Why Honda Amaze, Ford EcoSport are giving rivals a headache

High interest rates and rising fuel prices have dealt a body blow to car sales in India, which are on track to fall for a second consecutive year. For the six months to September, car sales in the country are down nearly 5 per cent, the sharpest decline in half-year sales in a decade.. The slowdown has meant India's top car makers have failed to push volumes. Maruti Suzuki's 2013-14 year-to-date market share is around 48 per cent, higher than previous two years, but only because the current fiscal has not seen violence and strikes at its plants. Maruti's closest competitor Hyundai's market share has remained flat at around 20 per cent for the past many years.. The winners, so far in 2013, have been Honda and Ford's India units. Honda is riding on the success of its entry level sedan Amaze, which has catapulted the company as India's third biggest car maker after Maruti and Hyundai. Honda has overtaken Tata Motors in the first six months of FY14 and is witnessing its most successful phase in India.. Ford was India's fourth largest car maker since the middle of 2010, mainly on the back of Figo's success. However, Ford started slipping in 2012 and currently lags Toyota and Volkswagen in sales. The success of EcoSport, however, has lifted Ford's sales and market share at a time when Volkswagen, GM and Nissan have all lost market share in last few months.. (Also read: How the Figo changed Ford India's fortunes). Honda and Ford come nowhere close to Maruti and Hyundai as far as volumes are concerned. For instance, Honda sold just 10,000 cars in September as against Maruti's total sales of over 1 lakh units, but analysts are optimistic in their outlook as far as these two companies are concerned.. Here's how Amaze and EcoSport are challenging the dominance of Maruti and Hyundai.. 1) Honda Amaze and Ford EcoSport offer superb fuel economy, which gives them an edge at a time when fuel prices are rising by the month. Both Amaze and EcoSport have been priced competitively, which is another area, where the two score over rivals.. 2) Nomura analyst Kapil Singh and Nishit Jalan say EcoSport and Amaze have a strong order book and volumes will remain to be high over the next few months as well. Both these cars have a waiting list.. 3) The sedan segment in India is growing despite the slowdown helping Amaze sales. EcoSport has managed to grow despite declining volume in the utility vehicles segment at the cost of Xylo/Quanto models of M&M and Maruti Ertiga. It has also hurt Renault Duster. M&M volumes fell 19 per cent, while Ertiga volumes dropped a whopping 60 per cent in September, Nomura analysts said.. 4) Both Maruti and Hyundai's recent launches have either failed to take off or have cannibalized their own products. Nomura analysts said Grand i10 cannibalized the sales of i10 (down 60 per cent year-on-year in September) and i20 models (down 30 per cent you in Sept). That's why Hyundai volumes fell in September despite strong dispatches for the Grand i10.

Why Honda Amaze, Ford EcoSport are giving rivals a headache

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