News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 6 years ago  » Business » Ten models drive into India's elite cars' list

Ten models drive into India's elite cars' list

By Ajay Modi
June 05, 2017 16:07 IST
Get Rediff News in your Inbox:

Top 10 vehicles, value-wise, is dominated by the two players in the market, Maruti Suzuki & Hyundai

The Indian car market has approximately 100 models, manufactured by about 15 companies. But only one-tenth of these have sales worth Rs 6,500 crore ($1 billion) or more as they clock large volumes and have been more successful.

The list of top 10 vehicles, value-wise, is dominated by the top two players in the market - Maruti Suzuki and Hyundai. However, Toyota, the third player on this list, scores and stands ahead of the two companies with its Innova Crysta.

The vehicle with the highest domestic sales in terms of value is the Crysta, the new Innova model launched a year ago by Toyota. The multipurpose vehicle is estimated to be worth more than Rs 14,200 crore last year to the Japanese automobile maker, a back-of-the-envelope calculation shows.

“The Crysta value of over Rs 14,000 crore is the largest single model contribution for any manufacturer in India, based on a back-of-the-envelope calculation,” said N Raja, director and senior vice-president (sales & marketing), Toyota. The new Crysta is Rs 2 lakh more expensive, on average, than the earlier model of the Innova. The Crysta is still on a waiting period of over a month after a year of the launch.

Maruti Suzuki’s Dzire is not far behind. The country’s most-sold sedan is estimated to be worth Rs 14,000 crore, the highest in the portfolio of the company. Last year, Maruti sold close to 200,000 units of the Dzire, including the Tour variant, which is sold for taxis.

With the launch of the new Dzire early this month, overall Dzire sales are estimated to inch up and make it an even bigger revenue generator for the firm.

The third-largest value-generating car in India, the Creta, comes from the second-largest player, Hyundai. Launched in the middle of the 2015 calendar year, this SUV is estimated to be worth over Rs 13,500 crore.

“The Creta is definitely the largest contributor to our business in value terms. Even though lower in volumes to the Elite i20 and Grand i10, its average price of Rs 14 lakh makes it the top revenue generator for us,” said Rakesh Srivastava, director (sales & marketing), Hyundai.

The amount being discussed here is not equal to the revenue that these models generate for the companies.

The revenue generated would be lower since the calculation is based on ex-showroom price, which also includes various central and state taxes and dealer margins. Companies do not disclose the model-wise revenue realisation.

Besides these three vehicles, seven others are also worth a billion dollars or more. Besides the Dzire, Maruti Suzuki has five vehicles on that list. Other Maruti models that bring in revenues of more than a billion dollars are the Swift (Rs 10,000 crore), Baleno (Rs 8,400 crore), Brezza (Rs 8,400 crore), WagonR (Rs 7,800 crore), and Alto (Rs 7,700 crore).

Two of these models - the Baleno and Brezza - continue to command a waiting period.

Korean car maker Hyundai has two more products worth over a billion dollars. The company’s Elite i20 is estimated to be worth Rs 10,100 crore, based on last year’s domestic volume of 126,304 units.

The Grand i10 of Hyundai is estimated to be worth Rs 8,700 crore. Hyundai’s Srivastava says the numbers reflect the popularity of these models, helping in creating a strong brand image for the firm.

Get Rediff News in your Inbox:
Ajay Modi in New Delhi
Source: source

Moneywiz Live!