The Interesting No. 3

It is very interesting. Suzuki is the undisputed number 1 in India in terms of car sales. For many years, it has been retaining this crown and in the near future, we are not able to see a possibility of anybody else (whether Hyundai or Honda or Mahindra) overtaking Suzuki.

Suzuki is just miles ahead of competition. The gap between it and others are just too wide. The number 2 is Hyundai which is bombarding the market intermittently with new models to be in the race.

Now, the number three comes into the picture. Who is number three? It is regularly switchable between Honda and Mahindra. For a month, Honda is no. 3 and for next month, Mahindra gets this position. 

So, what is interesting? 

Interesting thing is that at no. 3 is Suzuki. 

How it can be? Is not Suzuki no. 1?

Yes, Suzuki is no. 1 as far new cars sold are concerned. At no. 3 is Suzuki's used car business called 'True Value'. 

A report in the Business Standard says:

Maruti Suzuki is not only the country’s largest passenger vehicle company. If you go by volumes of pre-owned cars sold, it occupies the third slot in the passenger vehicle industry. Maruti’s pre-owned or used car business has grown to a record 358,000 units (in 2014-15).

The sheer volume of units sold, makes True Value (Maruti’s pre-owned car business) the third-largest domestic passenger vehicle seller (irrespective of new or old) after Maruti (at 1.17 million) and Hyundai Motor (at 420,000).

If things remain so, one day, probably Suzuki at no. 1 will be staring at itself for competition in the form of its old car business at no. 2.  

Honda – Heading towards No. 3

Honda is all set to become the third biggest car maker in India, behind Suzuki and Hyundai. As per car sales data for the month of June, Honda was behind the current No. 3 i.e. Mahindra & Mahindra by just 464 units. While M & M sold 16780 units during this month, Honda sold 16316 units. M & M is on a slightly declining path, with its sales down 3 per cent compared to the same month last year, Honda sales grew by 75 per cent on account of good sales of Amaze and City. Now, with Honda Mobilio scheduled to be launched on 23^rd July, company’s sales figure are very much likely to surpass that of M & M.

Earlier, Honda had only petrol cars to offer and could not sustain the onslaught by the diesel cars. Its sales dwindled month after month and introduction of Jazz just proved to be a disaster because of its price (Rs. 7 lakh), which was right according to the product but people could not digest that a hatchback, a petrol hatchback could be so pricey.

With Amaze, Honda brought diesel engine and affordability for its customers. And that was a success. City was another winning shot for Honda. And if priced right, Mobilio is likely to be another hit from Honda. 

Just 50 cars and 4 bikes sold in 6 months – This is Cuba

Some months ago, Cuba government eased the restrictions on buying car and motorcycles. Before this, car could have been purchased by only a few like doctors, teachers, etc brining foreign currency. Now, any body can purchase a car from dealers (these dealerships are government run) but the prices of cars are so ridiculously high that during the last six months, only 50 cars could be sold from a total of 11 dealerships. The total money received on account of these sales was around $1.3 million.

Peugeot family car that is being sold in UK for $53,000 is priced at $262,000 in Cuba. Similarly, you need to pay $42,000 for Kia Rio in Cuba while same car can be yours for just $13,600 in USA.

These dealerships are also engaged in selling used cars but even their prices are sky high. These are generally used as taxi and then sold to general public and command prices that are too much considering their conditions.

Before January, islanders who wanted to purchase a vehicle had to acquire a "letter" of permission. The privilege was granted to the likes of diplomats, technicians, doctors and others who served on foreign missions and returned with hard currency saved up overseas.