Full June 2017 Top 20 All-brands and Top 90 models below.