Nearly 30 new car, 20 two-wheeler launches lined up till March 2020

Rise of the millennial population, increasing disposable income and availability of innovative mobility solutions will drive the market.

Passenger vehicle (PV) and two-wheeler sales in the country have been bleak in the past few months, despite inquiries being good, due to poor consumer sentiment. To create excitement among consumers, especially during festivals, car manufacturers have lined up around 25-30 launches and two-wheeler makers have lined up another 20 between August 2019 and March 2020. The new launches include electric and hybrid vehicles.

On an average, car makers, excluding luxury ones, invest around Rs 1,500-2,000 crore to launch a new car.

Two-wheeler and PV retail sales dropped by five per cent and 4.6 per cent, respectively, in June 2019, compared to last year.

CARE Ratings says that demand might remain muted till the second quarter before it starts picking up from the third quarter due to festival and pre-buying before BS-VI implementation from April 1, 2020. Also, with higher MSPs announced, farm income is expected to be marginally higher and encourage rural spending.

To cash in on this, car makers have lined up nearly 25-30 new launches. Some of them include Maruti Suzuki Ertiga Cross and S-Presso, Hyundai New Grand i10, Tucson Facelift and Hyundai New Elite i20. Honda would be launching Honda HR-V and New City, while Tata would introduce the Buzzard and Altroz. Skoda expects to launch Karoq, and Renault to launch Renault Triber and Kwid Facelift.

Vikas Jain, national sales head, Hyundai Motor India Ltd, said that sometimes, a slowdown in the market is a cyclical phenomenon. Due to practical challenges such as volatility in fuel prices, high interest rates and increase in insurance premium, some of the buyers are deferring their purchase decision.

The long-term outlook is good considering that the penetration of PVs in India is still very low at around 20 out of 1,000 people. The rise of the young millennial population, increasing disposable income and availability of innovative mobility solutions will drive the market.

Business Standard

Suzuki Motorcycle India eyes 40% sales growth to 700,000 units in FY19

Suzuki Motorcycle India already contributes 35% of the total two-wheeler volumes for its parent Suzuki Motor Corporation.

Suzuki Motorcycle India is looking to sell 700,000 units in the country in the current financial year, a growth of 40 per cent over the 500,000 units it sold during 2017-18.

The company, which on Thursday launched a new 125-cc scooter, the Burgman Street that is priced at Rs 68,000 (ex-showroom), also plans to expand its sales network by around 200 touch points this financial year as part of its mid-term goal of achieving 1 million unit sales by 2020. The company currently has over 1,000 sales touchpoints across the country.

"We are aiming to sell 1 million units by 2020. Last year, we sold 500,000 units, and this financial year, we aim to sell 700,000 units," Suzuki Motorcycle India Managing Director Satoshi Uchida told reporters in New Delhi.

In order to achieve the 2020 sales target, the company plans to introduce new products as well as expand sales network, he added.

Uchida said Suzuki Motorcycle India already contributes 35 per cent of the total two-wheeler volumes for its parent Suzuki Motor Corporation (SMC).

When asked about the company's plans regarding introducing an electric two-wheeler, Suzuki Motorcycle India Executive Vice-President Sajeev Rajasekharan said the company along with SMC is working to develop such two-wheeler models.

"We are working along with SMC on electric vehicles. We should have one by 2020. We would not like to be left behind when the market is ready," he said.

Uchida hinted that it could be an electric scooter.

On coming with BS-VI emission norms, Rajasekharan said work has already started a few months ago and the company would be ready with an upgraded portfolio much before the April 2020 deadline.

Commenting on the Burgman Street launch, Uchida said the scooter will herald a new era of luxury scooter riding in the country and would help the company strengthen its position in the 125-cc segment.

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