New car launches result in positive growth for Indian auto industry

Buoyed by highly successful new launches from automakers like Maruti, Hyundai, Renault and Mahindra, the Indian passenger car industry posted an encouraging growth of 7.24% in FY2016 that ended on March 31, a five-year high. A recent report in Financial Express says that, had it not been for these significant launches, the market would have posted a rather modest growth of 4.14%.

In the last fiscal, passenger car sales stood at 2.79 million units of which the newly launched products contributed to 2.96 lakhs. In other words, 10.6% of total passenger car sales in FY2016 came from new launches.

Maruti Baleno DDiS 200 being planned
The Baleno certainly helped Maruti gather momentum, especially when the small car segment failed to deliver.

The Maruti Baleno, Hyundai Cret and Renault Kwid were the most successful new products as they maintained a monthly sales average of over 5,000 units. The Honda Jazz, Mahindra TUV300 and KUV100 too pitched in with a decent contribution of over 3,000 units per month. Cars like the Ford Figo twins and Maruti S-Cross didn’t set the sales chart on fire but they did collectively contribute to the industry’s overall growth.

REnault Kwid exports
The Renault Kwid has been having a phenomenal run in the small car segment.

Two consecutive monsoon failures resulted in very low rural and semi-urban markets over the last two years, so the success of the new products comes as a relief to their respective makers. Without the Creta, Hyundai would have posted a flattish growth last fiscal and without the Kwid, Renault India wouldn’t have registered growth at all.

Hyundai Creta – Photos

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