Sewells group adci report (India)
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Transcript of Sewells group adci report (India)
sewellsgroup.com
End of April-June 2015 Quarter
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About Sewells GroupAutomotive Dealer ConfidenceIndex
ADCI Survey Methodology Summary of Respondents
GAUTOMOTIVEDEALERCONFIDENCE
SEWELLS GROUP
INDEXGlobally, confidence indices are viewed as reliable precursors to business performance. Such indices aim to capture and quantify the sentiment of various industry stakeholders – be it CXOs, suppliers, vendors or distribution partners who usually are in the middle of the action. People within the industry, typically use these indices to get a sense of stakeholder sentiment and optimize their actions in line with the sentiment. Market analysts, on the other hand, interpret theses indices as a ‘lead indicators’ of the performance of a particular industry or sector. An accurate, representative index may demonstrates a high level of correlation with actual business performance.
The automotive industry in India has been a sunrise sector contributing a significant share to country’s GDP. A healthy and growing domestic market, an active and constructive involvement from the government, growth of domestic auto manufacturers to become true global players and presence of multiple global brands in the country have made sure that this industry has come of its age. With everything else being executed at a global scale and with global vision, we believe that the time has come for Indian auto industry to have a dealer confidence index.
The important role played by auto dealers in this industry is already known. With their unique position at the market place, auto dealers are usually in touch with ground realities. And therefore such an indicator should be able position itself as useful signalling device for various stakeholders within the automotive industry eco-system.
Ssewellsgroup.comPage 2
About Sewells GroupAutomotive Dealer ConfidenceIndex
ADCI Survey Methodology Summary of Respondents
Sewells Group Automotive Dealer Confidence Index (ADCI) is a measure of dealer sentiment about their business over next six months from the time it is being captured. It will be published on a quarterly basis.
Within the automotive industry, dealers enjoy a unique position close to the ‘action on the ground’. They are in constant touch with prospects, customers, factory staff, competition dealers, financiers and other market intermediaries. Consequently, each dealer gets exposed to a plethora of information that in turn shapes his / her sentiment about the future of markets and businesses. The Sewells Group Automotive Dealer Confidence Index (ADCI) is an attempt to capture and quantify this well informed sentiment of the auto dealers from across the length and breadth of the country, representing multiple brands and product categories. We aim to be able to represent this collective sentiment in the form of an index, whose movement over time will reliably predict the direction of the wholesale and the retail sales within the industry.
We believe publication of such an index will allow industry stakeholders to have meaningful conversations in time, which in turn will help them put together better strategies to perform at the market place.
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About Sewells GroupAutomotive Dealer ConfidenceIndex
ADCI Survey Methodology Summary of Respondents
TThe Sewells Group ADCI is designed to be a quarterly index that will be computed on the basis of responses received to a structured questionnaire from the automotive dealer fraternity in Indian market. The questionnaire attempts to capture their sentiment about economy in general and their business in particular on a six month forward horizon.Sewells Group proposes to track the trend of the index which will offer an insight into the future direction of the market. We believe that it is the movement of the index which will offer greater insights than the absolute value of the index in a particular quarter.In this sixth edition of the ADCI, we attempt to capture the sentiment of the dealer fraternity at the end of Apr-Jun quarter of 2015. The findings of this survey are compared with the findings of the previous three editions to map the trend. We propose to repeat the survey at the end of each following quarter.For this edition, a questionnaire was distributed electronically (by email) to the dealer fraternity in India. A total of 184 responses received, from dealers, representing 29 brands were used to compute the index. Every effort has been made to ensure that the index is statistically meaningful and representative of dealer sentiment. However, we advise reader discretion while considering the statistical significance. At this stage, ADCI is designed only for “exploratory” and “indicative” purposes.The sentiment of the dealer fraternity at the end of Apr-Jun quarter indicates that overall, dealers carry an optimistic sentiment with a six-month time horizon. While the sentiment of commercial vehicle dealers continues to remain firmly pessimistic, passenger car and two-wheeler dealers have indicated a sharp swing in their optimism. However, positive movement of the index for all the three segments is certainly encouraging for the industry. It will be interesting to observe if the positive sentiment is sustained over the next few months as we approach the festive season.
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About Sewells GroupAutomotive Dealer ConfidenceIndex
ADCI Survey Methodology Summary of Respondents
PASSENGER CARS TWO-WHEELERS COMMERCIAL VEHICLES
TOTAL NUMBER OF RESPONDENTS
43
7218
16
76
PASSENGER CARS PASSENGER CARSTWO-WHEELERS TWO-WHEELERSCOMMERCIAL VEHICLES COMMERCIAL VEHICLES
PASSENGER CARS TWO-WHEELERS COMMERCIAL VEHICLES OVERALL
55%
42%
4%BEFORE 1975
1975 - 1989
1990 - 2004
AFTER 2005AG
E O
F D
EALE
RSH
IPS
LOC
ATI
ON
OF
RES
PO
ND
ENTS
BR
AN
DS
REP
RES
ENTE
D
29 BRANDS133 CITIES
33%
16%
50%
37%
26%
22%
42%
45%
10%
*Sub-sample size low. Reader discretion advised while considering the statistical significance.
0% 3%
42%
48%
10%
*19
7788 184
1%
5%
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AUTOMOTIVEDEALERCONFIDENCE
END OF JAN-MAR 15 QUARTERINDIA
INDEX
SEWELLS GROUP
The ADCI is designed to vary between -100 and +100, where an index score of -100 represents the most pessimistic outlook, and +100 indicates the most optimistic outlook. The index is based on how dealers see the overall market and their businesses performing in next six months
The high level findings of the survey at the end of Jan-Mar 2015 quarter are given below:
§ The overall ADCI stood at +7 indicating a mildly optimistic sentiment amongst the surveyed dealers.
§ The passenger car ADCI stands at +14, representing a mild positive outlook amongst dealers.
§ The two wheeler ADCI stands at +9, indicating a slight positive sentiment of the two wheeler dealers surveyed.
§ The commercial vehicle dealers reflects a moderately pessimistic sentiment with an ADCI of -27.
0-80-100 -40-60 -20 +80 +100+40 +60+20
PESSIMISTIC NEUTRAL MODERATELY PESSIMISTIC MODERATELY OPTIMISTIC OPTIMISTIC
OVERALL
PASSENGERCARS
7
COMMERCIALVEHICLES -27
14
TWO-WHEELERS9
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AUTOMOTIVEDEALERCONFIDENCE
END OF JAN-MAR 15 QUARTER
INDEX-TREND
SEWELLS GROUP
§ The passenger car index has shown a sharp increase from -2 at the end of Jan-Mar 2015 quarter to +14 at the end of April-May 2015 quarter.
§ After declining consecutively for two quarter, the two wheeler index has jumped to +9 at the end of Q2 2015 from 0 at the end of Q1 2015, indicating a slight positive shift in the sentiment of the two wheeler dealers.
§ The commercial vehicle index has jumped from -44 at the end of Jan-Mar 2015 quarter to -27 at the end of Apr-Jun 2015 quarter indicating a positive shift in the confidence of the commercial vehicle index.
§ The overall ADCI has increased from -3 at the end of end of Jan-Mar 2015 quarter to +7 indicating and upward movement in the sentiment of the surveyed dealers.
0
+80
+100
+40
+60
+20
-80
-100
-40
-60
-20
MO
DER
ATELY
PESSIM
ISTIC
MO
DER
ATELY
OPTIM
ISTIC
PESSIM
ISTIC
NEU
TR
AL
OPTIM
ISTIC
End of Q2-2015End of Q1-2015End of Q3-2014 End of Q4-2014
End of Q2-2015
+14
+7
+9
-27
End of Q3-2014
+8
+14
+35
-3
End of Q4-2014
+9
+7
+10
-19
SEGMENT
PASSENGER CARS
OVERALL
TWO-WHEELERS
COMMERCIAL VEHICLES
OVERALLPASSENGER
CARSTWO-
WHEELERSCOMMERCIAL
VEHICLES
End of Q1-2015
-2
-3
0
-44
sewellsgroup.com
Future view of manpower strength of the business
Expected performance of the market as well as the
dealership over the next six months
Expected levels of sales, inventory and profits over the
next six months
View on the current situation of sales, inventory and profits vis-à-vis same period last year
Impact of the current economic scenario on the
market, as well as the dealership business
View on the current situation of sales, inventory and profits
vis-à-vis previous quarter
06
08
02
04
Page 7
07
05
03
01Impact of the Current Economic Scenario on the Market
Expected Market Performance Over Next Six Months
Dealership Performance vis-a-vis Same Period Previous Year
Expected Dealership Performance Over Next Six Months
Impact of the Current Economic Scenario on the Dealership
Expected Dealership Performance Over Next Six Months
Dealership Performance vis-a-vis Previous Quarter
Expected Manpower Strength Over Next Six Months
page 8 page 9
page 10 page 11
page 12 page 15
page 18 page 21
ANALYSIS OF SURVEY FINDINGS
The ADCI survey delves into the following areas:
AUTOMOTIVEDEALERCONFIDENCEINDEX
SEWELLS GROUP
§ The following pages carry details of responses received during the third edition of the survey for questions covering the above areas. Sewells Group intends to administer the ADCI survey every quarter, and intends to track the movement of question-level distribution on a quarterly basis.
§ To map the trend, the findings of this survey are compared with the findings of the previous three editions which captured the sentiments of the dealer fraternity in the last three quarters.
§ This section of analysis presents the distribution of responses across multiple questions that were asked in the survey and compared with the findings of the previous surveys.
0%
16%
37%
47%
2%
42%
47%
9%3%
44%
38%
15%
§ About 42% of the dealers feel that the current economic scenario is encouraging for the dealership business at the end of Apr-Jun 2015 quarter.
§ The opinion of passenger car dealers and of the two wheeler dealers has not changed much since the previous survey. 47% of the surveyed passenger car dealers and 44% of the surveyed two wheeler dealers feel that the current economic scenario is favorable for the market.
§ Very few commercial vehicle dealers feel that the current economic scenario is encouraging for the market. Only 16% of the surveyed commercial vehicle dealers feel that the current economic scenario is positive.
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TWO WHEELERS COMMERCIAL VEHICLES
1CURRENT ECONOMICSCENARIO
IMPACT OF THE
ON THE MARKET
EXCITING POSITIVE NOT SO POSITIVE WORRISOME
Page 8
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
4%
40%
43%
13%
5%
55%
32%
8%
3%
43%
42%
12%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
2%
40%
42%
16%
PASSENGER CARS
0%
16%
47%
37%
8%
35%50%
7%6%
43%37%
14%
2§ Overall, only 43% of the surveyed dealers indicate a positive sentiment of the
effect of the current economic scenario on the dealership business.
§ About 49% of passenger car dealers believe that economic scenario has a positive impact on their dealership (down from 52% at the end of Jan-Mar 2015 quarter).
§ As compared to 48% of the two wheeler dealers who were of the opinion that the current economic scenario has a positive impact on the dealership business, only 43% are of the same opinion at the end of Jan-Mar 2015 quarter.
§ Only 16% of the surveyed dealers feel that the economic scenario has a positive impact on the dealership business.
COMMERCIAL VEHICLES
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CURRENT ECONOMICSCENARIOON THE DEALERSHIP
IMPACT OF THE
EXCITING POSITIVE NOT SO POSITIVE WORRISOME
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
5%
43%
39%
13%
6%
45%
37%
12%
4%
44%
39%
13%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
7%
36%
44%
13%
TWO WHEELERSPASSENGER CARS
14%
61%
24%
1%
9%
64%
25%
2% 0%
48%47%
5%
3MARKET OVER NEXT SIX MONTHS
EXPECTED
PERFORMANCE
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COMMERCIAL VEHICLES
EXCITING POSITIVE NOT SO POSITIVE WORRISOME
§ Overall, 71% of the surveyed dealers anticipate a better market performance in the next six months (up from 50% at the end of Jan-Mar 2015 quarter).
§ 75% of the passenger car dealers expect an improved market performance over the next six months (up from 50% at the end of Jan-Mar 2015 quarter).
§ Similar sentiment is seen amongst the surveyed two wheeler dealers, where 73% (up from 53%) of these dealers foresee a better market performance in the next six months.
§ Commercial vehicle dealers at the end of Q2 2015 are more optimistic as compared to the previous quarter about the market performance in the next six months (up from 22% to 48%).
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
6%
44%
42%
8%
13%
58%
26%
3%
11%
55%
27%
7%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
27%
10%
61%
2%
TWO WHEELERSPASSENGER CARS
16%
66%
13%
5% 9%
64%
25%
2% 0%
63%
26%
11%
4DEALERSHIP
OVER NEXT SIX MONTHS
EXPECTED
PERFORMANCE
§ Overall, the dealers are more optimistic about their dealership performance than they were in the previous quarter (up from 56% to 76% at the end of Apr-May 2015).
§ Passenger car dealers have shown an increase in optimism about the dealership performance in the next six months. (up from 55% at the end of Q1 2015 to 82% at the end of Q2 2015).
§ Two wheeler dealers are also positive about their performance in the next six months with 73% expecting to perform better as against, the 58% who were of the same opinion last quarter.
§ Commercial vehicle dealers have shown a marked improvement in their sentiment. 63% of these dealers feel that their dealership performance is going to be better in the next six months (up from 33% at the end of Jan-Mar 2015 quarter).
COMMERCIAL VEHICLES
EXCITING POSITIVE NOT SO POSITIVE WORRISOME
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0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
6%
50%
37%
7%
14%
58%
23%
5%
12%
58%
23%
7%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
20%
11%
65%
4%
TWO WHEELERSPASSENGER CARS
21%
23%40%
16% 7%
43%41%
9% 11%
21%
47%
21%
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5PERFORMANCE
YEAR
DEALERSHIP
VIS-À-VIS SAME PERIOD
PREVIOUSSALES INVENTORY PROFITS
§ 54% of the surveyed dealers feel that their sales at the end of Apr-Jun 2015 has decreased as compared to the same period previous year.
§ 44% of passenger car dealers feel that their sales have reduced as compared to the same period previous quarter.
§ Half of the two wheeler dealers surveyed feel that their sales as compared to the same period previous year have gone up.
§ About 63% of the commercial vehicle dealers surveyed feel that their sales as compared to the same period previous year has gone up (up from 33% at the end of Jan-Feb 2015).
COMMERCIAL VEHICLES
DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
15%
34%
34%
17%
17%
35%
34%
14%
18%
31%
26%
25%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
41%
13%
33%
13%
TWO WHEELERSPASSENGER CARS
23%
42%
31%
4%
28%
46%
23%
3% 16%
37%31%
16%
SALES INVENTORY PROFITS
COMMERCIAL VEHICLES
5PERFORMANCE
YEAR
DEALERSHIP
VIS-À-VIS SAME PERIOD
PREVIOUS
§ According to the surveyed dealers, their inventory levels vis-à-vis previous year have gone up as compared to the Jan-Mar 2015 quarter. (68% at the end of Apr-Jun 2015 quarter as against 28% at the end of Jan-Mar 2015 quarter).
§ Inventory levels vis-à-vis same period previous year according to the surveyed two wheeler dealers and commercial vehicle dealers have gone up. 65% of two wheeler dealers and 53% of commercial vehicle dealers feel that their inventory levels are higher at the end of Apr-Jun 2015 quarter as compared to Apr-June 2014 quarter.
§ 74% of the passenger car dealers feel that their inventory levels vis-à-vis same period previous year have gone up (up from 53% who were of the same opinion at the end of Jan-Mar 2015 quarter).
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
9%
19%
38%
34%
30%
39%
26%
5%
25%
38%
28%
9%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
27%
25%
43%
5%
TWO WHEELERSPASSENGER CARS
16%
23%
38%
23%
5%
39%
36%
20%5%
10%
32%53%
COMMERCIAL VEHICLES
5PERFORMANCE
YEAR
DEALERSHIP
VIS-À-VIS SAME PERIOD
PREVIOUSSALES INVENTORY PROFITS
§ Overall, the opinion about profits vis-à-vis same period previous year hasn't changed much over the last one quarter. 38% of dealers surveyed feel that their profits are higher as compared to the previous year (down from 40% at the end of Jan-Mar 2015 quarter).
§ The above sentiments are reflected in passenger car dealers opinion. Only 39% of passenger car dealers feel that their profits are higher than that in the same period previous year.).
§ 44% of two wheeler dealers feel that their profits are higher as compared to previous year (up from 39% as expressed at the end of Jan-Mar 205 quarter
§ Commercial vehicle dealer sentiment is slightly better as compared to the previous quarter. 15% of commercial vehicle dealers feel that their profits are more than the same period previous quarter, as compared to only 11% who were of the same opinion in the previous survey.
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
13%
27%
31%
29%
12%
27%
32%
29%
16%
26%
27%
31%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
37%
9%
29%
25%
TWO WHEELERSPASSENGER CARS
16%
24%
40%
20%8%
49%
32%
11% 16%
21%
31%
32%
COMMERCIAL VEHICLES
6PERFORMANCE
QUARTER
VIS-À-VIS
PREVIOUS
DEALERSHIP
SALES INVENTORY PROFITS
§ Only 48% of the surveyed dealers feel that their sales are higher as compared to previous quarter. (up from 42% at the end of Jan-Mar 2015 quarter).
§ Majority of the dealers (58%) feel that their sales in the Jan-Mar 2015 quarter were lower than Oct-Dec 2014 quarter.
§ More and more number of passenger car dealers are feeling a dip in their sales since Q1 2015. At the end of Apr-Jun 2015 60% of the surveyed passenger car dealers feel that their sales are lower as compared to previous quarter (up from 57% who were of the same opinion at the end of Q1 2015).
§ The sentiment amongst the two wheeler dealers and the commercial vehicle dealers about sales at the end of Apr-Jun 2015 quarter is much better as compared to that at the end of Jan-Mar 2015 quarter. (up from 45% to 57% for two wheeler dealers and up from 0% to 37% for the commercial vehicle dealers).
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
15%
27%
38%
20%
19%
44%
28%
9%
17%
36%
27%
20%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
35%
12%
36%
17%
TWO WHEELERSPASSENGER CARS
26%
29%
39%
18%
19%
50%
22%
9%21%
32%26%
21%
COMMERCIAL VEHICLES
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6PERFORMANCE
QUARTER
VIS-À-VIS
PREVIOUS
DEALERSHIP
SALES INVENTORY PROFITS
§ Dealers have expressed some inventory correction at the end of Apr-Jun 2015. 61% of the surveyed dealers feel that their inventory levels are higher as compared to the previous quarter.
§ Both two wheeler dealers and commercial vehicle dealers have reported some inventory correction in Apr-Jun 2015 quarter as compared to the end of Jan-Mar 2015 quarter (down from 77% to 69% for two wheeler dealers and down from 56% to 53% for the commercial vehicle dealers).
§ 55% of passenger car dealers surveyed feel that their inventory levels are higher as compared to previous quarter. This figure is higher than that at the end of Q1 2015, where 50% of the two wheeler dealers were of the same opinion.
DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
26%
41%
23%
10%
28%
41%
27%
4%
23%
44%
27%
6%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
30%
22%
39%
9%
TWO WHEELERSPASSENGER CARS
14%
21%
35%
30%
5%
42%
39%
14% 16%
10%
32%
42%
COMMERCIAL VEHICLES
6PERFORMANCE
QUARTER
VIS-À-VIS
PREVIOUS
DEALERSHIP
SALES INVENTORY PROFITS
§ Overall, the sentiment amongst the dealers at the end of Apr-Jun 2015 quarter regarding their profits is not positive and similar to that at the end of Jan-Mar 2015 quarter.
§ A similar sentiment is expressed across all the three segments individually.
§ Only 47% of two wheeler dealers (up from 42%) feel that their profits are higher as compared to previous quarter.
§ At the end of Apr-Jun 2015 quarter, about 65% of passenger car dealers (up from 42%) and 74% of commercial vehicle dealers (down from 100%) feel that their profits have not been higher than that in the previous quarter.
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
13%
27%
34%
26%
14%
35%
28%
23%
15%
31%
29%
25%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
36%
10%
30%
24%
TWO WHEELERSPASSENGER CARS
7DEALERSHIP
MONTHS
EXPECTED
PERFORMANCEOVER NEXT SIX
SALES INVENTORY PROFITS
§ An significant increase in the sentiment about expected sales in the next six months of dealers as compared to that at the end of Jan-Mar 2015 quarter is seen in this survey (up from 58% to 79%).
§ This sentiment is expressed across all the three segments.
§ 78% of the two wheeler dealers, 86% of the passenger car dealers and 58% of the commercial vehicle dealers anticipate an increase in sales by December 2015 (up from 58%, 63% and 33% respectively as expressed at the end of previous quarter).
30%
56%
10%4%
22%
56%
20%2% 5%
53%
31%
11%
COMMERCIAL VEHICLES
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
17%
41%
30%
12%
26%
48%
23%
3%
22%
38%
32%
8%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
17%
23%
56%
4%
TWO WHEELERSPASSENGER CARS
32%
51%
16%
1%
28%
47%
20%
5% 11%
42%
42%
5%
7DEALERSHIP
MONTHS
EXPECTED
PERFORMANCEOVER NEXT SIX
COMMERCIAL VEHICLES
SALES INVENTORY PROFITS
§ Overall, the dealers expect the inventories to continue to rise over the next six months, with 76% dealers expecting their inventory levels to be higher in the next six months, as compared to 70% dealers who were of similar opinion at the end of the previous quarter.
§ 83% of the passenger car dealers expect their inventory levels to rise in the next six months (up from 62% as expressed in the survey at the end of previous quarter).
§ Two wheeler dealers anticipate a slight correction in inventory ; 75% expecting to carry higher inventories in the next six months as compared to 76% of similar opinion in the previous survey.
§ Commercial dealer sentiments about increase inventory in the next six months has changed slightly (moved to 53% from 44% at the end of Jan-Mar 2015 quarter).
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
26%
44%
22%
8%
26%
44%
28%
2%
22%
49%
26%
3%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
21%
28%
48%
3%
TWO WHEELERSPASSENGER CARS
22%
51%
18%
9%21%
45%
25%
9% 5%
37%
37%
21%
COMMERCIAL VEHICLES
7DEALERSHIP
MONTHS
EXPECTED
PERFORMANCEOVER NEXT SIX
SALES INVENTORY PROFITS
§ The overall sentiment about anticipated profits in the next six months is improved. 67% of the surveyed dealers feel that their business is going to be profitable in the next six months.
§ This increase in positive sentiment is seen across all the three segments.
§ 73% of passenger car dealers expect higher profits in the next six months as compared to 60% dealers who were Jan-Mar 2015 quarter.
§ Two wheeler dealers who were pessimistic at the end of the previous quarter are hopeful of a profitable business in the next six months (up from 47% at the end of Q1 2015 to 66% at the end of Q2 2015).
§ Sentiment of the commercial vehicle dealers seems to be improving slightly though majority of these dealers feel that their profits are going to be lower in the next six months. At the end of Q2 2015, 58% of these dealers anticipate lower profits in the next six months as against 67% who were of the same opinion at the end of Q1 2015.
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DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
14%
36%
30%
20%
17%
40%
32%
11%
19%
35%
31%
15%
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
23%
20%
47%
10%
TWO WHEELERSPASSENGER CARS
26%
53%
20%
1%
17%
55%
26%
2% 5%
47%37%
11%
COMMERCIAL VEHICLES
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8MANPOWER
MONTHS
EXPECTED
STRENGTHOVER NEXT SIX
DEFINITELY HIGHER HIGHER OR SAME SAME OR LOWER DEFINITELY LOWER
§ 73% of the surveyed dealers anticipate increase in their manpower strength in the next six months as against 69% who were of the same opinion at the end of the previous quarter.
§ All the three segments anticipate an increase in the manpower strength in the next six months. 72% of two wheeler dealers, 79% passenger car dealers and 52% commercial vehicle dealers anticipate a rise in their manpower strength (up from 68%, 74% and 33% as expressed in the survey conducted at the end of previous quarter).
0%
20%
40%
60%
80%
100%
% O
F R
ESP
ON
DEN
TS
OVERALL
END OF Q2-2015
END OF Q1-2015
END OF Q3-2014
END OF Q4-2014
21%
48%
27%
4%
23%
48%
27%
2%
22%
59%
17%
2%
24%
20%
53%
3%
TWO WHEELERSPASSENGER CARS
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SSEWELLSGROUP
ABOUT
Sewells Group is a global consulting and outsourcing firm which specializes in the automotive retail industry. Our very reason for being in the business is to improve the performance of individuals and organizations in the automotive retail industry. We operate across the Asia-Pacific, Africa and Middle East regions.
Our in-depth subject matter expertise in this area and our deep engagements with many leading automotive brands make us a leader in our business. Our Integrated Dealer Performance Management Model has delivered exceptional success to leading OEMs across the world. Through our proven business management model, demonstrated competence solutions and process efficacy initiatives, we contribute meaningfully to our clients’ businesses.
For more information, visit www.sewellsgroup.com
Sewells Group Contacts:
JAYESH JAGASIAManaging Partner & CEO-Sewells Group IndiaE: [email protected]: +91 22 67354915, M: +91 9819765234
POOJA PEWEKARGroup Marketing Manager-Sewells GroupE:[email protected]: +91 22 67354914
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DISCLAIMER
§ The contents of this report represent the opinion of survey respondents, and not that of Sewells Group, Sewells Group India, any of their subsidiary companies, or employees thereof.
§ The contents of this report and analysis of responses received in response to the quarterly Automotive Dealer Confidence Index (ADCI) survey are to be viewed as broad trends being observed, and not as definite commentary on the state of economy, state of business or policy framework of any automotive manufacturer and/or franchised automotive dealer group.
§ The contents of this report should not be viewed as commentary on the prospects of a particular manufacturer or brand as it is only intended to summarize the perceptions and opinions of respondents.
§ The contents of the report and analysis of responses should not be viewed in isolation, but in conjunction with the number of responses considered in the computation of the index and subsequent analysis.
§ ADCI methodology and this survey may be limited by significance of sample size or other statistical parameters. We advise reader discretion on matters such as these.
§ Sewells Group does not take the responsibility of or does not indemnify any user of the study against the impact of the decisions made taking into accounts the findings of this study.
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