Maruti’s compact SUV Vitara Brezza has helped it gain leadership in the utility vehicle segment during the first quarter dislodging for the first time incumbent Mahindra & Mahindra.

During the Q1 of this fiscal, Maruti’s UV sales stood at 57,125 units (up 45 per cent over previous Q1 when it sold 39,3480), while Mahindra & Mahindra’s slid 5 per cent with sales at 53,082 units (55,909 units).

Maruti sold more than M&M during April and May this fiscal.

However, in June, which had GST-related uncertainties, Mahindra’s sales were higher than Maruti.

In the first two months of this fiscal, Maruti’s market share in the UV segment grew to about 31 per cent from 23.6 per cent in March this year.

However, Mahindra’s market share fell to about 27 per cent from 30.7 per cent in March. UV sales averaged at about 70,000 units per month during the first two months of Q1.

“Maruti’s Brezza continues to be the largest selling UV since July 2016, and it has turned out to be a major growth driver for Maruti as well as the overall UV industry in FY-17. Thanks to strong demand of Brezza and ramp-up in production at Gujarat unit, Maruti could emerge as the largest UV player in FY-18, a position held by M&M since last decade,” according to Subrata Ray, Group Vice-President – Corporate Ratings, Icra Ltd.

Echoing his views, an auto analyst from a leading broking house said that Brezza would continue its momentum with price reduction due to GST.

There is no big competition to Brezza at that price category now.

The scenario is likely to continue till some exciting new UV launches happen in the compact SUV segment.

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