2015: Amid scandal and recall, a carload of surprises

The dynamic passenger vehicle (car) segment of the automobile industry stuck to its growth path in 2015, even as the year was marred by several issues that rocked many a manufacturer.

The passenger vehicle segment saw pleasant growth, in line with the overall industry, which held a positive outlook after a two-year gap. Just to put it in perspective, between April and November, 2015, 18,35,606 passenger vehicles were sold, compared with 16,86,006 sold during the same period of 2014, itranslating into a growth of around 8 per cent.

According to Price Waterhouse Partner and auto expert Abdul Majeed, “The growth in car sales was mainly driven by a spurt in urban demand, apart from a dip in fuel prices. The bank interest rates that moderated had a positive effect. Overall, the managable inflation levels also boosted customer sentiment.”

The year 2015 saw many companies launch new models, which also led to new segments opening up, attracting customers to showrooms.

A new range of compact SUVs came into the market, such as Hyundai’s Creta, and Mahindra’s TUV 300. Meanwhile, premium hatches and crossovers became order of the day, as seen by Honda Cars India (HCIL) launching the new Jazz, and Hyundai rolling out its i20 Active. One of the biggest surprises came from French carmaker Renault that launched the ultra-compact hatchback Kwid.

Similarly, many carmakers wowed the country with delectable models, drenched in futuristic features.

Meanwhile, the country’s largest carmaker Maruti Suzuki (MSI) unleashed itself in a new avatar through NEXA.

“It was a year of transformation for Maruti Suzuki, which set up premium channel NEXA for new products like the S Cross and Baleno,” a spokesperson from the company told Deccan Herald. Besides, the Celerio Diesel, and Ciaz SHVS, and an auto gear shift variant of the popular Wagon R, were other highlights.

Even homegrown Tata Motors saw 2015 as a year of recovery. “2015 has been a year of growth and recovery for Tata Motors Passenger Vehicle Business Unit (PVBU) with all models growing in the domestic market for the fiscal (April to November 2015), at 88,321 units, higher by 10 per cent over last year,” a spokesperson said, adding that new launches like the Bolt and GenX Nano made a difference.

The burgeoning luxury car space saw much action in 2015 as well, with the top players coming out with state-of-the art vehicles, with Mercedes alone launching 15 new cars.
“The growth in the luxury car segment, at around 20 per cent, is great. It’s especially pushed by demand among the sunrise sectors in urban areas. One of the trends that we see in India is that manufacturers, in a bid to tap new customers, are increasingly making luxury cars affordable (in the range of Rs 20-25 lakh),” Majeed said.

Year of roadblocks
A few issues in 2015 affected the business of car companies, while a few learnt some lessons from them. The recent ban on diesel vehicles in Delhi, has sent shockwaves through the market and the industry, since both are largely in favour of such vehicles, the market for better mileage and cheaper fuel costs, while the industry for potential higher sales.

According to Majeed, where the ban is concerned, the future is uncertain. “It wouldn’t be surprising if this ban carries to other states too. Demand for diesel vehicles will go down, calling manufacturers to improvise and innovate. They must come out with new strategies and technologies in areas of non-diesel fuels like petrol, bio-fuels, CNG (compressed natural gas), as also electric vehicles (EVs).

Besides, the year will also be remembered for the Volkswagen emmissions scandal, and a hoard of recalls, which hit over 60 million cars globally.

Next year is now
Majeed said that steady industrial growth, coupled with low fuel prices, and a growing economy is a welcome sign for the car industry in 2016.

“Small cars will as usual be a big presence in 2016, since a bulk of the Indian market can afford this segment,” he said.

   The Indian car industry is one of the largest growing in the world, and new cars are always being churned out to awe the tasteful audience. So one can expect new babies in 2016.

As regards a confirmed (small car) launch in 2016, here’s what the Tata Motors spokesperson stated: “We have already showcased the compact hatch Zica recently, which will be our first new product in 2016.”